Does anyone know of any prohibitions on making a donation to a public school or non-profit organizatoin based on each mortagage loan closing?

Example: Teacher Joan closes her loan with ABC Mortgage and ABC Mortgage in return sends a $250 check payable to her school for use as the school sees fit.

As long as the donations are not made because of a referral of business, you should be okay.

Is the donation an offer that you make to your loan applicants? In other words is it a - "Apply with ABC Mortgage, and we will donate $250 to your favorite school or charity upon closing" type of offer? If so, then you should be fine.

However, if the donation is made to the school because they referred to teachers for loans, then you have a Section 8 violation.