I have been offered a position with a company as a Mortgage Loan Officer. The training is not paid – the commission is 25 percent and there is Marketing dept in house that provided leads and completed the applications for the Loan Officers. How do you feel about the commission rate? If the Marketing dept is taking all the info. from the client – what is left to do besides close the loan? I dont have hands on experience but I
do have a college education. I know how I feel about the position . I would like feedback from others that have been or that currently are in the position of Loan Officer. Please share experience with commission only positions as well.
My wife’s parents have been running a mortgage funding business for 20 years or so, before that they were in banking. Commission only is quite the standard. Some offices even make you pay for office space. And 25% is great, considering you don’t have a brokers license (or do you?). And chances are, that’s 25% of what the office takes in on a loan that you generated, and not 25% of the loan amount… no one could afford to pay that, since the broker isn’t even getting that.
It’s a good start until you get more experience. Also, its a good idea to network with others (outside your office as well) in your new business to get a feel for the way the business works.
Your job in a company like that will likely be to see the loan through all of its steps, keeping the customer informed regarding the steps they need to accomplish to help the loan keep moving through to its completion / approval / funding. As the customer completes a step, they will bring you the neccessary documents for you to go over with them to make sure all the “i”s are dotted and “t”s are crossed, before submitting the loan docs for final processing / submission. Once you get a hang of things and have three or so months of experience, a nice flow of income will be coming in for you. Its true the office will generate some loans for you to work out, but you can also (and should) persue clients of you own… that’s what’s going to make your boss the happiest and realize you’re serious about your career and start giving you raises and promotions!!
I work for a small mortgage brokerage (we have six loan officers, eight telemarketers, and two processors) in Georgia and I’m relatively new to the mortgage industry. My training was paid, The company provides me with leads and we have in-house processors to process our loans. Even if the in-house marketing department is going to take the loan applications for you, that only takes about five or ten minutes of your time. You still will be responsible for determining which loan programs would be appropriate for the customer and then you will need to sell the loan to the customer. On top of that, you will have to gather all of the necessary documentation that is required. You will need to remain in close contact with each key player to ensure that the loan process is a smooth one for everyone involved. That’s just the short version. With that being said, my commission started out at 50%. I know a lot of mortgage brokerages pay 35% if you close a loan off of one of their leads and 50+% for self generated business, so maybe I just got lucky with this company not making a distinction between the two. Anyways…I still think that 25% is a bit low. You will need to close a lot of loans to make it profitable for you. Good luck with whatever you decide to do! 🙂