Mortgage brokers connect borrowers with wholesale lenders and are paid for originating, packaging, and closing loans. Most residential compensation is collected at closing through the settlement statement, but brokers still send invoices or fee statements for commercial and investor loan engagements, borrower-paid fees, pass-through costs, consulting work, and freelance processing for other brokerages.
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Invoice_1001_Client_2026-10-14.pdf
Residential brokers are paid either by the borrower or by the lender, not both on the same loan. Borrower-paid compensation is usually a percentage of the loan amount, often 0.5% to 2%, sometimes with a flat processing or underwriting fee. Lender-paid compensation is built into the interest rate and paid by the lender at closing, so there is nothing to invoice the borrower. Commercial and investor loan brokers typically charge 1% to 2% of the loan amount, often with a refundable or creditable engagement fee up front to cover packaging and third-party costs. Pre-approval consulting, loan scenario reviews, and freelance file processing are billed hourly or per file. Third-party costs such as credit reports and appraisals are passed through at actual cost.
| Service | Priced | Typical range |
|---|---|---|
| Residential origination fee (borrower-paid) | % of loan amount | 0.5%-2% |
| Processing fee | flat fee per loan | $400-995 |
| Underwriting or application fee charged by broker | flat fee per loan | $300-995 |
| Commercial or investor loan brokerage fee | % of loan amount | 1%-2% |
| Commercial engagement or packaging fee | flat fee | $2,500-10,000 |
| Credit report (pass-through) | per borrower | $30-80 |
| Loan scenario or financing consulting | per hour | $100-250 |
| Freelance loan processing for another brokerage | per file | $300-600 |
Typical US ranges. Rates vary by region, experience, and job size.
| Description | Qty | Rate | Amount |
|---|---|---|---|
| Origination fee, 1.0% of $450,000 purchase loan (borrower-paid), 123 Maple St | 4.5 per $100,000 of loan amount | $1,000.00 | $4,500.00 |
| Processing fee | 1 flat fee | $695.00 | $695.00 |
| Credit report, two borrowers (at cost) | 2 per borrower | $45.00 | $90.00 |
| Appraisal fee paid to appraisal management company (at cost) | 1 each | $650.00 | $650.00 |
| Total | $5,935.00 | ||
Notes: Fees match the Loan Estimate dated March 4 and are due at closing from settlement proceeds through the title company. Broker compensation is borrower-paid; no lender-paid compensation applies to this loan. Broker NMLS #123456, individual MLO NMLS #654321.
Federal and state rules require loan originators to be identified, and many states expect license numbers on documents tied to a loan.
Ties the charges to a specific transaction so the title company, borrower, and your records match.
Shows how a percentage fee was calculated so the borrower or lender can check the math.
A broker generally cannot be paid by both the borrower and the lender on the same loan, and the invoice should not suggest otherwise.
Fees should agree with what was disclosed, and a mismatch can cause tolerance problems or delay closing.
Credit reports, appraisals, and flood certifications are third-party charges and should not carry a markup.
Most fees are paid at closing, so the settlement agent needs to know who gets paid and how much.
Residential broker fees are almost always collected at closing and paid out of the settlement statement, so the due date is the closing date. Some borrower-paid fees, such as a credit report, may be collected at application, but check the rules on when fees can be charged. Commercial and investor brokers usually collect an engagement fee when the agreement is signed, with the success fee due at funding. Freelance processors and consultants commonly bill net 15 or net 30 by check, ACH, or wire. Late fees are uncommon on closing-based compensation, but they can be written into engagement letters and processor agreements.
For most residential loans, the Loan Estimate and Closing Disclosure control what you can charge. Do not bill anything that was not disclosed or that exceeds allowed tolerances. Check the final numbers against the latest disclosure before sending a fee statement.
List credit, appraisal, and flood certification charges separately and attach the vendor invoice when you can. Marking up third-party fees can create compliance problems, and in many states it is restricted.
Commercial deals can take months and fall through for reasons outside your control. A written agreement should state the retainer, whether it is refundable or credited at closing, the success fee percentage, and any tail period after the agreement ends.
RESPA prohibits paying or accepting fees for referrals on federally related mortgage loans. If you split work with another party, invoice for services actually performed, and ask a compliance professional before setting up any referral arrangement.
If you process files for other brokerages, set a price per file and define what counts as complete, such as submission to underwriting or clear to close. State what happens when a loan is canceled partway through.
Usually not for residential loans. Compensation and fees are shown on the Loan Estimate and Closing Disclosure and paid at closing. Invoices or fee statements are more common for commercial loans, consulting, and pass-through costs.
For residential loans covered by the federal loan originator compensation rules, a broker generally cannot receive compensation from both the borrower and the lender on the same transaction. Decide which one applies before you quote the loan.
It depends on your agreement, the loan type, and state rules. For most residential loans, you generally cannot charge fees other than a credit report before the borrower receives the Loan Estimate and says they want to proceed. Commercial engagement fees can be non-refundable if the agreement says so, but check your state's rules.
Yes. Include your company and individual NMLS IDs and your state license number where required. It identifies you as a licensed originator and many states expect it on loan-related documents.
Invoice the brokerage per file, not the borrower. List the loan number or file name, the stage completed, and the agreed flat fee. Many processors also add a reduced fee for files that are canceled before submission.
Send a Mortgage Broker estimate for approval, then turn it into an invoice when the work is done.
Mortgage Broker estimate template