FAQ: Compensation
What is 5th street capital’s compensation structure?
We offer one (1.00%) point lender paid compensation OR up to two (2%) points on borrower paid compensation.
Can Lender paid compensation and Borrower paid compensation be combined on the same loan?
No, lender paid compensation and borrower paid compensation cannot be combined on one loan. You may choose lender paid or borrower paid compensation at submission of each loan.
If we wanted to make more than 1.00% in compensation is our only choice borrower paid compensation?
Yes.
What are the max fees we can charge on borrower paid compensation?
The total in fees you can charge the borrower is 2%, which can include origination, processing or any other fee for which you performed a service. Please note that the max total fees must stay below 3% including our lender fee of $1425.00.
Discount Points and Lender Credits
If the loan is locked over par (ie: 100.125) is that additional premium paid to the broker?
No, any premium over par is a credit to the borrower from 5th Street Capital. Maximum lender credit to the borrower after adjustments is: 100.25
If the loan is locked under par (ie: 99.75) is that additional cost paid by the broker?
No, any amount under par is a charge paid to 5th Street by the borrower.
Can we use a contract processor on lender paid compensation and have them paid them through closing?
Yes, if the processor is a bona fide third party processor (they must have their own NMLS) they can provide an invoice and be paid at closing.