Updated about 11 hours ago on . Most recent reply
#3 Mortgage Brokers & Lenders Contributor
- Lender
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Investors, Lenders, & Brokers, What is a fair Origination Fee?
#3 Mortgage Brokers & Lenders Contributor
- Lender
It seems like it is getting very competitive now! I am curious to know what do you think is "fair" compensation for loan brokers and loan officers?
Lending can be so stressful but at the same time the costs can add up overtime. What is working nowadays?
- Erik Estrada
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#1 New Member Introductions Contributor
- Realtor
- Memphis, TN
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#1 New Member Introductions Contributor
- Realtor
- Memphis, TN
Hi Erik,
Great question! In my experience, a fair origination fee for a mortgage broker or loan officer typically ranges between 0.5% – 1% of the loan amount, depending on the complexity of the deal, the type of loan, and the market competition. Some larger or more complex commercial deals may go higher, but that range is fairly standard for residential and small investment properties.
What I’ve noticed recently is that competitive markets are pushing brokers to be flexible—sometimes offering flat fees or credits toward closing costs to stand out. The key is transparency: borrowers appreciate knowing exactly what they’re paying for and why.
Curious to hear what others are seeing in your area—any trends for 2025?