From what I have read, it is ok to give a gift to a mortgage customer, correct?

For example, our mortgage department wants to give a $500 local appliance store gift card to every borrower that closes a Mortgage loan with us.

This is permissable isn't it? Does it need to be disclosed anywhere on anything?

It is permissible (unless your State law would prohibit it). It would not be disclosed in the closing documents, if that is what you are asking. It would be consider miscellaneous income, so if you gave this customer another $100 of MISC income over the year you would trigger a 1099MISC.

Thanks rlcarey. Have a great day!