• Banks and credit unions are valuable, often-overlooked referral sources because they engage with financially ready clients considering home purchases.
  • All referral activity must comply with the Real Estate Settlement Procedures Act (RESPA), which prohibits giving or receiving anything of value in exchange for referrals.
  • Focus on building relationships through education and value, such as co-hosting workshops, providing homebuyer resources, or collaborating on content.
  • Prioritize local, community-focused institutions, which are often more open to partnerships and relationship-driven referrals.
  • Maintain trust through professionalism and communication, and track referral success to strengthen and scale your bank partnerships over time.

For real estate agents, referrals may be the lifeblood of a strong and successful business. Whether they come from past clients, lenders, or fellow professionals, warm referrals may carry more weight than any cold lead or online ad. But there’s another potentially powerful source of referrals that many agents overlook, and that's local financial institutions.

Banks and credit unions are uniquely positioned to connect buyers and sellers with trustworthy agents. They interact with people at critical financial turning points, such as applying for loans, getting prequalified, or planning a major purchase, and many of those customers are gearing up for a home transaction.

By forming RESPA-compliant partnerships with banks and credit unions, you may be able to tap into a steady stream of qualified leads, build trust in the community, and expand your professional network.

Why Financial Institutions Are Valuable Referral Sources

Banks and credit unions often provide much more than checking accounts and auto loans. They may also be the first stop for consumers exploring major life decisions, and that includes buying or selling a home. Here’s why they make great referral partners for real estate agents:

  • Built-in trust: Customers already generally trust their MLOs. A referral from a bank may carry more weight than one from a generic source.
  • Financial readiness: Clients referred by banks may be prequalified or financially prepared to move forward with a transaction.
  • Long-term potential: Establishing strong relationships with branch managers or mortgage officers may lead to repeat referrals over time, because many of the MLOs often work in and/or support their local branches.
  • Community focus: Local institutions may be more relationship-driven and community-minded, aligning well with agents who prioritize personal service.
  • Grants and down payment assistance programs: Many banks offer home loan grants that can be used for down payment and closing cost assistance for eligible borrowers, and many of your existing clients may be able to benefit from these programs, depending on where they are buying or selling their property. You may have clients/listings today in your area that qualify for some of these programs, and when you partner with a bank or MLO, you gain access to these valuable resources, which could give you an edge in terms of winning clients over or selling your homes faster.

As a real estate agent, referrals may make up a significant portion of your ongoing business transactions. Exploring opportunities through client referrals and banks might provide you with an edge over your competition and increase the strength of your client base.

Compliance First: Understanding RESPA Rules

Before you begin building these relationships, it’s crucial to understand the legal boundaries. The Real Estate Settlement Procedures Act prohibits giving or receiving anything of value in exchange for referrals of settlement services, including real estate agent services.[1] In other words, you can’t pay a bank employee for a referral, and they can’t pay you either.

Here are a few RESPA-safe guidelines to follow:

  • No referral fees: Protect yourself by not offering compensation, gifts, or perks in exchange for leads.
  • Avoid implied agreements: Even if there’s no money changing hands, any agreement that implies an expectation of referrals in return for value provided may be problematic.
  • Joint marketing is allowed (with conditions): You may co-market with a bank, but the costs must be split fairly based on ad space or exposure, not referral potential. You can consider joint in-person events, online events, branding, and other collaborative approaches to work together.
  • Educational events are safe: Hosting workshops or financial literacy sessions together may be a compliant way to build relationships and visibility.

It may be valuable to consult with your legal counsel before entering into any referral-related agreements with a financial institution to help ensure you're staying compliant and reducing any potential risks and misunderstandings.

How Real Estate Agents Can Build Bank Partnerships

Financial institutions often won’t refer clients to just anyone. To be considered a trusted partner, it's important to demonstrate professionalism, reliability, and value to both the institution and its customers. Here’s a step-by-step approach to make the most of that.

1. Identify the Right Institutions

Start by targeting community banks and credit unions, especially those without in-house real estate services. These institutions are typically more open to outside partnerships and more focused on community support. You can consider looking for branches located in your key markets, mortgage officers who frequently work with first-time buyers, and institutions that host community events or sponsor educational initiatives.

2. Make the First Contact Personal

When you're ready to reach out, consider skipping the cold pitch and stopping by the branch to introduce yourself. Additionally, you may want to attend networking events or local chamber of commerce meetings, and leverage any mutual connections to set up a warm introduction. 

When you do start a conversation with a financial institution, it's generally best to avoid leading with what's in it for you as an agent. Instead, you may want to ask how you can help the bank's clients navigate the homebuying process, whether the financial institution would be open to co-hosting an educational event, or invite the local branch manager or MLO to one of your upcoming open houses.

3. Offer Real Value (Without Crossing Lines)

Instead of focusing on client referrals and banks, center your approach around value creation. There are several RESPA-compliant ways to do that, including educational content. For example, you may want to provide the bank with helpful resources, such as homebuying checklists or local market guides, that they can share with customers.

Additionally, consider workshops or seminars, such as co-hosting a first-time homebuyer event or housing market Q&A. You may position this as a public service and not a sales pitch. 

Social collaboration is another way to partner with a financial institution. By sharing one another's social media posts about events or helpful tips, you may help both brands gain exposure without crossing any lines or creating risk.

Along with these options, you may want to build on collaborative efforts by teaching MLOs what to listen for when clients are considering buying or selling a home, or consider bringing your own clients to the branch for an introduction to the MLO or bank partners. The referral process is often a two-way street, where you should be both receiving referrals and generating referrals.

How to Build Trust and Stay Top-of-Mind

Referral partnerships thrive on consistent effort and communication, not quick wins. To keep your relationship strong, deliver excellent service to all the clients who come through your doors or reach out online. If a banker refers a client and that client has a poor experience, the partnership may fall apart.

Additionally, communicate regularly and keep the bank or MLO in the loop about shared clients, respecting confidentiality but showing that you're engaged and professional. When a transaction closes, follow up and let your partner know how it turned out. A quick thank-you email and update go a long way.

Always ensure that you're staying compliant and avoid suggesting any compensation or kickback. Instead, show your appreciation with results and professionalism, so client referrals from banks have the opportunity to help your real estate business continue to grow.

Measuring Your Partnership Success

To know whether your bank partnerships are paying off, there are some metrics you can track. That may give you increased insight and information, so you know what's working and what might need to be adjusted for the future. As an example, you may want to track metrics such as:

  • The number of referrals you've received per month or per quarter
  • Your referral-to-transaction conversion rate
  • The number of repeat referrals from the same institution
  • Any uptick in inquiries after joint events or marketing

This data may be helpful to refine your approach, focus on your most productive partnerships, and identify where additional education or support might be needed. While you might not want to drop a collaboration with an institution that doesn't provide a lot of referrals, it's generally just good business sense to focus on the partnerships that bring in the most value for your real estate company.

Turning Education into Referrals

As an example of how you may be able to gain traction through client referrals from banks, you might want to consider helping local homebuyers learn more about the purchase process and what they may expect when they work with you and your bank partners.

If you're a real estate agent who frequently works with first-time buyers, you could partner with a local bank to offer a monthly "First-Time Homebuyer 101" webinar, promoted through their email list and social channels.

During the session, consider providing valuable, no-pressure information on topics like budgeting, making an offer, and working with an agent. At the end, you could then invite attendees to connect with you if they have further questions.

Over time, not only could you build visibility with the local bank's customer base, but the loan officers may begin referring clients to you directly because they’ve seen how knowledgeable and trustworthy you are. No kickbacks or contracts needed, just value and consistency.

Some Final Thoughts on Client Referrals and Banks

Partnering with financial institutions may be one of the most powerful, underutilized ways for real estate agents to build a sustainable referral pipeline. These relationships take time and care to develop, but when approached with integrity and strategy, they may lead to long-term business growth.

The key is to offer real value, focus on shared success, and stay firmly within RESPA-compliant boundaries. Banks and credit unions are always looking for partners who make their clients’ lives easier, and when you show them you can do that, they may see you as someone they can refer clients to again and again.

Interested in starting to grow your client base through bank partnership referrals? Find a local branch near you and make an introduction today. You could also find and connect with a local PNC MLO to learn more.