I'm trying to get a grasp of whether or not we can do this and I'm leaning to the answer that it will be okay since we are acting in the correspondent role, but I wanted others opinions before I make a bad call here....

We are considered the correspondent in the transaction (i.e. we fund the loan and then sale), therefore the bank is not considered a loan originator. So, if our mortgage loan officer wants to make a loan - that happens to be to her son - and she wants to charge an origination fee (of what will mostly, but not all, be paid by the seller) and also wants to reduce the SRP and provide a credit to the borrower to help with closing costs......is that okay? And the bank does compensate the mortgage loan officer with salary and incentives based on volumne. And, by the way, is that YSP and not SRP with adjusting the interest rates like that?..... I'm so confused now.