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I was figuring out pricing for my business–I didn’t want to be opportunistic with my clients, and I wanted to charge fair fees/prices.  I’m predicting that pricing will get worse for us Brokers soon, but I think it’ll settle in at 1.25-1.75 compensation to broker, because customer acquisition is still something lenders are after.   Anyhow–my notes on uniform pricing and a draft of my office ops manual policy.

This is something that I’m sure the novel folks at Offer Angel would approve of.

Uniform Pricing:

Why?

1. We are not opportunistic. We can maximize via float/lock, but we don’t want to do it.  People’s built in BS detectors will

2. We are not going to fall in love with one deal and make one deal super important to our survival, our month.

3. We want to be price competitive every time and offer a good value to our customers.

4. Realtors will figure it out.

Loan Pricing…

Minimum fee of $2,000 to us. Target average of 2950.  Looking to do 11/month. 

Max fee does not exist. Must be approved if we go below

We will then charge 1.65% including processing. This is front /back yield.

So on a $150,000 deal, we would earn as a base: $2475 total to us. This assumes a purchase, and includes processing.

We will charge $475 processing going forward, but it counts towards total fee.

Modifiers:

If the customer gets docs to us at initial meeting–or the next day after a telephone consult–we shave off $200.00.

If it was referred by a referring Realtor, friend or family member, we’ll cut $200 from pricing.

If the deal is a refinance, we add .20 to our pricing setup (more labor)

If the deal is an FHA, we add 1.25 to our pricing. (bigger spreads)

If the deal is US Bank/chase, we add .5 to our pricing (more labor)

If the deal is EAI-II-III, we add .375 to our own yield.

NOO/Investors, we add 1% to our pricing, or we turn the deal down (this is the only MANDATORY add—we will price ourselves out of the investor market or make money on it—Full Doc only for investor residential.)

If the customer, or their realtor, is a jerk, add $500 in fee/pricing.  This is defined by not getting docs back or being an obstacle to the process.

We can float to within .25 either way, but we want to stick to our pricing scheme 80% of the time so we have a predictable business.

It may be hard to enforce the "Realtor Obstructionist" rule, but there are people that I don’t care to do business with, that make the entire transaction an unpleasant, stupid, white knuckled experience.  These jerks get what they get.

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