Some Wholesalers Looking to Maximize Broker Comp

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Some wholesale lenders are willing to go to the max when it comes to mortgage broker compensation. But they want a little cushion to stay within the 3% cap on points and fees in the qualified mortgage rule.

Some are going to 2.75% with a quarter point difference as a cushion, says Al Crisanty, a vice president at 360 Mortgage Group. If you have an extremely good technology platform you can be as tight as possible, he added.

The Austin, Texas-based wholesale lending company believes it has an extremely good technology platform.

The QM rule issued by the Consumer Financial Protection Bureau goes into effect Jan. 10. Some wholesalers are approaching this very cautiously and they might stay in the 1% to 2% range when it comes to broker compensation.

The vice president for national wholesale production expects more wholesalers will increase their broker compensation as they get used to the QM rule.

The QM rule will be fine-tuned over the next 30 to 60 days and those numbers will tighten up. You will see more people on the same page, Crisanty says.

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