Question of the day...

Management wants to incentivize mortgage loan officers to bring in deposits. According to initial discussions, this will not be tied to loan in any way.

The LO will receive a percentage of deposits over a certain amount brought in by referring people to the deposit side.

It's not tied to loans... but is there an issue with this under the LO compensation rules?

TGIF...

eh?

bump - sorry I know its an unusual question in a forum not looked at all the time

Non-mortgage related compensation would just be a component of wages.

Well, it is not uncommon to want to develop a relationship vs just transactional business. Then you have a customer to whom you can sell other products. You actually can require a deposit account for a loan (the traditional banking product exemption) so merely trying to encourage customers to open an account should be fine.

I can't think of a problem with the "incentive" to the LO, but if I do will post back.

Randy posted while I rambled on. I have not been able to sign in for a while. Finally got it straightened out!

Thank you both. Didn't think it was an issue as not a proxy for the loans itself.. but wanted to double check.

Thank you very much