Select Page

If you`re a mortgage loan originator, you know how important it is to have a compensation agreement in place. Not only does it protect you financially, but it also establishes clear expectations between you and your employer or client. In this article, we`ll provide a sample mortgage loan originator compensation agreement that you can use as a template for your own contract.

First, let`s define what a compensation agreement is. This type of agreement outlines the terms and conditions of how a mortgage loan originator will be compensated for their services. This can include commission rates, bonuses, time off, and other incentives. By having a compensation agreement in place, both parties are clear on what is expected and can avoid any confusion or disputes later on.

Now, let`s take a look at our sample compensation agreement for a mortgage loan originator:

1. Commission rates:

The mortgage loan originator will receive a commission of [insert percentage] of the loan amount for each closed loan.

2. Bonus incentives:

The mortgage loan originator will be eligible for bonuses based on the following criteria:

– [insert criteria 1]

– [insert criteria 2]

– [insert criteria 3]

3. Time off:

The mortgage loan originator will be entitled to [insert number] days of paid time off per year.

4. Termination:

Either party may terminate this agreement with [insert notice period] days` notice.

5. Confidentiality:

The mortgage loan originator agrees to maintain confidentiality regarding any client or company information.

6. Non-compete clause:

The mortgage loan originator agrees not to work with any competing company for a period of [insert time period] after the termination of this agreement.

7. Governing law:

This agreement shall be governed by and construed in accordance with the laws of [insert state/region/country].

By having a compensation agreement in place, both the mortgage loan originator and their employer or client can enjoy a mutually beneficial working relationship. It`s important to note that this is just a sample agreement and that the terms and conditions can vary depending on the parties involved. We suggest seeking legal advice to draft a compensation agreement that best fits your specific needs.

Overall, a compensation agreement is an essential tool for any mortgage loan originator. By outlining expectations up front, both parties can enjoy a more productive, profitable, and stress-free working relationship.