Net Loan Officer Banking Vs Broker
If you are an aspiring loan officer then you
have two options. You can be associated with a
traditional bank, Lender, or brokerage firm on
a shared commission basis, or you can work as
a literal partner within a mortgage branch operation.
A mortgage loan officer is generally associated
with a mortgage company and even bank. Most consumers
think that a mortgage company is basically a bank
that will lend them the funds they need to buy
or refinance their home.
What a consumer has to understand is that when
they are dealing with you as a loan officer you
could really be a representative of a mortgage
bank, lender or a mortgage broker. If you choose
to work with us, then it means that you will be
working for a direct lender that can lend directly
to the consumer or allow you to act as a broker.
On the other hand if you choose to be a mortgage
loan officer for a mortgage broker then it means
that you will be working as a middleman. A mortgage
broker is responsible for loan shopping on behalf
of the borrower. As a mortgage broker loan officer,
you will be responsible for doing the loan analysis
for the borrower and bringing the borrower and
the lender together.
When a consumer deals with a mortgage bank then
he/she will, statistically, end up paying a much
higher cost for the money they borrow. As a mortgage
loan officer working as a mortgage broker, you
will have a definite advantage as you will be
able to provide first hand loan information from
multiple lenders to the prospective borrower.
As a part of a mortgage broker, you will be charging
the client fee for your service. The salient point
of being associated with a mortgage broker is
that you will have access to a wide variety of
loan programs. You will also have the necessary
information of how your client can present his/her
loan application to various lenders for approval.
The fact is, there are some mortgage bankers who
broker loans because they know the advantage mortgage
brokering has to closing more deals.
According to a government survey, it has been
seen that:
There are at least 9 out of 10 loan officers
working for commercial banks, and other financial
institutions. That's a real shame considering
all of the profit they're losing out on. Even
considering lost profit opportunities, just to
qualify to work at a typical bank a Loan officer in a mortgage banking facility is typically required
to have a bachelor's degree in finance, economics,
or a related field. If you have undergone a loan
officer training or hold experience in lending,
banking and sales then it will be a definite advantage,
but still no assurance that you'll have an opportunity
to work at a prestigious "Commercial Bank"
for $30k or $40k a year - - - peanuts in what
you could be making with us.
Although there is an increasing demand for loans,
the employment growth for a mortgage loan officer
is expected to be slower than average due to the
housing market slump, rate increases and default
rates. Loan officers who are trained up to market
and place loans, they'll be the survivors in this
market.
Lastly, the earnings of a loan officer in mortgage
banking fluctuate based on the number of loans
generated. It rises substantially when there is
a good economy and when interest rates are low,
however, low rates and market tightening does
not mean you have to starve.
A loan officer plays a dual role. Firstly, you
will have to protect your employers from risky
borrowers who might not be able to pay back the
loan on time or pay it back at all. Secondly,
you will have to sell loans to prospective borrowers
and generate revenue for the company. We'll help
teach you to do both and make more money.
As a loan officer working with us, you will have
the flexibility to work from home. You can use
the company resources to close the loans. Your
main aim is to evaluate the risk of lending money
to a borrower and this can be done by reviewing
the borrower's collateral, financial assets and
credit history.
Whether you are a loan officer with a big box
bank or a loan officer working with a brokerage
firm, you'll seriously want to consider joining
out team today!
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