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Time to lower minimun volume requirements?

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Mortgage Broker News | 25 Jul 2012, 06:00 AM Agree 0
Stricter mortgage rules threatening to cool down the housing market are fueling broker hopes lenders will soon lower their minimum volume requirements to compensate for a drop-off in business.
  • Long time banker | 26 Jul 2012, 09:28 AM Agree 0
    Are the broker going to take a reduction in compensation for these lower levels. As the brokers compensation rose so did the funding expectations. There is a direct link between them both. At above 1.1 percent of principle in compensation if the brokers wanted a twenty percent reduction in qualifying tiers would they work for twenty percent less. These programs tie volume to compensation and discounts.
    Would they return to individual volume targets and not allow pooling of business? You have companies where a target for volume is say ten million approximately 40 deals based on a lenders average mtg amount and you have regions of agents pooling under a regional managers name.
    I think a more logical scenario will be that lenders will look at costs with the highest being after underwriting is broker compensation and say how do we get his in line with our need to cover operating costs and still make a profit?
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