One wholesaler has found borrower-paid compensation so far to be somewhat more common than lender-paid compensation under new compensation rules.
“We actually ran the statistic for loans that are funded since the rule took place and it is just over 60% borrower-paid compensation,” Mark Greco, president of 360 Mortgage Group, told this publication.
Greco said he found this “very surprising.” He said he had expected compensation to be largely lender paid.
The executive said while some brokers had feared the rules would mean they could not earn the same commission the reality is this is not the case. Brokers, he said, can earn the same commission.
Greco, who acknowledges he has contrarian views in some cases, said widespread concerns about brokers' competitive disadvantage to bankers in this context also are off base. Banks do not have an advantage, he said.
