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| Commission Management |
| Mortgage Brokers receive Up-front and Trail Commissions either via their Broker Group or from Financial Institutions directly. They are then faced with the task of splitting these commissions in various ways to ensure all parties receive the splits they are due. These may include a split to the Broker Group, a Referral source and a Loan Writer. Commission Management can be one of the most time consuming tasks faced by a Mortgage Broking business and therefore BrokerSource was designed to automate this process as much as possible. BrokerSource will not automatically pay these commissions however will calculate them and produce "Recipient Created Tax Invoices" (RCTIs) where necessary. Payments can then be made using traditional payment methods such as on-line Internet Banking funds transfer or by cheque. |
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BrokerSource will provide the following benefits when managing Commissions:
- Monitor the up-front commission amounts that are expected to be received from your Broker Group or Financial Institution directly using agreed commission formulas to ensure that amounts received are accurate.
- Split the up-front commission received between Broker Group (usually already retained), Referral sources and Loan Writers where applicable ensuring payments are made accurately.
- Trail commission amounts are based on the outstanding balance of loans referred to Financial Institutions. They are impossible to predict due to the many external factors that can affect the loan's balance. BrokerSource will allow a Mortgage Broker to input Trail commissions received each month and then automatically split these amounts according to the various agreements in place ensuring payments are made accurately.
- Produce a Commission Disclosure Statement for each client loan ensuring that you comply with the Secret Commissions Act 1905 (Cth) disclosing commissions received by and payable to third parties for services rendered.
- Automatically produce "Recipient Created Tax Invoices" (RCTIs) accompanying each commission ready for payment to all relevant parties which will save you time and streamline this process.
- Calculate the commissions to be retained by the Mortgage Broking business or principal to monitor revenues and assist with Income Tax and GST provisioning.
- Allow for the reversal of commissions received (and paid, where applicable) to cater for any "claw backs" applied when loans are repaid early in accordance with the various Financial Institution's rules.
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