Referral Fee Clarification

Clarification about the Lee Bank coupon sent in the previous Friday Recap… that ad should not be construed to mean any REALTOR would benefit for referring a buyer client in any way shape or form, nor will the discount necessarily result in lower net fees to your buyer.

First, section 8 of RESPA prohibits anyone from giving or accepting a fee, kickback or anything of value in exchange for referrals of settlement service business involving a federally related mortgage loan. Violations of Section 8’s anti-kickback provisions are harsh and subject to criminal and civil penalties.

Second, please make sure you recommend several providers of services to any buyer client asking for your advice, and please make sure your buyer clients are armed with factual information to assess rates, application fees, application fee reimbursement if they terminate an agreement due to inspection issues, points, and processing costs.  All vary considerably from each lending institution and can make a difference in the buyer’s bottom line.   Thank you!