Compare the paths
Last updated November 2026
Being a broker usually pays more only if you bring your own business. If most of your loans come from company leads, or you've originated for under 2 years, it's probably not yet.
The three paths
Start your own broker shop
Open your own licensed broker company and shop loans across wholesale lenders. You keep the comp and handle licensing, compliance, payroll, and costs.
Join a platform
Example shown: Altamont
Your own brand under a licensed platform. You pay a flat fee per file instead of a percent. Payroll, compliance, and lenders are handled.
Example (Altamont): $750 per file, and you keep 100% of the rest; +$295 on correspondent loans only; $99/month for Arive (loan software); no processing fee (use a third-party processor and charge it to the borrower). Your brand, with a small "powered by Altamont Funding" line. 36 wholesale and 12 correspondent options. Paid as 1099. Altamont pays the bond and surety. Team Leads / Branch Managers can set the pricing margins for their team. Correspondent loans: some partners charge an early-payoff (EPO) penalty; check the partner. [Tim to confirm: who pays your own LO license; any setup or exit fees]
Go retail
Work as an employee of a retail lender. It sets your comp plan, products, and pricing, and often provides leads. Pay is usually commission-only per funded loan, sometimes with a draw or a minimum-wage floor. Reg Z §1026.36
Percent of commission vs. flat fee
Some LOs work under another broker who keeps a percent: you keep commission − (their % × commission), so their cut grows with loan size. On a platform, you keep commission − flat fee, and the fee stays the same on every loan.
Try your numbers
Pre-filled with the Altamont example. Change any number.
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Illustration only, not a quote. LO compensation must follow Reg Z §1026.36.
Side-by-side facts
| Start your own broker shop | Join a platform | Go retail | |
|---|---|---|---|
| How you're paid | Your company keeps the comp and pays all costs | Flat fee per file, not a percent | Usually commission-only on a company-set plan; sometimes a draw or minimum-wage floor |
| Your brand | Yours | Yours, within the platform's branding rules | The company's |
| Lenders | Wholesale lenders you get approved with | The platform's wholesale and correspondent options | The lender's own products |
| Back office & licensing | All on you [verify by state] | The platform; ask who pays the bond | The company |
| W-2 or 1099 | Your LOs: depends on state rules | Varies by platform and state | W-2 |
| Leads | 100% your own | Mostly your own | Often provided |
| Startup cost | Highest: vendor estimates of about $50,000–$200,000+ (Morty, StartPermit) | Low; per-file and monthly fees | None |
Questions to ask any platform
Get these answers in writing before you choose.
- What is the total fee per file?
- Are there processing fees?
- Are there monthly software or tech fees?
- Are there extra fees on correspondent loans?
- Are there minimum-volume or inactivity fees?
- What is the contract term, and are there exit fees?
- Will I be W-2 or 1099?
- Who pays the bond and surety?
- What are the branding rules?
- How many lenders can I send loans to?
- Are you limited by any lender exclusivity agreements (for example, are any lenders off-limits)?