Determining a Loan’s Commission Payable Trigger
In CompenSafe, we refer to this as the Completed Date. This is the point in time when milestones have been achieved or a specific date has been entered into the LOS to signify that the loan has been disbursed, closed, and/or funded.
Typically, companies use the funded milestone as the completed date to trigger all compensation to be paid for retail loans. Some companies use the disbursement or wire/funds sent date to trigger the loan as commission ready.
It gets more fun when you start thinking about the fact that the process, milestones, and LOS dates for retail loans don’t always apply to other channels. For instance, brokered loans often need to have an additional date entered to indicate that the broker check date has been handled or the loan has been reviewed after delivery from the mortgage broker. Whereas correspondent and wholesale loans often use other milestones or dates in the LOS to indicate compensation can be paid to the account executive assigned to the loan.
The discussions we have following this seemingly simple question sometimes stretch on for several weeks as the business processes unfold. It is critical to map out every scenario so that a loan commissions aren’t paid before it’s fully complete or missed.