referral rewards

[salsbury]

What is the name of your state? NJ
As a mortgage broker, am I permitted under RESPA law to offer a small (under $50) "reward" for referrals from previous customers? For example, can I tell a previous customer who closed with me that, if he refers a friend who closes with me, I'll give him two tickets to a ball game? If this is permitted in some states but not in others, please let me know as I do loans in states other than NJ as well.

[HUD-1]

I don't think it would be allowable, but this is not my area of expertise. Get something in writing from HUD BEFORE your proceed. From the HUD website:

Section 8: kickbacks, fee-splitting, unearned fees
Section 8 of RESPA prohibits anyone from giving or accepting a fee, kickback or any thing of value in exchange for referrals of settlement service business involving a federally related mortgage loan. In addition, RESPA prohibits fee splitting and receiving unearned fees for services not actually performed.
Violations of Section 8's anti-kickback, referral fees and unearned fees provisions of RESPA are subject to criminal and civil penalties. In a criminal case a person who violates Section 8 may be fined up to $10,000 and imprisoned up to one year. In a private law suit a person who violates Section 8 may be liable to the person charged for the settlement service an amount equal to three times the amount of the charge paid for the service.