Job Responsibilities
Originate and process purchase loans, refinances and
second mortgages on conforming and non-conforming (prime, Alt-A and sub-prime)
residential and small balance commercial loans; 'shopping' and placing the loan
with direct lenders, private investors and banks. (30%)
Provide initial transaction underwriting and assist in
acquiring documentation needed to successfully complete the transaction in
accordance with bank guidelines. (10%)
Review and analyze loan transaction packages for
preliminary approval or denial in accordance within the lender's guidelines.
(10%)
Manage and direct the branch to achieve sales and profit
goals. Ensure projects are completed on time, within a budget and managed the
Profit and Loss of the branch. Key primary point of contact for all operational
issues and
initiating/implementing procedures, promoting improved service and customer
retention. Prepare and provide accurate reports of business development
activities. (20%)
Act as an advisor to the sales team regarding projects,
tasks, & operations. (5%)
Recommend, design and implement sales programs and set
short and long-term sales strategies. (5%)
Develop marketing programs and materials such as,
advertising, event support and online promotions. Responsible for creating,
implementing and affording marketing designs to improve company exposure and up
calls using the local paper, direct mail systems, canvassing, and other
marketing
concepts.
(5%)
Organize and hold staff meetings to communicate sales
goals & operational issues. Related duties include training, developing and
supervising the staff and maintaining a thorough working knowledge of several
loan program guidelines. (5%)
Function as an outside sales associate by developing and
maintaining business referral sources. Responsible for selling sub prime
products with attempt to saturate market share in sub prime industry. (5%)
Develop and maintained vendor relationships (i.e.
appraiser, title and escrow companies) critical to supporting the business
strategy. (5%)
Difficult task of originating mortgage loans through
telemarketing daily ('cold calling'). Pre-qualify the customer over the phone by
determining the customer's credit risk, the requested loan amount, and maximum
loan amount, calculated the borrower's new monthly payment, monthly savings and
interest rate. Use Matrix and company tools to determine correct interest rate,
maximum loan amount and seasoning requirements. (10%)
Serve as Notary Public for loan closings.
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Job Requirements
Obtained California Real Estate License and NY State Mortgage Broker's license
in order to legally conduct mortgage brokering in either state. CA is not
expensive but the scholastic preparation for licensing is difficult if you do
not
do real estate loans everyday. Many people take it and never pass; I took it and
knew I passed and I DO NOT NORMALLY TEST WELL. Other states do not require
examinations only historical evidence of mortgage production, background checks
and letter to current
employer dictating that they will quit their job to allow for the new license.
BANKS AND DIRECT LENDERS for entry level loan officer (not broker) positions are
of utmost value and should not looked down upon for new originators as they
provide (while receiving a base salary and benefits) an opportunity to attend
PAID FOR seminars by some of the best leaders in the mortgage industry. The
seminars prove to be more valuable than a college
education to employers later and to the originator if she/he takes each
opportunity 'given' to them to achieve top sales results by applying what they
learn. Taking a Loan Officer course at their own expense is not a bad idea, but
the employer will provide this general loan training so its not necessary
initially. Having other knowledge in all areas of real estates from appraisals,
title, attorney and law subjects to sales practices in selling real property put
originators at the 'top
of their game'. If they see themselves as an ADVISOR they will excel rather than
just a loan officer offering rates.
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Uppers
As a broker, the freedom to do whatever I legally am able to do for my borrowers
is the best part because I am not stuck inside a bank criteria. I can 'work
outside the box' and deal with all types of investors. The high is solving a
problem loan for a very sophisticated type of loan equation, customarily a sub
prime deal for example. It takes years to understand the dynamics, placement and
structuring of a sub prime loan including hard money. I know NO ONE has the
knowledge I have and I come to the table for my customers assuming the sale
based
on the fact that a bank or a new loan officer could never give them what I'm
giving them which is more than a payment or rate. Finally, at the end of the
month when I'm taking in a $20,000 paycheck and closed 5 loans to get that and
also changed the lives of 5 people....who are very happy that I assisted them in
a legal, ethical fashion I feel good about what I do and where I am in my
career.
Caveat: As an employee you get paid every month and have benefits. As a broker
there is no compensation on salary and you pay for all your own insurance,
expenses and must be responsible for putting away money for retirement. Trust me
that is not easy to do when you have employees to pay, a good size mortgage and
a
deep desire to spend!
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Downers
The overhead costs to maintain relationships whether it be in time or in
marketing expenses is monumental for a broker. The stress of dealing with the
the
Banking Department is enough for a broker to think 'maybe it's best to go back
to
work for a bank and let them deal with the scrutiny, the costs, the 'b.s.' if
you
will, of bank audits'. It would make your head spin. Even if
you keep a clean ship, following RESPA laws (and most brokers do) you are still
up against the ropes at year end with the banking department because their job
is
put you out of business; not keep you in it. They are like NYS Troopers: they
want to see you sweat and squirm and make you feel guilty even if you have never
done anything wrong. That being said, as a broker its a huge downer. Yet, then
enter the customer: the rate shopper, the
sub prime borrower who is easy to sell but hard to find a deal for because he is
so sooo sub prime he can't qualify and you've spent hours working on the deal.
Finally, as an employee of a major bank you are dealing with strict box bank
guidelines and usually cannot broker your loans so they don't count towards your
volume for the month. You usually cannot refer the deal to a broker for the
lender fearing a conflict of interest. Also as an employee you are often
'forced'
to work overtime although they don't tell you that in so many words. As an
employee,
though in the mortgage business unless your vision is to be a huge broker, its
really not a such a bad downer.
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Lifestyle
You need to be passionate about this work: you should not go into it only for
the money. That is not a reason to go into any business because people see right
through you. Your customers look to you as their finance advisor, psychiatrist,
decision maker, and even a child care professional because when its 7 p.m. and
they are in your office trying to make a decision but their 5 year is acting
like
Billy the Kid, you must allow people
time to talk and I've literally found myself playing nanny while my customers
chat in my office. You need to be REAL. You can pull off the 'I am All-that-Loan
Officer Joe Blow?? junk only so long. If you are at the top of your game, keep
copies of rolling commission reports so when you get to a new job, you have
proof
of your sales history. The real estate market is very cyclical and unless you
have a solid strategy either by diversifying your ability to do different kinds
of loans (i.e. commercial, business loans, equipment financing, factoring, and
even hard money loans) you will dry up very fast when rates go up and house
values come down. Always have a back up plan and if you
decide to open your own mortgage shop make sure you have 1 year of income
stashed away for those long months that you are paying everyone else and not
yourself. And trust me, IT WILL HAPPEN.
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Compensation
As indicated before as a broker, you are not only responsible for paying
yourself and setting up a retirement fund, you pay your own benefits, taxes,
salary, stock options and EVERYONE ELSES if you have employees. So your $20k is
now down to maybe a $5500 profit but that's still not so shabby is it when you
consider its your own shop at the end of the day. As an employee, however,
although your initial base salary which for a
new or seasoned residential loan officer ranges about $25-32K a year, the full
compensation plan is much more attractive when you consider that its often a
VOLUME based tier comp structure allowing a loan officer to have control over how
well they may want to do that month. In a way, they are still self employed and
in control of their monthly income. The difference is their compensation package
includes the marketing expenses, insurance, bonuses, all benies and all overhead.
It really is a great way to go when you are an employed loan officer because you
are only wearing one or two hats as opposed to 10-20 as a self employed person or
broker. You don't have to focus on anything but SELLING. As a broker, you are
employing a million ideas, concepts, and concerns, on
top of having to produce loans!
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Advice to Jobseekers
You need to be passionate about this work: you should not go into it only for
the money. That is not a reason to go into any business because people see right
through you. Your customers look to you as their finance advisor, psychiatrist,
decision maker, and even a child care professional because when its 7 p.m. and
they are in your office trying to make a decision but their 5 year is acting like
Billy the Kid, you must allow people
time to talk and I've literally found myself playing nanny while my customers
chat in my office. You need to be REAL. You can pull off the 'I am All-that-Loan
Officer Joe Blow?? junk only so long. If you are at the top of your game, keep
copies of rolling commission reports so when you get to a new job, you have proof
of your sales history. The real estate market is very cyclical and unless you
have a solid strategy either by diversifying your ability to do different kinds
of loans (i.e. commercial, business loans, equipment financing, factoring, and
even hard money loans) you will dry up very fast when rates go up and house
values come down. Always have a back up plan and if you
decide to open your own mortgage shop make sure you have 1 year of income
stashed away for those long months that you are paying everyone else and not
yourself. And trust me, IT WILL HAPPEN.
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