Rebate of Commission

  • A rebate or other monies paid on behalf of the licensee to their client should be paid through escrow upon specific written instructions of the broker.
  • The intent to pay such monies to a client should be reported to all parties involved.
  • Some loan programs do not allow such rebates.
  • “Cash Back” transactions are not appropriate unless the rebate is disclosed in the body of the contract; all parties (broker, loan officer, mortgage lender, title company, etc.) are fully aware of the monies being remitted to the client; and, the monies are clearly disclosed in the Closing Statement.
Persona: 
Investigations
FAQ Category: 
General Information for Consumers

Late Breaking News Sign Up