Like real estate agents and loan officers, mortgage brokers receive a commission for their work—but that commission does not come through until the closing of the sale or in the case of the mortgage, the closing of escrow. This can be unfortunate for many brokers who find themselves without a steady income for weeks or even months at a time.
This is where a mortgage commission advance comes in. Let’s take a closer look two of the most important things you definitely need to know when applying for this type of advance.
#1: You have to meet certain minimums
Mortgage commission advance requirements differ from commission advances for other types of sales and transactions. For instance, most mortgage advance lenders require the escrow file to be open when you apply–and require it to be scheduled to close within 60 days. Most lenders also require you to have a minimum amount of mortgage transactions per year, and be with an office or broker for a minimum amount of time. These requirements are designed to reduce the risk to lenders.
#2: You have to be in good standing with NMLS
Most lenders will require proof that you are currently in good standing with the Nationwide Mortgage Licensing System, also known as NMLS; this is in addition to being in good standing in your current state. Like other requirements, this is designed to help reduce the risk to commission advance lenders. You should have your documentation ready when you apply to reduce wait times.