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renet
11 Posts |
 Posted - 07/31/2008 : 1:58:20 PM
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Loan Officers - Does your broker / branch include the SRP in your payable commission structure.
Below are various scenarios that exist in the mortgage business relating to SRP - Service Release Premium
Please share your personal scenario - You are invited to share the name of the brokerage / bank if they DO pass the SRP to the loan officer
* Loan Officer is not told about SRP and does not know what it is or even that it exists
* Loan officers knows of the SRP but brokerage does not pass it down to the payable commission
* Loan Office does know of SRP and brokerage does include SRP into payable commmission
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There are some valid reasons for the brokerage to pay out the srp and there also reasons not to. please chime in.
Company does not pay:
* Uses it to pad their pockets :)
* Pays out 100% or very high commission split and uses SRP to fund their operations and stay in business
* Pays out low, medium or high commission split and uses SRP for internal operating expenses.
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Company does pay SRP to LO's
* offers 100% split but takes .25% of the SRP amount and passes balance to LO
* offers 100% of SRP, Points, YSP with a 75% commission split
* offers 100% of SRP, Points, YSP and only charges a flat per file fee
* and any other combination of scenarios...
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The 100% Commission is a scenario that became popular in the 90's with the birth of the net branch industry. 100% sure gets an LO's attention. But, what they don't realize up front is that per file fees, hits against the SRP, not offering the SRP, etc... effective brings a commission down to sometimes 50%% or lower or higher depending on the overall commission agreement you have with your brokerage.
The company has to make money or they won't be here for long. You want to work with a stable brokerage / banker who will give you a fair commission structure but also allow the owners to eat and pay their bills and make some money for the risk of owning and operating a
business and providing the opportunity.
Some companies have lot's of overhead and there are a lot of LO's that need hand holding and enjoy going to a lavish office costing 10's of thousands of month to maintain.
While there are other types of L0's who do not need or enjoy that type of setting and would rather have that high overhead be put into their pocket and they would be happy to get their own humble office or work from home but be able to retain a much higher percentage of the commission.
Overall - an office that pays out a high split and also passes the srp to the LO will not be in a position to offer much support to the LO accept the very basics. This scenario would be best for a highly independent and experienced LO. No hand holding needed.
Please chime in with your thoughts on this topic. Glad to hear from you.
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Drigotas
602 Posts |
Posted - 07/31/2008 : 2:02:02 PM
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| I get SRP on anything I close correspondent |
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ownerop
389 Posts |
Posted - 07/31/2008 : 9:45:57 PM
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| I keep the first point on all FHA loans and LO's get paid their split on the rest including origination and discount points and rebate, I don't keep anything on conv loans; LO gets full split on total points. I pay my LO's b/t 65 and 70%. I know other companies offer more but they pad the rates and have first right of refusal so the LO is forced into using in house product and the house pads rate sheet heavily. I have a very low turnover because my LO's know I am honest and let them place the loan where they want, they also know my staff and I know our stuff and how to get deals closed. |
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