Pass New York
Open navigation
Back to all terms
Mortgage brokerageSubject 18 of 19

Referral fee

Compensation paid for directing business or a customer to another provider.

Direct answer

What does Referral fee mean?

Compensation paid for directing business or a customer to another provider.

Exam cue: Real estate settlement, license and consumer-protection rules can prohibit unearned or undisclosed referral payments. Do not assume every referral payment is lawful.

What does it look like in a question?

New York example

A licensee declines a payment offered solely for sending a buyer to a settlement provider when the payment would violate applicable law.

Common exam trap

What should you not confuse it with?

A lawful payment for actual services is not analyzed solely by the label placed on it.

Related mortgage brokerage terms

BorrowerA person or entity that receives or seeks credit and promises repayment under the loan terms.LenderA person or entity that extends credit and is entitled to repayment under the loan agreement.Mortgage bankerA person or entity in the business of making mortgage loans with its own funds or a credit line, subject to applicable licensing or exemption rules.Mortgage brokerA person or entity that solicits, processes, places or negotiates mortgage loans for others rather than acting as the funding lender in the ordinary broker role.Mortgage loan originatorAn individual who, for compensation or expected gain, takes a residential mortgage application or offers or negotiates residential mortgage terms, subject to statutory exceptions.Table fundingA closing arrangement in which a loan is funded by an advance from another person and assigned at or around settlement, as defined by applicable lending rules.
Sources used2 references with section locators

The curriculum citation confirms exam scope. Definition and rule citations support the explanation itself. Links and locators were checked on August 26, 2026.

Keep learning

Put the term back into its full subject.

A definition helps with recall. The subject guide shows how the rule interacts with documents, scenarios, calculations and practice questions.

Study Mortgage Brokerage Try free practice