I saw something like this on Dateline recently. Luckily, being in the "loan" business, I have learned a lot about this and other similar businesses. Being a mortgage broker is similar, but it's both jobs rolled into one. I act as the salesman and the finance guy when it comes to getting paid.
The sales guy makes money off you when he gets you on a higher value, lower trade in amount, accessories, etc., and the finance guy gets you on the loan.
Since I figured all this out, I have quit doing loans with back-end money. I want my clients to see everything up front, so they know they're getting the best deal they can. It has resulted in a lot more referral business that I thought it would. Chalk one up for honesty.
Adam P. Smith
Mortgage Pros, Inc.
303-407-2405 p
303-407-2414 f
aps101374@yahoo.com