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#1977987 - 11/20/14 09:55 PM Working with a Broker
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Historically we haven't work with any brokers. We have been approached by a local group that is starting up a mortgage company and wants to serve as a broker to us.

Does anyone have any guidance or share any resources that can point us in the right direction? Not sure how/how much to compensate the broker, how much work they should do to earn that compensation, HMDA reporting (I assume we would since the loans would close in our name and we would underwrite), and I'm sure there is a ton more I'm not thinking of at this point.

Thanks in advance for any help!
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#1978013 - 11/20/14 11:30 PM Re: Working with a Broker Red Raiders
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Galveston, TX
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#1978090 - 11/21/14 02:51 PM Re: Working with a Broker Red Raiders
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Thanks for the article, Randy. That puts a little damper on how we had originally thought about compensation. Mgt was thinking like 25-50 bps (we normally make about 100 bps) based on the loan amount. Any idea what a reasonable fee would be today (assuming the broker performed at least six services as outlined)? The article references a bank doing $200 but that was several years ago.

Also, if anyone else has any info or articles that can be passed along I would greatly appreciate it. I want to make sure I have all of my bases covered with this.
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#1978110 - 11/21/14 03:05 PM Re: Working with a Broker Red Raiders
rlcarey Offline
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Reasonable compensation is going to be based on the going rates within your market place.

What I have never understood is how broker compensation can be pegged to a certain number of bps. The time and energy required to put a loan package together for a $100,000 versus a $1,000,000 is not ten fold.
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