Comments on: I went to a mortgage whore, he said my life’s a bore

By: Jillayne Schlicke

Jillayne Schlicke — Sat, 20 Dec 2008 08:28:32 +0000

Hi Yoshiho,

Thanks for stopping by RCG.

“Her husband is a licensed LO but since he is very busy, she asked if I can do the file instead.”

That’s a great story. Good for you for holding your ground.

By: Yoshiho Takamoto

Yoshiho Takamoto — Sat, 20 Dec 2008 07:48:06 +0000

Hi Jillayne,

I ready this article and sadly I have to say I can relate. Because recently, I was asked by one of commercial loan officer to help her client who was interested in his residential refi. Her husband is a licensed LO but since he is very busy, she asked if I can do the file instead. However, she requested a ‘cut’ for this transaction because she think it is fair since I work in the same mortgage broker as her husband. When I got the referral from her and she asked for this request, I remembered the materials I studied for my LO license and told her it was illegal for me to pay a fee. She was little bit upset but she understood at the end. So, this story definately I can relate to my own situation.

By: Fee Splitting : National Association of Mortgage Fiduciaries

Fee Splitting : National Association of Mortgage Fiduciaries — Thu, 11 Dec 2008 23:44:55 +0000

[...] I recently wrote about a common question I often receive in which an unlicensed LO asks a licensed LO to act as the originator on a transaction, and pass part of the origination fee back to the unlicensed LO. Read the story here. [...]

By: Jillayne Schlicke

Jillayne Schlicke — Wed, 16 Apr 2008 22:25:48 +0000

Hi leanne,

I travel all over the U.S. and call Seattle home. I get over to the other side of the state about 4x/year. The majority of my classes are here in the Puget Sound area.

The reason why lender are not able to do this is because it is currently a violation of state and federal law.

By: leanne finlay

leanne finlay — Wed, 16 Apr 2008 22:20:12 +0000

Like Ardell, I’ve never had anyone lender, title, escrow, inspector, whatever, offer to pay me anything either. We work in a pretty savvy area, so maybe Jillanne’s getting questions from other areas of Washington where things run a little looser?

I do agree that loan companies should be able to pay each other a referral fee. I assume attorneys can pay each other referral fees, CPA’s too, so why no lenders?

By: Rhonda Porter

Rhonda Porter — Wed, 16 Apr 2008 19:43:40 +0000

I had an agent once ask me to pay him a fee if he took the loan application of his clients that he was sending to me. I declined and we don’t work together. He claims many LO’s do this…not this LO.

By: ARDELL

ARDELL — Wed, 16 Apr 2008 19:33:29 +0000

I’m also not the person to tell if you are cheating on your husband or wife LOL! Not because I will tell them, but because I will forever think less of you for having done so.

By: ARDELL

ARDELL — Wed, 16 Apr 2008 19:31:22 +0000

Going way back to when I started in the business in 1990 and through 93 or so, the company (coldwell banker at the time) used to pay agents $50 for placing a home warranty, before that system was changed. I once had a Title Rep offer me tickets to a ballgame that she couldn’t use, but I don’t like sports and declined. Never have I been offered a quid pro quo.

I recommend for the sake of recommending and many reasons…but money coming to me is not one of them nor an option. Nor do I see it being so for anyone, so if they do it, they at least have the sense not to tell me. I’m not the kind of person you tell those things to, and I think I’m the last person someone would tell for that reason. So my experience and knowledge on kickbacks and winks and nods is not likely the norm or a valid reflection of what may or may not be happening.

Jillayne likely hears more in classrooms than I ever will. Escrow people may see more than any agent will ever see, but likely wouldn’t say if the issue was “covered up” legally and gray.

By: biliruben

biliruben — Wed, 16 Apr 2008 19:29:47 +0000

Great to hear, Ardell. Thanks.

By: ARDELL

ARDELL — Wed, 16 Apr 2008 19:24:30 +0000

“You still haven’t answered my question.”

Sorry, thought you were talking to Jillayne. I have not seen anyone paying money back and forth between lenders and lenders, or lenders and agents, except in the legal manner I noted, that being affiliated business and shared profit or agent to agent referral where agent was also a lender.

I have never, ever had a lender ask me for a referral fee or pay me a referral fee, nor have I seen that happen.

The only time I have been offered and declined referral fees or finders fees from non-agents in 18 years were for odd services, like a security system provider or a roofer. Never from a home inspector, a lender, a title company, or an escrow company.