Question by set2goloans K: I have a financial services marketing company and a mortgage company has approached me to pay me 90% 1099?
I am not a license loan officer and recieve lots of leads. I would like to use the company which is licensed through department of corporations and department of realty and they said that I will get 20% as w2 pay and 70% as 1099 as a marketing expense. Guys is this kosher?
Best answer:
Answer by Kat
Doesn’t sound kosher to me. I don’t think you can be both an employee and a sub-contractor. Check with the labor board. They can give you the guidelines. I have been a loan office and Realtor for almost 10 yrs.
What do you think? Answer below!
Their offer is a violation of RESPA (Real Estate Settlement Procedures Act) sec 8.
They are only offering to pay on closed transactions. That is a referral fee, a Kickback, as defined by the law.
They can buy one or a bundle of leads and pay a flat fee regardless of whether they close a loan or not, that is a marketing fee.
Please turn them into the local office of HUD, the industry needs to be cleansed.
That’s a RESPA violation and you will go to federal prison and have a cellmate named Bruno.