Skip to content
BOL Conferences
Thread Options
#402540 - 08/12/05 02:13 PM Mortgage broker fee
P*Q Offline

Power Poster
P*Q
Joined: May 2001
Posts: 8,458
Somewhere
We have a mortgage broker that refers business to us and we pay him a percentage of the rate. I was looking at 24 CFR 3500.14 and didn't see this specifically since he's not a service provider.Is this prohibited under RESPA? Thanks.

Return to Top
Lending Compliance
#402541 - 08/12/05 02:24 PM Re: Mortgage broker fee
Rocky P Offline
Power Poster
Joined: Jun 2003
Posts: 7,650
Florida
PQ, you may be referring to a yield spread premium. If so, that is not illegal per HUD. I believe that a mortgage broker would be classified as a settlement service provider.

Return to Top
#402542 - 08/12/05 06:32 PM Re: Mortgage broker fee
P*Q Offline

Power Poster
P*Q
Joined: May 2001
Posts: 8,458
Somewhere
For those interested, I was referred to this FIL by someone I know and it's excellent and pretty much provided a whole bunch of information. Oh, and thanks SC-Bnkr for your response.

Return to Top
#402543 - 08/16/05 01:41 PM Re: Mortgage broker fee
Howard Lax Offline
Gold Star
Howard Lax
Joined: Jan 2002
Posts: 478
Bloomfield Hills, Michigan
_________________________
Howard A. Lax Lipson, Neilson, et. al. Bloomfield Hills, MI hlax@lipsonneilson.com

Return to Top

Moderator:  Andy_Z