Published Last updated
How We Get Paid: Mortgage Broker Compensation, Explained
A plain-language look at how mortgage broker compensation works, why Simply Approved Mortgages generally uses a 1.5% lender-paid structure on eligible residential loans, and what to compare on your own loan.
Simply Approved Mortgages is a mortgage broker. On eligible residential loans in Florida and Colorado, we generally use a 1.5% lender-paid compensation structure: the lender pays our broker compensation under its agreement with us, rather than you paying us directly at closing. This compensation is part of how the loan is priced, so it does not make the loan free. Rates, APR, points, credits, fees and eligibility vary.
- ✓We generally use 1.5% lender-paid compensation on eligible residential transactions.
- ✓Under lender-paid compensation, the lender — not you directly — pays our broker compensation.
- ✓Lender-paid compensation is reflected in loan pricing; it does not mean the loan has no cost.
- ✓Federal rules (Regulation Z, 12 CFR 1026.36) bar tying loan originator pay to a loan’s terms.
- ✓Residential loans are arranged in Florida and Colorado only.
What this means for you: compare the full offer — rate, APR, points, lender credits, fees and terms — on your Loan Estimate; the actual lender terms and your transaction disclosures control.
Written by
Simply Approved Mortgages Team
Licensed Loan Officers · NMLS# 2620881
Get your personalized scenario summary
Complete the short request and a Simply Approved Mortgages Loan Officer sends back a written summary built from your own numbers: estimated payment breakdown, estimated cash to close, the loan structures that fit your file, and what documentation the file will need.
- Estimated monthly payment with taxes and insurance
- Estimated cash to close for your scenario
- Loan options your profile may fit
- Document checklist for your file
Takes about 3 minutes · Summary shown on screen and emailed to you
Illustration only, generated from the information you enter. Not a rate quote, lock, loan estimate, pre-qualification, offer, approval, or commitment to lend. Figures are subject to credit, income, asset and property review and full lender underwriting; binding numbers appear on your Loan Estimate.
Scenario summary
- Purchase price entered
- $412,000
- Down payment entered
- $20,600
- Estimated loan amount
- $391,400
- Estimated cash to close
- $14,300
- Programs reviewed
- 4
Sample layout with example figures — your own numbers replace these. Simply Approved Mortgages LLC · NMLS #2620881 · Equal Housing Opportunity.
What is mortgage broker compensation?
A mortgage broker helps you compare loan programs from third-party lenders and arranges the loan; the lender makes the loan. Brokers are paid for that work. Federal rules under Regulation Z (12 CFR 1026.36) set how loan originators, including brokers, may be paid: compensation cannot be based on a loan's terms (such as the interest rate) or on a proxy for those terms, and a broker generally cannot be paid by both the borrower and another party on the same transaction.
What is lender-paid compensation?
With lender-paid compensation, the lender pays the broker under the lender's compensation agreement with that broker. You do not write a separate check to the broker for broker compensation at closing. The alternative is borrower-paid compensation, where the borrower pays the broker directly. Which structure applies is set for each transaction, and not every lender or program offers both.
Our general 1.5% lender-paid policy
On eligible residential transactions, Simply Approved Mortgages generally uses a lender-paid compensation structure of 1.5% of the loan amount. Our compensation percentage is set by our agreements, not by the rate or terms you choose. The actual compensation on any loan is governed by the applicable lender agreement and shown on your transaction disclosures.
Illustrative arithmetic example
On a hypothetical $400,000 loan, 1.5% equals $6,000 in gross broker compensation paid by the lender. This is arithmetic only. It is not a quote, a fee estimate, a Loan Estimate, or a commitment to lend, and your loan amount, program and lender may differ.
Want these numbers built around your file?
A short request is all it takes to get a written scenario summary back from a Simply Approved Mortgages Loan Officer. Binding figures appear on your Loan Estimate.
Lender-paid does not mean free
Lender-paid compensation is part of how a loan is priced. The lender may account for it in the interest rate, points, lender credits or other terms it offers. That is why the right comparison is the full offer: interest rate, APR, points, lender credits, lender fees, third-party costs and loan terms. Where applicable, creditor-paid loan originator compensation appears on your Closing Disclosure as paid by others, so you can see it.
Why we chose this approach
A straightforward compensation approach is part of our goal of making mortgage pricing easier to understand and helping people navigate homeownership. Because our compensation percentage is set in advance under our lender agreements, and federal rules bar tying it to your interest rate or loan terms, choosing a higher rate does not increase what we are paid. That lets our conversation stay focused on the loan options that fit your goals. It is not a promise of savings or a lower rate; results depend on your scenario, the lender and the market.
What to ask any lender or broker before you choose
Compensation structures differ from company to company, and the only reliable way to compare is to look at the actual disclosures. Whether you work with us or anyone else, ask these questions and compare the written answers:
- What are the total origination charges in Section A of my Loan Estimate? This is where borrower-paid broker or lender fees appear, line by line.
- Is the loan originator paid by me, by the lender, or both? Federal rules generally prohibit an originator from being paid by both on the same transaction, and the structure must be disclosed.
- What lender credits or points are included, and how do they change my rate? A credit toward closing costs usually means a higher rate; points usually mean a lower one.
- What is the APR, not just the interest rate? APR reflects certain fees and is the better apples-to-apples cost comparison across offers.
- Can I see the Loan Estimate before I commit? You are entitled to a Loan Estimate within three business days of applying. Compare complete Loan Estimates from different companies on the same day, with the same lock period, before deciding.
The CFPB's Loan Estimate and Closing Disclosure explainers (linked below) walk through each section so you can verify what any company is charging — including us.
How we get paid
A transparent approach to broker compensation
On eligible residential loans, Simply Approved Mortgages generally uses a 1.5% lender-paid compensation structure. The lender pays our broker compensation under its compensation agreement with us, rather than you paying broker compensation directly to us at closing.
Compensation alone does not determine what a loan costs. Compare rate, APR, points, lender credits, fees, payment and terms together.
On an eligible residential loan, our compensation is generally 1.5% paid by the lender — about $6,000 on this amount.
Illustrative only — not a quote, offer, or commitment to lend. Lender-paid does not mean free; compensation is part of the loan's pricing and rates, APR, and fees vary.
Good to know
Our pay is set in advance under our lender agreements and doesn't go up if you choose a higher rate.
Lender-paid compensation is part of how the loan is priced. It does not mean the loan is free of costs.
Rate, APR, points, lender credits, fees and eligibility vary by lender, program and scenario. Your Loan Estimate and Closing Disclosure control.
Compare loan officer compensation on your mortgage quote
Loan officer compensation is part of the cost of a mortgage. On eligible residential loans, Simply Approved Mortgages generally uses 1.5% lender-paid compensation. Enter the compensation shown on another lender's Loan Estimate to see the difference in dollars.
Compensation difference on this illustration: $3,750.
How lower compensation can help you
When less compensation is built into pricing, there can be room for a lower interest rate, which may lower your monthly payment.
Depending on the rate you choose, pricing can sometimes include a lender credit toward third-party closing costs, so you may bring less cash to closing.
A lower rate means a lower monthly payment, which can lower your debt-to-income ratio and may help you qualify for more home on the same income.
As a mortgage broker we compare pricing from wholesale lenders instead of offering a single bank’s retail pricing.
Tip: On page 2 of your Loan Estimate, look at Section A, "Origination Charges." If the lender pays the loan officer, that compensation usually does not appear there as its own line; it is built into the interest rate. That is why comparing the rate and any lender credits side by side matters.
Already have a Loan Estimate from another bank or broker? Share it with a Simply Approved Mortgages Loan Officer, who will compare the rate, fees and credits side by side with options we can arrange. No cost to request a review.
Illustration only — not a quote, lock, offer, or commitment to lend; binding figures appear on your Loan Estimate. Lender-paid compensation is paid by the lender, not directly by you, and is part of the loan's pricing, so the loan is not free of costs. A lower compensation figure does not by itself guarantee a lower rate or lower closing costs; individual results vary by credit, loan type, property and market conditions. Residential lending in FL and CO only. Simply Approved Mortgages LLC · NMLS #2620881 · Equal Housing Opportunity.
Purchase market update
What buyers should know this month
30-Yr Fixed · national avg
—
Loading PMMS…
15-Yr Fixed · national avg
—
Loading PMMS…
2026 buying power
Conforming baseline: $832,750
FHA floor / ceiling: $541,287 – $1,249,125
Cost and payment tools
Run your payment, affordability, closing cost and refinance numbers
Monthly payment, affordability, closing costs, refinance break-even and early payoff, all on one screen. This page is not written for one state, so property tax, insurance and transfer or recording charges start at neutral placeholder assumptions rather than published averages — Transfer, documentary-stamp and recording charges are set by your state and county — enter your own figure, or open the state page for a sourced seed. Insurance and tax assumptions vary widely by state, county and property, so replace these starting values with quotes for your address. Every figure is an illustrative estimate, not a quote, lock, offer, approval, or commitment to lend.
Your inputs
Estimated result
- Down payment
- $20,000
- Loan amount
- $380,000
- Principal & interest
- $2,402
- Property tax
- $333/mo
- Homeowners insurance
- $167/mo
- Estimated total monthly
- $2,902/mo
Reference sources: Tax Foundation — property taxes paid as a percentage of owner-occupied housing value, NAIC — Homeowners Insurance Report, CFPB — Understanding your Loan Estimate.
Assumptions, methodology, and limitations
Principal and interest use the standard amortization formula on the loan amount you enter. This page does not target a single state, so the property tax and insurance fields start at neutral placeholder assumptions rather than published averages — replace them with figures for your own address, or open the matching state page for sourced seeds. Closing costs apply your state's transfer / documentary-stamp practice (0.00% of price used as the buyer-side seed) plus typical title, recording, appraisal, credit and prepaid escrow lines. Refinance break-even divides your entered costs by the monthly payment difference. Early payoff runs a month-by-month amortization with your extra principal.
These tools do not include mortgage insurance, funding or guarantee fees, HOA special assessments, flood or windstorm premiums, seller credits, lender credits, discount points, or county and municipal charges specific to your parcel. Statewide averages will not match any individual property. Figures are estimates only.
Illustrative only. Binding figures appear on your Loan Estimate, and terms vary by borrower, property, lender, program, and state.
Turn these estimates into real numbers
Send your scenario to a Simply Approved Mortgages Loan Officer and get a written summary back, or compare where rates sit today. Educational only — not a quote, lock, offer, approval, or commitment to lend.
How we get paid: broker compensation FAQs
Answers to the most common how we get paid: broker compensation questions, written by licensed loan officers.
Ask SAM anything about mortgages
SAM is the Simply Approved Mortgages AI assistant. It answers general questions using the reviewed guides published on this site and links you to the primary government source. It is educational only — it does not quote a rate, payment, APR, approval or commitment to lend. A Simply Approved Mortgages Loan Officer reviews every scenario before any terms are confirmed.
Hi, I'm SAM — an AI assistant for Simply Approved Mortgages. I can explain loan programs, closing costs, DTI, down payments and which calculator or guide to use. I'm not a licensed loan officer, and nothing here is a quote, approval or commitment to lend.
Ask Sam AI provides general educational information only. It is an automated assistant, may be incomplete or out of date, and does not provide legal, tax or financial advice. Nothing it produces is a rate quote, APR, pre-approval, offer or commitment to lend. Never share a Social Security number, ITIN, date of birth, account number or password in chat. Simply Approved Mortgages LLC (NMLS #2620881) arranges residential mortgage loans in Florida and Colorado. Eligibility, terms, conditions and availability vary by borrower, property, lender, loan program and state, and all loans are subject to lender underwriting and approval. Equal Housing Opportunity.
Trusted government resources
These independent government resources can help you research mortgage programs, rates, and your rights before you apply.
CFPB
Regulation Z §1026.36 — Loan originator compensation
CFPB
Loan Estimate explainer
CFPB
Closing Disclosure explainer
Simply Approved Mortgages is not affiliated with HUD, the CFPB, the FTC, the VA, or any other government agency. Links are provided for your independent verification.
How this page connects
Where this fits in the mortgage library library
This page sits inside our Mortgage library coverage.
What most readers open next
- Every loan program we arrangeBecause to see which program this topic applies to.
- The loan program comparisonBecause to place this topic against the alternatives.
- How underwriting reviews a fileBecause the standard most rules serve.
- The payment calculatorBecause to turn the rules into a monthly figure.
Explore the full guide
Keep reading — the rest of the buying playbook
Each of these is a deep-dive on one piece of the purchase mortgage process. Bookmark whichever you need next.
Guide
Closing Costs Guide
What closing costs cover and how they are disclosed.
Read the guide →Guide
Today's Mortgage Rates
Market benchmarks and how pricing works.
Read the guide →Guide
Mortgage Pre-Approval
What lenders review before a pre-approval.
Read the guide →Guide
About Simply Approved Mortgages
Who we are and where we lend.
Read the guide →Guide
Mortgage FAQ
Answers to common mortgage questions.
Read the guide →Internal library
Related mortgage guides across our library
Follow the next relevant guide for your scenario.
Purchase mortgages
Buying a home
Start My Approval
Complete this short request and a Simply Approved Mortgages Loan Officer will personally review your scenario. The form only asks what your program actually needs. Submitting it is not an application for credit and is not a commitment to lend.
What are you looking to do?
Pick one — the form adapts.Pick a loan type
Programs for buying a home.Conventional loan — 3–20% down · 620+ FICO
Tell us about your scenario
The form below is tailored to Conventional loan — only the questions and documents your program needs.
Simply Approved Mortgages LLC is licensed to arrange residential mortgage loans in Florida and Colorado only. We ask first so we never collect a mortgage inquiry we are not licensed to act on.
Purchase price and down payment help us size the conforming loan.
A range is enough here — no credit report is pulled and your credit is not affected.
Illustrative estimate only — not a quote, rate lock, offer of credit, or commitment to lend.
Submitting this form is not an application for credit and is not a commitment to lend. No credit report is pulled at this step.
Follow our reporting
Add Simply Approved Mortgages as a preferred source on Google
We update these guides as HUD, FHFA, VA, USDA and CFPB publish new figures. If you want our updates to show up more often when you search Google, you can mark us as a preferred source from the Top Stories carousel:
- 1Sign in to your Google account and search a mortgage topic such as "mortgage rates".
- 2Select the icon next to "Top stories" to open the preferred sources panel.
- 3Search for Simply Approved Mortgages, tick the box, and save.
Preferred sources is a Google Search feature controlled entirely by you and by Google. Simply Approved Mortgages LLC (NMLS #2620881) does not control search results and makes no representation about how or whether our content will appear. Educational content only — not a quote, lock, offer, or commitment to lend.
Simplify Your Mortgage Journey with These Resources
Talk To A Loan Officer
A Simply Approved Mortgages Loan Officer will personally connect with you to walk through your options.
Mortgage insights & guides
Plain-language articles to help you understand the home loan process, save on closing costs, and make confident decisions.
7 things every first-time homebuyer should know before applying
From credit prep to down payment assistance, here’s how to walk into your first mortgage application with confidence.
Using your VA loan benefit: a step-by-step guide
Eligibility, the Certificate of Eligibility, funding fees, and how to maximize zero-down purchasing power.
Where your closing costs actually go (and where you can save)
A line-by-line breakdown of the Loan Estimate and the fees that are negotiable versus fixed.
Equal Housing OpportunityMortgage Broker — Not a LenderNMLS ID# 2620881NMLS Consumer AccessFlorida Mortgage Broker License #MBR7685Colorado Mortgage Company RegistrationLicensing & Disclosures
Simply Approved Mortgages LLC | NMLS #2620881
Florida Branch Office (Miami, FL) | Branch NMLS #2688012
Florida Mortgage Broker License #MBR7685 | Colorado Mortgage Company Registration
Business Phone: (877) 813-7219
Equal Housing Opportunity
Broker identification. Simply Approved Mortgages LLC is a mortgage broker and is not a direct lender. We arrange residential mortgage loans with third-party wholesale lenders and do not make the lender's final credit decision or fund the loan. We arrange residential mortgage loans in Florida and Colorado. Business-purpose mortgage products may be arranged in additional states only where permitted by applicable law and pursuant to applicable licensing requirements or exemptions.
Credit and program terms. All loans are subject to lender credit approval, underwriting, acceptable appraisal or valuation when required, title review, insurance, and supporting documentation. Eligibility, programs, rates, APRs, points, lender credits, fees, payments, terms, loan amounts, down-payment requirements, mortgage insurance, and availability may vary based on borrower, property, occupancy, credit profile, loan-to-value ratio, debt-to-income ratio, lender, loan program, and state and may change without notice. Not all applicants, properties, products, or programs will qualify or be available in every state. Nothing on this site constitutes a loan approval, rate lock, offer, commitment to lend, guarantee of approval, or guarantee of terms or closing.
Rates, payments and calculators. Rates, APRs, payments, down payments, loan amounts, home values, estimated equity, savings, affordability estimates, closing costs, and other calculator or scenario results displayed on this site are estimates or illustrations unless expressly stated otherwise. Actual loan terms may differ. Taxes, homeowners insurance, mortgage insurance, association dues, lender charges, broker compensation, discount points, third-party charges, and other costs may apply. Advertised rates, payments, APRs, down payments, and other credit terms are subject to the assumptions and disclosures presented with the applicable advertisement. Applicable loan terms and disclosures will be provided as required for the particular transaction.
Mortgage products. FHA, VA, USDA, conventional, jumbo, non-QM, HELOC, reverse mortgage, down-payment-assistance, investment-property, DSCR, and other mortgage products referenced on this site are subject to their individual eligibility, underwriting, property, occupancy, and program requirements. Product availability varies by lender and jurisdiction. References to a mortgage product or program do not constitute a determination that a borrower or property qualifies.
Government-backed programs. Government-backed or government-insured mortgage programs referenced on this site may be subject to requirements established by the applicable government agency in addition to lender requirements. Government insurance or guaranties generally protect participating lenders against certain losses and do not constitute a guarantee of borrower approval.
Business-purpose products. DSCR, investment-property, and other business-purpose mortgage products referenced on this site are intended for qualifying business-purpose transactions. Business-purpose loans may be subject to different requirements and protections than consumer-purpose residential mortgage loans. Borrowers are responsible for accurately disclosing property occupancy and intended use.
Down payment assistance. Down payment or closing-cost assistance programs referenced on this site may be administered by governmental entities, housing finance agencies, nonprofit organizations, lenders, or other third parties. Program availability, funding, assistance amounts, eligibility requirements, repayment or forgiveness provisions, and other terms vary and may change or become unavailable without notice. Listing or referencing a program does not guarantee funding, eligibility, or mortgage approval.
Government affiliation. Simply Approved Mortgages LLC is not a government agency and is not affiliated with, acting on behalf of, sponsored by, or endorsed by HUD, FHA, VA, USDA, or any other federal, state, or local government agency. References to government agencies, programs, benefits, data, forms, or resources are provided for informational purposes and do not imply government sponsorship or endorsement of Simply Approved Mortgages LLC.
Fair lending. Equal Housing Opportunity. Simply Approved Mortgages LLC conducts business in accordance with applicable federal and state fair-housing and equal-credit-opportunity laws and does not discriminate on any prohibited basis.
No professional advice. Content on this site is educational and general in nature and is not legal, tax, accounting, financial, investment, estate-planning, or individualized government-benefits advice. Consumers should consult appropriate qualified professionals regarding their individual circumstances.
Third-party content. References or links to government agencies, lenders, assistance programs, products, services, or other third-party websites are provided for informational purposes or convenience. Simply Approved Mortgages LLC does not control and is not responsible for third-party content, availability, accuracy, or privacy practices.
NMLS Consumer Access: Verify Simply Approved Mortgages LLC, NMLS #2620881.
Simply Approved Mortgages LLC, 633 W 5th St, Ste 2600, Los Angeles, CA 90071 · 877-813-7219 · support@simplyapprovedmortgages.com. State licensing details available at the NMLS Consumer Access link above. © 2026 Simply Approved Mortgages LLC.