An affiliate is usually paid on the closing date.
Loan Types
- Auto / Vehicle
- Commercial
- Personal
- Small Business Administration (SBA)
Are Loan Referral Fees Legal?
Yes, for all loan types except residential mortgages. Due to the Real Estate Settlement Procedures Act (RESPA), specifically § 1024.14(b),
“No person shall give and no person shall accept any fee, kickback or other thing of value pursuant to any agreement or understanding, oral or otherwise, that business incident to or part of a settlement service involving a federally related mortgage loan shall be referred to any person.”