We are a DENOVO. We have an agreement with a Mortgage company they pay us a flat fee for each lead we send them. They close the loan in our name and then sell it within a week to a thrid party. Is this loan required to be on the LAR. Also does the fee need to be disclosed on the HUD 1?

The entity making the credit decision reports the loan. See the broker rules in Appendix D of the A Guide to HMDA Reporting Getting it Right.

Do they only pay you the fee for the loans that are originated? If so, you have a Section 8 violation.

If they pay you for every lead, whether the lead originates or not, then that would be a "marketing" cost and I would think the fee would not need to be disclosed. However, I did not research this. I'm just speaking off the top of my head.