[mikem]

And any other info...

[NoBigDeal]

And any other info...

Really just depends on the rep and how greedy they are

[iso@wallfunding]

We charge the absolute minimum fees on all deals, usually between 2-3% in TOTAL fees, and allow ISO's to charge their own fee on our contract.

[HDF]

We charge the absolute minimum fees on all deals, usually between 2-3% in TOTAL fees, and allow ISO's to charge their own fee on our contract.

Are these upfront fees at Wall?

[iso@wallfunding]

Are these upfront fees at Wall?

No, these are the TOTAL fees that we charge. The biggest fee I have ever had was 3.5%, on a 4th position deal.

[HDF]

No, these are the TOTAL fees that we charge. The biggest fee I have ever had was 3.5%, on a 4th position deal.

This fee is baked into the merchant payback? Or is it deducted from the funded amount?

[iso@wallfunding]

Deducted, the same as most other funders.

[WhoisKingsley]

Ah, the PSF.

If you are keeping the buy rate low or appeasing your merchant (of course this depends on the amount funded) I always saw and enforced a 3% cap. If there is any ethics in that.

I've seen 8% on top of Funder fees and originations that brought down an advance amount by $12k- netting a whopping $38k. Sad. Sad. Sad. Did I mention they were making 7 pts?! - P.S. I had nothing to do with the deal and when the Funder found out, the ISO was cut off by them and warned about to others in their network.

Word of Advice: This Industry is so big yet so very very small. Use common sense.

[HDF]

Deducted, the same as most other funders.

Wall Fees.JPG

Up front.

[Funder Mark]

Pretty sure that says 'No Upfront Costs', which is what I said.

[HDF]

I understand Funder Mark. To the merchant, it is very clearly an upfront fee. For which the broker has to answer for above and beyond their own commission.

ie. Mr merchant, you were approved for this $. LESS this and this....

[CO1]

I have seen 23% on one deal !!

[J.Johnson]

That looks like an advertisement pertaining to no due diligence fees or application fees, things like that. Closing fee that's different. Most every lender has some sort of a closing fee at funding time.

[FUNd]

Junk fees are bull****. CAN charges NONE and they are the best in the biz. Lender is making 30-90% APR and you have to charge fees on top too? Pure unadulterated greed.

[J.Johnson]

I actually agree very much with that. One of my favorite go to lenders also does not charge any fees. Just sayin, most do

[MCNetwork]

Junk fees are bull****. CAN charges NONE and they are the best in the biz. Lender is making 30-90% APR and you have to charge fees on top too? Pure unadulterated greed.

Tell me about it. I just closed on a mortgage and was charged a total of $15K in CLOSING costs, on top of the 4.2% interest rate (which on a 30 year mortgage almost DOUBLES the amount of the original loan). Greedy bastards...

[FUNd]

Tell me about it. I just closed on a mortgage and was charged a total of $15K in CLOSING costs, on top of the 4.2% interest rate (which on a 30 year mortgage almost DOUBLES the amount of the original loan). Greedy bastards...

Congrats on your new pad, no congrats on the DOUBLE DIGIT CLOSING COSTS! lol

[MCNetwork]

Thanks FUNd. That's why when I charge an extra few points on a deal I don't feel bad as long as I'm adding value to the merchant. Closing costs are an inevitable part of the financial landscape. Just take a look at your mortgage or commercial loan for example...

Having said that, closing costs are fully negotiable and I'm willing to drop them to zero to seal the deal. This is a sales job after all and the goal is to maximize revenue from every deal while still having a great relationship with the customer. As a rule of thumb I'll charge anywhere from 1-3% in closing costs as long as the funding company is okay with that. I NEVER charge closing costs if the funder doesn't approve of them. Let's face it, closing costs are gravy in your pocket and if you're not charging any you're missing out on a lot of income. Every industry has their version of junk fees. Why should ours be any different? You go into Best Buy and buy that extra 2 year extended warranty on the 65 inch flatscreen? You're paying junk fees...

[FUNd]

Thanks FUNd. That's why when I charge an extra few points on a deal I don't feel bad as long as I'm adding value to the merchant. Closing costs are an inevitable part of the financial landscape. Just take a look at your mortgage or commercial loan for example...

Having said that, closing costs are fully negotiable and I'm willing to drop them to zero to seal the deal. This is a sales job after all and the goal is to maximize revenue from every deal while still having a great relationship with the customer. As a rule of thumb I'll charge anywhere from 1-3% in closing costs as long as the funding company is okay with that. I NEVER charge closing costs if the funder doesn't approve of them. Let's face it, closing costs are gravy in your pocket and if you're not charging any you're missing out on a lot of income. Every industry has their version of junk fees. Why should ours be any different? You go into Best Buy and buy that extra 2 year extended warranty on the 65 inch flatscreen? You're paying junk fees...

I hear you, but I have time and again ripped the ball out of another broker's hands at the 1 yard line because I am willing to shave junk fees to close the deal. People are willing to even pay a slightly higher factor in lieu of netting less.

[AndyYSCISOdept]

Junk fees are bull****. CAN charges NONE and they are the best in the biz. Lender is making 30-90% APR and you have to charge fees on top too? Pure unadulterated greed.

I don't charge fees personally but if a broker has gone way above and beyond and basically cut all his commission out to get a deal done, what is wrong with a little closing cost?

[FUNd]

I don't charge fees personally but if a broker has gone way above and beyond and basically cut all his commission out to get a deal done, what is wrong with a little closing cost?

Oh, I didn't say anything about cutting points! I just was talking about BS "underwriting fees" and the TOTAL BS "5-10% 'bank fee', that some lenders have the balls to charge, on top of a 1.49.

[brokerCompany]

most lower tier funders that fund d and c paper or chase junk deals charge junk fees. If you have A paper your funder should not be charging any fees.
As a broker 1-3% on some deals, not all. 10% used to be the standard but merchants don't like 10% everytime they got funded so they got a new broker.