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.

4 Comments
  1. Reply
    fukinluckyfuker
    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,

    Joe…

  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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