Posted: Tue Nov 01, 2005 10:06 pm Post subject: Can they do that?
Can a loan officer make a commission by providing a seller with a buyer whose been qualified for a loan? And if so, what is the commission if the loan officer is not a realator? Friend of mine is a loan officer but knew a mutual friend who was selling her home. Took qualified applicants to look at the property, they liked and wanted to buy. Friend (loan officer) drew up docs and inserted a commission for herself and specified it as a "loan owed"to her from the sellers. Though no realator was involved or no real footwork in what a realator does was done(put house up on MLS, sign outside, or advertising) is it possibe for a loan officer to be compensated? And if so how much?
Posted: Tue Nov 01, 2005 10:55 pm Post subject: loan officer
Hi,
As far as I know most loan officers are paid commissions for the number of loans they can originate. But there are loan officers who are paid only salaries and not any commission.
Posted: Tue Nov 01, 2005 11:44 pm Post subject: RE:
Hi Guest,
Loan officers are generally employed by lenders, brokers and mortgage companies. Loan officers employed by mortgage brokers may also be involved in loan processing. In case of a one-person mortgage broker firm, a loan officer may perform as a broker. He can then develop relationships with residential real estate agents. This will help him to get clients for making loans.
On the other hand, he can also refer a borrower to the real estate agent who is working for a seller. Thus indirectly the loan officer can help the seller in getting a buyer and therefore he receives a commission from the real estate agent whose main job is to recommend a buyer to the seller.
Loan officers often act as individual contractors and get huge commissions. The commission rate is 1/2 or 1% of the loan amount and successful loan officers can earn up to 6 figure income.The loan officers have limited rights to reduce the price but full discretion to increase the price. The difference in the posted price and the price charged from the consumer is called the Overage, a part of which is received by the loan officer.
I think there are loan officer who are paid only salaries and not any commition But i khow most loan officer are paid commition for the number of loan they can originate. They are the empoyed by lender, brokers and mortgage companies.
Posted: Wed Nov 04, 2009 10:48 am Post subject: Commission
The laws probably vary from state to state as far as a loan officer or anyone else "acting as a Realtor" and receiving payment for acting as a Realtor.
In some states, the person "acting as a Realtor" might be required to be licensed as a Realtor, maybe not in other states.
The amount of compensation is probably whatever the market will bear (that would be whatever the seller is willing to pay)
If you are getting the house you want at the price you want, why do you care?
If you simply want to know if it is legal and other than that do not care, note what state you are talking about and maybe someone knows the laws of that state.
To me, two people are entering into a contract and that could be legal some places.
If you are being harmed in any way, ask your lawyer---I assume you have a lawyer representing you for the purchase of a home? _________________ John Veenstra
Senior Mortgage Consultant
Approved Funding Corp
41 Grand Avenue
River Edge, NJ 07661
800-475-0123 Ext 278
jerry
