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      Broker Commissions

      Product Feature Guide

      Table of Contents


      Introduction

      Setting Up Commissions

      How the System Applies Broker Commissions

      Broker Commission Tab

      Introduction

      The Broker Commissions functionality allows lenders to configure commissions on a per-product basis via the Manager Portal. These commissions are then reflected automatically at the application level in the Loan Details widget. Lenders can choose to apply a default commission or a brokerage-specific commission that applies to the defined brokerage. 

      Setting Up Commissions

      Commissions are configured when setting up products within the Product Management section of the Manager Portal. The process to set up commissions is covered in detail within the ‘Commissions’ Tab section in the Products, Credit Tiers, and Rates PFG. 

      To set up commissions, follow these steps:

      1. Navigate to the Products section of the Manager Portal. 
      2. Click on the inline ellipsis of the product you wish to add the commission to. 

      3. Select the Edit option.
      4. Click on the "Commissions" tab.
      5. Click on the “Add New Commission” button and fill out the appropriate fields. 

        Note: The Term (months) field is mandatory while the other fields are optional, but recommended. 

      6. Once completed, click on the Create Commission button to finalize the process.

      How the System Applies Broker Commissions

      Broker commissions are driven by the Brokerage Name. The Brokerage Name is set up in the Broker Management section and displayed at the application level in the Stakeholder Details widget. If the Brokerage Name field is not populated, the commission amount will still apply, as long as other criteria (such as term and term type) are met.  

      Within the product setup, lenders have the flexibility to define commission structures in two ways:

      • Default Commission (Brokerage Name left blank): This applies a commission rate universally to all brokerages, provided other matching criteria, such as term and term type, are met.
      • Brokerage-Specific Commission (Brokerage Name populated): This applies a commission only to deals associated with the exact Brokerage Name specified in the setup.

      Important: The system performs an exact match on the Brokerage Name field. This includes case sensitivity, spacing, and special characters. For example, “Pineapple Brokerage,” “pineapple brokerage,” and “Pineapple” are treated as distinct entries. Any mismatch in the name will prevent the commission from being applied correctly.

      This setup allows lenders to establish default commission rates for general use while enabling targeted overrides for individual brokerages when needed.

      Here is a breakdown of the process:

      When a broker submits a deal, or when a product is changed and reapplied on an existing deal:

      • The system evaluates the Brokerage Name in the broker’s profile.

      • If a commission entry in the product setup has a Brokerage Name that exactly matches the broker's brokerage, that commission is applied.

      • If no exact match is found, the system checks for a default commission (i.e., an entry with a blank Brokerage Name) that matches the term and any other relevant criteria (e.g., term type). If found, this commission is applied universally, regardless of brokerage.

      The appropriate commission is then displayed in the Broker Commissions tab of the Loan Details widget.

       

       

      Broker Commission Tab  

      At the application level, users will see the Broker Commission tab under the Loan Details widget. This tab auto-populates with the relevant commission values based on the product configuration in the Manager Portal. The fields in this tab are detailed below. 

      • New Funds ($): The total new funds for the deal. This is manually entered by the underwriter.
      • Standard Commission (%): This is pulled from the commission configuration in the Manager Portal. If a commission entry exists with a matching Brokerage Name, that value is used. If no exact match is found, and a default commission (i.e., no Brokerage Name specified) matches the term, that value is applied instead. This field cannot be edited manually. 
      • Less Buydown (%): Represents the reduction in commission due to a buydown applied on the deal. A standard calculation is used across all lenders: the commission is reduced by 20 basis points for every 5 basis points of buydown. The buydown value is set in the Mortgage Terms tab and can only be modified there by users with the appropriate permissions. This field is read-only in the Broker Commission tab.
      • Final Commission (%):  The net commission percentage after accounting for any applicable buydowns.
      • Broker Reduction Fee ($): A flat dollar amount deducted from the total commission. This is manually inputted by the underwriter and is determined by the lender’s internal policies or specific deal considerations.
      • Total ($): The final commission amount to be paid to the brokerage after all applicable adjustments, including buydowns and reduction fees. This field is automatically calculated by the system.