Using antiquated tools is not only slow and annoying, itвЂ™s also a failure to use the best tools for the job. What other reason could there be why so many lenders rely on physical paper and fax machines to share information? While technology has made financial services more efficient overall, mortgage banks in particular havenвЂ™t kept pace. Our staff offers support, not sales, to ensure alignment with your best interest. To avoid any such conflicts, Better Mortgage pays loan officers a fair salary with no commission. ItвЂ™s clear that both commission and incentives are horrible at aligning a loan officerвЂ™s interests with your own. Customers got duped, the employees got fired, and Wells Fargo got in serious trouble. To cash in on these incentives, over 5,300 employees set up more than 2 million fake accounts without customer consent. For example, bank employees who cross-sold a certain number of checking accounts received incentive pay. What happened is this - the company set very aggressive goals to cross-sell other Wells Fargo products. While this case does not involve mortgages, it clearly demonstrates the problem with sales incentives. In the case of sales incentives, youвЂ™ve probably seen that Wells Fargo was ordered to pay over $185 million вЂњto resolve allegations that the bankвЂ™s sales quotas and incentives pushed employees to open millions of unauthorized accountsвЂќ and now faces an inquiry by the U.S. If youвЂ™ve seen the 2015 film The Big Short, youвЂ™ll be familiar with this scenario. Banks and mortgage brokers aggressively pushed mortgages that borrowers couldnвЂ™t afford, while loan officers got paid handsomely to intermediate. This issue played itself out for years leading up to the 2008 subprime mortgage crisis. Since itвЂ™s a percentage of the total loan amount, the bigger the loan they sell you, the bigger the commission. Incentives for selling certain financial products or reaching quotasД«oth sources of compensation can create a conflict of interest. Commission, calculated as a percentage of the total loan amountДў. Loan officers typically get paid in two ways:ДЎ. A useful starting point is to ask: How are these loan officers compensated? ItвЂ™s fair for consumers to question whether mortgage loan officers are acting in their best interests. Instead, we pass on the savings to consumers via industry-leading rates, and we invest in technology to make the customer experience faster more transparent, and a whole lot better. ThatвЂ™s why at Better Mortgage, we donвЂ™t pay our loan officers any commission, period. We think itвЂ™s crazy that consumers are effectively charged to pay loan officers who may not be representing their best interests. Many banks pass this cost through to consumers by charging higher interest rates and origination fees. In return for this service, the typical loan officer is paid 1% of the loan amount in commission. Loan officers are the main point of contact for borrowers throughout the mortgage application process at almost every mortgage lender. And we offer an alternative - Better Mortgage has loan officers who donвЂ™t get paid commission, ever. We explore the reasons why loan officer commission is bad for consumers.

Mortgage loan officers typically get paid 1% of the total loan amount.

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