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peter
4543 Posts |
 Posted - 09/07/2008 : 7:21:27 PM
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The company where I work is an FHA approved broker but
we are told by one FHA lender A/E that we will not get SRP because
we are not mini eagle or full eagle lenders.
Are the mini eagle or full eagle getting the SRPs and
are they gettting the same percentage despite their
being mini eagle or full eagle, i.e. correspodent versus
direct endorsement lender. And from whom are they getting
the SRPs?
Peter
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SoCalRay
2698 Posts |
Posted - 09/07/2008 : 7:45:46 PM
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| Brokers do not receive SRP, They Receive YSP |
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MisterVA
6570 Posts |
Posted - 09/07/2008 : 7:55:49 PM
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| SRP or Service Release Premiums are paid when the servicing is sold. Premiums are also paid for servicing the loans even though the loans are sold. They [acquirers of the loans] don't want to be bothered with the collection of monthly payments on individual loans so they pay a servicing premium for someone else to do it. Big difference from YSP. Point is if you are not funding the loan, why should you expect to be paid something for a service you will not perform? |
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peter
4543 Posts |
Posted - 09/07/2008 : 7:56:57 PM
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Paul, yes I understand that. But does the mini eagle
or the full eagle receive the SRP in addition to the YSP
and from whom? Does the full eagle receive more than the
mini eagle?
Thanks,
Peter |
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MisterVA
6570 Posts |
Posted - 09/07/2008 : 7:58:39 PM
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quote:
Originally posted by peter
Paul, yes I understand that. But does the mini eagle
or the full eagle receive the SRP in addition to the YSP
and from whom? Does the full eagle receive more than the
mini eagle?
Thanks,
Peter
The basic principle has nothing to do with eagles or mini-eagles. It has to do with fundings of loans and closing in your own name without being table funded by another company. |
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peter
4543 Posts |
Posted - 09/07/2008 : 8:01:38 PM
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Mr.VA wrote:
"SRP or Service Release Premiums are paid when the servicing is sold. Premiums are also paid for servicing the loans even though the loans are sold. They [acquirers of the loans] don't want to be bothered with the collection of monthly payments on individual loans so they pay a servicing premium for someone else to do it. Big difference from YSP. Point is if you are not funding the loan, why should you expect to be paid something for a service you will not perform?"
Then, do the L/Os who work for the FHA lenders who sell the
servicing get his commision cut too, or the servicing lenders
keep the SRP to themselves?
Peter |
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MisterVA
6570 Posts |
Posted - 09/07/2008 : 8:05:30 PM
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| Let me put it simply: If you do not service the loans, that is collect the payments from the customers, pay out the escrow payments for taxes & insurance, forward the moneys to the owners of the loans, why should you expect to get paid a premium? I don't get part of the Realtor commission because I provided financing for the sale of a house. You get a commission based on the origination of the loan BECAUSE THAT IS ALL THAT YOU DO. You may get 'overage' for premium pricing, but that is it. And that is all you SHOULD get. |
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peter
4543 Posts |
Posted - 09/07/2008 : 8:59:52 PM
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Paul, I've got it. Thanks for your explanation.
Peter |
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KSCOTTMIDACAP
101 Posts |
Posted - 09/07/2008 : 9:01:04 PM
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Peter,
I think you may be confusing SRP for "volume bonuses." SRP is exactly what MisterVa described, and very rarley applies to us.(If you are are on the same level I am) If you are a mini eagle and have coorespondent relationships with banks, you may receive kickers, but that is usually a volume based incentive(volume bonus). Many people do refer to this as SRP, even though it is not. As far as there being a difference between mini and full eagle and SRP/volume bonuses, I am not priveledged to that info. I have researched whether being mini eagle or full eagle is the way i want to go, and have found one major difference. If you are a full eagle you not only fund your own loans, but underwrite your own deals via an inhouse DE underwriter. This is good in most situations, but by doing so, you are not allowed to broker FHA business. So if you have a deal that your UW/Owner/Funding line will not do, you cannot broker it to Security Atlantic.... |
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peter
4543 Posts |
Posted - 09/07/2008 : 9:09:07 PM
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Thanks, Ken, I never knew that there's such a thing like
a kicker or volume bonus. I am with a plain FHA approved
broker, not mini or full eagle.
I think unless you have a volume, it's better to remain
a broker for FHA loans as there are additional risks of
being a correspondent or mini eagle or full eagle where
you lose the flexibility of brokering your FHA loans.
Besides, being a correspondent or DE FHA lender, you need
to hire an underwritter and funder which are the fixed costs
of operations. It's the same for conventional loans, as we
used to be a correspondent in the 1990's and found out the
additional fixed and variable costs do not justify the
additional income.
Peter
Peter |
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KSCOTTMIDACAP
101 Posts |
Posted - 09/07/2008 : 9:19:40 PM
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Peter,
Yeah, we're doing about 3-4 million a month in FHA, so it pays to be a mini eagle set up as a coorespondent with a few investors. We don't need our own DE, can bank or broker, and god forbid we come across a deal that makes makes 5 or 6 points, we can actually close it. Just responded to a thread on the FNMA and Freddie buyout, would like all the input on that topic as possible....you should jump over there... |
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