American Banker (06/09/08) P. 1; Berry, Kate
Mortgage lenders increasingly are implementing new commission models in response to the mortgage crisis, with most basing commissions on loan performance or customer satisfaction rather than volume alone. Some are instituting uniform commissions so that loan officers earn the same amount regardless of the loan type. Terry Wakefield, CEO of the Grafton, Wis.-based mortgage consulting firm Wakefield Co., believes loan officers could be given 50 percent of their commission at closing, 25 percent six months afterward and the rest at the one-year mark if the loan is performing well. Montville, Pa.-based American Home Bank, meanwhile, forces loan officers to forfeit a substantial amount of the commission if borrowers give them poor ratings at the closing table.
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