What is the max for a mortgage broker Board may pay a loan officer?

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And what is the max Commission to an institution may pay a loan officer? Someone I know says he’s on a commission of 90%, but I think what the agent is left in control of operations, etc. to pay anything more. A branch usually pays a percentage to a broker + special treatment, sometimes for what I understand.

  1. Reply
    February 7, 2011 at 11:37 am

    In the end, it can really never be more than 75%.

    Anyone with a 90% plan is not getting a true 90% of the commissions generated, since you are right in that taxes and other costs would exceed 100%. They are either paying their own insurance, or the company is taking a “haircut” before the 90% is actually divvied out.

    Employer’s side of FICA is 7.65% or something like that. There’s rent, phone, utilities, supplies, processing and other overhead that needs to get paid somehow. And, if you want to have a job next month, the employer does need to actually profit enough to justify staying in business.

    None of which can be accomplished by paying out a true 90%.

  2. Reply
    Joe L
    February 7, 2011 at 12:35 pm

    Depends on the structure of the branch. If the branch is providing leads, than anything over 50% would be unheard of. However, in the case where all leads are mined and driven by the L.O., then a 90% split is high, but not out of the question. Especially if that firm is providing leads an offering a different split on firm generated leads. 90% is a great split for an L.O. either way. And of course depending on the state, taxes may not have to be paid as may L.O.’s are 1099.

  3. Reply
    Joe K
    February 7, 2011 at 12:52 pm

    Depends on how things are setup and how they legally can be setup. In Florida (can’t speak for any other states), if you are a licensed Mortgage Broker working for a mortgage company/lender – they can 1099 you – meaning YOU are responsible for all your taxes (both sides of FICA, etc.). I would agree with above, it would depend on what they are providing – are you working from “home/office” and paying someone who is NOT providing office services and you are generating the loans – well – you are only a click away from being the whole show anyhow and 80-90% seems fair.

    IF you have an office to go to, they are providing leads, they are paying their side of FICA, etc. – then it would be dramatically less.

    Just like I would advise someone looking for a lender – go and interview with several companies. Most importantly, talk to some of the other brokers who work for that company.

    Best of luck,


  4. Reply
    mortgage help
    February 7, 2011 at 1:36 pm

    it’s all b.s… and usually illegal the way they are set-up. be careful.

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