Home Buying in Parkrose>Question Details

Matthew V Th…, Home Buyer in Oregon

Do both the underwriter and the loan officer benefit from a deal that goes through?

Asked by Matthew V Thompson, Oregon Thu Jun 28, 2012

Any idea what the usual percentage of benefit would be?

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8
Yes they do but I have no idea what or even if they are paid on a percentage or if they just get paid so much for completing so many loans.
1 vote Thank Flag Link Thu Jun 28, 2012
An underwriter's job involves risk management and the task of approving or denying a loan file. A loan officer gets paid if the loan goes through.
1 vote Thank Flag Link Thu Jun 28, 2012
Define "benefit"

Do underwriters get paid for doing their job? Yes.

Do lenders get paid for doing their job? Yes.

Is that a "benefit"??

You seem to have an issue with underwriters. You've posted two posts which focused on the underwriter. Are you trying to "bait' the message board to get some type of response?

Maybe you should have had an Exclusive Buyers Agent working in your best interest? Exclusive Buyers Agents DO NOT take listings and they do not work for a brokerages that takes listings. An Exclusive Buyers Agent works for a Buyers' only office, and not a Listing Brokerage. Anyone who advertises they are Exclusive Buyers Agents and works for a Listing Brokersge is lying.

Some "buyers agents" on this board, cough, cough, errr, ashes to ashes, misrepresent themselves to the general public as Exclusive Buyers Agents, when they're not. I totally understand if you're a little ticked off with this business. There's a lot of people -- agents included -- who have no clue what they're doing or talking about.
0 votes Thank Flag Link Sat Jun 30, 2012
The underwriter's company they work for may benefit, but the underwriter's responsibility is all about risk management and not total closed loans. Underwriters earn a salary. Maybe some smaller companies can offer some kind of small bonus based on production, but I'm not familiar with any specifically and the percentages. The loan officer is all about sales and getting loans closed as most work on straight commission or a base salary + commission.
0 votes Thank Flag Link Fri Jun 29, 2012
No, a loan officer is paid a commission on every deal but an underwriter is paid a salary. Underwriters are penalized if a loan does not meet all requirements if the file is audited after closing which many of them are. Therefore many of them are very conservative and afraid to go out on a limb for an unusual circumstance.
0 votes Thank Flag Link Fri Jun 29, 2012
The entire company benefits from loans closing not purely on volume but on the reputation that is established for being able to get the loans closed.... ethically of course! When the loan officer is doing his or her job upfront by knowing the loan products and guidelines and really pre-qualifying buyers, the company as a whole benefits because its resources are spent working on good loans not a file that won't ever close.
0 votes Thank Flag Link Thu Jun 28, 2012
We are talking apples and oranges. Underwriters for small broker/banker companies or large banks such as Wells? I know UWs in three major banks and they are all paid a yearly salary. Before I left the mortgage business, there was a question about exactly who could be paid on any given loan and how it needed to be disclosed. Id like some lenders to chime in on this one. Personally, I dont believe UWs should be paid per file for any reason. Or, they should be paid the same amount if it does or does not close. If paid by closings, fraud would always be an issue.
0 votes Thank Flag Link Thu Jun 28, 2012
Some lenders do allow the underwriters to get an commission for closing a deal, most do not, as noted they are to rate the risk to see if the property and borrower are good risk. Some of many reasons why we had the problems we have had again. I remember the S & L problems of old. But every loan that goes into foreclosure, end up being gone thru with a fine tooth comb, so those that are bad go back to the lender as a buy back, by FNMA and FedMc, so short term profit ends up hurting the lender in the end. I do a lot of retro appraisal reviews, back several years of those that will end up being a problem for the lender that did a bad job, allowing them to close and should not have. So it's a process that best not to get into to start with.

HLR
0 votes Thank Flag Link Thu Jun 28, 2012
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