Reimburse the closing costs to borrower- Legal?

the general rule is to give a credit to the borrower at closing, if you need to reimburse a borrower after the closing you should check your state regulations first.

This is really a question for your manager/owner/compliance department. Legal advice should not be given on this site, nor should it be heeded if it is.

As stated by others, obtain legal/compliance advice from an attorney or your compliance department, but the only reason I can think of for reimbursing a borrower for expenses after closing is if an error was made at the closing and an intended credit was not given. Depending on the type of loan that could be a big red flag...

PS. The other question is whether the reimbursement is from company funds or from an individual - seems like a stickly situation and regardless of other advice I'd be extremely careful to document the reason and amount of the reimbursement. Make sure that also does not violate any product requirements too - such as limits to cash-back to the borrower ($2000/2% for conventional loans). You might need to do a principal payment instead of a check to the borrower. Careful...!

Typically no money should transfer hands from seller to buyer after closing. The customary process would have been to give the buyer closing costs at the closing table by giving them a credit from the seller.

Why would you work for free?

That doesn't even make sense. Why would someone pay closing costs if it is a "no closing cost" program?