There are many different employment options available in our industry but one common denominator that professionals use most often to differentiate one choice from another is the quality of the support they expect from the company that they contemplate joining. America’s Mortgage Broker (”AMB”) is extremely proud of itself in the way we commit and implement various support options for our employees. As Mark Collins, CEO says, “I take great pride in the team of professionals assembled in Tampa to support our field loan officers and other employees. I know how hard we work to help our associates be successful.
Accounting and Payroll
The Accounting Department helps employees with anything that deals with money! The department will assist employees in understanding how they are paid and what needs to be done to get paid. To get paid on a loan closing you must complete a Profit Management Sheet (”PM Sheet”) that reconciles the income and expenses for that file. Hourly employees must submit a weekly time sheet, signed by the employee and the employee’s supervisor. Accounting also participates in reviewing and approving reimbursement requests.
AMB’s Accounting Department’s most critical task is to manage how your fee income is distributed. After all you don’t originate loans just for the fun of it! All employees working with AMB are paid W-2 wages. AMB allows loan officers to reduce payroll by submitting fully taxable and pre-authorized expenses. In most cases, employees appreciate this because it reduces their taxes and lessens the impact of AMB’s administrative fee. Additionally, Accounting also helps managers determine how to operate their branches profitably.
Let’s take a look at a typical deal. AMB collects $3,100 on closing a loan you originated as a Virtual Loan Officer. On this particular transaction AMB retains an allocation fee of $500, leaving $2,600 in possible W-2 wages. When you submit your file’s Profit Management Sheet (”PM Sheet”) you show another $500 reduction because AMB processed your loan and you took another $100 off to fund your reserves (each employee has a $500 reserve account). You now have $2,000 that can be run through the current bi-weekly payroll (cutoff for submitting PM Sheets is the Friday before payroll is made). However, you had certain expenses that were approved by AMB and those items total $650. AMB’s Accounting Department would review your Employee Expense Reimbursement Request and upon final approve prepare a reimbursement check to you for $650. This leaves $1,350 as your qualifying payroll factor, which is adjusted by 13% to yield your actual gross wages of $1,194.70 in payroll for your closed loan.
Retail Loan Officers work at branches and agree to share their income with their branch in exchange for the benefits of being employed there. Let’s say that in this example, a Retail Loan Officer has gross fees of $3,200 for closing a loan. Further, let’s assume that the split is 60/40 in favor of the loan officer (less a $500 gross fee adjustment – in other words the first $500 stays with the branch). Ironically, this results in the same pay as before, $1,194.70.
For over a decade AMB allowed managers to use a branch checking account to pay their branch expenses. While the system worked well, several states started to frown on such a practice. Their position was that having managers sign on their own branch checking account crossed the line of ownership and thus became a de facto illegal net branch operation. To satisfy their concerns in late 2009 AMB withdrew the signing privileges of managers and closed the separate branch checking accounts. Now, the Accounting Department uses general ledger and class code accounting to calculate a profit and loss for each branch. We encourage managers to contact the Accounting Department if you have any questions about your branch account or payroll. We are here to help!
Accounting also supervises the expenses incurred by branches. To operate a branch, your facility must occupy approved commercial office space. Because AMB is ultimately responsible for the expenses of its branches, it is critical that any and all expenses incurred in running a branch receive prior approval before such expenses are incurred. AMB’s Accounting Department regulates all financial aspects of our branches and helps show managers how to increase their profitability by sharing cost cutting ideas with them. AMB facilitates the financial burden of each branch by allowing branch managers to enjoin a business to support the non-regulated activities of the branch. Examples of services that could be provided include providing furniture, copier, computers, providing technical assistance and marketing, to the extent it does not state licensing requirements. A consistent monthly fee for such services are established and must be paid monthly. This fee can be paid in advance to lessen the risk of losing a branch during a financial slow down. AMB also allows managers to request that AMB pre-pay a branch’s monthly rent. Generally, AMB allows such expenses to be paid for up to a year in advance.
Any funds that a loan officer requests to be distributed outside of payroll must be included on the PM Sheet and documented by submission of an acceptable expense report. Documentation should include copies of the bills or evidence satisfactory to the Accounting Department of the bill’s payment, such as an entry on a credit card statement. By following these simple instructions you can be assured that your payroll is processed quickly and efficiently.
Quick Downloads
AMB Employee Expense Reimbursement Request
Weekly Time Sheet for Administrative and Inside Sales Staff
IRS-W9 for Service Providers
Compliance
Compliance is arguably the most critical issue our industry faces today. The best example of this are the consequences associated with failing to adhere to the requirements of the 2010 GFE. You can lose your commission if a lender believes you violated their interpretation of how fees should be entered! Compliance critical to your success, and AMB is very serious about compliance.
A primary goal of AMB’s Compliance Department is to ensure that all AMB branches operate within required state and Federal laws, rules, and guidelines. We have developed a zero tolerance policy in regards to compliance procedures. The procedures we outline to you must be followed to the letter. If you have any questions about the procedures, please contact AMB’s Compliance Department.
It is imperative that you contact a compliance specialist before originating your first file for AMB. AMB’s compliance department will review all of the compliance procedures so there is no confusion regarding AMB’s policies. The progress of your loan is tracked from the time you enter it to when it is closed or otherwise disposed of. ECOA generally requires that loans be finalized within 30 days of obtaining a completed application. Once the loan has a disposition (closed, withdrawn or denied), the loan officer is responsible to have all required documentation uploaded into AMB’s loan origination software (”LOS”). We strongly encourage the use of paperless processing. If you have a system employing paper you will need to provide evidence that all hard documentation has been destroyed in conformance with AMB’s Privacy Policy.
There are three compliance procedures that you must adhere to. You will be provided more guidelines when you are ready to orginate your first loan. The procedures include:
- Initial Compliance Approval (”ICA”)
- Authorization to Close (”ATC”)
- Post Document Review (PDR”)
The following are some important things to remember:
- Always verify how your lender wants fees disclosed on the 2010 GFE – particularly in respect to seller paid items
- Never collect third party fees or an application fee – AMB does not permit advance fees – however borrowers can make direct payment to the vendor
- Always follow every single compliance procedure to the letter – make sure that you get ICA, ATC and PDR approvals
- Never sign a “Broker Contract” or any other document that obligates AMB in any way/li>
- Always try and close loans with approved AMB lenders – seek an exception, if required
- Always originate and process your loans inside of AMB’s LOS
- Only use AMB’s approved state credit vendor and always pull credit reports through AMB’s LOS
As a mortgage broker, most states tell us that AMB cannot deny a loan. Likewise we cannot make a commitment to fund a loan. If a lender denies your file require the lender to forward us a copy of the adverse action sent to the borrower (remember to put a copy in your loan file). Please contact AMB’s Compliance Department if you meet resistance on this request. You must send out an adverse action notice when a borrower agrees to withdraw their request.
Even though you aren’t paid on loans that don’t close you still need to close them our properly. Minimum requirements for a denied/withdrawn file are: conversation log detailing that permission to pull credit was given by the borrower (if by phone) and adverse action letter (you must send it to the borrower). You need to upload any other documents you received from the borrower during the application process. Finally, make sure to update the status of your loan to reflect its disposition. Any file that has not been worked on for 30 days will be withdrawn by Compliance and the adverse action letter will be sent to the borrower.AMB will also charge you the appropriate service charge for closing the loan out.
It is in your best interest to assure that all compliance procedures are adhered to. The often misconceived notion of “it is better to ask forgiveness than permission” is not a good way to conduct business and will not be tolerated.
Quick Downloads
- Initial Compliance Audit Instructions
- Authorization to Close Instructions
- Post Document Review Instructions
Lender Relations
AMB’s Lender Relations Department is here to provide our branches with the highest level of lender support possible. Our staff can assist you to establish branch codes with existing lenders or to answer questions about available loan programs. Potential new lenders are carefully scrutinized. Before requesting that AMB consider a new lender, contact the Lender Relations Department about whether your needs can be met by an existing lender.
Processing
Human Resources
AMB’s Human Resources Department will assist you with employee benefits, hiring a new employee, termination or resignation of an employee or other employment matters. Branch Managers must always consult with Human Resources regarding all hiring and terminations as by themselves they do not have the power to hire or terminate employees. AMB offers many benefits to eligible employees. Some are restricted to full time employees who have completed a waiting period (typically 90 days for administrative employees; 180 days for sales employees). Commissioned employees must meet certain earnings criteria in order to be considered full time employees.
HR Quick Downloads
Should be in Genus (here is the list now: 3 401k forms, Benefit Plan Rates, Deposit Authorization, W-4 (2008), iPayStatements, 5 insurance forms)
Current Benefit Plan Rates
Direct Deposit Authorization
Federal W-4 2008
iPayStatements
Insurance – Dental
Insurance – Medical HDHP/HSA
Insurance – Medical PPO
Insurance – Supplemental
Insurance – Vision
Licensing
Our team of licensing specialists facilitates all state government licensing needs for our employees and branches. We assist in setting up your NMLS account and in helping you stay current on your license and continuing education. With the NMLS as it exists today, it is possible for you to originate loans in many states very easily. AMB encourages every loan officer to get licensed in as many states as they want to originate for.
IT and Support
AMB’s IT Department facilitates you getting setup up with our state approved credit vendor and with the lender codes you need to work on your loans. IT will help in setting up your loan origination software (this is done by an e-mail after you are hired), create a forward from an amb123.com mail address if you want one and in working with a web site. At AMB we take Information technology seriously because we understand that by keeping you on the cutting edge of technology we can help you maximize your income and satisfaction.