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Hi ,
With my background in Economics( from a foreign country - MA in Economics and BA Economics -equivalent in USA majoring in International Trade ),I was looking to becoming a Real Estate Agent or a Loan Processor/Originator and after looking at various job duties of a Loan Processor/ Originator, I might go for the Loan Processor but still not decided. Help me decide. I have a very big question about the job prospects of the loan processor and a real estate agent.
Here are my questions-
1. Is the job of a loan processor fully commission based or are there companies who hire entry level loan processors with a bachelors in Economics and training of loan processor/originator with no working experience and pay a salary not based on the sales or commission
2. What are the working hours of a loan processor?
3. What job duties does the loan processor/originator actually perform?
What other job related qualifications are required other than the required training and license to become a loan processor.
4 In AZ, what are some good schools to go to for being properly trained and be able to be exposed to companies that hire.
5. Are there any schools that provide the training and also help you with job placements - setting up interviews.
6.Also, what are the duties and hours of a real estate agent?
Thanking all of you would respond in advance.
Quite frankly the two jobs are very different and require different skills entirely. As for being a loan processor, these are typically hourly wage positions. Pay is on the low end of the scale, at least staring out. But you can work your way up if you are good at your job. Personally, I think you are over qualified for a LP position, but you have to start somewhere. There are many recruiting firms that are looking for LPs. You will usually start as a temp. Try Jobing.com, Monster, etc.
With your qualifications, I think you should be looking for a job in the financial services that requires licensing, think investment house, there will be more room for growth.
As for being a Real Estate Agent. You better like people. You better be willing to accept disappointment, especially at the beginning. You better be willing accept inconsistent earnings. And you better be willing to work long hours especially on weekends, holidays and evenings, basically anytime the customer wants you to work.
There are a dozen good RE schools in the Phoenix metro. Many brokerage houses will hire you, send you to school and help you get licensed. But expect to pay it back in hard work at the beginning, with little or no commission.
I've been a loan processor -- frankly, you are waaay over-qualified. I did it for a year as part of a management training path -- processor, underwriter, etc. Ended up managing a good-size mortgage office of a top regional bank (loan officers, processors, undewriters) for a while before moving to oversee mortgage policy and procedure at a national bank. The typical loan processor is someone with a high school diploma or some college. It is not a terribly demanding job, one just has to be super-organized and be able to think ahead a few steps and assemble the information needed for an underwriter to do their job efficiently. They have to have some people skills in order to communicate effectively with borrowers as to what they need and why they need it, but if they the borrower is intransigent, the loan officer is ultimately responsible for making sure the information needed is provided. Good processors usually go on to be underwriters -- either underwriting for conventional loan sales, training and certified by FHA or VA to underwrite their loans, or simply for the lending institutions' portfolio loans (translated: loans that no one will buy on the secondary market, but the bank wants to accommodate the client.)
Some of the mortgage insurance companies used to hold training classes in how to process loans -- but you usually have to have a job before you sign up for one. Most banks/lenders have their own "train as you go" programs. It's a straight salary or hourly job, depending on your employer. No commissions. If you have a good track record with a company, you may qualify for some work-from-home processing work. I was very active with several mortgage associations in the city where I worked -- Association for Professional Mortgage Women, Mortgage Bankers Association, etc. -- where I made many good contacts and friends across companies. It would be hard to walk in as a complete newbie, though.
A successful real estate agent and a successful loan processor are two totally different creatures . . . their personalities are very different. Successful real estate agents tend to be outgoing and somewhat driven. Successful loan processors tend to be somewhat introspective and liking routine, things that fit where they are supposed to, like putting together a puzzle. Different skill sets -- both important, but not necessarily to the same job. I don't know any truly successful real estate agents who work less than 50-60 hours a week, between their community work (part of the job), clients at all hours/days/times, marketing, etc.
Reading the OP's post, he/she seems to be using terms 'loan processor' and 'loan originator' as the same thing.
when I was in that industry, the loan originator SOLD the loan to the client. In the eyes of the general public, Loan originator=mortgage officer, mortgage broker, mortgage salesperson.
After the client agreed to the loan type, conditions, rates, etc., the file was handed off to a loan processor. He/she handled the PAPERWORK to get the thing through underwriting, title company, etc. Until it got closed.
Then everybody got paid, including the real estate agents who represented the buyer and the seller.
Hi all,
Thank you all for your replies. With a not so very outgoing personality and with the education level, I am still wondering what to do?? After coming to this country and taking care of family primarily, and also just filling in as a substitute teacher for a lot of the years, I feel I should do something different. May be with all your suggestions I will go for licensing as a mortgage loan originator. As you mentioned that brokerage firms hire people with my background, but unfortunately I am still looking for such a company who will hire and train. I am presently not looking for a fully commissioned job, but a job that will pay me a decent salary and provide me with opportunities to learn on job. It would be nice if you provide any suggestion for a good school providing the mortgage originator training here in AZ? Are there schools that provide job placement opportunities or interviews after I do the class ? Do companies hire new bee's .....I am ready to work as an LP but no experience in the field.
Thank you again for your suggestions.
Quite frankly the two jobs are very different and require different skills entirely. As for being a loan processor, these are typically hourly wage positions. Pay is on the low end of the scale, at least staring out. But you can work your way up if you are good at your job. Personally, I think you are over qualified for a LP position, but you have to start somewhere. There are many recruiting firms that are looking for LPs. You will usually start as a temp. Try Jobing.com, Monster, etc.
With your qualifications, I think you should be looking for a job in the financial services that requires licensing, think investment house, there will be more room for growth.
As for being a Real Estate Agent. You better like people. You better be willing to accept disappointment, especially at the beginning. You better be willing accept inconsistent earnings. And you better be willing to work long hours especially on weekends, holidays and evenings, basically anytime the customer wants you to work.
There are a dozen good RE schools in the Phoenix metro. Many brokerage houses will hire you, send you to school and help you get licensed. But expect to pay it back in hard work at the beginning, with little or no commission.
Hi,
Thank you so much for the reply. I think I am going to go for the Loan Originator Licensing. But I still have to decide on the school. There are a dozen, which is true, but which one has the best rating? I am unable to figure it out from the internet. Also, I am looking for brokerage companies that hire but I do not have the training ... will that matter? I am also not looking for a commission at the beginning. My goal is to learn and be comfortable in the job...and I am ready to start as an LP , but when I tried jobing , Monster all companies require a minimum of 2 to 3 years of experience which I do not possess.
I've been a loan processor -- frankly, you are waaay over-qualified. I did it for a year as part of a management training path -- processor, underwriter, etc. Ended up managing a good-size mortgage office of a top regional bank (loan officers, processors, undewriters) for a while before moving to oversee mortgage policy and procedure at a national bank. The typical loan processor is someone with a high school diploma or some college. It is not a terribly demanding job, one just has to be super-organized and be able to think ahead a few steps and assemble the information needed for an underwriter to do their job efficiently. They have to have some people skills in order to communicate effectively with borrowers as to what they need and why they need it, but if they the borrower is intransigent, the loan officer is ultimately responsible for making sure the information needed is provided. Good processors usually go on to be underwriters -- either underwriting for conventional loan sales, training and certified by FHA or VA to underwrite their loans, or simply for the lending institutions' portfolio loans (translated: loans that no one will buy on the secondary market, but the bank wants to accommodate the client.)
Some of the mortgage insurance companies used to hold training classes in how to process loans -- but you usually have to have a job before you sign up for one. Most banks/lenders have their own "train as you go" programs. It's a straight salary or hourly job, depending on your employer. No commissions. If you have a good track record with a company, you may qualify for some work-from-home processing work. I was very active with several mortgage associations in the city where I worked -- Association for Professional Mortgage Women, Mortgage Bankers Association, etc. -- where I made many good contacts and friends across companies. It would be hard to walk in as a complete newbie, though.
A successful real estate agent and a successful loan processor are two totally different creatures . . . their personalities are very different. Successful real estate agents tend to be outgoing and somewhat driven. Successful loan processors tend to be somewhat introspective and liking routine, things that fit where they are supposed to, like putting together a puzzle. Different skill sets -- both important, but not necessarily to the same job. I don't know any truly successful real estate agents who work less than 50-60 hours a week, between their community work (part of the job), clients at all hours/days/times, marketing, etc.
Hi,
Thank you for the reply.
Frankly , your reply is an eye opener for me. The Real Estate job as a realtor ...not the right one for me.. however , I probably would be a loan originator with a license/loan processor. Does loan processor need any licensing? or loan originator with the license can do the processing job ? I do not really want to be solely a sales person. Since you have been active in the field, do you recommend any schools in Phoenix, AZ that provide training and job placement services along with the training?
Thanking you,
nloanprocessor.
Hi all,
Thank you all for your replies. With a not so very outgoing personality and with the education level, I am still wondering what to do?? After coming to this country and taking care of family primarily, and also just filling in as a substitute teacher for a lot of the years, I feel I should do something different. May be with all your suggestions I will go for licensing as a mortgage loan originator. As you mentioned that brokerage firms hire people with my background, but unfortunately I am still looking for such a company who will hire and train. I am presently not looking for a fully commissioned job, but a job that will pay me a decent salary and provide me with opportunities to learn on job. It would be nice if you provide any suggestion for a good school providing the mortgage originator training here in AZ? Are there schools that provide job placement opportunities or interviews after I do the class ? Do companies hire new bee's .....I am ready to work as an LP but no experience in the field.
Thank you again for your suggestions.
To your point: Training is not classroom, it is on the fly. Any official training, such as to obtain licensing, is of zero value and will teach you absolutely nothing that you will use in the performance of your job or the garnering of clients. "Training" is sitting near someone who is (hopefully) busy, and asking them questions constantly. Then you will stammer through a few applications, make a ton of mistakes, become very frustrated, and start changing jobs at an alarming pace.
Mortgage Originator Proficiency is not something that is picked up in a classroom, it literally takes - I'm gonna say at least a year. And during that time you will be earning minimum wage - - and, get this, it will likely be a draw that is recouped when you finally start closing loans.
I cannot even think of a company that has the slightest interest in training someone who has never done this. Everyone wants the same thing: a low-maintenance producer doing $1-2M+ per month from their own book of business, who is willing to make a move to a different company for the same money.
The market is so very saturated with originators, great and lousy.
Making money in this business takes years: learning the gig, improving, learning more, becoming faster, learning more, and having an extremely thick skin, and dealing with months of zero production. Dealing with Processing. Dealing with idiots.
Just don't. Do not become a Mortgage Originator. Do literally anything else. I watch the maintenance crews on the other side of my office window riding those standing lawn mowers and think to myself, "now, that's a life."
Oh yeah: everyone on the planet will think that you are a lying, cheating, scumbag thief. I don't care if you've never had a loan bought back, had a complaint, or even if you've never made an honest mistake. People will instantly judge you, think less of you, and - - big finish - - you will find it incredibly difficult to leave the quicksand that is this profession once you have "Mortgage" on your resume.
I'm being very, very serious when I say that you should look into something else. Sell Benzes, BMWs. Learn CODE. Study that. You want a future in life? Learn how to write computer code. Boring? Is stability boring? Maybe. Just don't do this. Run.
To your point: Training is not classroom, it is on the fly. Any official training, such as to obtain licensing, is of zero value and will teach you absolutely nothing that you will use in the performance of your job or the garnering of clients. "Training" is sitting near someone who is (hopefully) busy, and asking them questions constantly. Then you will stammer through a few applications, make a ton of mistakes, become very frustrated, and start changing jobs at an alarming pace.
Mortgage Originator Proficiency is not something that is picked up in a classroom, it literally takes - I'm gonna say at least a year. And during that time you will be earning minimum wage - - and, get this, it will likely be a draw that is recouped when you finally start closing loans.
I cannot even think of a company that has the slightest interest in training someone who has never done this. Everyone wants the same thing: a low-maintenance producer doing $1-2M+ per month from their own book of business, who is willing to make a move to a different company for the same money.
The market is so very saturated with originators, great and lousy.
Making money in this business takes years: learning the gig, improving, learning more, becoming faster, learning more, and having an extremely thick skin, and dealing with months of zero production. Dealing with Processing. Dealing with idiots.
Just don't. Do not become a Mortgage Originator. Do literally anything else. I watch the maintenance crews on the other side of my office window riding those standing lawn mowers and think to myself, "now, that's a life."
Oh yeah: everyone on the planet will think that you are a lying, cheating, scumbag thief. I don't care if you've never had a loan bought back, had a complaint, or even if you've never made an honest mistake. People will instantly judge you, think less of you, and - - big finish - - you will find it incredibly difficult to leave the quicksand that is this profession once you have "Mortgage" on your resume.
I'm being very, very serious when I say that you should look into something else. Sell Benzes, BMWs. Learn CODE. Study that. You want a future in life? Learn how to write computer code. Boring? Is stability boring? Maybe. Just don't do this. Run.
Hi,
I know somebody in the coding business ...computer code as you said, and that's not at all a bit easy...that's worst......MLO jobs and RE jobs have a variety...try it for your self......
Hi,
I know somebody in the coding business ...computer code as you said, and that's not at all a bit easy...that's worst......MLO jobs and RE jobs have a variety...try it for your self......
Then pick something else.
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Mortgage Loan Originator
