Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I'm just curious because it seemed like everyone was a loan officer or processor last year. I know there are still buyers getting loans & lots of re-fi's but are these LO's still making 150,000 a year?
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,845,174 times
Reputation: 958
Absolutely. The LO's that are still making good money are the ones that always did business in an ethical and honest way, while staying extremely knowledgable by keeping up with current guidelines and all of the changes that have occured over the last year and a half. Some of the LO's in the office where I work had their best years last year, and our top producer makes a consistent $300k+ a year. I personally have not had a 6 figure year yet (sophomore in the business at present) but I have made enough money to pay the bills, and this year is starting off strong.
Although financially it seems like I got into this business at the wrong time, it seems to me like the exact right time. Because I didn't do loans when everything was 100% SISA, and when I got into the business everything had already started changing, I didn't have to adapt or adjust. I just educated myself on current guidelines which kept me ahead of the curve in terms of many other LO's and their educations and knowledge. Many Las Vegas LO's can't even adapt because they are so used to doing things the "gray" way. Since I have gotten into the business in October of '06, around 12,000 LO's have lost or surrendered their license's. There were 18,000, now there is just over 6000.
I have done okay as well... not as great as the last few years, but I expected that and planned accordingly. There are ups and downs in the business, but if you keep prospecting and providing great service you can make it.
I do not mind the tougher rules, I just wish rates and guidelines would stabilize. I was never a BC player... mostly A and A-. I just hate that I tell an A client that everything is great one day and the next you need to be A++.
I am doing OK; not as good as last year but my car is 13 years; been in the same house 14 years so you get the idea. I own my own company but I am honest, too caring and sensitive. Prior to this, I had a credit background. I spend a lot of time getting someone from a 659 score to 680 so they can get a better rate. Oh well, I can sleep at night, yanno?
I left the mortgage business full-time last fall but still doing business on the side. Guys in my shop are still doing fairly well though.
I think a period like this does some cleansing in the mortgage business and gets everyone that was in the business for a quick buck out of it.
I left due to people around me being sued for fraud they never committed because all the lenders are money hungry. I also have a child on the way and wanted more consistent income.
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,845,174 times
Reputation: 958
Quote:
Originally Posted by Rochelle3
Does anyone have advise for someone getting into this business at this time?
Education, ethics, and about 6-12 months of living expenses as a pad (on top of the 6 months reserves you should always have anyway). Pick the shop you work for carefully. A bigger split means nothing if you can't close loans due to lack of mentorship. I did not have the mentorship, and I basically spent my first year in the biz studying guidelines (particularly FHA and VA guidelines) and living off of savings. This of course was after I brought a couple of deals to the table in the very beginning that I couldn't close due to my complete lack of knowledge on how to do my job and the lack of mentorship and support at the shop I was at (bigger shop). I knew that if I did not change my approach that I would fail so I got educated and now the superstars at the old office are not doing business anymore. Many of them let their licenses go and the ones that did not are struggling, not doing any business and stopped making their house payments and what not.
As an update to my previous post, there are now 3486 licensed mortgage agents in the State of Nevada.
Another thought would be to try to get a job with a bank as a loan officer. This would be for the learning opportunities and the multitudes of classes offered at no charge. We are constantly being sent to AllReg classes, VA, FHA, State Bond programs, almost always on the bank's dime (tenure sometimes decides who gets what classes) and those are the ones that require travel. Local classes are there for the taking. (That is how I got my Direct Endorsement designation back in the early 90's - ton's of offerings for training). It's also excellent exposure for you to decide what you do and don't want to do.....for example, I know I never want to originate 203K loans and Reverse Mortgages, even though I have been trained in both.....I refer them out w/ a smile.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.