| Topic Name: |
Mortgage industry |
| Message Name: |
Mortgage industry |
| Date Posted: |
03/26/2003 |
| In Reply To: |
I am in the final stages of an interview process for a Loan Officer position at Chase. While I have no mortgage experience, I do have 15 years of experience selling professional services into the high technology market, and the team wants to leverage my CXO level contacts. Everybody I have met with has been extremely professional and encouraging in helping me break into this industry. I have met the person who would be my manager and the person who would be my mentor/trainer and expect an offer in the next week or so. As someone who is comfortable in a performance oriented compensation program and have had significant success in the past, I understand and expect the base salary will be a small percentage of my overall compensation. With this in mind, what is the base salary range for new Loan Officers at Chase?
Thanks for the help!
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| Message: |
LoanOfficerFun,
I know a few folks in this business, both brokers and loan officers. At least 90% of mortgage salespeople work on straight commission. About half of them work off a draw, depending on experience and prior production. The draws run from $1K to $2.5K per month. As a commercial bank, Chase will likely provide a decent draw for the first year or so, probably in the $24K to $36K range. I find it difficult to believe that they would pay a base salary in this position, but I could be wrong. Banks tend to have less than desirable commission and payouts, which is why so many mortgage pros migrate to brokers and independents. Chase is a good company, with a strong retail base for referrals. A good place to be in the mortgage industry.
On the other hand, the mortage industry has been unbelievable in terms of business and refinancing during the past 5 years. It will come to an end once interest rates begin to move back up. It is all but inevitable. The industry will fall into a deep decline and will stablize once housing starts begin to pick up. The mortgage industry is amazingly consistent in its ups and downs. A little research will help you to understand why this happens (interest rate issues, economic strength, regional housing markets, etc). What goes up always comes down (examples: stock market, high tech recruiting, real estate agents, venture capital, etc).
Also, where there is money, people tend to flock towards it. Right now, it's in mortgages. You'll have tons of company fighting for business, especially from the brokers and independents. Given that one doesn't need any special training or education to be in mortgage sales (someone once told me that the most successful brokers were pure sales hunters - most without college degrees, hungry for money). An example: I live in an upscale neighborhood of mostly new homes. During the refinancing frenzy in the last 12 months, many people have taken advantage of the lower rates (did I mention that the mortgage industry is driven by a commodity - interest rates and secondary market packaged loans (ie. Fannie Mae/ Freddie Mac)?). But, even though the neighborhood is filled with high level executives, including many bankers, many people were using an independent who established a reputation for having killer rates. Everyone went with him, even some of the bankers. most people didn't care where they got the mortgage, as long as the rates were the lowest.
I gues the moral of my rambling is that while things seem rosy right now, that could change very quickly. In the mortgage business, as well as most sales units, teh lowest producers are the first to go. It'll be tough for you to establish yourself quickly in order to survive the coming decline in mortgage business (notice I didn't say if - I've been through this cycle before). With 15 years of C-level sales in high tech, you will likely have many, many opportunities on the horizon, especially with an economic rebound.
This might be the right things for you right now - make the best of it. But, keep a realistic focus. The telltale signs will be interest rate hikes, grumbling in the office about not making enough money, and fewer leads. Then it's time to jump ship - or jump on the high tech recruiting cycle which has completely bottomed out. No where to go but up!
Good luck
VF
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