One of my loan officer is requesting if he can create marketing flyers to target market real estate agents.
He wants to market 1% lender credit of the loan amount to the buyers to grab the attention of the real estate agents.
Is this prohibited? Will this be a form of steering?
If not, what steps can he take to ensure we are compliant, re marketing flyer??

No problem on the surface, but what buyers are going to actually get the 1% credit? Just those that go through that select broker? Sounds like you need to look at this from a fair lending perspective and not RESPA.

The buyers are going to get the 1% credit. I'll try to dig more and see if I can come up with any possible issues per Fair Lending.
thanks Randy.

Fair lending agreed. Especially when your costs on a 50k loan and a 400k loan don't vary much, but the residual cost to the borrower will.

Also consider what will your credit cover: will they get the 1% even if it exceeds the costs? up to and only costs incurred? everything but prepaids? Be very clear otherwise you have UDAAP creep too.

I will tell the loan officer no due to fair lending. Thanks.