- 15,041
That was the SEC, not the DOI. Huge difference there. People at the DOI actually perform useful work. SEC and FINRA are a huge boil in need of a lancing which infects the financial industry.
Referral Fee Question
- Thread starter GreenSky
- Start date
That was the SEC, not the DOI. Huge difference there. People at the DOI actually perform useful work. SEC and FINRA are a huge boil in need of a lancing which infects the financial industry.
- 25,037
Why would an agent put this in writing?
If I send Mrs Garcia a thank you note for the referral to Mrs Solo. I would not mention if she bought or not. Not her business. If there happened to be a prepaid AmEx card in there???
If I send Mrs Garcia a thank you note for the referral to Mrs Solo. I would not mention if she bought or not. Not her business. If there happened to be a prepaid AmEx card in there???
- Thread starter
- #33
- 15,319
Is that why you sent me a thank you note for my referrral?
By the way, the prepaid AmEx card had already been used. But I do appreciate the thought.
Rick
- 15,041
Smartest thing said yet on this thread.
How likely do you think Mrs. Garcia is to say a word to anyone who would care about this?
- 25,037
Insurance Junkie
Expert
- 35
Along the same lines I work with many mortgage brokers that send me referrals. I have it worked out to compensate them if they get licensed in P&C. They work for various mortgage shops around town.
I just want them to pass their test, send me referrals, and I give them a split. I do not want them selling, quoting, really doing anything other than sending me the business. I have about 10 different brokers who are going to get licensed.
Any downside here? This is one of the biggest refinance booms in the last 5 years and I think this will allow me to capture a lot of business. I am the owner of the agency so I will be doing all the work and can afford the split. Any input is appreciated.
I just want them to pass their test, send me referrals, and I give them a split. I do not want them selling, quoting, really doing anything other than sending me the business. I have about 10 different brokers who are going to get licensed.
Any downside here? This is one of the biggest refinance booms in the last 5 years and I think this will allow me to capture a lot of business. I am the owner of the agency so I will be doing all the work and can afford the split. Any input is appreciated.
Depends who is interpreting what that day. Mortgage brokers can run afoul of RESPA laws if they take anything that appears to be a kickback. Most mortgage brokers, absent any real guidance on this type of arrangement, steer clear of it. Its not much money and the repurcussions can be huge.
You need to take a mortgage broker in your area out to lunch one day and talk with him about his business, how it works and what can you do to be on his approved vendor list. Passing yet another test and paying more in license fees probably isn't high on their list, but that's my guess, based on experience.
Dan
You need to take a mortgage broker in your area out to lunch one day and talk with him about his business, how it works and what can you do to be on his approved vendor list. Passing yet another test and paying more in license fees probably isn't high on their list, but that's my guess, based on experience.
Dan
Insurance Junkie
Expert
- 35
The main logistics we are working out is making sure RESPA and their lenders are good with it. The DOI won't have an issue b/c they are licensed agents.
Just don't want to jepordize anyone's career here. The mortgage broker will only be making $500-$1000 a month, but it will generate a lot of volume fast for me. Most will send me the business regardless b/c we have built trusting relationships and they know I take care of their clients.
Just don't want to jepordize anyone's career here. The mortgage broker will only be making $500-$1000 a month, but it will generate a lot of volume fast for me. Most will send me the business regardless b/c we have built trusting relationships and they know I take care of their clients.
$1000 a month????
Assuming they earn $100 per referral, that is 10 CLOSED referrals per month.
Now, a reality check. I don't know to many brokers who do 10 loans a month, much less have 10 that will need insurance and the client will let you replace what they have. Assuming they are refi's (not modifications, which brokers don't do so much anymore), they have existing insurance usually, which you have to replace. New purchases are usually a slam dunk, refi's not so much, though they are still great referrals.
Or are you talking larger broker houses that have several processors? In some ways, these are easier since the broker tends to be a bit greedier, but, its also harder to get in the door, or, someone will come along and offer more than you.
Dan
Assuming they earn $100 per referral, that is 10 CLOSED referrals per month.
Now, a reality check. I don't know to many brokers who do 10 loans a month, much less have 10 that will need insurance and the client will let you replace what they have. Assuming they are refi's (not modifications, which brokers don't do so much anymore), they have existing insurance usually, which you have to replace. New purchases are usually a slam dunk, refi's not so much, though they are still great referrals.
Or are you talking larger broker houses that have several processors? In some ways, these are easier since the broker tends to be a bit greedier, but, its also harder to get in the door, or, someone will come along and offer more than you.
Dan
