Understanding how real estate businesses generate revenue is essential for accurately pricing services. For example, “origination fees often range from 1% to 2% of the loan amount, resulting in fees between $2,500 and $5,000 on a $250,000 mortgage. Lenders may earn $5,000 or more per loan over time (How Much Does a Mortgage Lender Make Per Loan? A Breakdown of Profits).” This discussion does not include the earnings of real estate brokers or sales agents. When determining service fees, it is important to consider both the allocation of overall profits within the industry and factors such as our operational costs and desired profit margins. Consider that on a $250,000 mortgage to earn a loan signing fee of $250 it will equal 0.001% of the mortgage loan amount. My hypothesis, if all LSAs understood this premise, maybe we would not be having a discussion about low fees in the future.
That’s interesting to understand but I’m still not taking a 175 page package for $40 - 30 miles away.
@miyakmeek Considering the significant revenue streams within the real estate industry, particularly the substantial origination fees lenders collect, my core argument is: Why should loan signing agents (LSAs) be excluded from sharing in the profitability derived from mortgage loan transactions? Shouldn’t we, as essential service providers in this process, be fairly compensated in a manner that reflects the overall financial gains generated by these loans?
Agreed. Considering the need for our services to complete the transaction is necessary. They should pay us what that is worth…..within reason.
This information is extremely valuable in considering taking or not the signing. Thank you!
Well, that forumula obviously isn’t used to calculate the fees actually paid to the notary. If the notary gets $100, then the rest obviously goes into someone else’s pocket.
@steves11 You are so right. “If the notary gets $100, then the rest obviously goes into someone else’s pocket.” Not to get biblical here, it is said, “My people are destroyed for lack of knowledge”. Title companies and signing services are taking advantage of the lack of understanding and knowledge within our industry.
I am refusing more and more signings due to low fees. When I counter, I hear crickets. And that is fine with me. My time is valuable.
@loricnotary22 Saw a ton of notifications pop up today, texts and emails, and nope, not taking any of them. Used the counter offer thing when I could, but I was asking for like five times the original, so, yeah, not expecting them to say yes. Guess I’ll stick to my other stuff.