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#369934 - 06/06/05 09:15 PM Referral Fees and Auto Loan Programs
Anonymous
Unregistered

Are there any compliance issues involved with the bank funding a company's auto program and paying the company a referral fee ($250) per each closed loan.

Since it does involve RESPA (and kickbacks), I think we should be OK. Am I missing anything? Thanks for your help...

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General Discussion
#369935 - 06/06/05 09:39 PM Re: Referral Fees and Auto Loan Programs
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
This is "Free Enterprise" and RESPA only prohibits Free Enterprise on RESPA covered loans.
(OK, I was whining).

Short answer = OK.
_________________________
David Dickinson
http://www.bankerscompliance.com

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#369936 - 06/06/05 09:43 PM Re: Referral Fees and Auto Loan Programs
Anonymous
Unregistered

Daver...as usual...you saved the day!

Thanks Super Dave!

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