Working to help LOs and Builders in light of the market. The builder would like to put one of our lenders as a 'preferred' lender. He is even willing to post one of our typical newspaper ads on his site for his customers. Lots of concerns on Section 8 for the free advertising. Anyone have success with this? And by success I mean from examiners not in loan volume!

one of our lenders as a 'preferred' lender

I would nix it strictly based on this.

Why is the builder only naming this one MLO when the bank as a whole is the lender? Loan originators, regardless if commercial, consumer or mortgage are not lenders.

IMO you are correct to be concerned with the Sec. 8 implications

It would list the Bank as the preferred lender, with reference to the specific LO and a link to his web page for more info, which is part of the Bank's web page. Not sure it makes me feel that much better about it but wanted to be clear

with reference to the specific LO and a link to his web page

Again, why is this specific MLO being singled out? I can think of no legitimate reason for singling out a specific MLO outside of a new MLO that the FI is wanting to get introduced to the public.

"Thing of value" has the possability of being a Secrion 8 violation.
Penalties are fine to $10,000, or 1 year in jail for both parties.
OK, who may tattle??? might be your next question.
ANY of your COMPETITORS.

No referral fees. No person shall give and no person shall accept any fee, kickback or other thing of value pursuant to any agreement or understanding, oral or otherwise,

and
Thing of value. This term is broadly defined in section 3(2) of RESPA (12 U.S.C. 2602(2)). It includes, without limitation, monies, things, discounts, salaries, commissions, fees, duplicate payments of a charge, stock, dividends, distributions of partnership profits, franchise royalties, credits representing monies that may be paid at a future date, the opportunity to participate in a money-making program, retained or increased earnings, increased equity in a parent or subsidiary entity, special bank deposits or accounts, special or unusual banking terms, services of all types at special or free rates, sales or rentals at special prices or rates, lease or rental payments based in whole or in part on the amount of business referred, trips and payment of another person's expenses, or reduction in credit against an existing obligation. The term “payment” is used throughout §§1024.14 and 1024.15 as synonymous with the giving or receiving of any “thing of value” and does not require transfer of money.

Has anyone volunteered to do the year at Club Fed if this turns out to be a Section 8 violation?