PriceMyLoan Originator Compensation Webinar Slide Deck

8/7/2019 PriceMyLoan Originator Compensation Webinar Slide Deck

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March 15th, 2011



• Current Originator Compensation Models

• Originator Compensation Rules

• Allowable Compensation Plans

• New Originator Compensation Models

• Things To Look For In Your Technology

•

How PriceMyLoan Supports OriginatorCompensation Rules and Models

©2011 LendingQB



PriceMyLoan is a technology provider

The information provided in this webinar is

not to be considered legal counsel in any

way PriceMyLoan’s goals:

– Enable lenders to maintain compliance withregulatory requirements

– Develop technology solutions that enhance themanagement and implementation of originatorcompensation strategies

©2011 LendingQB



Fixed Margin

Example: Lender = 100 bps

Originator = varies based on final sales price

Percentage of Originator Profit

Example: 70/30 split Rate sheet price = 300 bps

Lender = 90 bps

Originator = 210 bps Combination of Fixed Margin + Percentage of

Originator Profit

©2011 LendingQB



Originator compensation cannot be based on

loan terms and conditions

Originators cannot receive compensation from

both borrower and lender

Mortgage brokers are prohibited from steering

borrowers to loans with less favorable terms in

order to increase compensation

©2011 LendingQB



Pay originators a fixed fee

Pay originators a proportion of loan amount

Pay originators a combination of fixed fee

and proportion of loan amount

Compensation plans can be adjusted over

time

©2011 LendingQB



How to create a compliant

compensation plan while keeping the

benefits of existing compensationplans.

©2011 LendingQB



Pass-Through Compensation Model

Borrower receives or pays any amount that is above or belowpar (after originator compensation)

Profitability is fixed per loan

Volume-driven strategy

Performance Tracking Model

Allow originators flexibility on a per loan basis whileprotecting lender overall profitability

Flexible profitability model

Sales-driven strategy

©2011 LendingQB



Lender makes fixed points per loan

Originator makes fixed points per loan

Excess points are used to either a) to pay down closing costs or b) as discount

points to the lender

Rate InvestorPoints

Investor $ Lender $(0.5 points)

Originator comp $

(0.5points)

Borrower $

6.375% -2.500 $12,500 $2,500 $2,500 $7,500.00

6.250% -2.250 $11,250 $2,500 $2,500 $6,250.00

6.125% -2.000 $10,000 $2,500 $2,500 $5,000.00

6.000% -1.750 $8,750 $2,500 $2,500 $3,750.00

5.875% -1.500 $7,500 $2,500 $2,500 $2,500.00

5.750% -1.250 $6,250 $2,500 $2,500 $1,250.00

5.625% -1.000 $5,000 $2,500 $2,500 $0.00

5.500% -0.750 $3,750 $2,500 $2,500 ($1,250.00)

5.375% -0.500 $2,500 $2,500 $2,500 ($2,500.00)

Loan Amount = $500,000

©2011 LendingQB



Lender “can” make fixed points per loan + Performance Funds

Originator is paid fixed points per loan

Originator can accumulate funds into a Performance Account to apply to future skinny deals

Transaction costs for loans that don’t close can also be deducted from the Performance Account

Rate InvestorPoints

Investor $ Lender $(0.25

points)

Credit toborrower

(for closingcosts)

Net profit Performance Basis $

Originatorcomp $

(0.5 points)

PerformanceAccount $

(basis - comp)

6.375% -2.500 $12,500 $1,250 $3,125 $8,125 $5,687.50 $2,500 $3,187.50

6.250% -2.250 $11,250 $1,250 $3,125 $6,875 $4,812.50 $2,500 $2,312.50

6.125% -2.000 $10,000 $1,250 $3,125 $5,625 $3,937.50 $2,500 $1,437.50

6.000% -1.750 $8,750 $1,250 $3,125 $4,375 $3,062.50 $2,500 $562.50

5.875% -1.500 $7,500 $1,250 $3,125 $3,125 $2,187.50 $2,500 ($312.50)

5.750% -1.250 $6,250 $1,250 $3,125 $1,875 $1,312.50 $2,500 ($1,187.50)

5.625% -1.000 $5,000 $1,250 $3,125 $625 $437.50 $2,500 ($2,062.50)5.500% -0.750 $3,750 $1,250 $3,125 ($625) ($437.50) $2,500 ($2,937.50)

5.375% -0.500 $2,500 $1,250 $3,125 ($1,875) ($1,312.50) $2,500 ($3,812.50)

Loan Amount = $500,000Cash Toward Closing Costs = $3,125Performance Basis = 70 percent of gross profit

©2011 LendingQB



A way to manage originator compensationplans on an individual basis

A way to automatically track changes made

to compensation plans A way to generate compensation reports for

Auditing purposes Profitability analysis Originator performance

Tools to help the originator make theoptimal decision

©2011 LendingQB



PriceMyLoan (www.pricemyloan.com)

Sales Contacts: (714) 957-6335

West: John Campbell, [email protected]

Central: Gigi Campbell, x2471

[email protected]

East: Susan Sheffer, x2473

[email protected]

©2011 LendingQB

http://www.pricemyloan.com/

mailto:[email protected]






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PriceMyLoan Originator Compensation Webinar Slide Deck

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