I have/had the same concerns as you guys have here. He pays all of your closing costs - it doesn't cost you anything to do this. Regarding your credit report, it will show a look by the bank every 4 months. I am not really worried about that.

I was also worried that something would change and he would no longer be able to do this, but he said that he's been doing this for 15 years and that he is following all of Fannie May rules and such...

The referrals that he gave me, and my friend (he's an American Airlines captain) have told me that they've had no problems, and that they've saved a ton of money.

I'm guessing that he gets you into very high interest rate loans so that the kickback is the highest. In my case (not a jumbo loan) he gives that rebate I talked about. The kickback must be high enough that he can pay your fees, give you the rebate, and make a profit. In the case of a jumbo, like my friend the pilot - he gets them into introductory rate loans that are between 1 and 2 percent and also keeps switching every 4 months as well.

I would be highly dubious about the whole thing if I didn't know my pilot friend so well. He's a pretty smart guy, and he swears by the money he saves doing this...

- Jon