Two for Tuesday – LO Comp and Borrower Paid!

#TwoforTuesday – Some great conversations happening out there recently and wanted to highlight some conversations recently about LO comp and Borrower paid transactions.  Assuming you are a LO at a Broker shop, whom does TPO business, you still have to have a set compensation agreement for all loans.  The Broker is allowed to incentivize you based on volume, however, for the most part you are to be paid the same amount on all deals.  Borrower paid or Lender paid!

Now I am not a lawyer by any means, I just make sense out of these laws and attempt to spread the word.  As an AE, no LO should be in a position where they “send” loans to any one lender to be brokered and be paid “more” for doing so.  The LO should be picking the best lender for the given loan and borrowers situation.  AND that doesn’t mean the lowest rate or highest spread.  There’s customer service, there’s turn times, there’s a handful of other things that could be taken into consideration.  Rate doesn’t dictate the “best option” for your client.  Period.

Second point today, Borrower paid transactions.  If you are a LO, and you have a set comp plan with a Broker, and decide to go borrower paid, you should still be “making” enough to cover that comp plan.  OR the Broker should put a clause in their comp plan to LO’s that states they are not allowed to charge less than the agreed upon comp per deal.  That way the “house” never has to pay out of pocket to pay the LO.  That’s not good business obviously.

I am expanding and still helping new Broker’s in 2018 to grow their business.  I am not a typical AE, what I do is help my broker’s actually source business.  So not only do I help with guidelines, scenario’s and pushing your existing loans to the table, I help you learn to source new business.  And I do it online, where I teach Broker’s how to expand their referral network, and help their business grow.  More leads = More closings.  If you’re struggling with business, or just happen to be on a mission to grow this year, I’d like to work with you.  CLICK HERE and we can chat! #SellWell

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