Don’t Settle for Less than Your Full Fee!

Because of the new “buyer-broker agreement,” this post will help you get a full buyer-broker comm check. Cheers!

 

Note: Coming Soon:

“Bridge Loans Are Back” (call me in the meantime)

Loan brokers are better positioned…To help you get paid your entire “Buyer Broker Fee” compared to banks, credit unions, and “so-called” mortgage bankers. This is simply because loan brokers have fewer lending “overlays.

“Let me prove it to you”!

Brokers can access up to 100 “direct to HUD/VA aggregators” (non-depository) who fund DIRECTLY with VA / FHA. Translation: No Overlays! “Lending overlays are irrelevant to the broker business model. 

This means more significant lender rebates to BUYERS to pay YOUR BB Comms!

What Is a Lending Overlay?

“Federal guidelines specify minimum criteria that borrowers must meet to qualify for home loans, but lenders often go further by implementing tougher guidelines known as lender overlays.”

These additional rules “CAN be applied to Fannie and Freddie’s conventional and government-backed mortgage loans, including FHA, USDA, and V.A. loans ( Note: BUT not required).

After you’ve finished reading, please “email” your preferred lender to verify their specific policy for “lender rebates.”

“Rebate Overlays”

“Institutional lenders, credit unions, and so-called “direct lenders,” typically limit their lender rebates to 1% – 1.25% of the loan amount. 

Your Comm Check May Hang in the Balance

The type of lender’s policy’s underwriting guidelines often “change on a dime,” so agents should (re)-confirm” each time they begin with a new FHA or V.A. buyer.

 “What is their Maximum Lender Rebate the  Bank/C.U. Offers to Buyers”?

When dealing with any lender, “verbal promises are NOT worth the paper they’re written on” (you’ve already experienced this “phenomenon.”)

 “With larger lender-paid rebates”…

Anytime you have an FHA or V.A. buyer, your odds of getting paid for your entire Buyer Broker Comm (BBC) improves. 

FHA / VA “lender rebates” for closing costs can total up to 6% of the loan amount – for covering closing costs, including Buyer Broker Fees.

Note: Fannie and Freddie allow up to 3% of the loan amount (so email your lender for their policy in writing).

Lender Rebates are an effective way for buyers to pay YOU;
by “buying the rate up, “then refi to a lower “market rate” in 6 months”.

Note: The buyer must be able to qualify at the higher interest rate to make this work.

Why is there a difference between brokers vs. institutional lenders?

“A banker is a fellow who lends you his umbrella when the sun is shining but wants it back when it begins to rain.” Mark Twain.

Institutional lenders (hence known as “I.L.s”) are typically a marginal source for VA / FHA loans.

“I.L.s” would rather spend their marketing dollars procuring and funding “preferred clientele” with vast retirement accounts and large deposits. 

This business model dates back to the Twain era, in the1800s.

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