Ask five lenders what a broker earns on a rental-property loan and you will get five versions of “top compensation.” This page states the DSCR broker commission structure at CR Equity AI in numbers: what you can charge, what is capped, when it is paid, and what can claw it back.
The short answer
At CR Equity AI, a DSCR broker commission has three parts. You may charge the borrower up to 2% origination on the loan amount. You may add a broker administrative fee capped at $500 on loans up to $1M, or $1,000 above $1M. On a bare referral, where you hand off the file instead of working it, you take 50% of net profit instead of those two fees. All of it is earned only when the loan funds, and paid at closing from settlement.
What this guide covers
- How a DSCR broker commission is structured
- The 2% origination fee
- Why the admin fee is capped
- Referral deals and the 50/50 split
- What the lender charges
- When you actually get paid
- Disclosure rules you have to follow
- Clawbacks and what triggers them
- A worked example on a $750,000 loan
- Frequently asked questions
How a DSCR broker commission is structured
A debt-service-coverage-ratio loan is business-purpose financing on an income-producing property. The borrower qualifies on the rent the asset produces rather than on personal income, which is why investors use it and why the broker channel carries so much of the volume.
Because these are business-purpose loans, broker compensation is not governed by the residential loan-originator compensation rule that caps owner-occupied deals. That freedom is exactly why the numbers vary so much between lenders, and why a published schedule is worth more to you than a sales pitch.
Our schedule has three lines, and each one is written into the executed broker agreement rather than negotiated per file:
| Compensation type | Maximum | Applies to |
|---|---|---|
| Broker origination fee | Up to 2% | Loan amount, charged to the borrower in addition to CR Equity AI and lender fees |
| Broker administrative fee | $500 / $1,000 | Up to $500 on loans to $1M; up to $1,000 on loans above $1M |
| Referral transaction | 50% of net profit | In place of origination and administrative fees on qualifying bare-referral deals |
Note the word “maximum.” These are ceilings, not quotes. What you actually charge on a given file is stated on the term sheet before execution, and charging above the applicable cap is an event of default under the broker agreement.
The 2% origination fee
Origination is the larger half of most broker economics. Two percent of the loan amount, charged to the borrower, on top of the lender’s own fees.
On a $500,000 rental refinance that is $10,000. On a $1.2M small-balance commercial file it is $24,000. You set the number inside the cap based on the work the file takes, and you disclose it before the borrower commits.
What matters more than the ceiling is that the ceiling holds. The most common complaint brokers have about wholesale channels is not the headline rate, it is the quiet renegotiation when a file gets complicated. What the term sheet says is what wires.
Why the admin fee is capped
Most lenders let brokers set their own processing fee. We cap ours: $500 on loans up to $1M, $1,000 above it.
That is a limit on what our own partners can charge, and it is deliberate. Investment-property borrowers talk to each other constantly, in local meetups, in online groups, in the comments under every deal post. One four-thousand-dollar “processing fee” story travels further than ten clean closings, and it damages the channel for every broker in it, including the ones who did nothing wrong.
You still earn up to 2% origination. You just earn it on a file the borrower is willing to refer.
Referral deals and the 50/50 split
Every broker has taken this call. A good borrower, a good asset, in a state where you are not licensed. Most of the time that deal walks, and the relationship that produced it walks with it.
On a qualifying bare referral, the structure converts: 50% of net profit to you, in place of the origination and administrative fees. You stay in front of the borrower and you get paid for the introduction.
Two practical points. First, referral compensation is paid upon collection rather than upon commitment, so the timing differs from an origination fee. Second, a deal submitted in a state you have not certified is flagged and routed to compliance for human review. It is not hard-blocked and not converted behind your back.
What the lender charges
A DSCR broker commission does not exist in isolation. The borrower sees every number on the settlement statement, so you should be able to explain the lender side too.
- CR Equity AI success fee: 0.25% on deals closed on platform. It funds the technology build and keeps the portal from becoming a subscription.
- Origination: 1% on CR Equity AI-funded deals. Brokered deals are priced as outlined on each term sheet, not to exceed 2%.
- Exit fees: structured per deal.
- Valuation: on DSCR files, the appraisal is ordered through an appraisal management company and billed directly by the AMC.
Our AIVAA valuation and analytics assessment runs when the file is submitted, which is how you see terms in minutes rather than waiting on a vendor calendar. AIVAA is an evaluation, not an appraisal, and it does not replace the AMC appraisal a DSCR file still carries.
When you actually get paid
This is where most compensation conversations fall apart, so it is worth being blunt.
Compensation is earned only when the applicable loan funds, and it is paid at closing from settlement proceeds. CR Equity AI does not advance broker compensation. A quoted deal is not a paid deal, and a term sheet is not a wire.
That is also why pull-through matters more to your income than rate does. A lender that issues ten term sheets and funds five has not paid you on five of them. Screening eligibility before the quote, rather than after it, is what makes the published DSCR broker commission schedule meaningful in practice.
Disclosure rules you have to follow
Every dollar of broker compensation has to be visible to the borrower, in writing, before they are committed. The program requires all of the following:
- A written, borrower-signed fee agreement, delivered no later than term-sheet issuance.
- The compensation reflected on the settlement statement.
- No undisclosed side compensation and no fees collected outside closing.
- No broker fee charged on a loan that does not close, unless a separate signed engagement permits it.
These are not formalities. Charging above the applicable cap, or collecting outside closing, is an event of default under the broker agreement.
Clawbacks and what triggers them
Compensation may be subject to clawback or setoff under the broker agreement. The triggers are the ones you would expect in any balance-sheet lending relationship: early payment default, rescission, a repurchase demand, misrepresentation, or fraud.
A clean file protects your DSCR broker commission as much as it protects the lender. Complete submissions, accurate rent figures, and a borrower who understands the prepayment schedule are the three things that keep a funded loan funded.
A worked example on a $750,000 loan
Numbers make this concrete. Assume a $750,000 DSCR cash-out refinance on a stabilized four-unit, brokered by you, closed on platform.
| Line | Basis | To the broker |
|---|---|---|
| Origination fee at 1.5% | 1.5% of $750,000 | $11,250 |
| Administrative fee | Loan is under $1M, so capped at $500 | $500 |
| Total broker compensation | Paid at closing from settlement | $11,750 |
Illustrative only. The same file taken at the full 2% cap would pay $15,500. A bare referral on the same transaction would instead pay 50% of net profit, which depends on the economics of the individual deal. Figures are examples, not quotes, and every file is priced on its own term sheet.
Getting set up
Registration in the broker portal takes about five minutes. You will need your legal name, license number and issuing state where applicable, business email and mobile number, and an SSN or EIN for your W-9. A completed W-9 is required before any compensation can be paid.
Eligibility is straightforward: you must be 18 or older, hold a current real estate or mortgage license in good standing or work professionally in commercial real estate finance, be U.S.-based with a valid tax ID, and accept the Third Party Originator Agreement and program documents. Applications are reviewed individually, and meeting the minimum requirements does not guarantee acceptance.
You can review the full broker program requirements, browse loan programs, or submit a single deal first if you would rather start light.
Frequently asked questions
How much is a DSCR broker commission?
Up to 2% of the loan amount in origination, plus an administrative fee capped at $500 on loans to $1M or $1,000 above $1M. On a bare referral, 50% of net profit replaces both. These are maximums, and the actual figure is stated on each term sheet.
When is broker compensation paid?
At closing, from settlement proceeds, and only on funded loans. Referral compensation is paid upon collection rather than upon commitment. Compensation is not advanced.
Can I charge a fee if the loan does not close?
No, unless a separate signed engagement permits it. Broker fees are earned on funded loans.
Can I get paid on a deal in a state where I am not licensed?
Yes, as a qualifying referral at 50% of net profit, documented in the broker agreement. Deals in states you have not certified are routed to compliance for review.
Do DSCR loans still need an appraisal?
Yes. On DSCR files the appraisal is ordered through an AMC and billed directly by the AMC. AIVAA sizes the file so terms do not wait on it, but AIVAA is a valuation assessment, not an appraisal or an underwriting decision.
Is broker compensation negotiable per file?
You set your own fee within the published caps and disclose it to the borrower in writing before term-sheet issuance. Charging above a cap is an event of default.
Work a DSCR file with a published fee schedule
Registration takes about five minutes. Price a scenario yourself, submit when you are ready, and know what you earn before you work the deal.
CR Equity AI, Inc. NMLS ID 2797309 · MERS Org ID 1018189 · A Florida corporation · 3458 Lakeshore Drive, Tallahassee, FL 32312. Licensing status can be verified through NMLS Consumer Access. Business-purpose and investment-property financing only, not for personal, family or household use. All financing is subject to credit approval, underwriting and eligibility. Programs, pricing and terms are subject to change and are outlined on each term sheet prior to execution. This is not a commitment to lend. Broker and TPO participation is governed by the executed Program Documents, including the TPO Broker Agreement. Compensation figures on this page are maximums under the program and are illustrative, not an offer or quote.