Can an FHA approved lender pay a fee to a non-FHA approved lender for the referral of a borrower?

The lender, or any of the lender’s employees, must not pay or receive, or permit any other party involved in an FHA-insured mortgage transaction to pay or receive, any fee, kickback, compensation or thing of value to any person or entity in connection with an FHA-insured mortgage transaction, except for services actually performed and permitted by HUD. The lender must not pay a referral fee to any person or entity.

Handbook 4000.1 I.A.6.h is available at