Is it legally permissible for a licensed Mortgage Loan Originator to offer to pay a referral fee to a real estate agent who sells property and refers his buyer/client to me for a mortgage loan?

No. If the real estate agent is not a licensed Mortgage Broker then the payment of the fee would be in violation of the Act. The Real Estate Agent is only exempt from the Act if he or she is not collecting any compensation in connection with the mortgage transaction except his or her real estate sales commission.

Additionally, Mortgage Lender or Broker licensees are subject to discipline under the Act for knowingly making a payment to an unlicensed (and not exempt) person. More.

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