Mortgage bankers need leads. Real estate agents have them. That's why Internet-based loan origination programs are being so heavily marketed to real estate agents.
Some programs offer agents large origination fees for relatively little work.
On the consumer disclosure side, the act requires lenders to provide buyers and sellers with full disclosure of the costs of the transaction. That means consumers receive Special Information Booklets, Good Faith Estimates and HUD-1 Settlement Statements, all spelling out the charges to be incurred by the buyers and sellers. The idea here is to prevent the payment of kick-backs and other fees which drive up the costs of the product to consumers. The long and short of it is, that lenders may not pay, and real estate agents may not receive, fees for the referral of settlement service business. Here are a few of the more frequently asked questions about Internet-based loan origination programs and allowable compensation.