Partnerships with Mortgage Co. to provide discounted loans to employee

[Guest TheMBDC]

My firm is contemplating adding to our program for our clients to offer special discounts on mortgage loans to their employees that people don't normally receive. The company can use this as an employee "perk", "benefit".

Is this something that companies would be interested in offering to their employees?

What would some of the critical points be that an HR Director would be looking for from the mortgage company in order to create this kind of partnership?

I don't want to come to the table unprepared. I appreciate any input. Thanks.

[KIP KRAUS]

Who is going to fund the difference between the real rate and the discounted rate, and what are the tax effects to the employee?

Is this legal in the state where you reside?

Why is your company thinking about doing this, is it hard to find qualified employees, or hard to hold on to the qualified employees?

If an employee can come to work get the discounted mortgage, leave the company and keep the discounted rate, why wouldn't they?

I don't believe there's that much loyalty by employees who are mobile.

By the way, I heard this morning thast 30 year mortgage rates are at 6 1/2%, which are the lowest in 20 years i think they said.

[GBurns]

I think that it could be a good idea to make a mortgage broker available to the employees.

If I were the HR Director (assuming that this is even a decision that could be made at this level). I would want to make sure that the mortgage broker had a very wide selection of funding sources so as to be able to handle almost every employee regardless of credit etc. and to ensure competitive rates etc.

The selected Mortgage broker would also have to have the same wide selection of Closing Agents etc.

I would definitely not use anyone who is restricted to or promotes only one source.