The policy is detrimental to brokers and profitable for funders. Structurally it is a more intelligent and sound way to build your fund. Funders issue the policy, create the agreements, and put all rules in place to increase their own profitability. Why wouldn't you create policies that intrinsically increase the value of your organization?

I am sad to say, but being a broker during these times is going to become increasingly more difficult. With CPA rising at a rapid pace and average commissions being dwindled by competition who only knows how to sell rate... The only escape from the rat race is syndication.

By participating 50% in every loan/advance you place you would sell deals with 2-4 points in them all day. The points cover CPA and now you have a consistent revenue stream from your portfolio, rather than the haphazard commission stream brokers tend to make (imagine the deposit frequency... Lmao).

In the end, pure brokers will always struggle and be broke, while the players with money on the streets will succeed. It isn't 2011 anymore where you can average 13 points per deal.