Insurance/Realty/Mortgages

[FL P&C Broker]

Nothing illegal as long as services are performed. The agent has to perform certain services. They can't simply just refer business and get paid. RESPA says as long as the person receiving the commission performs certain services they can receive commissions. Again RESPA can't deny someone commissions for work performed. That's where people get in trouble. They get kick backs for doing absolutely nothing.

I would care less about what RESPA says and more about what the state insurance law is, which probably says on the lines that only licensed insurance agents can receive commission on the sale of an insurance policy.

 

[AIRECS]

Yes exactly. All of our members are licensed in insurance and real estate. We don't pay commissions to anyone that is not licensed. In some states like Ohio and Philadelphia it is very common for real estate companies to offer insurance and real estate.

 

[max martin]

thank you for sharing, it is legal the business firm has to perform service. But for more detail you can contact to a adviser. calihomelending.com

 

[AIRECS]

It is not illegal. The agent is licensed with our firm and they disclose that to the client as well as any commissions they may receive. Again if they are performing all of the normal duties and services for that product offering it is not illegal.

 

[txagt39]

Anyone have any experience combining all three of these ventures? Or maybe have some examples of other companies that are having success with this? I don't see a lot of it, but I know it's out there. I'm curious as to how one would structure this, with one company or multiple companies and a DBA.

I offer insurance and real estate services, no interest in combining the mortgage end of it unless there was a partner out there that would be reliable and work within the laws ethically. Too much can sometimes be too much. The insurance/real estate combination is working great.

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I would care less about what RESPA says and more about what the state insurance law is, which probably says on the lines that only licensed insurance agents can receive commission on the sale of an insurance policy.

That is correct for Texas.

 

[agentinsouth]

I offer insurance and real estate services, no interest in combining the mortgage end of it unless there was a partner out there that would be reliable and work within the laws ethically. Too much can sometimes be too much. The insurance/real estate combination is working great. ---------- That is correct for Texas.

What is interesting is most everyone is correct... 1. You can't share commissions w/ out a license.
2. It is 100% against RESPA for a mortgage broker, REALTOR, Closing Attorney, inspector, or insurance agent to give referral fees or share commissions for any closing.
3. When I talked w/ an auditor, she went on to say they are not happy w/ most of the "marketing" agreement and prefer not to see them anymore.

 

[AboutThatLife]

What is interesting is most everyone is correct... 1. You can't share commissions w/ out a license.
2. It is 100% against RESPA for a mortgage broker, REALTOR, Closing Attorney, inspector, or insurance agent to give referral fees or share commissions for any closing.
3. When I talked w/ an auditor, she went on to say they are not happy w/ most of the "marketing" agreement and prefer not to see them anymore.

How is it illegal if you offered the realtor $10 for every referral? They aren't "sharing" in the sale because you might not close it.

 

[agentinsouth]

How is it illegal if you offered the realtor $10 for every referral? They aren't "sharing" in the sale because you might not close it.

One acronym - RESPA

 

[jhon sam]

thanks for the sharing link thank you

 

[HoosierLife]

I used to live in Jacksonville and was an LO a long time ago. 2008