I’m thinking of becoming a mortgage broker - Anybody help me with the Pros and Cons?
Ricky B asked:
I’m considering becoming a mortgage broker. My background is in business management, but I do have some sales experience, and I love working with people. However, I would love to get some insight from anyone who has experience in this field. Can you help me out. This could be a big career move, but could also be a great one. Thanks for any help!
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I’m considering becoming a mortgage broker. My background is in business management, but I do have some sales experience, and I love working with people. However, I would love to get some insight from anyone who has experience in this field. Can you help me out. This could be a big career move, but could also be a great one. Thanks for any help!
April 29th, 2010 at 4:52 pm
Pro’s: You can make money if you work
Con’s: You can lose money if you dont work Debt
May 1st, 2010 at 4:40 am
In most states in order to become a mortgage broker you would need a real estate broker’s license to become a mortgage broker.
To obtain a real estate broker’s license most states require you to take a state real estate salesman test. You must then maintain this salesman license for a minimum of two years before you are abIe to take the state real estate broker’s test. Some states such as California waive this salesman test requirement if you have a 4 year degree from a recognized 4 year college.
There are some states that you might apply for a mortgage fiance lenders license. Different states might call this license by a different name. You would have to google the state in which you would want to become a mortgage broker. This license normally does not require a test of any kind.
Most states now require you to take and pass a national exam before being able to originate mortgage loans. Some states do not have this requirement,so again make sure your state does not require this test to be given. Google Nation wide mortgage test followed by your state.
You should also know that since the real estate debacle the mortgage banking/broker field is now heavily regulated with new laws that are suppose to be in the favor of the consumer.
If you decide to enter this field, you must be a teacher to instruct your potential loan officers in the legal and sales of mortgage loans.
The primary item on your agenda should be a very good marketing plan to attract and obtain potential clients.
Mortgage brokers are now making about 15-20% of all mortgage loan origination’s in the United States at the time.
Being a mortgage broker you would have to locate and find direct lenders that would allow you to broker mortgage loans through their company. This might be a difficult task as the direct lenders are and have cut back on those that sign up to use their funds. Without several direct lenders you are not gonna be very successful.
Then you would not have access to VA and FHA underwriters, which a large number of mortgage loans are now being made because of the interest rate and down payment requirements.
With that in mind you would be limited to making conventional mortgage loans and finding the necessary direct lenders to assist you in funding these conventional mortgage loans.
Since you would be new in this career field you might consider becoming a part of a Net Branch, or working for a mortgage banker/broker before leaping into this field.
As a net branch of an established bank or lender, you would immediately have access to FHA and VA mortgage loans as well as the normal conventional type mortgage loan products. Being part of a net branch you would normally have mortgage loan processing done for you, thus you not having to hire this type individual.
Being part of a Net Branch you would normally be able to receive 100% of your commission. If you have mortgage loan agents working for you then, you as the net branch manager would make arrangement to have a split of the points earned by your mortgage agent. This could be 50% or more depending on the experience or amount of mortgage loans this agent bring to the branch. You would not need a license to operate as a net branch manager as all the legal and license requirements are handled by the net branch management company
You would also be able to take part in on going training offered by the net branch management. Normally a net branch manager would be required to pay the management a nominal fee of about $500.00 per mortgage loan submitted and approved or $1500 per month no matter the number of mortgage loans submitted or approved.These amounts would vary between each net branch management company.
Some net branch opportunities will allow you to work out of your home, while some would want you in an office. The same with the name of the company, some will allow you to use a name of your choosing or you might have to use their name.
You may find net branching opportunities by googling mortgage net branches. There will be many sites that will appear. You must then select one that is to you feel comfortable with. Make sure you get as much information about your fees, cost to start up, your compensation, if you would need an office or not. In some cases the will either email or mail you material.
I hope this has been of some benefit to you, good luck.
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