Paying hte backup lender

Both loan officers should have quoted you up front what the costs were... The fact that one is a correspondent or not shouldn't matter... both lenders would underwrite, and it's a misconception that one would be better than the other.. Typical compensation varies based on the loan amount, but 3% is customary... I hope this helps... WilliamAcres.com

Its nice of you to want to compensate the LO that is not going to do the deal for you, but he cannot collect any fees from you that have not been disclosed to you upfront. It is illegal, and you will end up hurting his license rather than helping him. If you want to thank him, refer him to someone else.

Thank you Carlos! @William, REALLY???? What are you thinking? It is a direct violation of RESPA for a loan officer to accept any fees or enticements (gifts, etc) in connection with mortgage financing.It is very nice of you to think of compensating the mortgage consultant. Ultimately, you may understand per the responses from Carlos and myself why no lender is interested in being a "back up lender". It is unfortunate that you did not have faith in just one of the consultants as the other was simply wasting time. No offense, just the truth. I agree with Carlos, at least send some referrals! Blessings to you!