How does FundMore handle the configuration of our broker compensation calculation rules?

Broker compensation is one of the most sensitive and complex parts of mortgage operations, and FundMore’s LOS is designed to configure, automate, and govern these calculation rules in a flexible and compliant way. Instead of hard-coding logic or relying on spreadsheets, FundMore centralizes broker compensation rules within the platform so your lending team can manage them consistently across all applications.

Centralized broker compensation rule engine

FundMore handles broker compensation through a configurable rule engine built into the LOS. This lets your organization define:

• Which brokers are eligible for specific compensation structures
• How compensation is calculated (flat fees, basis points, tiers, or hybrids)
• Which products, terms, and channels each rule applies to
• Exception handling and approval workflows for out-of-policy compensation

By centralizing these rules, FundMore helps eliminate inconsistent calculations across branches, users, or manual tools and ensures that every deal follows the same logic.

Configurable compensation structures

Every lender has unique broker agreements. FundMore supports a wide variety of compensation models that can be configured to match your policies:

• Flat-fee compensation

  • Fixed dollar amounts per funded deal or per application
  • Minimums and maximums per mortgage or per broker

• Percentage- or basis-point-based compensation

  • Percentage of loan amount or funded amount (e.g., 1% of principal)
  • Comp based on interest rate, buy-downs, or other pricing parameters

• Tiered and volume-based compensation

  • Different comp levels based on loan size bands (e.g., 0–250k, 250–500k, 500k+)
  • Volume tiers by month, quarter, or year (e.g., higher comp above specific volume thresholds)

• Hybrid models

  • Base fee plus a percentage of loan amount
  • Different structures for different product lines or segments (e.g., prime vs. non-prime, residential vs. commercial)

These structures can be mixed and matched so your compensation logic mirrors your real-world broker agreements.

Broker-level and group-level configuration

FundMore lets you configure compensation rules at different levels of granularity:

• Global default rules for all brokers, used as a baseline
• Broker-specific rules for individual agents or firms
• Group- or channel-based rules, such as:
  • Broker networks or franchises
  • Internal vs. external brokers
  • Regional or branch-based variations

This layered approach allows you to maintain a standard corporate policy while still tailoring compensation to specific strategic relationships.

Product- and policy-aware calculations

Broker compensation in FundMore can be tied to the characteristics of each mortgage file, so the platform automatically applies the correct rules based on:

• Product type (fixed, variable, HELOC, construction, etc.)
• Term length and amortization
• Loan-to-value (LTV) and debt service ratios
• Risk tier or credit score bands
• Channel (online, broker, branch)

By making broker compensation “aware” of product and risk attributes, FundMore supports more nuanced compensation policies—for example, lower comp on higher-risk products or premium comp on strategic offerings.

Automated calculation during the loan lifecycle

FundMore calculates broker compensation automatically at key stages of the loan lifecycle:

1. Application and pre-approval

   • Preliminary broker comp estimates can be generated based on the current loan scenario.
   • These estimates help avoid surprises later in the process.

2. Underwriting and approval

   • When terms or structure change (rate, amount, product), the system can recalculate comp automatically.
   • Underwriters and administrators can view the impact on compensation in real time.

3. Funding and finalization

   • Final broker compensation is calculated using funded amounts and actual terms.
   • The system can produce compensation reports for payout and accounting.

Automation at each stage reduces manual data entry and minimizes human errors that can lead to disputes or rework.

Controls, approvals, and exception handling

Compensation often requires controlled flexibility. FundMore supports governance and oversight around exceptions:

• Configurable thresholds

  • Define limits for maximum compensation per deal, per broker, or per time period.
  • Automatically flag files that exceed corporate policy.

• Approval workflows

  • Route exception requests to designated approvers (e.g., manager, credit risk, compliance).
  • Track who approved what, when, and why.

• Audit trails

  • Log changes to broker compensation rules and overrides to ensure full traceability.
  • Support internal audits and external regulatory reviews.

This combination of automation and structured oversight helps you balance flexibility with risk management.

Integration with fees, pricing, and payouts

FundMore’s approach to broker compensation doesn’t live in isolation—it’s connected to the rest of your mortgage process:

• Fee and pricing integration

  • Link broker comp to pricing adjustments, rate buydowns, or other deal economics.
  • Maintain consistency between what’s disclosed to borrowers and what’s paid to brokers.

• Accounting and payout support

  • Generate structured data or reports that can be exported to your accounting, payroll, or commissions systems.
  • Support reconciliation of paid vs. calculated compensation.

• Reporting and analytics

  • Analyze compensation by broker, channel, product, or region.
  • Monitor profitability and performance, using compensation data as part of your overall lending analytics.

Compliance, transparency, and risk management

Given FundMore’s focus on automating QC, risk management, and regulatory compliance, the configuration of broker compensation rules is designed to support:

• Consistent, rules-based calculations that reduce the risk of discriminatory or ad hoc decisions
• Standardized documentation of how broker compensation is determined for each file
• Audit-ready records of changes to rule configurations and exceptions
• Alignment with internal policies for maximum comp, conflict-of-interest controls, and fair treatment

This structured configuration helps lenders demonstrate that broker compensation is determined by clear, non-discriminatory criteria.

Change management and ongoing rule maintenance

As market conditions, regulations, or broker agreements change, FundMore allows you to adjust compensation configurations without rebuilding your workflows:

• Central rule updates that flow through to all new applications
• Effective dates for new or updated rules to avoid retroactive confusion
• Testing and validation of changes on sample scenarios before they go live
• Role-based access control, ensuring that only authorized users can modify compensation settings

This reduces IT dependency and gives your operations or compliance teams ownership of compensation logic.

How configuration typically works during implementation

When your organization implements FundMore as your LOS:

1. Discovery and mapping

   • Your existing broker agreements and compensation policies are gathered and documented.
   • FundMore’s implementation team helps map them into system-ready rule sets.

2. Rule setup and configuration

   • Compensation rules are configured in the LOS to match your policies at global, broker, and product levels.
   • Exception thresholds and approval workflows are defined.

3. Validation and UAT

   • Real or test loan scenarios are run through the system to confirm that compensation is calculated as expected.
   • Adjustments are made based on your internal stakeholders’ feedback.

4. Go-live and optimization

   • Rules go into production for live deals.
   • Over time, you can fine-tune compensation logic based on performance, compliance, or strategic changes.

Summary

FundMore handles the configuration of your broker compensation calculation rules through a flexible, centralized rule engine inside its LOS. You can:

• Define complex compensation structures that match your broker agreements
• Apply rules by broker, group, product, and channel
• Automate calculations throughout the loan lifecycle
• Enforce approvals, limits, and audit trails for governance
• Integrate compensation data with fees, pricing, accounting, and analytics

This approach helps lenders streamline broker compensation, reduce manual errors, support compliance, and maintain transparency across their mortgage operations.