Product Info - Free Commission Agreements - Mortgage: Loan Processor
Sample Loan Processor Compensation Plan Template
Loan Processor Compensation Agreement
Revision Date: i____________
This document describes the agreement between between ii_____________________________ (“Company”) and iii_________________________________ (“Payee”) regarding terms related to compensation.
Company and Payee enter into this agreement whereby Payee provides services to the Company and customers of company, in return for compensation specified in this agreement.
This agreement covers the period starting from iv___________ and ends on _______________.
Commissions will be calculated and paid once every week, for the preceding week. Commissions will be calculated and paid out as part of the next payroll cycle, following the month for which commissions are calculated.
The primary service rendered by this payee is completing all paperwork and processes related to the closing of a loan.
Targeted variable compensation for the full year is v ______________.
Payee is not due any other compensation as part of this agreement.
Loan Closings Incentive
This incentive pays compensations on Loans processed by the Payee. This compensation is paid every week.
Any Loan Originations that are processed by the Payee are eligible for this commission. Commissionable transactions are funded originations to customer. Payee gets credit for the Loan when the origination is funded.
Commission amt for the Payee is decided based on number of loans processed by the Payee, in the period. The number of loans processed are compared to a tier and a paid a flat amount per loan based on the tier.
Number of Loans Commission %
1 - 3 $100
4 – 7 $150
8 and Above $250
Number of Loans: 5
Commission Amt: $150
Total Commission Amt: $150 x 5 = $750
Payee has no Draw.
Payee has no Splits
Termination of Employment
On voluntary or involuntary termination of Payee’s engagement with the Company, commissions will be paid on transactions dated prior to the termination date only. Any amounts owed to the Payee will be according to federal and local regulations after withholding taxes and other dues.
1. Payee agrees to follow all Federal and Local laws while engaged in providing services to the Company during the period of this agreement.
2. Payee shall not engage in any other employment during the term of this agreement. Company reserves the right to require Payee to terminate any such other employment at Company’s sole discretion.
3. Any loan transaction processed by the Payee during the period specified in this agreement is considered to be made on behalf of the Company and is the property of the Company.
4. All transactions involving other brokerage firms or unapproved providers should be first approved by the Company.
5. Payee agrees to protect all confidential material including prospect data, loan transactions, and client information belonging to the Company and shall take all reasonable care in making sure that such confidential material is not disbursed to anyone outside the company.
6. Payee shall read, understand and follow all compliance rules in operation from a Federal, state, local and Company level.
7. Payee shall be responsible for acquiring all necessary education, licenses and certificates to legally practice the Loan Brokerage profession.
8. Payee shall indemnify Company and hold harmless against any Loss or Damage incurred by the Company due to Payee’s gross negligence or misrepresentation during the duration of this agreement.
9. Payee shall use the most ethical practices while engaging in any sales activity.
10. Payee agrees to protect all confidential material including prospect data, sales data, and client information belonging to the Company and shall take all reasonable care in making sure that such confidential material is not disbursed to anyone outside the company.
11. This entire agreement shall be governed by the laws of the State of ___________.
i This date will give us information as to when this agreement was written and distinguish it from similar other agreements.
ii Fill out the company name here.
iii Fill out the payee’s full name here.
iv Enter the start and end date for the sales commission plan effective period. Most companies use the calendar or fiscal year start and end dates for these values. Some companies may not have an end date specified.
v If there is a targeted compensation for the full year, it can be entered here. Alternatively, this whole section can be removed.