As the title says, I am a little confused on multiple areas of referral fees. According to Section 8 of RESPA, if I am understanding it correctly, a Bank is allowed to pay a "referral fee" to a a Residential Mortgage Broker as long as he fills out the application and actually does 5 listed items to "earn" his or her fee. Disclosure must also be provided. However, where I am somewhat confused is in the following:
1. Do the same rules/restrictions apply for a licensed commerical mortgage broker?
2. Is a bank able to pay a referral fee to another professional( for example a CPA or an attorney)for providing a commercial or residential referral?(I am assuming that the CPA or attorney actually helps close the loan). If so, does RESPA apply to only residential deals or both?
3. Finally, there seems to be a growing number of company's, at least in NY, that are not licensed mortgage borkers, that are referring loans( both residential and commercial) to Banks and recieving fees for them. I was under the assumption this is not allowed, but I know of numerous Banks conducting business this way. Is this legal,and if so, what restrictions apply?
All opinions will be helpful, but please indicate where(a link would be great) you drawing your opinions from.
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"100 victories in 100 battles isnt the most skillful. Subduing the other's military w/o battle is the most skillful." Sun-Tzu