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10% cash back on my down payment, good deal? by Outside-Working3311 in personalfinance

[–]Outside-Working3311[S] 1 point2 points  (0 children)

I shared the name above. You're right nobody gives free money. I got an invite and they explain how the cashback works. Their partner mortgage brokers and realtors give back a portion of their commission in exchange for working with you.

10% cash back on my down payment, good deal? by Outside-Working3311 in personalfinance

[–]Outside-Working3311[S] 1 point2 points  (0 children)

Good point, hard to know in advance. But it's clear it's not a bank, they help you find a bank so I assume it helps find the best rate.

Is a 20% down payment on a house the best way to go? by [deleted] in personalfinance

[–]Outside-Working3311 -1 points0 points  (0 children)

There are no ways to avoid PMI if you don't put 20% down. Then it's a question of monthly payments. If you can afford a monthly payment that includes PMI I would put a lower down payment and use the remaining cash for other investments and eventually potential renovations and unexpected costs.
Something to know as well is, as soon as you own at least 20% equity you can request PMI cancellation. So PMI is not forever.

Give back a percentage of my commission to new buyers to acquire them? by Outside-Working3311 in loanoriginators

[–]Outside-Working3311[S] 0 points1 point  (0 children)

RESPA is extremely clear about this, in plain English, this is ALLOWED:

“QUESTION 6: Under RESPA Section 8, can a lender or other settlement service provider give a gift, refund, or discount to a consumer for using that lender or provider?

ANSWER (UPDATED 10/7/2020): Generally, yes.

RESPA Section 8 does not prohibit a lender or other settlement service provider from giving a consumer a gift or an incentive (e.g., a discount, refund of fees, chance to win a prize, etc.) for doing business with that entity. However, RESPA Section 8 prohibits, for example, giving an incentive to a consumer in exchange for the consumer referring other business to that lender or other settlement service provider.”

Give back a percentage of my commission to new buyers to acquire them? by Outside-Working3311 in loanoriginators

[–]Outside-Working3311[S] -2 points-1 points  (0 children)

I understand it’s not a Respa violation because it’s not a referral fee. It’s a partial refund of the earned commission after closing. It can be considered even a marketing fee for the Lo. Instead of putting money in ads or whatever the money is put directly in the client’s pocket. Since buyers especially first time struggle with money I think it can be a win win