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.
Rocky P
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.
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.