This article covers the complete workflow for managing LO compensation, from setting lender-level defaults in Company Settings to making adjustments within an individual loan file.

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Overview

Managing Loan Officer (LO) compensation in Arive involves two key areas: setting up the default compensation plans at the company level and making specific adjustments within an individual loan file. The process for setting defaults differs significantly between integrated lenders (where compensation is received from lender) and manual lenders (where it must be entered by admins). This guide will walk you through both processes.

Important: For integrated lenders, manual overrides at the company level are temporary. Permanent changes to compensation plans MUST be made by contacting the lender directly.

Table of Contents

Part 1: Setting Default Compensation in Company Settings
Part 2: Managing LO Compensation in a Loan File
Troubleshooting & Best Practices
FAQs

Part 1: Setting Default Compensation in Company Settings

This is where you establish the baseline compensation plans for each lender, which will then auto-populate during pricing.

For Integrated Lenders

Navigate to Company Settings > Lenders.
Select the integrated lender (e.g., UWM) and click the Compensation tab. The plans you see are automatically populated from data sent by the lender.
You can temporarily edit a plan using the pencil icon or add a new one with + Compensation.
CRITICAL: Any manual edits will be overwritten the next time the lender sends updated pricing data. To make a permanent change, you must contact the lender and have them update the compensation plan on their end.

For Manual Lenders

Navigate to Company Settings > Lenders.
Select your manual lender.
Click + Compensation to add a new compensation plan.
Fill in the compensation details as required and click Save Changes. This plan will now be used as the default whenever you price a scenario with this manual lender.

Part 2: Managing LO Compensation in a Loan File

Use this process to record the final compensation for a specific, funded loan.

Step 1: Lock the Rate

Before you can manage LO compensation, you must lock the rate to populate the required data. You can do this from the Funding Revenue tab by clicking Lock Rate, or from the Loan Center tab by clicking the pencil icon on top right
Enter all required rate lock details and click Save Changes.

Step 2: Calculate and Save LO Compensation

Navigate to the Funding Revenue tab.
Check the box for Calculate LO Comp.
Select the LO Comp paid date.
In the LO Comp field, enter the compensation value. This can be based on points, a flat fee, or another manually calculated value. Click Done.
Use the Compensation Notes field to add any relevant details, such as splits between multiple LOs.
Click Save Changes to permanently record the compensation details for this loan file.

Image Context for AI: Shows navigating to a loan file's Funding Revenue tab to manage Loan Officer compensation.

Troubleshooting and best practices

Best practices

Document Everything: Use the Compensation Notes field in the loan file to explain any unusual compensation structures or splits for future reference and audits.
Integrated Lenders First: For integrated lenders, always try to have the compensation corrected at the source (the lender) to ensure data accuracy and permanence.