Currently we base our LO compensation on a % of the loan amount (in addition to their normal salary). We have had a couple of secondary market loans that due to LO errors in pricing we have lost money. Management is wanting to know if we have to pay our LO's on all loans they originate or if it can be on all loans either where we make a profit or make a certain amount of profit.

Thoughts?

How is that not basing the payments on the terms of the loan???

That was my thought but wanted to get a second opinion...

Thanks for the response!