Hi! I am a mortgage broker and we just became FHA approved. FHA requires that I pay commissions on FHA loans as W-2 which isn't a problem.

Can I pay my loan officers 1099 on Non-FHA loan commissions and pay them W-2 when they close a FHA Loan or do I have to pay W-2 on all loans that are closed no matter if it's a FHA or Conventional loan?

Do you know anyplace where I can confirm this information?

Thanks!

MJULIAN

You should be able to do both, but you will have to write their contracts in that manner or perhaps have two separate contracts with them.

I am sure you are aware on the W2 you will have to pay the matching social security payments plus as an employee you have issues of unemployment and other factors since a W2 makes them an employee.

Thank you.
Yes I am aware about the additional employer taxes.
Do you know a good reference where I can find more information on this item?