Hi-

I would like to know if there is a standard or accepted commission split between a mortgage broker and a loan officer that works under him/her. For example, the arrangement I have now is 1.5 points taken from the front is combined with the 2 points taken from the back (paid by lender). The resulting 3.5 points get 10% taken off top for misc expenses, then the rest is split 50/50. I am wandering if this is a decent deal, or is it worth it to look for a broker that pays more? Assuming I do not get leads or much support from the broker, perhaps it makes sense? Thanks for your help!!!

This is how I have my Loan Officers commission calculated right now.

Self Generated Leads and Referrals:
$1000 house fees for processing and office appliances etc.
0-15k in fees = 50%
15 - 25k in fees = 60%
25k+ in fees = 70%

For office generated leads I have the loan officer split his commission with the telemarketer.
The grass isnt always greener on the other side of the fence. Each company will have it's own catches. What it comes down to is how comfortable you are working with them. If you enjoy your work enviroment, chances are you'll have greater success.

Good Luck!

__________________
Ali Mirdamadi
Branch Manager
Royal Financial LLC

The Loan Officer Database Forum

The Home Flipping Guide

Contributor and author to The Scotsman Guide National Magazine

Thank you for your response! I have now realized how non-standardized this aspect of the industry really is... You will have as good of a deal with your broker as you are willing to go out and find or negotiate. Every broker has his or her own reason for being in business. Many of them do not include making you happy as an originator by providing support or leads or good commissions, or control over a transaction.

I have a good idea, originate for a commercial mortgage broker and get at least 30% of the closing commissions. Do the application paperwork and get 50%.

You do less but the figures are higher and so are the returns, work smarter not harder.