Effective October 5, 2017, Carrington Mortgage Services, LLC (CMS) enhanced BrokerIQ Pricing engine with an option to include the CMS Lender Fee into the pricing.
In some cases, the CMS Lender Fee plus the Broker’s chosen compensation structure causes the loan to exceed the ATR/QM fee threshold. Brokers can now select the Buyout Lender Fee option, if applicable, to include the CMS Lender Fee into the pricing. The Buyout Lender Fee option converts the fee into a price adjustment and may reduce the total fees amount below the ATR/QM fee threshold.
To buy out the Lender Fee, the Broker should select YES from the Buyout Lender Fee dropdown in the BrokerIQ Pricing Engine.
In cases where the Buyout Lender Fee wasn’t selected at lock, the Broker or CMS Account Executive/Account Manager must send a request via email to the Lock Desk at email@example.com to buy out the Lender Fee.
Please note: Once the Lender Fee is bought out, it cannot be added back since the re-disclosed Loan Estimate (LE) has zero tolerance for Lender Fee increases.
Contact your Account Executive with questions.
The content of this website is intended for licensed third party originators or brokers only and may not be duplicated or disseminated to the public. Carrington Mortgage Services is one of the leading wholesale mortgage lenders.
Government Agency Approval | FHA Non-Supervised Mortgage Approval #: 24751-0000-5 | VA Automatic Lender Approval #: 902324-00-00