[Lori]

If you want to earn a broker-to-broker referral fee while handling a borrower’s mortgage in Kentucky, be sure to keep the real estate referral process completely separate from your mortgage loan officer pay and mortgage referral work.

Overview of the Kentucky Referral Payment Process

If You Identify a Kentucky Buyer Who is Not Currently Represented by a Real Estate Agent:

1. Connect the buyer with a Kentucky real estate agent by going through your Illinois sponsoring broker.
2. Make sure the Kentucky agent is connected to a Kentucky main broker.
3. Your Illinois sponsoring brokerage and the Kentucky brokerage will sign a referral agreement.
4. You’ll be named as the Illinois licensee who made the referral, while both brokerages handle the contracts and payment details.
5. The Kentucky broker will take over and work directly with the buyer.
6. Unless you have a valid Kentucky real estate license, you cannot show homes, make offers, or prepare contracts in Kentucky.
7. Once the purchase is complete, the Kentucky brokerage collects the buyer-side commission at closing.
8. Afterward, the Kentucky broker sends the agreed referral fee, usually 25%, to your Illinois sponsoring brokerage.
9. Your Illinois sponsoring brokerage will pay out your share of the referral fee based on your current agreement.
10. Kentucky laws allow Kentucky brokers to pay referral fees to brokers from other states for client referrals.
11. In Illinois, broker-to-broker payments are allowed; however, sponsored licensees must get paid only through their sponsoring broker.

So, the payment moves from the Kentucky principal broker or brokerage to your Illinois sponsoring broker or brokerage, and finally to you.

• You cannot receive the referral fee directly from the Kentucky agent.
• Likewise, your mortgage company cannot receive the referral fee directly from the Kentucky brokerage.

Here’s Simple Example to Show How the Referral Fee Process Works

Imagine a Kentucky buyer signs a contract to buy a $300,000 home. Suppose the Kentucky buyer’s brokerage earns a $7,500 commission at closing. Your referral agreement gives your Illinois brokerage 25% of that total commission.

A 25% Share of the Total Commission Breaks Down as Follows:

• Kentucky brokerage commission: $7,500
• Referral fee to the Illinois sponsoring brokerage: $1,875
• Referral income to you: $1,312.50
• Illinois sponsoring broker: $562.50

The sponsoring brokerage’s commission comes from the Kentucky brokerage’s commission, not from the referring broker. Both brokerages can agree on how to split the fee. The Kentucky brokerage decides how to share with its agent, and your Illinois brokerage decides how to share with you. Make sure the referral agreement clearly explains the fee distribution.

Be Sure to Clearly State How the Fee Split is Calculated, for Example:

“The referral fee is 25% of the gross real estate brokerage commission that the Receiving Broker earns and receives at closing from the transaction that involves the referred consumer and closes.”

Key RESPA Compliance Considerations

Federal law allows real estate agents and brokers to refer clients to each other. However, Regulation X states that this exception applies only when everyone is acting as a real estate broker. It does not cover fee deals between real estate brokers and mortgage brokers.

Management Must Comply with the Following Requirements:

• The referral fee is due because your Illinois real estate brokerage brought the consumer to the Kentucky real estate brokerage.
• The referral fee is paid at closing, whether the borrower uses you for the mortgage, chooses another lender, or pays cash.
• Choose which mortgage lender to engage, if any.
• Your loan compensation does not change just because the buyer works with the Kentucky real estate agent.
• You cannot pay, share, credit, or promise a real estate referral fee to another MLO for sending mortgage applicants.
• Do not make reciprocal deals, such as trading mortgage leads for real estate leads.
• If you waive the referral fee when a borrower chooses another lender, you create serious risk.
• Keep the real estate referral completely separate from any mortgage deal.

Illinois law requires you to tell clients about any third-party payment offers related to a deal. Always give a written notice to the consumer, even if you’re just introducing the parties.

Will the Managing Broker Get Paid?

They might be compensated, but neither Kentucky nor Illinois sets rules for exactly how that compensation should work.

There are Two Separate Ways Compensation is Handled:

1. For the Kentucky brokerage and agent:
2. The brokerage might treat the 25% referral fee as a cost, then share the rest with the agent or take it from the agent’s share.
3. This is completely up to the Kentucky brokerage and agent.
4. For your Illinois sponsoring brokerage and you:
5. Your brokerage may take a part, charge a fee, or pay you the full referral fee, depending on your written agreement.

Before You Make Your First Referral to a Kentucky Client,

Ask Your Illinois Sponsoring Broker These Questions:

• Does the brokerage accept out-of-state referral fees?
• How much will the brokerage pay out of the referral fee?
• Will there be transaction, E&O, compliance, or processing fees?
• Does the brokerage accept its own referral agreement?
• Does the brokerage accept borrower disclosure language?
• Is a real estate referral fee permitted from the transaction if I am also the MLO?

Forbidden Practices When Working with Other MLOs

• Do not ask other MLOs for paid borrower referrals.
• Do not offer referral fee splits, lead trading, joint marketing or advertising deals, free software, preferred-agent spots, meals, paid event entry, or any other valuable items in exchange.
• The Consumer Financial Protection Bureau (CFPB) has started investigations into whether mortgage-related referrals are connected to free subscriptions, event attendance, marketing chances, or other value-exchange deals.
• The CFPB focuses on the real nature of these deals, not just how they look, and the same rule applies to the behavior involved. outreach message as follows:
• Hello [Name],
• I am licensed and originate mortgage loans in several states, and I’m developing a consumer-facing tool to help people find a locally based, independently licensed real estate agent.
• This would not create a paid mortgage referral, lead exchange, or reciprocal referral agreement. In fact, neither you nor your organization would be compensated or receive leads, services at a discount, preferred placement, or anything of value for making a referral or for sharing this tool with a borrower.
• Every borrower is free to select any mortgage lender, real estate broker, title company, or settlement-service provider.
• Any real estate referral agreement, as and where permissible, would be handled separately by the licensed real estate brokerages and would not be disclosed to an MLO or linked to any real estate mortgage loan referrals.
• Please confirm with your organization’s compliance prior to sharing this tool with borrowers. I’m happy to provide the consumer disclosure and partner standards.
• With gratitude,
• ILLINOIS DUALLY LICENSED MLO – REAL ESTATE AGENT

Developing a Multi-State Real Estate Partner Directory

Create a broker-approved independent agent directory instead of a pay-to-play preferred lender partner program.

Your Directory Should Include:

• Verification of the current active status for the agent and brokerage license.
• Approval in writing from the agent’s managing or principal broker.
• A signed broker-to-broker referral agreement prior to the introduction of the borrower.
• Objective qualifications: service area, response time, buyer-agent experience, government-loan knowledge, disciplinary history, communication standards, and consumer reviews. not accept any payment for listing, ranking, or placement in the directory.
• Agents do not have to refer mortgages to us.
• The order of listings will not depend on mortgage referrals.
• A consumer choice and compensation disclosure.
• Written consent of the borrower to share loan-related information with an agent.

Verbiage on What Referring MLO-Realtor Can Do and Cannot Due

Building your 40-State Real Estate Partner Directory

• Build a broker-approved independent agent directory, not a pay-to-play “preferred lender partner” program.
• Do not use terms like “exclusive referral partner network” if joining requires mortgage referrals.
• Instead, use a term like: Independent Local Real Estate Agent Directory.

Independent Local Real Estate Agent Directory

The real estate professionals listed are independent licensees and brokerages. You are not required to use a listed real estate professional in order to apply for or obtain a mortgage through us. You may choose any real estate brokerage, lender, title company, or other provider.

Where permitted by law, our affiliated Illinois real estate brokerage may receive a referral fee from a brokerage you select if your transaction closes. This referral fee does not affect your mortgage rate, loan terms, fees, approval decision, or your freedom to choose providers.

No brokerage pays to appear in this directory. Listings are based on published service, licensing, and experience standards.

Best way to launch this

Start with Kentucky as a pilot, not all 40 states at once.

Have your attorney or compliance counsel prepare:

1. A master broker-to-broker referral agreement.
2. A state addendum for each destination state.
3. A borrower referral disclosure and consent form.
4. An MLO non-compensation and no-lead-exchange policy.
5. A directory listing agreement for participating brokerages.
6. A state-by-state matrix covering whether out-of-state broker referral fees are permitted, who may receive payment, advertising rules, disclosure rules, and any local restrictions.

Kentucky is favorable because its statute specifically permits a Kentucky broker to pay a referral fee to an out-of-state broker. Do not assume every other state follows the same rule. Kentucky also has Illinois reciprocity if you later decide you want to perform actual Kentucky brokerage work rather than referrals only.

A monthly monitor for Kentucky, Illinois, and CFPB referral-rule changes can flag material updates. Want me to set that up?

[Lori]

Sen. Ron Johnson led a Senate hearing examining claims about COVID-19 vaccine safety, cancer risks, and allegations that federal health agencies suppressed research and vaccine injury data. The hearing, titled “Plausible Mechanisms of COVID-19 Injections Causing Cancer and Attacks on Scientific Publications and Research,” featured testimony from medical experts, oncologists, and researchers with differing views on the evidence.
During a heated exchange, Johnson questioned witnesses about mRNA vaccine biodistribution, spike proteins found in tumors, DNA contamination claims, and reports of possible links between vaccination and cancer. Witnesses called for additional research while disputing whether existing evidence proves causation. The hearing also focused on transparency, vaccine injury reporting, and ongoing scientific debates surrounding long-term vaccine safety.

https://youtu.be/l84H3SzjF50?si=93fCws9FR6HPZEQu

[Lori]

Can you please explain a comprehensive overview step by step process on how to become a contract mortgage processing c9mpany? Do you need to be NMLS LICENSED, who do you contact to begin the process, can you become a mortgage broker and contract processor, how long is the timeline process from application to contract processing approval, when can you start business from time of application, does mortgage regulators allow temporary authority where you have a 120 day temporary authority from date of submission of mortgage broker NMLS application for contract processing?

[Lori]

Unfortunately many licensed MLO do not know the pros and cons between correspondent lenders and mortgage brokers. Please read the attached guide and i can follow up with any questions from your replies.

https://gustancho.com/correspondent-lending/

gustancho.com

Correspondent Lending Versus Mortgage Brokers

Correspondent Lending is when a mortgage sell the loans they fund on the secondary market to a larger wholesale mortgage banking company

[Lori]

Not all lenders are the same. Attached is an informative guide about types of mortgage lenders.

https://gustancho.com/types-of-mortgage-lenders/

gustancho.com

Types of Mortgage Lenders and How To Choose The Right One

The best types of mortgage lenders for lowest rates are mortgage brokers. Using brokers will get you the best rates and choices of loan products

[Lori]

Mortgage Broker vs Mortgage Lender. Please read the attached guide and i will explain the major differences between the two and pros and cons of each.

https://gustancho.com/mortgage-brokers-versus-lenders/

gustancho.com

Difference Between Mortgage Brokers Versus Lenders

Consumers have lower rates and mortgage loan options with mortgage brokers versus lenders due to a lower yield spread premium cap at 2.75%.

[Lori]

More than 80 Democratic lawmaker have called for invoking the 25th Amendment to remove Donald Trump from office, but supporters of that effort now include Alex Jones and Marjorie Taylor Greene. It’s an almost unthinkable long-shot, requiring buy-in from J.D. Vance, most of Trump’s cabinet and two-thirds of both branches of Congress. The burden is higher than impeachment, but it keeps gaining support. Top political scientist Norm Ornstein, who backed the effort in an essay in The Contrarian titled “Break Glass.” explains why he believes the time has come.

https://youtu.be/eIowB_GtTdM?si=CaafYl6Koq6_fRj4

[Lori]

MeidasTouch host Ben Meiselas reports on Donald Trump’s psychotic meltdown on Sunday after Iran refused his threats and demands and Trump is now saying he is imposing a complete naval blockade over the entire Persian Gulf.

https://youtu.be/aYWi1rr4o2o?si=jgdtXrCIevOV3PHZ

[Lori]

House Democrats, intensifying their push this week for President Trump’s Cabinet to invoke the 25th Amendment, allowing for his eventual removal from office. Those calls, following the President’s message this week, that the Iranian civilization would die, if the Strait of Hormuz was not reopened. Friday, Rep. Jamie Raskin upped the ante, calling on the President to take a cognitive exam and provide a detailed report on his physical and mental health. But invoking the 25th Amendment is not that simple, with more on it’s history, basis, and the implications of President Trump actually, though unlikely, being removed, Micah Ohlman and Courtney Friel are joined by KTLA Law and Politics Analyst Jessica Levinson. April 10, 2026.

https://youtu.be/dW7rasY8KnE?si=wgwWFC9O9g70XGDH