(Applicable for Wholesale Channel)
Effective October 1, 2018, Maryland House Bill 1511 ("Bill") modifies a provision of its regulations regarding mortgage broker’s compensation.
Per the new bill, when a mortgage broker originates a mortgage loan for the same property more than once within the 24-month period, such mortgage broker’s compensation on all loans originated for the same property during the 24-month period is limited to 8% of the loan amount on first loan originated during such period.
To comply with the Bill, Sun West Mortgage Company, Inc. requires that a mortgage broker, who submits a loan with subject property located in Maryland, provide a history of any loans originated on such property within the last 24-month period and final Closing Disclosure for such originations.
Example of Compensation on New Loan Submitted to Sun West:
Mortgage Broker originates and submits a mortgage loan on October 01, 2018. Following is the history of the origination within the last 24 months by the Mortgage Broker on the subject property:
|Loan Number||Loan Amount||Compensation Amount|
Based on the above history, the Mortgage Broker has already received an aggregate compensation in the amount of $7,000 on the mortgage originations on the subject property within the last 24 months. The maximum compensation allowed, as per the Bill, is capped at $8,000 (8% of the initial loan amount of $100,000). Therefore, the maximum compensation that the Mortgage Broker can earn from the new mortgage loan is $1,000.
6131 Orangethorpe Avenue, Suite 500
Buena Park, CA 90620
Phone: (800) 453-7884
This information is provided to licensed brokers/lenders only and may not be copied or distributed to customers or potential customers. All loans are subject to approval. Certain restrictions may apply. Listed pricing is a morning indication only. Program rates, prices, guidelines, fees, costs, terms and conditions are subject to change without notice.