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Compensation of Mortgage Loan Brokers
(Effective April 1, 2011)

Starting April 1, 2011, the Federal Reserve Board's amendments to Regulation Z related to loan originator compensation and anti-steering provisions become effective.

Affected Loans: All loans submitted or locked on or after April 1st will be subject to the new regulation.

Compensation Addendum: Please execute, sign, and return your Loan Originator Compensation And Anti-Steering Addendum ("Compensation Addendum") by March 30th. The Addendum can be downloaded at www.swmc.com/dodd-frank-addendum. You may also contact your Account Executive at 800-453-7884.

Brokers that have not selected a lender compensation plan by the 30th of March will auto default to Lender-Paid 2.00%.

Plan Details

Sun West is offering two compensation models:

Consumer Paid

"Consumer Paid" is the option where origination and processing fees will be paid to the broker directly by the consumer. When "Consumer Paid" compensation is selected, you may not receive compensation directly or indirectly from any other entity in the transaction.

Lender Paid

"Lender Paid" is based on pricing negotiated between the broker and SWMC. The negotiated payment will be used for all loans regardless of program type. When "Lender Paid" compensation is selected, you may not receive compensation or fees from the borrower.

Side-By-Side Comparison
Consumer-Paid Vs Lender-Paid Compensation
For Loan Amount of $200,000

Consumer-Paid

 Rate
 
15 Day

Consumer
Paid
Lender
Paid
Credit
5.00
-3.50
Negotiable
0.00
-3.50
4.75
-3.00
Negotiable
0.00
-3.00
4.50
-1.50
Negotiable
0.00
-1.50
4.25
-1.00
Negotiable
0.00
-1.00
> At 4.75, borrower would receive a 3.00% or $6,000 credit toward third party costs.
> The $6,000 credit cannot be used to pay broker’s compensation.
Lender-Paid (2.00%)
Rate
15 Day
Consumer
Paid
Lender
Paid
Lender
Credit/Charge
to Borrower 
5.00
-1.50
0.00
2.00
-1.50
4.75
-1.00
0.00
2.00
-1.00
4.50
+0.50
0.00
2.00
+0.50
4.25
+1.00
0.00
2.00
+1.00
> At 4.75%, borrower would receive a 1.00% or $2,000 credit toward third party costs.
> Third-party costs cannot be paid by broker.
> SWMC pays broker’s compensation: 2.0% or $4,000.

All pricing in this publication is for illustrative purposes only and does not represent SWMC's actual pricing or broker compensation.

The information contained in this publication is subject to change without notice. All loans are subject to credit review and approval.

For more information, contact your Account Executive at (800) 453-7884.

Sun West Mortgage Company, Inc.
18303 Gridley Road
Cerritos, CA 90703
Phone : (800) 453-7884
Equal Housing OpportunityThis information is provided as information for licensed wholesale brokers only and may not be copied or distributed to customers or potential customers. All loans subject to approval. Certain restrictions may apply. Program Rates, Prices, Guidelines, Fees, Costs, terms and Conditions are subject to change without notice.

Sun West Mortgage Company, Inc. (NMLS ID 3277) is licensed by the Department of Corporations as a California Finance Lender (License #603 0119) and is licensed by the Department of Real Estate (License #00793885). Refer to www.swmc.com to see where SWMC is a licensed lender. In all states, the principal licensed office of Sun West Mortgage Company, Inc. is 18303, Gridley Road in Cerritos, CA 90703; Phone: (800) 453-7884


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