We act as a broker for two 3rd party investors. We can do either borrower paid (where the borrower pays us directly through our origination fee) or we can do lender paid (where we contract with the 3rd party investor for a set amount on each loan)
I've been asked can we change this pricing per product type? For example if we want on borrower paid to increase/decrease our origination fee for our jumbo product, can we?
Or, if we have an agreement with the 3rd party, can there be a seperate agreement for jumbo loans with different compensation?

Anybody willing to offer their suggestions? Any feedback is much appreciated.

Maybe if I put a different spin on it - it might help -
Ok, if we decided to charge a lower origination rate for our jumbo products,
one could say that we were trying to pay our loan originators more (since we pay lo's based on volume) and that we were trying to get higher $ loans with a reduced origination fee and thereby causing the payment to the lo's to be more.
I could see that argument. However if we documented that the reason for the lower origination rate for these jumbo loans was from competitive pressures, would this be ok?

What do origination fees and LO compensation have in common to begin with?? I guess I must be missing something???

Are you referring to compensating differently based on product type in regards to the LO Compensation rules? If yes, try this thread: http://www.bankersonline.com/forum/ubbthreads.php?ubb=showflat&Number=1818427

ETA: This assumes you are compensating the lenders differently based on the different products, not just collecting origiation fees to the bank (see Randy's comment/question).

If we pay our LO's based on volume and we set an origination fee lower for jumbo's then in essence our loan originators making more $ and they may be more aggresive for these type loans to earn more $.
Guess it's really more about being able to defend why you would do it than anything.

Oh and aren't we as the bank, working as a broker, defined as a loan originator
and doesn't the rule say you can't pay a loan originator different rates for different product types? (The bank, as the loan originator, would be receiving the origination fee as compensation)
Am I looking at this all wrong?

Randy and manimal, are we as the bank considered a loan originator if we act as a broker?