Type of broker commissions

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Type of broker commissions

Q2 Origination allows the FIs to set up commission plans for brokers. This commission can be disbursed in the following way:

  • Upfront commission

This type of commission can be a percentage or a flat amount. If it is a percentage, then it is calculated based on one of the following selected Commission On values:

  • Loan Balance

  • Principal Remaining

  • Consolidated Balance

The default option selected is Loan Balance.

Upfront commission

Upfront commission is a one-time commission amount paid to the broker when the loan is initially disbursed.

Upfront commission can be a percentage or a flat amount.

The lender can set a variance (positive or a negative value) for each commission-able item.

The formula for calculating an upfront percentage type of broker commission is as follows:

Broker Commission = (Loan Amount * Total Upfront /100)

where Total upfront = Commission Value + Variance

Example

The following table explains how an upfront broker commission is calculated:

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