Effective date: 12/16/2022
Policy Producing Manager
Non-Producing Branch Manager Expectations and
Minimum Loan Pricing Policy
1. Purpose.
The purpose of this policy is to ensure the proper use of Tag Lending Group's (hereinafter referred to as Company) pricing system and to ensure its employees and users are aware of the Company’s practices and minimum requirements for loan pricing. This policy also provides for sanctions in the event of a breach or violation of the policy terms hereunder.
2. Applicability.
This Policy applies to all employees and specifically users of the Company’s pricing system.
3. Violations of this policy.
Anyone found not following this policy will be subject to corrective action, up to and including termination. If necessary, the Company may notify law enforcement officials of any illegal conduct and file applicable reports (See AML Policy).
4. Points of Contact.
Questions concerning the use of the Pricing System should be directed to Aangelillo@TagLendingGroup.com
5. Minimum Requirements for Establishing a Branch.
All Branches must be fully licensed and approved by the Company in each applicable state prior to any activity that requires a license to be performed, including, but not limited to; advertising, meeting with consumers or taking applications. Turn times for Florida branches are typically about 30 days after the submission of a complete branch license application. Similarly, Branch Managers must ensure all Loan Originators associated with their branch follow the same requirements.
All agreements and covenants with prior employers must be respected and the Company prohibits all employees from bringing in, or otherwise accessing proprietary, or intellectual property, including leads or applications, of another person or company. Further, consumer contact and/or conducting business under the authority of or for the benefit of the Company may only begin after all applicable Agreements have been fully executed by the Company.
6. Minimum Experience, Production, and Personnel.
Branch Managers must have a minimum of one year of being licensed by any state or federally registered on the NMLS as a Loan Originator. Producing Branch Managers are expected to have a history, and maintain, consistent personal loan origination of at least five (5) closed loans each month. And each branch is expected to maintain a minimum of two (2) licensed loan originators. Should Producing Branch Managers not have the history or expected minimum personal production, exceptions may be made when the branch will include additional Loan Originators whose combined production exceeds the minimum requirements.
7. Minimum Operating Expenses and Reserves.
All branches are required to maintain a minimum $20,000 reserve, subject to further review and adjustment at the Company’s sole discretion.
To promote and increase transparency, Branch Managers will be provided limited access to both QuickBooks and the banking account established by the Company exclusively for the branch (no access to the Company’s or any other branch’s information will be provided). While the account will be for the branch’s benefit, it remains the Company’s sole property and withdrawals, charges, or other activity associated with the account are only permitted with prior authorization from Executive Staff.
Every funded loan will include a loan level pricing adjuster of .03 (3 basis points) paid to the company, which will be set aside as a Loan Loss Reserve.
Every funded loan will also include a loan level pricing adjuster of .10 (10 basis points), which will be reserved and allocated to the branch P&L.
Every funded loan will include a charge of $995.00 to the branch’s P&L payable to the company to assist in covering the cost of “Non-Loan-Level-Expenses.” This charge covers the following types of fees, which is non-exhaustive and subject to change, Maintaining HubSpot, Websites and Landing Pages, Personalized QR Codes, Office365, Licensing Costs, Payroll Administration, Accounting software, Company Insurance, Professional Liability Mortgage Bond, E&O, Cyber Antivirus protection. etc.
All funded brokered loans will include a charge of .50 (50 basis points) to the branch’s P&L payable to the company.
If a branch or Non-Producing Branch Manager encounters a transaction in a state the branch is not licensed, but where the company holds a license the loan should be referred to the corporate AIMS lead channel (A.I Mortgage Solutions). The activity must be limited to solely providing the consumer’s contact information and no negotiation or origination activity may be conducted by the unlicensed Loan Originator. As permitted by state laws and requirements, the branch P&L will be compensated 1.00% (100 basis points). The Loan Originator receiving the referral will be paid according to the “Company Generated Loan” terms in their Compensation Agreement and must follow the minimum pricing requirements included in the Minimum Loan Pricing Policy.
The branch Manager’s compensation may be increased once the minimum required reserve has been exceeded, in compliance with and according to the terms of their individual Compensation Agreement.
Branch Managers are responsible for and expected to set Branch Margins at a level that is reasonable and customary for the area, that ensures pricing to the consumer is competitive in the market, and in line with promoting the Company’s low-cost and low-rate business model. Minimum loan-level pricing must be maintained unless an exception is provided in writing or via the Company’s online tools by Corporate Management or Executive Staff.
Branch Managers are also responsible for and expected to set Loan Originator Compensation levels that are commensurate with the market and their experience, that ensures pricing to the consumer is competitive in the market, and in line with promoting the Company’s low-cost and low-rate business model. Minimum loan-level pricing must be maintained unless an exception is provided in writing or via the Company’s online tools by Corporate Management or Executive Staff.
8. Declaration.
I have read, understand, and acknowledge receipt of the Producing and Non-Producing Branch Manager and Minimum Expectations and Pricing Policy. I will comply with the guidelines set out in this policy and understand that failure to do so might result in disciplinary action up to termination of employment and potential legal action.
