The Broker Fee Agreement form is a legally binding contract that defines the compensation arrangement between a mortgage broker company and a loan applicant. Before services begin, the loan originator shall present this form to provide full disclosure of all broker fees, ensuring the applicant understands exactly what the company will charge and how it will be paid.
Information Required in the Agreement
A complete broker agreement shall include applicant names, the subject property address, the loan originator name and license number, the broker company NMLS ID, the agreed broker compensation amount (both minimum and maximum), and identification of who pays the fee (the borrower or the lender). All parties shall review this information carefully before signing.
Broker Fee Types and Payment Structure
Broker fees may be a flat dollar amount or a percentage of the total loan. The agreement shall specify the exact compensation the company will receive. A broker shall not charge more than the agreed maximum without a new written agreement from the applicant. When comparing options, reviewing a mortgage broker fee agreement alongside this form can help applicants understand how broker compensation disclosures work in different contexts.
Federal Fair Lending Law Compliance
Both the broker company and its loan originator shall comply with all federal fair lending laws. These laws prohibit discrimination based on race, color, religion, sex, marital status, age, national origin, or receipt of public assistance. The agreement contains an explicit acknowledgment that the broker and company affirm their commitment to these legal standards. Applicants who believe a company has engaged in discriminatory practices may file a complaint with the appropriate federal oversight agency.
Why Both Parties Shall Sign
The applicant and the loan originator shall both sign and date the form before any services begin. This protects the applicant by confirming all compensation information was disclosed in advance. It also protects the broker company by creating a legally enforceable record of the agreed terms. Borrowers should retain a copy for their records and may also find a loan agreement template useful when reviewing the full scope of their mortgage obligations.
Retaining Your Agreement
Make at least two copies of the signed broker agreement. The broker company and applicant shall each keep one copy as a reference throughout the mortgage process. If the terms of the arrangement change, a new agreement shall be signed before the company proceeds with updated services.
| Question | Answer |
|---|---|
| Form Name | Broker Fee Agreement Form |
| Form Length | 1 pages |
| Fillable? | No |
| Fillable fields | 0 |
| Avg. time to fill out | 15 sec |
| Other names | standard broker fee agreement form, mortgage broker fee agreement and disclosure, commercial broker fee agreement california, brokers fee agreement |
