Zillow Advice: Mortgage - how much should a officer or broker charge for their services @ the closing? http://www.zillow.com/advice-thread/how-much-should-a-officer-or-broker-charge-for-their-services-the-closing/189174/ Zillow Advice | Zillow Real Estate .75% to 1.75% depending on ... http://www.zillow.com/advice-thread/how-much-should-a-officer-or-broker-charge-for-their-services-the-closing/189174/ .75% to 1.75% depending on <a href="http://www.zillow.com/mortgage/">loan</a> size.&nbsp; the bigger the loan the lower the %.&nbsp; At least that is my approach. Sat, 17 Jan 2009 22:45:00 GMT http://www.zillow.com/advice-thread/how-much-should-a-officer-or-broker-charge-for-their-services-the-closing/189174/ 2009-01-17T22:45:00Z Just to follow through...Are ... http://www.zillow.com/advice-thread/how-much-should-a-officer-or-broker-charge-for-their-services-the-closing/189174/ Just to follow through...<br/><br/>Are you then saying that your fees have to anticipate the possibility of the "other circumstances", and that I might otherwise qualify for a lower fee if I didn't have these issues (understanding, of course, that it is not possible for you to know until you check/verify)? Sat, 17 Jan 2009 22:21:00 GMT http://www.zillow.com/advice-thread/how-much-should-a-officer-or-broker-charge-for-their-services-the-closing/189174/ 2009-01-17T22:21:00Z "My assumption is that an ... http://www.zillow.com/advice-thread/how-much-should-a-officer-or-broker-charge-for-their-services-the-closing/189174/ <p>"My assumption is that an 80% LTV, conventional with full docs, good credit scores, and good DTI ratios is easier to push through the pipe than some others, but I could be wrong."<br/><br/>yes you are wrong. your mentioned scenario woudnt be ANY harder to push through with a 635 <a href="http://www.zillow.com/mortgage-glossary/FICO/">fico</a> a high dti and 95% LTV. as long as they get an underwriting "accept" and they can&nbsp;prove everything its just as easy.<br/><br/>My example was extreme but it was the point i was trying to make. Maybe it passed over heads. The point is... that 80% ltv, conventional, full doc, good credit, and good dti <a href="http://www.zillow.com/mortgage-glossary/Borrower/">borrower</a> can have (and often times does) other circumstances (i.e, divorce, title issue, undocumented income sources, property issues, credit issue, appraisal issue, job change, etc etc) that often come up and therefore arent slam dunks.<br/><br/>Often times we find out the issues AFTER we have already quoted the fees.</p><p>and no, Different <a href="http://www.zillow.com/mortgage/">loan</a> products do not require different kinds of work. Unless you are talking about FULL DOC vs REDUCED DOC but those arent loan programs.</p> Sat, 17 Jan 2009 20:59:00 GMT http://www.zillow.com/advice-thread/how-much-should-a-officer-or-broker-charge-for-their-services-the-closing/189174/ 2009-01-17T20:59:00Z socal...make room for me ... http://www.zillow.com/advice-thread/how-much-should-a-officer-or-broker-charge-for-their-services-the-closing/189174/ socal...make room for me in that foxhole, too!&nbsp; Call me pro-consumer, but compensation based on a&nbsp;%, without&nbsp;question,&nbsp;does conflict w/ the best interests of the <a href="http://www.zillow.com/mortgage-glossary/Borrower/">borrower</a> (mortgage transaction) and that of&nbsp;a buyer&nbsp;(realtor transaction).&nbsp; I haven't completely&nbsp;figured out the best comp structure for me and my clients just yet but flat-fee pricing is the&nbsp;path I'm on.&nbsp; As of now, I'm basing it on various tiers coinciding w/ conforming <a href="http://www.zillow.com/mortgage/">loan</a> limits.&nbsp; As loan amt breaks loan limit thresholds, difficulty increases in theory.&nbsp; But there are plenty of other attributes that add to difficulty including property type, occupancy, LTV, CLTV, FICO, etc...&nbsp; On the wholesale side, the <a href="http://www.zillow.com/directory/lenders/">lender</a> has pricing add-ons&nbsp;or incentives based on whether a loan attribute&nbsp;falls within or outside of ideal parameters.&nbsp; So...should I as a broker pass that along to the consumer?&nbsp; Maybe not...since&nbsp;most of us try to keep things super&nbsp;simple for the client.&nbsp; Should we have a base price w/ add-ons based on loan attributes?&nbsp; Should we bill by hour like attorneys?&nbsp; Like I said, I haven't found the answer yet.&nbsp; One thing is for certain...those of us who are fair w/ our pricing earn&nbsp;every penny of it!&nbsp; I'm certain this is to be continued...but I appreciate you sharing the perspective socal. Sat, 17 Jan 2009 20:48:00 GMT http://www.zillow.com/advice-thread/how-much-should-a-officer-or-broker-charge-for-their-services-the-closing/189174/ 2009-01-17T20:48:00Z Mikey said what?So, after ... http://www.zillow.com/advice-thread/how-much-should-a-officer-or-broker-charge-for-their-services-the-closing/189174/ Mikey said what?<br/><br/>So, after all that, it sounds to me like the pertinent facts would be...<br/>&nbsp; 1)&nbsp; Self-employed, may not have W-2s from employer<br/>&nbsp; 2)&nbsp; Robust, albeit complex, income sources<br/>&nbsp; 3)&nbsp; Possible DTI issues, depending on state of indebtedness on the 15 homes<br/>&nbsp;&nbsp;4)&nbsp; Depending on LTV on&nbsp;15 houses, these could be liabilities<br/>&nbsp; 5)&nbsp;&nbsp;Unsure of size of downpayment on the $750K house<br/>&nbsp; 6)&nbsp; How often does this&nbsp;type of scenario show up?<br/><br/>You still didn't answer my basic question of "Do different types of products require different levels-of-effort?". Put another way, "are some <a href="http://www.zillow.com/mortgage/">loan</a> products more difficult to work than others?". My assumption is that an 80% LTV, conventional with full docs, good credit scores, and good DTI ratios is easier to push through the pipe than some others, but I could be wrong.<br/><br/>As for the "nuclear physicist example", it's always possible to travel to the fringe of just about any scenario and find/create an exception to the rule. In my experience, this usually is indicative of an attempt to divert the discussion away from a weak point. Sat, 17 Jan 2009 20:35:00 GMT http://www.zillow.com/advice-thread/how-much-should-a-officer-or-broker-charge-for-their-services-the-closing/189174/ 2009-01-17T20:35:00Z "Assuming that different ... http://www.zillow.com/advice-thread/how-much-should-a-officer-or-broker-charge-for-their-services-the-closing/189174/ "Assuming that different products require differing levels-of-effort on the broker's part, then would it make sense to have different flat-rate fees for different products?"<br/><br/>The media ran wild with that type of thinking. Hell, even our national congressmen and senators believe it. They all think that "subprime" <a href="http://www.zillow.com/mortgage/">loans</a> were loans targeted at poor people and <a href="http://www.zillow.com/directory/lenders/">lenders</a> charged more for those type of loans. <br/><br/>If you are a self employed&nbsp;nuclear physicist and&nbsp;have controlling interests in a few different major professional sports teams and also generate income from book sales and speaking engagments&nbsp;and own 15 homes and your wife collects alimony and child support from 5 different husbands and you are going to buy a property in lake tahoe for 750k but you want your in laws to be on the <a href="http://www.zillow.com/mortgage/">loan</a> as well..... well, this is going to take some time. I dont think a flat 2500 in YSP is going to fly but i am sure you would have some low loan officer&nbsp;saying they could do it for that. And Im sure the main borrower would say "hey I dont want to pay any points or high fees." Sat, 17 Jan 2009 20:14:00 GMT http://www.zillow.com/advice-thread/how-much-should-a-officer-or-broker-charge-for-their-services-the-closing/189174/ 2009-01-17T20:14:00Z I'd like to try applying ... http://www.zillow.com/advice-thread/how-much-should-a-officer-or-broker-charge-for-their-services-the-closing/189174/ <p>I'd like to try applying the "realtor fee scenario" here...<br/><br/>All other things being equal (e.g., credit scores, DTI ratios, LTV/CLTV, etc.), does the broker work any harder on a $400K <a href="http://www.zillow.com/mortgage/">loan</a> than $200K? If not, does a&nbsp;percentage-based fee make any sense?<br/><br/>Assuming that different products require differing levels-of-effort on the broker's part, then would it make sense to have different flat-rate fees for different products?<br/><br/>[time out while socal piles a few more sandbags around his foxhole]<br/><br/>Okay, ready now.</p> Sat, 17 Jan 2009 19:37:00 GMT http://www.zillow.com/advice-thread/how-much-should-a-officer-or-broker-charge-for-their-services-the-closing/189174/ 2009-01-17T19:37:00Z If we're talking about total ... http://www.zillow.com/advice-thread/how-much-should-a-officer-or-broker-charge-for-their-services-the-closing/189174/ <p>If we're talking about total broker compensation whether it comes from the client (e.g. fee) or the <a href="http://www.zillow.com/directory/lenders/">lender</a> (e.g. YSP or commission), I don't personally subscribe to a set percentage, but I believe industry standard has been 1% of the <a href="http://www.zillow.com/mortgage/">loan</a> amount.&nbsp; In most cases, I&nbsp;think that's fair.&nbsp; I will preface that by saying, I don't believe a&nbsp;competent loan agent will&nbsp;originate a $100k loan for only $1k since it takes the same amount of time and effort as a $400k loan amount...so it depends on the loan amount.&nbsp; Let's say 1% of the loan amount&nbsp;or a bare&nbsp;minimum of $2,500.&nbsp; Maybe some other loan agents from around the country can provide some&nbsp;greater insight on my thoughts re: what is fair and industry standard/averages.</p> Sat, 17 Jan 2009 19:24:00 GMT http://www.zillow.com/advice-thread/how-much-should-a-officer-or-broker-charge-for-their-services-the-closing/189174/ 2009-01-17T19:24:00Z No offense Ashley, but I ... http://www.zillow.com/advice-thread/how-much-should-a-officer-or-broker-charge-for-their-services-the-closing/189174/ <p>No offense Ashley, but I have never heard a broker say that their fees were based on the time and effort they put into a loan.&nbsp; There is no way of even knowing how much time they put into it at the onset of the deal.&nbsp;<br/><br/>TZ, like Rudi and Greg both said, what the broker charges is based on what the rate is.</p> Sat, 17 Jan 2009 01:28:00 GMT http://www.zillow.com/advice-thread/how-much-should-a-officer-or-broker-charge-for-their-services-the-closing/189174/ 2009-01-17T01:28:00Z TZ, it depends on the rate. ... http://www.zillow.com/advice-thread/how-much-should-a-officer-or-broker-charge-for-their-services-the-closing/189174/ TZ, it depends on the rate. Rate and fees go hand in hand. Sat, 17 Jan 2009 01:13:00 GMT http://www.zillow.com/advice-thread/how-much-should-a-officer-or-broker-charge-for-their-services-the-closing/189174/ 2009-01-17T01:13:00Z