Phil Grossfield's Blog


Face To Face – Comp Plan Changes For QM

terry mike suzanne 2013_2Face To Face.  I have returned from our Awards Dinner and holiday party in Chicago. I’m alive…barely…but alive. It was big fun to see all the top producers, managers and reunite with the Ops staff. Pictured are my friends and colleagues Suzanne from OC, Terry from Texas, and my boss’s boss Mike from Oregon.

You know, despite working closely with these people, there’s nothing like seeing them face-to-face. This is even more true when it comes to the Ops staff. Emails are sometimes misunderstood and more often than not can be misinterpreted without explanation. But when you meet someone in person and get to understand them, the emails take on a different meaning. I’m so glad our company recognizes the importance of this interaction and I’m extremely grateful to have been a part of the festivities. Now, let’s get to work!

Bonds Fell This Morning But Now Holding.  The 30-year Fannie Mae Bond is trading lower this morning but the bleeding seems to have stopped. All eyes and ears are focused on Wednesday’s Fed Statement…I will write more about this tomorrow morning….

Comp Changes For QM – 1/10/2014

QM goes into affect on January 10…max LO compensation will be 3.000% including closing costs. Interbank has begun making some changes…first and foremost the permitted comp plans are being modified:

  1. Max Compensation 2.500%. If you currently have a comp plan that exceeds 2.500%, it will automatically be reduced. If your comp plan is already equal to or less than 2.500%, then you need do nothing.
  2. Flat Fees and Floors Eliminated. Because the maximum compensation including closing costs will be 3.000% per QM, we have to ensure we do not exceed this and having a Flat Fee and/or a Floor makes it too difficult to manage. We checked around and most if not all competitive lenders are doing the same thing…eliminating the options altogether.

The portal is now open to allow changes to Broker Comp Plans for Q1-2014.  To change your broker comp plan, simply log into the portal using the Admin User ID and select “Broker Compensation Settings” under the Tools menu. Let me know if you have questions…

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