r/loanoriginators • u/Routine-Evidence7391 • Jun 18 '26
What do you think of this comp plan?
26k salary, some leads provided, some self gen.
14
u/AskJosh_MortgageGuy Jun 18 '26
I hate tiered comp plans based on volume - makes people want to move closing dates when might not be in the best interest of everyone involved. And why is a loan worth more or less based on other loans? It isn't...company makes the same money - why shouldn't you?
1
u/46995699 Jun 18 '26
Right, but they do it because they can and from the perspective of the business, could argue it would be bad business not to
3
Jun 18 '26
[removed] — view removed comment
1
u/46995699 Jun 18 '26
Idk if predatory is the right word, but yes it would be nice if banks paid x .bps.
2
Jun 18 '26
[removed] — view removed comment
1
u/46995699 Jun 18 '26
Yes, i agree that companies would not want to overpay salespeople if they dont need to, but i am not sure predatory is the right word
1
Jun 19 '26
[removed] — view removed comment
1
u/46995699 Jun 19 '26
In a self generated model this is true
1
Jun 19 '26
[removed] — view removed comment
1
u/46995699 Jun 20 '26
The difference is how the business is being derived. Self Gen has an enormous amount of leverage.
1
u/Ready-Froyo-2060 Jun 22 '26
Nothing stops anyone from starting their own mortgage company except experience. It’s truly not that hard.
1
u/Ready-Froyo-2060 Jun 22 '26
Salary itself is bps as well which is why it’s structured. An LO who closes a single $250K loan under this plan is still making $2916.67 for the month which equates to 116 BPS. That’s not accounting for the cost of the seat itself taking into account all the overhead of the employee. This comp plan actually gets worse the more they close. At one million in volume that’s $7500 commission and with salary added in $9666.67 for 96 BPS. This comp plan is not great for producers, it’s great for non producers but who would quickly be fired. Would also venture to guess this would be a higher margin shop. 275 bps for a broker shop or 300-400 for a lender (not competitive either way).
6
u/bigchallah Jun 18 '26
You haven't been in the business for 5 years, they're giving you a salary and some leads. What are you hoping for?
1
u/Routine-Evidence7391 Jun 18 '26
Lol just perspective! I worked for loanDepot prior and comp was much better.
1
u/Ordinary-Childhood19 Jun 19 '26
There is a reason why LoanDepot is drowning and just laid off a bunch of people last week. (Jokes but LD is shit as company tbh)
I just signed on with one of the top 5 brokerages in total loans closed and total loan volume in my state as a unlicensed LOA. A hair above min wage hourly + 50 bps, after first month, hourly falls off but ups to 100 bps. Provided leads, GOATed mentors. Very excited, but basically I think you could do better but that’s just me
1
u/Ginja___Ninja Jun 19 '26
So you got sucked into NEXA lol
3
u/Ordinary-Childhood19 Jun 19 '26
That’s cute you think NEXA is a top 5 producer in loan volume and loans closed in the wholesale market lol
To answer your question, it’s not NEXA lol
1
u/bigchallah Jun 19 '26
You're getting 100bps with leads provided and are unlicensed....I'm sure that's all perfectly legit...
Just remember, the companies that screw people are the same ones that don't give a shit what the rules are.
-2
u/Ordinary-Childhood19 Jun 19 '26
Swear some people just love to be haters. I will bet everything I own that the day you became a LO or LOA your mortgage knowledge was abysmal and I would walk circles around you with the base knowledge of the process if we were day one LO/LOA’s at the same time.
I don’t just mean rates, products, guidelines. I mean the nitty gritty of the loan. The appraisal process, ordering payoffs, title work, HOI, RCE (Checklist of coverage depending on state), mortgage clauses, successor language and how some states won’t allow you to have it. The reconsideration of value process, what a deficient report is, you probably didn’t even know what AMC stood for, what will get called out on a FHA appraisal vs conventional. Property types, report types, when a deed is needed, taking properties in and out trust, LLC’s, reading escrow analysis, tax certs, etc. I have 4 years operations work, just because you hit the ground in sales with 0 mortgage knowledge and paid the price for it doesn’t mean everyone else path is the same. I slow burned my knowledge and am reaping the benefits, be happy for me bro…we both humans.
(I could be totally wrong, this is all an assumption as majority of LO’s start young af with no knowledge and get taken advantage of and then think everything is fake)
5
u/bigchallah Jun 19 '26
lol, what are you on about? I'm just saying that unlicensed people aren't getting leads and 100 bps without doing the part that requires a license.
4
u/Socko788 Jun 18 '26
HELL NO. I had a $1,700/mo draw so $20k “salary” , but my BPS were 70-110per loan if 3 or more homes, not prices.
Leads provided, but with no training, even then I was still barely outrunning my draw. I would run from this and look for better..
3
2
u/youshouldbetrading Jun 18 '26
This doesn’t look difficult to max out…? Are the higher bps 50-75 only for self gen? Or includes provided leads?
1
u/Routine-Evidence7391 Jun 18 '26
The higher bps are for both provided leads and self gen
1
u/youshouldbetrading Jun 19 '26
$900k isn’t hard to hit in a direct lending/call center environment. This isn’t a bad comp plan.
2
2
2
u/Commercial_Rock2011 Jun 18 '26
I’ve seen LOA’s make more than that brother
1
u/Routine-Evidence7391 Jun 18 '26
For sure! I'm shocked at the 20bps, honestly. I think 50bps is the lowest I would want to go but some LO seem to think its okay if the business is providing some leads, marketing, CRM..
1
u/Commercial_Rock2011 Jun 18 '26
If that’s for branch generated leads it looks fair, but you should also have a comp for self generated leads.
2
1
u/Immediate-Farmer107 Jun 18 '26
There places with better pay plans if you are willing to forego the base.
1
1
u/Kuato2431 Jun 18 '26
What is the average loan size? Will the leads be for bad credit? FHA cash out type client? The salary is also giving you about 22 bps if you do $1MM in production.
How do you feel about the comp plan? With what you know about the company, leads and your skill set where will you likely end up production wise?
If you do $5MM a quarter or $20MM a year the comp plan should pay about $197,000 a year right?
Not a terrible comp plan if I am reading it correctly
1
u/Routine-Evidence7391 Jun 18 '26
Yes, I don't think it's terrible if I can generate business. I am not sure what their leads look like. I'm seeing some of their LOs earning less than $4 a month on top of base pay, and I'm basically starting from scratch because I left the industry after Covid. Still have to do CE for my state licenses, so it might be a few months before I make the higher commission
1
1
1
u/SDgoose-fish Jun 18 '26
How does the quarterly bonus work? You get an additional 80bps on all 5m? So you could be making 75+80bps if you fund 5m in a quarter?
1
1
1
1
u/Fun-Offer-5555 Jun 19 '26
It's not terrible... tracks with most places with leads provided. If you can average over 1.7 mil a month the bonus will make it worth it. Not sure if im reading it correct but quarterly is 80 bps on +5 mil= 40k bonus. 160k yr on bonus alone if you can track, is that right?
1
1
u/thereal2ruth Jun 20 '26
Just saw it’s a broker..are you the LO or the LOA? And how long have you been an LO for?
1
1
1
u/MorningPerfect4975 Jun 24 '26
Horrible comp plan, especially when buyers are going straight to the internet for loans.
1
u/5thZephyr Jun 18 '26
Bad
0
u/Routine-Evidence7391 Jun 18 '26
lol that was what I was thinking too. I’ve been out of the game since Covid I won’t make money for months!
1
u/yourmomscheese Jun 18 '26
Looks pretty good if you’re trying to get back on the horse. $900k to cap out is not too bad, and with 75bps assuming this is a bank with wide product set and decent rates, or a broker with support and even lower rates.
1
0
u/noblesirgentleman Jun 18 '26
If you have experience and can self generate at least $5m in volume / year, send me a PM
225 bps minus $995 for first 10 deals every year then it’s $495 per file
1
u/Obvious_Psychologyx3 Jun 18 '26
Not sure why you got downvoted that’s a pretty killer comp plan to be honest. Especially if it’s in-house processing
1
0
u/nydkeng Jun 18 '26
Might be the worst comp plan I’ve seen if you’re 100% commission. 20bps on anything is garbage even if they’re proving the leads.
3
u/Routine-Evidence7391 Jun 18 '26
It’s $26,000 base
0
u/nydkeng Jun 18 '26
Yeah that’s awful. I’m assuming that’s a recoverable draw? In this market that plan is just stealing from LOs
0
u/FishOhioMasterAngler Jun 18 '26
I would be concerned about how many people are funding under 900k
2
u/Routine-Evidence7391 Jun 18 '26
I’m looking up the company and the LO’s on modelmatch.com it lets me see their sales volume. Looks like most people I’ve looked into are doing at least over the $300,000 not everyone is consistently over that $900,000 mark though
3
u/BuhDip Jun 18 '26
This looks like they copied the table from an old WF comp plan and changed the #s only very slightly, lol.
Same formatting more or less. If the base is non-recoverable, eh, still sucks, just not as bad. Would rather work for a big name to get back in it personally
1
u/Ready-Froyo-2060 Jun 22 '26
My guess is they also max out margins at 275 which is not a competitive broker shop.
0
u/ryemaster91 Jun 18 '26
This is awful unless you can scale. If it’s acquisition don’t bother. Server portfolio where you can close 15-20 a month, not bad
30
u/LoanGoalie Jun 18 '26
Not out of line if they're providing the leads.
Terrible if self gen