If a mortgage loan originator is unable to close a loan application and refers it to another mortgage company, what compensation is the first loan originator entitled to?

The correct answer states that the first loan originator may be paid for services actually rendered, as long as the payment goes through the loan originator's PLM. This is because mortgage loan originators are typically entitled to receive compensation for the work they have performed, which may include tasks like processing, applying, or gathering information necessary for the loan application.

In scenarios where the originator refers the loan to another company, they can still be compensated for their initial efforts providing they follow the regulatory protocols related to compensation. The payment must be made through the loan originator's PLM to adhere to compliance and regulatory requirements governing compensation practices in the mortgage industry. This ensures that the compensation structure remains transparent and lawful.

Understanding this aspect of compensation is crucial in the lending environment, as it allows loan originators to receive recognition and potential payment for the work they have done prior to submitting a referral. This reflects fair practices within the lending industry and acknowledges the value of the services provided, even if the original loan does not close at their company.