The document discusses the benefits of the wholesale mortgage broker model compared to other models. It outlines benefits for loan originators, borrowers, and broker owners such as lower costs, more competitive pricing, access to more loan programs, transparency, and flexibility to adapt to market changes. Overall, the wholesale model leads to increased loan volume and better consumer outcomes through full disclosure and the ability to find the best deals for borrowers.

1. Restoring Confidence

2.  Benefits to loan originator
 Benefits to the borrower
 Benefits to the broker owner
 Why brokers should recruit
 Good faith estimate comparison
 Marketing to realtors
 Myths about compensation

3.  Multiple pricing options versus a single rate sheet
 Wider array of loan programs
 Full disclosure of actual price from lender with no hidden premiums
 Transparency of income – the LO knows for certain his share of the
overall revenue earned by the Broker
 Box 2 of the now benefits the LO – the actual credit for closing costs or
discount for an interest rate is clear
 Commission is earned at time of each loan closing

4.  Full disclosure means truthful lending; All income to the
originator and broker company is disclosed.
 Access to more loan programs means qualifying more borrowers
 Work with a trusted advisor! All originators are licensed
professionals.
 Safe Harbor means brokers are required by law to point you to
the best deal!

5.  Ability to offer borrower paid & lender paid compensation
models
 Low cost operating model
 Ability to offer compensation structures to attract the highest
producing Loan Originators
 Wholesale agreements have less compliance obligations and
overall exposure for company
 Low company net worth requirements
 Ability to adjust compensation with lenders to adapt to market
changes
 No costs to fund loans versus warehouse lines

6.  Wholesale operating model leads to more competitive pricing
resulting increased production volume
 Lower overhead costs could mean higher compensation structure
versus Correspondent or Retail
 Lender Paid compensation leads to good business practices
 When turn times increase, more options with multiple lenders
 Option to leverage multiple lender pricing models
 Full disclosure/transparency of income leads to a more cohesive
relationship between broker owner and loan originator
 LO’s have an increased influence on pricing structure
to consumer

8.  $200,000 loan amount
 Closing Costs of $3,000
Your Adjusted Origination Charge
1. Our origination charge
This charge is for getting this loan for you.
2. Your credit or charge (points) for the specific interest rate chosen
The credit or charge for the interest rate of _______ % is included in
"our origination charge." (See item 1 above)
You receive a credit of $ __________ for this interest rate of ___________ %
This credit reduces your settlement charges.
You pay a charge of $ ___________ for this interest rate of _____________ %
This charge (points) increases your total settlement charges.
The tradeoff table on page 3 shows that you can change your total settlement charges by
choosing a different interest rate for this loan.
A Your Adjusted Origination Charges

9.  Preapproval Process – TBD’s allowed
 Full Disclosure
 Brokers can shop lenders based on underwriting turn times & best
available rates
 Ability to provide GFE Comparison showing truth in lending
 Mortgage Brokers are licensed professionals
 Wider array of loan programs
 Transparency will continue to build the positive momentum the
wholesale industry needs in this new lending environment