What is the Hold Back Account and how are the monies in the account accumulated?
From Branch revenues we will create a Hold Back Account of $5,000.00. This account is separate from the Operating Account and at the sole discretion of Shore Mortgage. These monies act as protection for the company in the event of a buyback or re-capture fee caused by a loan originated by the branch and its Loan Officers. The Hold Back Account will be created at a rate of $500.00 per month for the first 10 months. These monies will not be included in the Branch Manager’s compensation. Should the Branch Manager terminate prior to the reserves being met, Shore Mortgage will retain the total amount of reserves. Should the Branch Manager terminate after the reserves are met, any funds remaining in the account after 12 months from termination will be returned to the Branch Manager.
