A New York real estate salesperson refers buyers to lenders in 2026 and takes nothing for it. Does the unpaid referral activity make the salesperson a mortgage broker under Article 12-D?
Correct Answer
A) Not deemed a mortgage broker, because no fee is accepted
A real estate broker or salesman is not deemed engaged in the business of a mortgage broker if no fee is accepted, directly or indirectly, for those services. Other choices: the carve-out turns on the fee; the form of the referral is not the test; and no referral count appears. Source: N.Y. Banking Law § 590(2)(b)
Why This Is the Correct Answer
A real estate broker or salesman is not deemed engaged in the business of a mortgage broker if no fee is accepted, directly or indirectly, for those services. Other choices: the carve-out turns on the fee; the form of the referral is not the test; and no referral count appears. Source: N.Y. Banking Law § 590(2)(b)
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