How I Get Paid — And Why I Choose to Be Transparent About It
Mortgage compensation is often misunderstood.
Part of the reason is that pricing structures can feel ambiguous.
Fees may be bundled.
Margins are built into rate sheets.
Costs are not always clearly explained.
None of this is necessarily improper.
But complexity often creates confusion.
And confusion rarely benefits the borrower.
Here Is How My Compensation Works
As a mortgage broker, I set my compensation at:
1.50 percent of the loan amount (150 basis points)
Capped at $10,000 per transaction
This compensation does not change based on which interest rate option a borrower selects.
Whether you choose:
A higher rate with lower upfront costs
A lower rate with points
A structure that includes a lender credit
My percentage remains the same.
There is no incentive to steer you toward one rate over another.
How It Is Paid
The lender pays the broker commission.
It is built into the loan pricing and clearly disclosed on the closing documents.
You will see exactly what the broker compensation is.
There are no hidden adjustments.
Why Structure Matters
Retail lenders and banks often operate under different margin structures.
In some cases, retail institutions can charge margins up to 2.5 percent.
Broker models typically operate within the wholesale channel, which often carries lower overhead and more competitive pricing structures.
That difference in structure can translate into more competitive rates or lower overall loan costs.
Why Transparency Matters
Mortgage lending can feel complex.
I believe it does not need to be.
Clarity builds trust.
If you ever want to review how your loan is structured — including rate, costs, and compensation — it should be explained clearly and directly.
There should be no ambiguity at closing.
Understanding how compensation works helps you make informed decisions.
And informed decisions are always stronger decisions.
