Lender referral fee to another lender?

[Ryan Taylor]

Hey all!

Wondering what type of rules there are around one lender paying another lender a predetermined bps referral fee upon close for referring a borrower that has been turned down from the bank?

I know under the Lender Compensation Rule or whatever it's called that you cannot explicitly pay or give something of value in exchange for a referral, but in this situation the lender being referred would not be paying on a per lead basis such as $50/referral. It would simply be a bps of the loan closed with another lender. And because it is a flat bps % on the loan, it wouldn't be a proxy/term/condition of the loan and  definitely not paid by the borrower.

Am I missing something? I don't think this would classify as a RESPA violation but I'm not an expert on the law.

Any help would be appreciated.