Do I need a licence to refer a borrower to lender, or a lender to a borrower, if I get a referral fee?
You do not need a licence to give referrals that provide limited information about a borrower to a potential lender (and vice versa), as long as you: • provide the nature of your relationship to the borrower or lender, • state that you are receiving compensation for providing the referral, and • provide the referral information that is allowed under the Mortgage Brokerages, Lenders and Administrators Act’s regulations. Note: The referrals that are allowed under section 1 of regulation 407/07 (Exemptions from the requirements to be licensed) are the name, address, telephone number, fax number, e-mail address and website address of the potential borrower/lender, or the individual who acts on behalf of the prospective borrower/lender.
Related Questions
- Can a lender collect from the borrower an appraisal fee of $200, listing the fee as such on the HUD-1, yet pay an independent appraiser $175 and collect the $25 difference?
- Do I get a referral fee for every additional contract the person I refer receives through Vencer Group?
- Can I refer potential merchants to DagangHalal.com and get referral fee?
