Compensation

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After all is said and done the decision to work with a broker firm hinges to a great extent on how much of the commission is taken by the firm for their operation and how much you keep for yourself. At RMA, we have one of the most competitive commission programs on the planet. We keep it simple.  A broker firm’s responsibility is to audit files, ensure they are compliant and then pay the originating agent/broker their commission. In addition to maintaining a licensed firm, processing payroll and bringing lenders to work with you, a broker firm must deal with the legislative bodies regarding file compliance, marketing compliance & customer complaints. At RMA, these functions and many others are made possible by the compensation we receive from our brokers. When you join RMA, you can choose either one of these plans. The value of these plans are the same but the administration is slightly different. One of these plans is the right one for you.

Plan 1.        Flat Fee Monthly Payments- Capped at $9K

Capped at $9KUnder this program a broker pays to RMA $750 per month. In a year that amounts to $9000. In return, the broker gets 100% of the finder fees, 100% of the volume bonuses and 100% of any appraisal rebates or any other fees coming in on behalf of the broker  from the lenders. They also get 100% of the mortgage life insurance revenues. If you have junior agents on your team,  their mortgage transactions are also are included in this one-fee program. Therefore, when your team member funds a file nothing is deducted from their commissions, either. So what does that mean to you?

For $750/month, you & your team members get:

  • 100% of the finder fees,
  • 100% of the volume bonuses
  • 100% of any appraisal rebates
  • Free websites for you and your team (if desired)
  • Free CRM software (fully-integrated with Expert) to market to your database (if desired)
  • Free Lendervault automated lender selection software system (if desired)
  • Free Personal Marketing brochures, flyers, rate sheets, post cards, etc. (if desired)
  • Free webinars on lender and other supplier’s products or services (if desired)
  • Free access to RmaNet your online portal for rates, lending/UW guidelines and other tools
  • Access to Corporate Underwriting Unit ((if desired)
  • Access to Commission Advances (available to you only, if desired)
Here are some fees that you don’t pay at RMA:
Monthly Advertising Fees
Monthly Administration??? fees
 Inflated costs for credit reports
Are you paying these or other ‘nonsense’ fees today?

Plan 2.        90 / 10 – Capped at $9K

Capped at $9KUnder this program, when a deal is funded and the commission is paid, RMA subtracts 10% of the commission and pays you the 90%. Now this may not seem very innovative but we have added a key component that is a  MAJOR benefit to you. When the deductions for RMA reach $9000 for the year, we don’t deduct any more from the commission. Therefore, after the RMA fee of $9000 has been reached you get 100% of the finder fees, 100% of the volume bonuses, 100% of any appraisal rebates and 100% of the mortgage life insurance revenues. This program is ideal for those brokers who are not sure if they can comfortably afford the flat fee monthly payment program but still want the benefits of the best commission program in the industry!

On the 90/10 to $9K program, you & your team members get:

  • 90% of the commissions until RMA reaches $9K annually. 100% of the commissions thereafter
  • Free websites for you and your team (if desired)
  • Free CRM software (fully-integrated with Expert )to market to your database (if desired)
  • Free Lendervault automated lender selection software system (if desired)
  • Free Personal Marketing brochures, flyers, rate sheets, post cards, etc. (if desired)
  • Free webinars on lender and other supplier’s products or services (if desired)
  • Free access to RmaNet your online portal for rates, lending/UW guidelines and other tools
  • Access to Corporate Underwriting Unit ((if desired)
  • Access to Commission Advances (available to you only, if desired)

Plan 3. Pay Per Deal – Capped at $9K

Capped at $9KA third option for your compensation is the Pay Per Deal to $9K program. In this case, RMA subtracts a fee based on the size of the funded mortgage and pays the balance to you. As in the other two programs above, when RMA reaches its $9K cap, nothing more is deducted from your commissions for the rest of the calendar year.

The program scale is as follows;
– For funded mortgages under $150,000, the fee is $135
– For funded mortgages between $150,000 and $250,000, the fee is $225
– For funded mortgages over $250,000 the fee is $325

Since this program is also capped at $9K, once you reach the $9K contribution, you get 100% of the finder fees, volume bonuses, appraisal rebates and mortgage life insurance revenues. This is one of the most innovative compensation programs and it’s unmatched in the industry.

On the Pay Per Deal to $9K program, you & your team members get:

  • Commissions as per the scale above until the contribution reaches $9K annually. 100% of the commissions thereafter
  • Free websites for you and your team (if desired)
  • Free CRM software (fully-integrated with Expert )to market to your database (if desired)
  • Free Lendervault automated lender selection software system (if desired)
  • Free Personal Marketing brochures, flyers, rate sheets, post cards, etc. (if desired)
  • Free webinars on lender and other supplier’s products or services (if desired)
  • Free access to RmaNet your online portal for rates, lending/UW guidelines and other tools
  • Access to Corporate Underwriting Unit ((if desired)

We know compensation is only one part of the equation in deciding which firm to work with. However, it’s good to know that the 3 best compensation plans in the industry are right here at RMA. But, which plan is right for you? Send us an email and we will send you an excel spreadsheet where you can enter some basic information to compare the 3 plans.

Contact us for a private, no-obligation discussion about how RMA’s compensation plans can work for you.

What is Volume Bonus?
When you fund a mortgage with a lender, the lender pays a finder fee to your broker firm. Typically, you would receive a split of that finder fee. For example: a split of 85%-15%. This means 85% of the finder fee to you and 15% of the finder fee to the company. Well, in addition to the finder fees, many lenders pay additional compensation to the broker house. This is called Volume Bonus (VB). There are two types of volume bonuses; Individual Volume Bonus and Company-Wide Volume Bonus.

Individual Volume Bonus
The Individual VB programs are based on each broker’s personal funding volume with that particular lender. For example: Scotia calculates and pays VB based on individual broker’s volumes for that year. In this case, the total company’s volumes with Scotia are not considered a factor when determining how much volume bonus is paid out.

Company-Wide Volume Bonus
The Company-Wide VB programs consider the total volume from the broker firm in calculating how much bonus is payable. Lenders such as First National or TD are examples of lenders that fall into this category.

Fund More, Earn More
Both VB programs are based on a scale. Essentially, within limits, the more a broker firm funds with a particular lender, the more VB the firm earns. For Company-Wide VB programs, the VB levels range from 5 basis points to as high as 25 basis points. To put this in to perspective, if your broker firm is at an average 25 basis point VB level, a $200K funded mortgage gets a volume bonus of $500 paid to your broker firm for that particular mortgage that you funded. ($200,000 X .0025 = $500)

What is the method of measurement?
Each lender has their own formula but generally the amount of volume bonus paid is based on the annual funded volume. As certain levels are reached, the amounts are usually paid either retroactively or along with the finder fees.

How and when is volume bonus paid?
Again, each lender has their own method of payment. Generally, the VB is paid either with the finder fees, monthly, or quarterly. The cheques come to the broker house as additional compensation at those intervals and usually break down what deals they are being paid for.

How can my compensation be affected  by Volume Bonus
Let’s look at an example using a Company-wide VB lender’s payment. . Let’s say the lender is paying 80 basis points for a finder fee for a 5 year mortgage. Additionally, they are paying 25 basis points for VB. Let’s assume that you are annually funding 5 million with this lender. If you were only getting the finder fees the total commission you would get is $40,000. However, if you were to get the VB as well, you would get an additional $12,500. Here’s the math….

$5,000,000 x .0080bps(finder fee) = $40,000

$5,000,000 x .0025bps(VB)= $12,500

Total commission of $5,000,000 is $52.500

If you would like more information about specific lenders and their VB programs, please email us.