By offering government loans, top mortgage officials can earn millions a year, according to Jim Cameron, senior partner at Stratmor Group, an advisory firm for the mortgage industry. Brian Decker works at LoanDepot in Riverside County, California. Interestingly, you can become an inexperienced loan officer. Yes, it's a potentially high-paying job that also welcomes newbies.
An enterprising, well-connected mortgage broker who does a lot of business will earn more than one who is just starting out or working part-time. A loan officer can get these leads and make no-obligation pre-approvals for those customers to earn them. Finally, let me point out that, due to the way technology is going, the position of loan officer could be at risk in the near future. At the same time, the quality (and quantity) of mortgage loans at this time is not what it was a few years ago.
But there are a number of questions you should ask yourself before entering the mortgage industry as a loan officer. I've been wanting to be a loan agent for three years, but I was afraid because I had a friend whose husband didn't make money as a loan agent; he didn't have clues, etc. The prospect of being a loan officer has changed conventional thinking, especially when the housing market has skyrocketed in recent years like a bottle rocket. If a mortgage loan officer gets just one of those deals, it often amounts to a big payday, sometimes up to a few months' wages working a minimum-wage job or other lower-wage jobs.
In some cases, the originator of the loan may have a wide range of powers, including that of approving the loan. I agree, loan processors are the unsung heroes of the mortgage world, and they often know the guidelines, necessary conditions, and potential red flags for most loan files inside and out. Often, loan officers implicitly or explicitly partner with a real estate agent or office so that they can provide financing to their homebuying prospects. Most take out a mortgage loan that will allow them to pay the cost of their home for an extended period of time.
If you work for a wholesale mortgage lender and are an account executive (the equivalent of LO), the fee could be even lower, sometimes less than 10 basis points per loan. Now, I want to go back to the business world and I would love to sell mortgages, but no one wants someone who doesn't have experience. They are generally experienced in banking and commercial finance and, depending on their employer, can take full responsibility for approving a home loan from initial application to final approval and disbursement. It will tell you if a mortgage broker is properly licensed and if there has been any disciplinary action against you.