Resources | Commerce Wholesale

	Borrower-Paid Compensation	Lender-Paid Compensation
Source of Compensation	All broker compensation is paid from the borrower’s own funds.	All broker compensation is paid directly from Commerce TPO.
Variation in Compensation	All compensation is negotiated between the broker and the borrower and is paid from borrower and is paid from borrower’s own funds, therefore this can vary from one loan to the next.	All compensation is paid to the broker from the lender, at a predetermined margin and cannot vary from one loan to the next.
Premium Pricing	May be used to pay towards borrower’s third-party charges, but cannot be credited towards any portion of the broker’s compensation.	Any premium pricing must be credited toward the borrower’s third-party charges or Commerce TPO fees as Lender-Paid compensation can never increase or decrease. The credit cannot exceed the total of third party charges and Commerce TPO fees.
Broker Credits	Broker may reduce their compensation and offer credits towards the borrower’s third-party charges.	Broker cannot reduce their compensation. However when the YSP exceeds the predetermined LO Comp margin, the overage will be credited to borrower’s third-party charges.
Processing Fees	Broker is allowed to charge processing fees to the borrower.	Broker is not allowed to charge processing fees to the borrower as they can only receive compensation from one source. If using a contract processor with a NMLS # they are allowed to charge a processing fee that will be paid directly out of escrow. Must be a third-party independent of broker.
Seller Contribution	Seller contributions are considered borrower funds and therefore, can be credited towards broker compensation.	Seller contributions are considered borrower funds and therefore, cannot be credited toward broker compensation, as the broker cannot receive comp from both the borrower and lender.

Broker Guide

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CA Impound Schedule

Closing Month	1st Payment Month	Tax Installment required to be paid or payment must be shown on HUD		# Mo. to Collect (w/2 mo. Cushion)
January	March	2nd Half Prior Year		2
February	April	2nd Half Prior Year		3
March	May	2nd Half Prior Year		4
April	June	2nd Half Prior Year		5
May	July	2nd Half Prior Year		6
June	August	2nd Half Prior Year		7
July	September	2nd Half Prior Year		8
August	October	2nd Half Prior Year		9
September	November	If Bill Not Released	2nd Half Prior Year	10
September	November	If Bill Released	1st Half Current Year	4
October	December	If Bill Not Released	2nd Half Prior Year	11
October	December	If Bill Released	1st Half Current Year	5
November	January	1st Half Current Year		6
December	February	1st Half Current Year		7

Due Dates: Semi Annual, 1st installment due November 1st, 2nd installment due February 1st.

Cushion: Two month cushion is required on all escrow accounts.

Interest Credit: When loan is closed with interest credit, use the chart above based on the first payment date, not the closing month.

Taxes Due: Property Taxes that are due within 60 days of closing must be paid regardless of impounds. (Even if impounds are waived).

CO Impound Schedule

Closing Month	1st Payment Month	Tax Installment required to be paid or payment must be shown on HUD		# Mo. to Collect (w/2 mo. Cushion)
January	March	If Bill Not Released	2nd Half Prior Year	10
January	March	If Bill Released	1st Half Prior Year	4
February	April	2nd Half Prior Year, Due Feb		5
March	May	2nd Half Prior Year, Due Feb		6
April	June	2nd Half Prior Year, Due June		2
May	July	2nd Half Prior Year, Due June		2
June	August	2nd Half Prior Year, Due June		3
July	September	2nd Half Prior Year, Due June		4
August	October	2nd Half Prior Year, Due June		5
September	November	2nd Half Prior Year, Due June		6
October	December	2nd Half Prior Year, Due June		7
November	January	2nd Half Prior Year, Due June		8
December	February	If Bill Not Released	2nd Half Prior Year	10
December	February	If Bill Released	1st Half Current Year	4

Due Dates: Semi Annual, 1st installment due November 1st, 2nd installment due February 1st.

Cushion: Two month cushion is required on all escrow accounts.

Interest Credit: When loan is closed with interest credit, use the chart above based on the first payment date, not the closing month.

Taxes Due: Property Taxes that are due within 60 days of closing must be paid regardless of impounds. (Even if impounds are waived).

Possible Change of Circumstance

If you have a change specifically mentioned below, then only the fee directly associated with this can change. You must re-disclose within 3 days of the changed circumstance. For example, when parties are added to or removed from the title— the cost of the appraisal doesn’t change, as the appraisal is not affected by the number in the party. The credit fees may increase, however, if you are adding a party and need to pull their report. Only the fee directly related to the modified circumstance may be affected.

Changed Circumstances–Specified By HUD

Acts of war, disaster, or other emergency.
Information provided by the borrower or transaction that was relied on in providing the LE either changes or is found to be inaccurate after the LE has been provided.
1. Could include quality of the borrower
2. Loan Amount
3. Estimated Value
4. Locking of Loan–Important Dates
New information particular to the borrower or transaction that was not relied on in providing the LE.
Circumstances particular to the borrower or transaction including boundary disputes, need for flood insurance or environmental problems.
Discovery of additional documents (such as releases) that must be recorded causing an increase in recording fees.
If the borrower does not proceed with the terms outlined in the GFE and the GFE expires (fees good through:____).
Property address turns out to not be the correct, legal address—fees affected by the address can change.
Parties are added or removed from title or property is moved out of a trust—only fees associated with this can change.
Property use changes—only fees tied to occupancy may change.
Credit policy is required to change after the LE is issued due to regulatory changes such as fees charged by government agencies for recording fees or taxes change after the GFE is issued and the Loan Originator did not have notice of changes prior to issuance—fees can be updated and re-disclosed.
After the LE is issued, it is determined that additional services such as an additional pest, structural or other inspection, upgraded appraisal, certification, survey or other requirement is required by the loan originator in connection with the transaction.
A revised LE cannot be issued after a CD has been issued.

Requesting a Lock Extension

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Submit a Loan to Broker Portal

To start a new loan in our system you must complete loan actions in the following sequence.

Sign in and enter your Commerce assigned User Name and Password on this site website
Click “New Loan”
Upload DU 3.2, Calyx Point, or Encompass file
Click ‘Order/Reissue Credit’ from the Loan Details page
On left side under Loan Actions, Click “Order/Reissue Credit” (select your credit provider and enter your credit credentials to re-issue) ***Remember to Click RE-issue box or a new Credit Report will be ordered***
Toggle to the “Conditions &Documents” Tab across the top and under “_LE Request Form”: add file containing
1. LE Request Coversheet
2. 1003 dated preferably within 24 hours
3. Itemization of Fees
4. Verified Fee Sheet from Escrow & Title Company
5. Addition: Service Provider List
  
  IMPORTANT *For Purchase Transactions make sure you included the undiscounted rate
*If you DO NOT have your full Credit Package from your borrower, EXIT THE FILE. Do not hit the Submit Loan Button again. We will issue a LE to your borrower within 24 hours.

*If you HAVE your full Credit Package or once you have your full Credit Package from your borrower continue to the next steps.
On conditions and documents page, scroll to bottom and add file under “Loan Submission cover sheet and credit package including Disclosure-Broker Provided.
Click Submit loan button on left side of screen
If prompted, you may need to click ‘Submit Loan button’ again at the bottom of the next page.
EXIT file so we can start working on your file to submit to your underwriter