Expense Reimbursement In an effort to create both production incentives and attract employees, many lenders have used a practice of reimbursing certain expenses, such as lead services, contingent on production levels. This practice is, however, potentially unlawful. Indeed, HUD prohibits a lenders’ employees from being forced to pay business expenses. When a lender reimburses an expense to an employee it is essentially taking the position that it is a business expense. Thus, when the lender renders reimbursement contingent upon hitting a certain production threshold, it is advising the employee it will not reimburse for those business expenses. Read more on National Mortgage News.