Posted by ron on May 03, 2007 at 09:59:57:
My experience has been that it depends on state laws and how they pay you 1099 or w2. Also in some states its required that you inform the client that you will benefit from referring them to the mortgage company.
RESPA-Referral fees etc. from mortgage brokers? - Posted by Jim
Posted by Jim on May 03, 2007 at 09:28:51:
In regards to RESPA and mortgage brokers etc.
As a realestate investment company, if I refer a prospect to a mortgage company who does credit repair, and then they do on a mortgage on my client, can I ask them for a referral fee of $1,500 or a point etc.? or are they not allowed to do that anymore?
Thanks,
Re: RESPA-Referral fees - Posted by Patrick S. Lawson
Posted by Patrick S. Lawson on May 08, 2007 at 10:26:33:
No. HUD is very clear about the payment of unearned fees. If you are not going to be compliant don’t do it at all, it’s not worth 10 years in prison.
You can:
A. Charge a flat fee per “lead” (the fee cannot be contingent upon the loan closing).
B. Depending on the state you can work as a w2 employee of the lender and share the fees if you meet the min requirements.
Re: RESPA-Referral fees etc. from mtg broker - Posted by smithgall
Posted by smithgall on May 07, 2007 at 14:51:06:
My understanding is that the mortgage person has the legal burden here and not you. It is also my understanding that from a straight forward legal point of view its not legal for them to do that without disclosing it on the HUD. now of course like all things there are probably Shady McGrady ways of doing it. Of course you could look at it as if the mortgage person gives you and your clients top notch service which means you get your properties sold quicker and easier then they are doing you a favor already.
A good team is worth its weight in gold. Here is a another technique. Tell your broker to run an ad in the paper advertising homes for sale. Every leade is a great mortgage lead for him and then he refers them to you to fulfill the buyers needs. He takes on the cost and only forwards you qualified leads. WIN/WIN
Re: - Posted by Larry
Posted by Larry on May 06, 2007 at 19:00:51:
I can explain to you how you or any other investor can achieve that goal…email me so we can setup a conference call–thanks