I have a friend who has been offered employment and is unsure if the commission and fees are standard in the broker world as said friend hasn’t seen a contract like this before. I thought someone else might find this info helpful.
Commision is 50/50 split
Per file LO will pay
1. $995 administrative fee,
2. $1,000 processing fee which LO can pay, split or charge the borrower. LO will have access to a LOA and receive the LOS system and all other applicable processing systems/applications required. Files will be processed for LO.
3. $1,000 fee per file for processing as a new loan officer that LO can pay, split or charge the borrower (need to clarify, but I believe this is just the first year, if LO can be proficient faster and not need help of managing broker before 1 year training period is over)
4. Early Pay off retainer of $10,000 collected in $1,000 increments per closed loan paid back to LO 6 months after termination or separation of employment.
I would say this is very reasonable comp. It is not great nor is it too low. My guess is that with this comp comes solid support with both sales administration and processing. Additionally, I would hope there is a really strong producer / sales leader leading the branch and offering his / her services as mentor / coach / guideline guru.