How do you explain borrower paid compensation?

Borrower paid compensation means that the borrower will be responsible for paying the loan originators fee for their service or the mortgage or loan officer.

What is lender paid vs borrower paid compensation?

When “borrower paid” compensation is selected, you may not receive compensation directly or indirectly from any other entity in the transaction. “Lender Paid” is based on pricing negotiated between the broker and the lender.

What is BPC in mortgage?

“With Borrower Paid Compensation (BPC), the broker is not required to predetermine/declare their compensation on a deal (they can determine compensation on a per deal basis) and they are able reduce the originally disclosed compensation, at their discretion, to assist with funds to close, extension costs, etc.

How are MLOS compensated?

It’s important to note that an MLO is either paid by the lender or the borrower, but never both. The typical MLO is paid 1% of the loan amount in commission. On a $500,000 loan, a commission of $5,000 is paid to the brokerage, and the MLO will receive the percentage they have negotiated.

What are borrower paid closing costs?

Closing costs are fees paid to cover the property, insurance and mortgage costs incurred by your lender while processing your loan, like home appraisal and title insurance costs.

What is lender compensation?

Lender Paid Compensation All compensation is negotiated between the Broker and the borrower. The Compensation Plan can vary from loan to loan. NMSI & Broker agree upon the compensation, which could be a dollar amount, percentage or combination. The Compensation plan cannot vary from one loan to the next.

What is BPC and LPC?

BORROWER (BPC) AND LENDER (LPC) PAID BROKER COMPENSATION COMPARISON. Borrower Paid Compensation. Lender Paid Compensation. All compensation is negotiated between the Broker and the borrower. The Compensation Plan can vary from loan to loan.

Can money be paid to a borrower after foreclosure sale?

Regardless of your state’s deficiency laws, if your home will sell at a foreclosure sale for more than what you owe, you will not be obligated to pay anything to your lender after foreclosure. Your lender is obligated to apply the sale price of your home to the mortgage debt.

What is lender paid compensation?

The type of lender you choose will determine the loan offers available to you, what you’ll pay for your loan and links for which Money receives compensation. Opinions expressed in this

Is broker compensation considered points?

Compensation paid to: • A mortgage broker firm or a creditor acting as a mortgage broker • The creditor or brokerage company from the consumer (but not compensation paid by the consumer to a broker if the compensation is already included in points and fees as a finance charge) Real estate related fees or charges if the creditor receives direct

Who pays worker’s Comp premiums?

Who Pays the Premiums for Workers’ Compensation Insurance? Employers pay for workers’ compensation insurance. You can get this coverage through a state-run program or a private insurance company. If your business is in North Dakota, Ohio, Wyoming or Washington, you’ll have to get workers’ comp insurance through a monopolistic state fund.