Becoming mortgage/loan officer

[LuckyTaxi]

So my co-worker comes into work this morning all happy. Rather cocky individual, but I ignore him.

anyways, he met up with an old-time friend who supposedly hit it rich working as a mortage/loan officer.
His friend makes about anywhere from $8000-$10000/month. So, my co-worker (who keeps wanting to find
the quickest way to become rich) is now working with his friend cuz he sees all the money. I keep telling him
to be careful. I mean, if what his friend is saying is true, then why won't everyone jump into this business?

anyways, is it really that easy to find ppl who wants to consolidate their loans and find individuals who need
mortgages for their house? if my co-worker does strike it rich, then all power to him.

 

[RossMAN]

because it's mostly all sales/commission.

You produce the numbers = you get $$$

If I were an awesome sales person I'd quit my bank job and become a car salesman.

 

[LuckyTaxi]

change your avatar again eh?

 

[T2T III]

OK, I see a few "red flags" here. Possibly, his friend is part of a multi-level marketing scheme. These exist for mortgages, too. The cuts could be paid by making referrals and not necessarily doing the mortgage work. For those who are doing "real" mortgage financing, the money can be quite good. However, with rate increases, also comes a slowdown in business. Hopefully, your co-worker can weather the slow times when the income is only $1,000 a month -- hey, it's possible.

I think your co-worker needs to work in an area that he/she is happy in. Not one that just pays good money. Being content with what you are doing is a major benefit of working -- not just being happy on payday.

 

[TekChik]

yeah...i have a friend like that. he DOES make the bucks, but he could sell running shoes to a double amputee.

i tried working for him when i was out of work last year, and this was at the height of all the mortgage/loan boom in an area where they can't build new houses fast enough and existing homes have people in bidding wars over them and i couldn't do it. i'm just not a salesperson for any amount of money and i can't stand the public in general.

so yes, it CAN be done, if you are either the right type of person or want to force yourself to be that kind of person when you're not.

<shrug>

 

[new2AMD]

Originally posted by: TekChik
yeah...i have a friend like that. he DOES make the bucks, but he could sell running shoes to a double amputee.

<shrug>

g1

 

[zCypher]

Originally posted by: TekChik
yeah...i have a friend like that. he DOES make the bucks, but he could sell running shoes to a double amputee.

i tried working for him when i was out of work last year, and this was at the height of all the mortgage/loan boom in an area where they can't build new houses fast enough and existing homes have people in bidding wars over them and i couldn't do it. i'm just not a salesperson for any amount of money and i can't stand the public in general.

so yes, it CAN be done, if you are either the right type of person or want to force yourself to be that kind of person when you're not.

<shrug>

EXACTLY. You have to be the right type of person. I could never do telemarketing, I could never do the pyramid scheme or multi-level marketing thing. Tried both, couldn't stand either. Right now I work as a computer tech which is much more satisfying and although I don't make nearly as much money as I COULD have as a telemarketer, pyramid slave, etc etc - the job is very much preferrable. I deal with people every day on a personal level and I can see the difference I make when a truly happy customer leaves, and I can be certain that they will be a happy customer cause I'll build their computer myself, or my manager will. I like being able to say, OH that was my mistake, here let me fix that for you... rather than just taking the blame from angry customers and not knowing what to tell them.

I know I could have a much higher paying job, but there is room for advancement in my current position as well. That and I'm going to be rich one day no matter what, anyway. I've got plans..

 

[StageLeft]

As you said it's not for everyone. Also, it's quite likely mortgage loans will decrease, and considering the influx of mortgage officers (much like IT 3 years ago) I wouldn't be surprised if a lot of mortgage lenders are finding their income drastically reduced in the next little while.

 

[royaldank]

Probably not a good time to be getting into this game. The past two years have been phenominal and out of the ordinary. Loan officers were raking in the money with refi's and new home purchases. Now, refi's are drying up and new home sales are slowing. The rates are starting to go back up. People that wanted a house probably have one now. My office (I'm in a mortgage company) is slowing down considerably. Hacks that were making $5K/month from coming to work each day are having to work now. It's a salesmans job. If you are good at sales, networking, etc then an LO position might be good for you. It's not for me....I've considered it after seeing commission reports around here. But, all that is coming to an end as the market starts tightening up.

 

[LuckyTaxi]

Yea - this is the type of guy who isn't social. We're both network admin, and he says he hates computers but he picked the field for some odd reason. he needs to get out of IT, cuz he ain't cut out for it. Those who read my post from a while back knows all this guy does is bitch and moan all day about how stupid ppl are. Yet, he is slow to pick up on things and I would have to cover for him. Anyways, he likes finances and he says he should've majored in finances.

Anyways, i think this will die down. Last year he wanted to get into the vending machine business and then his heart turned to real estate. He changes his mind everyday! he wants to become rich overnight.

 

[zCypher]

THat won't happen. He has to realize that he CAN become rich but he does have to work hard for it and be persistent.

 

[LuckyTaxi]

Originally posted by: zCypher
THat won't happen. He has to realize that he CAN become rich but he does have to work hard for it and be persistent.

yea ... if i were to tell him he's full of sh!t then he would say I'm jealous. I'm not jealous, but it would piss me off if he does make big money. he's the type of person who wants others to do things for him. i worked my ass off and to have someone like him earn the big bucks, then that pisses me off.

You IT people will like this one. he called me Sat saying he has a virus and doesnt know where to get a patch. Asked him what kind of virus and he says he doesnt know. He's a network admin folks!

 

[T2T III]

if i were to tell him he's full of sh!t then he would say I'm jealous.

I still think he needs to hear it. From the sounds of it, he's not in reality at all. Plus, thinking that all people are a$$holes is not right. I meet my fair share of a$$holes during the day, but I have to be nice to them because they pay my bills.

 

[alkemyst]

my dad (banking executive) is always wanting me to become a loan officer.

I may....I know all of them (my dad is not in the sales side but makes bank too) have boats, cars, homes all over the place etc.

You need to know the business and be able to talk to people...many people fail on the latter.

 

[TomCsTulip]

I have worked for the past few years in the mortgage world, and the income you are describing is true. The only problem is that the refi market has dried up now and loan officers are scrounging for business.

The only ones who will survive are the ones who have done their jobs and kept their realtors happy. Purchases will be the bread and butter again soon.

I have seen the money that was made over the past 18 months and it is ridiculous, but only the smart ones invested and will have that money for awhile, the others are already BROKE!

 

[LuckyTaxi]

maybe i'm in the wrong field, but I can't picture myself calling people and asking them if they need a loan.
I don't like calling people out of the blue and he stated that he hates talking to people. Yet, he wants to be in this business? If he does fail and realizes he made a mistake, then I'm going to drill him with remarks.

 

[T2T III]

Originally posted by: lilcam
maybe i'm in the wrong field, but I can't picture myself calling people and asking them if they need a loan.
I don't like calling people out of the blue and he stated that he hates talking to people. Yet, he wants to be in this business? If he does fail and realizes he made a mistake, then I'm going to drill him with remarks.

Another thing to consider is the "National Do Not Call" list. Once this gets sorted out, the pool of people to call will shrink substantially -- and telemarketers will have to get more crafty to draw in more business.

 

[LuckyTaxi]

Originally posted by: Tiles2Tech

Originally posted by: lilcam
maybe i'm in the wrong field, but I can't picture myself calling people and asking them if they need a loan.
I don't like calling people out of the blue and he stated that he hates talking to people. Yet, he wants to be in this business? If he does fail and realizes he made a mistake, then I'm going to drill him with remarks.

Another thing to consider is the "National Do Not Call" list. Once this gets sorted out, the pool of people to call will shrink substantially -- and telemarketers will have to get more crafty to draw in more business.

true ... being in the IT field does suck nowadays. I'm just glad to have a job, even though it doesnt pay much. The real incentive is to work for oneself. I'm putting a plan together regarding this, so eventually I'll be doing what I love to do and make some money at the same time!

 

[Vic]

Originally posted by: TomCsTulip
I have worked for the past few years in the mortgage world, and the income you are describing is true. The only problem is that the refi market has dried up now and loan officers are scrounging for business.

The only ones who will survive are the ones who have done their jobs and kept their realtors happy. Purchases will be the bread and butter again soon.

I have seen the money that was made over the past 18 months and it is ridiculous, but only the smart ones invested and will have that money for awhile, the others are already BROKE!

I disagree about the refi market drying up. Sure, the streamline frenzy is over but I've never liked that market anyway. My refi business is actually up the past month or so. But then again, this is the 3rd rate increase I've experienced in my career (others were in '96 and '99-2000), and I always made money during those too.
Low rates are nice, but if all you do as a loan officer is sell rate, you won't do very well at ANY time.
And yes, the income can be true but, as I tell every new loan officer, if this job was easy, everyone would want to do it. It's not easy. It's not rocket science either, but it's not easy. I have known a lot of loan officers that struggle every month with poor incomes. Mortgage sales goes far beyond just being able to work well with people. Persistence, intelligence, positive attitude, good work ethic, emotional stability, and having a high stress threshold go a long, long way.
A larger commission deal (let's say $3k in your pocket for one loan) that you had worked on for the last 2 months and had counted on just died right before funding due to circumstances beyond your control. What would you do? How you answer that question determines whether or not you should become a mortgage loan officer.