Fee Agreement Between The Broker and the Bank/Lender

Many of the banks and lenders we work with pay us referral fees and or yield spread, outside of close.  This is especially true with SBA and B & I lenders.  I'm sure you have access to many of these same sources. 

The problem is, how do you know you're really going to get paid from the bank?  Most of the Business Developmet Officers we work with want to just send us a simple 1 or 2 sentence email stating that they will pay us 1%, or whatever the case maybe, outside of close.  I don't know about you, but when I have 4 months into a deal and stand to lose a $20,000 referral fee, I don't sleep well with a one sentence email backing me up. 

And we have certainly learned the hard way, i.e. that banks and lenders will push brokers around and not pay them all of any of their hard earned fees.  (I will spare you my war stories here).  But we have been burned by some of the largest conventional banks and SBA banks in the nation.  In addition, BDO's get fired, die or turn on you.  SO even if your BDO had ever intention of paying you, if something was to happen to him you could be in a very bad position as his sales manager may try to not pay you.  Keep in mind, we brokers need the lenders a lot more than they need us. 

We recently put our attorney back to work and had him draft this agreement, aimed at solving this issue.  We paid him just under $500 for it.  It outlines the ongoing relationship between us the broker and them the lender/bank.  

By the way, even if your bank won't sign this agreement, it will at least 1. show them you know what you are doing and that you need to have your fee agreement in writing and 2. it will most likely "inspire" them to send you the agreement they already have in house, that they have not sent you or told you about. 

Don't let them push you around.  There is too much at risk here in this market to close a loan and not get paid on it.      

We are offering it for $65, now only $50.  Note that it comes in a Word document, so you can easily change it and it will be emailed to you instantly upon purchase, via a software program.    (Note all of the fee agreements below are in word and are instantly emailed to you upon purchase).

Jeff Rauth
President