---
title: "RESPA Section 8: Referral Fees"
description: RESPA Section 8 guidance on referral fees and when they can be used. Mortgage Loan information.
---

[Banker's Compliance Consulting Blog ](https://blog.bankerscompliance.com/en)

# [RESPA Section 8: Referral Fees](https://blog.bankerscompliance.com/en/respa-section-8-referral-fees)

 Written by [Kevin Edwards](https://blog.bankerscompliance.com/en/author/kevin-edwards) | Nov 27, 2023 7:06:41 PM

We get questions all the time about paying referral fees, whether that be to third parties or an institution’s employees. The answer usually lies in whatever regulation applies to the specific referral scenario. When it comes to the prohibition on paying referral fees in Section 8 of [RESPA](https://www.consumerfinance.gov/compliance/compliance-resources/mortgage-resources/real-estate-settlement-procedures-act/), this only applies with respect to mortgage loans. Section 8 says you can’t pay or receive a fee or thing of value for the referral of mortgage loan business, but there are some exemptions. For instance, RESPA says you can pay your own employees for mortgage loan referrals but not affiliates.

Kevin explains more in the video.

Video Highlights:

- Financial institutions are prohibited from accepting or giving a fee or thing of value in exchange for the referral of mortgage loans.
- There are exceptions to this rule, allowing incentives for employees and not affiliates.
- Gifts and promotional activity may be allowed if they are normal, non-conditioned and defray no expenses.

Published  
2023/11/27

 

[View full post](https://blog.bankerscompliance.com/en/respa-section-8-referral-fees)

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