Broker commission

A broker commission refers to a fee or a compensation that a broker receives for facilitating lending or borrowing transactions between parties. A broker is an intermediary between the borrower and lender, who takes commission for any loan contract signed between the two parties, but does not own any stake in the contract. Usually, a percentage or a flat amount of the value of each transaction is charged as commission. The broker may be an individual, or a business or other institution. Broker Commission is applicable only for Loan and LOC type of applications.