Before You Refer a Mortgage Lead

Realtors often introduce clients to lenders they trust. Make an introduction in the client’s interest, with permission and without pressure. If anyone raises a payment, gift, marketing benefit, or other thing of value connected to sending business, pause and get compliance guidance before agreeing.

Know the general federal rule

For transactions covered by RESPA, Section 8 generally prohibits giving or accepting a fee, kickback, or thing of value under an agreement to refer settlement-service business. It also addresses splitting charges for settlement services when the recipient did not perform the services. The exact facts matter; labels like “marketing,” “commercial,” or “investor” do not decide the answer by themselves.

Regulation X has coverage exceptions, including certain extensions of credit primarily for business, commercial, or agricultural purposes. That is not blanket permission to pay for referrals. Loan purpose, property, transaction structure, state law, licensing rules, and other requirements may all matter. Do not assume an investor-property loan is exempt without qualified review.

Ask before accepting anything of value

• What specific service would I perform, and what work product would I provide?
• Is payment tied in any way to referrals, applications, closings, or loan volume?
• Does my broker or the lending company’s compliance team need to approve it?
• Do state real estate or mortgage laws add restrictions?
• How will the arrangement and any required disclosures be documented?

Keep client choice at the center

Offer a lender introduction as an option, not a condition of working with you. Do not suggest the client must use a particular lender, and do not share personal or financial details without permission.

General education, not legal advice. Confirm current federal, state, brokerage, and licensing requirements with qualified counsel or your compliance team.