Posted: Fri Jul 13, 2007 2:14 pm Post subject: Referrals from Loan Officers
Hi, I'm new to the insurance business but have found that Loan Officers tend to be a good steady source of leads for insurance agents...specifically me. Anyhow, I'm wondering if it is ok to give the Loan Officer a $50 Gift card for every client they send me and I underwrite. Just an incentive to keep coming back because of the fierce competition out there. I am in Texas and know every state has different laws governing insurance. Has anybody else had any experience with this or have any advice? Thanks! _________________ Register Now to have your Insurance queries solved.
Posted: Mon Jul 16, 2007 5:28 am Post subject: Hardly makes any difference..
Quote:
Just an incentive to keep coming back because of the fierce competition out there
>>>Let me just tell you that there is no short-cut method to retain these people. Whether you spend $50 or not hardly makes difference when your underwriting service is perfectly in place.
I personally feel that longterm relations would automatically be generated through betterment of your work processes, as people would keep referring your name and remember you for that only!
Posted: Mon Jul 16, 2007 5:45 am Post subject: gifts to the loan officers
For a newcomer to the insurance industry building up relation with the loan officers may prove beneficial. But in the long run only your service will generate the business for you. Insurance is a kind of business which runs on public relations. If you are able to understand the needs of your customers and can help them with the right kind of policies, you will find no hardship in getting leads. So try to build up good relationship with your customers.
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Posted: Mon Jul 16, 2007 5:46 am Post subject: seems..violation of compliance guidelines
Yeah, that might well be looked upon as a violation of compliance guidelines in Texas. I'd rather request you to depend on your own merits as someone rightly pointed out...but yes, you may obviously offer gifts in kind once in a while when you've already developed a longterm bondage with someone.
But yes, that should never come as a process. Thanks, Fatman
It is not OK to give the loan officer gifts for the leads they are giving to you. The Federal law acknowledges this kind of activities as illegal. The law requires the loan officers to disclose all the costs involved in obtaining the loan so that the customer can make their choices accordingly. And your nexus with the loan officers are deriving them of that.
It is true that the market is becoming very competitive everyday but I think there are several other ways of generating leads then performing something illegal. This, if disclosed in the future may also cause a damage to your career.
Something you should know about loan officers, particularly ones that you are trying to start new relationships with...
Loan officers most likely already know another agent, so if they're calling with you something it is possible they are calling you with something that is undesireable to their other agent. For example, a vacant property that they want a homeowners policy on. Or a client that they think might be claims-happy.
This is not to say that all loan officers will do this, but from my experiences some of them don't deliver what they promise, some of them deliver garbage, and a select few are geniunely interested in their clients well being and they will refer them to you if they feel you are going to give them the same wonderful treatment.
But, keep in mind many of these loan officers only expect to work with a person once so they're more concerned with just getting the deal settled than with making a long-lasting relationship with the client.
Posted: Tue Jul 17, 2007 8:20 pm Post subject: insurance for catering onsite
I'm really needing insurance for my new catering business before I start operation. Anyone have any names or numbers, please reply. I'm in Louisiana. thanx _________________ Register Now to have your Insurance queries solved.
Posted: Mon Jul 30, 2007 8:34 pm Post subject: Referral Gifts for Loan Officers
I wanted you to know that, as far as I know, It is ok and legal to give referral gifts to loan officers. One other person said it is illegal...that is untrue. It Is illegal for a Title Company to give a gift to a Loan Officer for settlement services (Against RESPA)
I work for a large company, State Farm, in TX also. My company has looked at this closely and has set the maximum gift at $25 (I don't know if this is a requirement) Also, State Farm has said that the gift cannot be dependent on a sale, ie: you have to give the gift to everyone who refers you business not just for situations where you write the business. (again, this is mandated by my company...I don't know if this is a state requirement)
Hope this helps.... _________________ Register Now to have your Insurance queries solved.
First of all, depending on which state you hold your resident license in, it could easily be considered rebating. I am assuming you live in the States, and every state has laws surrounding "giving something of value to an intermediary," in this case, the loan officer or originator.
If you tell me your state of residency, I'd be happy to research the law and let you know what's up.
In the meanwhile, don't do it until you find out the law and any subsequent rules. All states have some sort of rule on it, and in certain states- it's blatantly illegal.
Remember...insurance is a state-regulated activity, and only deals with federal law in certain instances. Most of the laws and rules on insurance, including compensation, are state-driven. Laws dealing with real estate, including loan processors, have certain federal laws that apply, such as federal fair housing laws, but still deal state by state on most things. Just about every state has their laws and rules available online, just Google your state's insurance or real estate division. Look for what's normally called the "laws and rules" icon, and research away.
If it is not broken don't fix it. If this loan officer is sending you leads on a regular basis don't worry about it. The only thing you may consider is retunring the favor when possible. If you know somebody looking for a loan then send them to him. Then he will respect it. I am sure he just wants someone worthy to take care of his customers in a timely manner. _________________ Register Now to have your Insurance queries solved.
Posted: Thu Oct 04, 2007 3:48 pm Post subject: Reply to Insteacher
I live in Texas. Thanks for all the responses. There still looks like there is a 50-50 debate over the subject. _________________ Register Now to have your Insurance queries solved.
Having a reciprocal relationship with a loan officer is perfectly legal. But guaranteeing a gift upon refferal is illegal, and the loan officer mandating that their borrower get their insurance policies through you is illegal.
Giving this loan officer a gift certificate (in the event of a 'sale') is considered a kick back, and in CT it is illegal as well. However, I'm sure the loan officer would be more than happy to recommend clients to use as long as you are recommending homebuyers to him/her. Additionally, forget the loan officer, build a relationship with the the firm as a whole. Networking has never been illegal, only kickbacks have been. Overall, you are doing nothing wrong, just be careful how you word things and never make promises. _________________ My Homepage and my blog
http://www.estreetloans.com http://www.estreetloans.com/weblog
I was a Loan officer in my previous life and I can tell you as a loan officer accepting any gift from a referral source will be in violation of RESPA, which is federally regulated.
I had built a few strategic alliances with Insurance agents and I would never expect anything in return from the agent except exceptional service. In fact when the agents gave me exceptional service I felt as though I should give them a kick back.
I think targeting Loan officers is a great opportunity for gaining referrals for hazard insurance, and if you feel obligated to give the loan officer a little something, try referring them one of your clients.
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