GENERATIONAL OVERRIDES - Total Payout of 6%

Total Payout: ..............100%

PROMOTION STANDARDS

Promotion Standards are established for the orderly promotion of agents from one commission level to a higher commission level. These promotions are based on a combination of Team Closed Loans, Personal Recruiting and Team Recruiting.

Team Closed Loans

Credit is earned on each closed loan. Closed Loans are automatically credited to the originating agent AND to all upline agents of the originating agent. The Closed Loans are cumulative over time, with no time limits, towards the required total of Team Closed Loans needed for any particular Promotion Level, as described in the Promotion Standards section of the Compensation Plan.

Personal Recruits

Personal Recruits are those agents that have joined HTLA direct to another HTLA agent. A recruit will be credited towards promotion only if the recruit has joined HTLA, paid the $125 membership fee AND has been hired by the HTLA Primary Lender.

Field Training Sales

For new agents that join HTLA who are inexperienced in the mortgage loan industry, or have not at least closed five (5) mortgage loans in the past, we require that these new agents, designated as a Trainee Loan Officer (TLO), be assigned to an experienced loan officer acting as a Field Trainer. This Field Trainer will work closely with the new TLO to assist them in performing all the necessary activities to close mortgage loans. The new agent will be required to close five (5) sales working with the Field Trainer. Commissions between the TLO and Field Trainer will be split on a 50/50 basis.

Field Trainers can be selected by the upline Executive Loan Officer (ELO), or the HTLA corporate headquarters can be contacted for assistance.

COMMISSION CALCULATION

Commission payout is based upon the commission level of the HTLA agent and the entire upline team on the date that the loan application is taken.

Eligibility

High Tech Lending Associates and our Primary Lender will not allow an agent to enter a loan application unless he/she is an active associate of HTLA and an active employee of the Primary Lender on or before the loan application is taken. In addition to being an active employee, he/she must meet all state requirements, if applicable, in the state in which the loan is originated. You may view the current requirements for each state at the Branch Licensing, Loan Officer Licensing and Continuing Education Matrix located on the Primary Lender page on this website.

In order to receive residual or generational overrides, the agent must be an active associate of HTLA and an active employee of the Primary Lender on or before the loan application is taken. An agent must also be an active employee when the loan is funded.

Calculating Loan Revenue

Commissions are based on a gross payout from the lender after the deduction of any lender fees. FROM THIS GROSS PAYOUT, HTLA WILL RECEIVE A FLAT FEE OF $595 ON EACH CLOSED LOAN.

Calculation Example:

Loan Amount = $300,000

Origination Fee = 1.0%

Yield Spread Premium = 1.0%

Calculating Commission

To calculate gross commission, multiply the Commission to the Field by the appropriate commission percentage.

Federal, State & Lender Corporate Taxes

As W-2 employees, this commission amount will then be reduced by the Lender Corporate share of the following taxes:

• Social Security (FICA)

• Medicare

• Federal Unemployment (FUI)

• State Unemployment (SUI)

This amount varies by lender and state of employment for the agent. Our Primary Lender deducts only what the actual taxes are in that state, not a flat percentage. Refer to the Lender section of this website for specific lender details.

Additionally, as W-2 employees, the lender will be required to deduct the following employees withholding taxes to calculate the net check to the agent:

• Federal Income Tax (FIT)

• Social Security (FICA)

• Medicare

• State Income Tax (SIT) (if applicable)

• Any other state specific taxes. (if applicable)

These deductions will be based in part by the number of withholding exemptions the employee chooses on their W-4 form.