Override
An override is compensation paid to an employee, based on a Loan Officer's production, excluding their own.
Override Agreement
An override agreement is required for setting up an override compensation plan in CompenSafe. This agreement can be stated on the LO Addendum A, PAF, PAN or Offer Letter. It is submitted in Paycom and approved by HR.
Override Compensation Plan
Once the Commissions Team receives the approved override agreement from HR, the override compensation plan is set up in CompenSafe. The override compensation plan is set up as how it is stated on the override agreement and generally set to pay by the lock date of the funded loan.
Types of Overrides
- Overrides on a Branch Production – This is paid to an employee based on the production of all Loan Officer's in the branch, excluding their own if they are a producing Loan Officer of the branch.
- Override on a Loan Officer's Production - This is paid to an employee based on a Loan Officer's production. i.e. Krystle is paid 50bps override from the Loan Officer, Thomas Doe’s loans.
- Override on a Loan Officer's Production specific to their role/assignment on the loan - This is paid to an employee based on a Loan Officer's production specific to their role/assignment on the loan. i.e. Krystle is paid 50bps override as a Loan Officer Assistant to the Loan Officer, Thomas Doe’s loans”. Krystle’s override compensation plan will be set up specific to being an LOA of Thomas Doe. In any case where she is an LOA of another LO, this compensation plan will not pay on that LO’s production.
- Override specific to their role/assignment on the loan - This is paid to an employee based on their role/assignment on the loan. i.e. Krystle is paid 50bps override as an LOA. Krystle’s override compensation plan will be set up in CompenSafe specific to being an LOA. Whenever she is assigned as an LOA on a loan in Encompass, this override compensation plan will pay. Exceptions are:
- When Krystle is an LO, who is also assigned as the LOA of her own loan. Note: Overrides cannot be paid on LO’s own production for the reason that the LO is paid a commission on the loan.
- When Krystle has multiple override compensation plans on different role/assignments, and she is assigned to all roles/assignment in Encompass. i.e. Krystle is paid 50bps override as an LOA and 40bps override when assigned as the referring individual. In this case, Krystle will have two override compensation plans: 50bps when assigned as an LOA and 40bps when assigned as the Inside Referral. It is important that Krystle is assigned to only 1 role/assignment, either the LOA or Inside Referral. In any case where she is assigned to both role/assignment on a loan in Encompass, only the 40bps Inside Referral will be paid. If the intention is to pay her as an LOA, the Commissions Team will require that her role/assignment is corrected in Encompass to only show role/assignment as LOA and remove Inside Referral assignment.
If you need any assistance with this, please email Commissions@afncorp.com with screenshots and details of your issue.