Conquer Complexity of Paying Commissions to Terminated Loan Originators
Here are three tips to help you conquer the complexity of paying commissions to terminated loan originators.
1. Define When a Loan is Commission Eligible
Since there are variations in the mortgage industry for the determination of a commission eligible loan, it’s important to have a clearly defined definition that all your employees understand. In CompenSafe, we refer to this as the Completed Date to signify that the loan’s compensation can be calculated and cued up for payroll.
2. Outline How Terminated Loan Originators Will be Paid
- LO receives 50% of normal commission for loans completed within 30 days of the employee’s termination date.
- LO receives 100% of normal commission for loans completed within 15 days of termination, 50% if completed in 30 days, or 10% if completed in 60 days.
- LO receives 100% of normal commission for loans submitted to underwriting prior to termination date and completed within 45 days.
- LO receives no commission on loans completed after termination date.
3. Automate Loan Originator Commissions
- Auto-assign a terminated commission schedule to an employee’s compensation plan.
- Deactivate an employee’s compensation plan.
- Use the LOS termination date to track when a pipeline loan is no longer eligible for commission.
- Split commission between the terminated LO and the LO that takes over on the loan.