Our institution is proposing, as part of the incentive compensation plan, to pay a referral fee to private bankers for referring mortgages to a MLO. They are looking to tier these referral fees based on loan amounts and based on loans that actually close. Loan amounts <1MM will receive one flat dollar amount and loans >1MM will receive a higher amount.
Looking for feedback on whether or not this would be an acceptable practice as the private bankers do not fall under the loan originator compensation rule since they are not acting as loan originators.

since they are not acting as loan originators

That will depend on what the private bankers discuss with their clients during the referral process.

https://files.consumerfinance.gov/f/201301_cfpb_final-rule_loan-originator-compensation.pdf

The Bureau is revising comment 36(a)-4 to clarify that the loan originator definition,
nevertheless, does not include persons who (whether or not for or in the expectation of
compensation or gain): (1) provide general explanations, information, or descriptions in response
to consumer queries, such as explaining terminology or lending policies; (2) as employees of a
creditor or loan originator, provide loan originator or creditor contact information in response to
the consumer’s request, provided that the employee does not discuss particular transaction terms
and does not refer the consumer, based on the employee’s assessment of the consumer’s
financial characteristics, to a particular loan originator or creditor seeking to originate particular
transactions to consumers with those financial characteristics; (3) describe product-related
services; or (4) explain or describe the steps that a consumer would need to take to obtain a credit
offer, including providing general clarification on qualifications or criteria that would need to be
met that is not specific to that consumer’s circumstances.

Make sure you don't pay on any FHA referral loans. HUD has a strict guideline on these.