How to get involved in the mortgage/loan industry?

5 Replies

one way is to start working at a bank....

another is to call up a loan company and see what they have available to get your foot in the door.

what is your background in?

Hopefully they are making it harder than they use to. Everyone was doing loans aiding in the crash of our RE Market, no accountability, just put a sign on the door and start lending apps on RE Assets, real crazy approach. -- Dawn
At a bare minimum, I suggest a RE license and then courses in finance, so that you can protect the public with educated advice.

Most all states now require licensing, although a few still do not. Most require a specified number of course hours and again most require fidelity and/or E&O coverage. You may need to search for the agency administering licensing in your state, but it is typically a divisiion of finance or banking or real estate. Effective last year and within a few months you will also by required to complete 20 hrs of course time, register, and be approved for the national mortgage brokers data base. Your relevant state agency is the place to start for information on both state and federal requirements.
To your success,

It's a good idea to either work under a mentor who can help guide you in how to build your business the right way and/or find a company who can provide reliable leads or walk-in business.

Hi, so you want to be in the mortgage business. You can take the courses and get bonded, insured, licensed and buy a calculator, but guess what....to do business as an independent broker, you'll need to show the wholesalers you want to broker with that you have the knowledge and experience. It's a catch 22. You won't be doing anything but getting credit card apps without experience. Years ago, as Dawn was probably speaking of, you could find a dishwasher at a greasy spoon, put him in a suit, give him some business cards and while he couldn't spell Mortgage Broker, he were one! Not any more, thank the almighty!
The best way to start is go to a mortgage brokerage and get hired as a loan processor. Then you can work up to an originator in that office.
You will never walk into any bank without a degree and experience as a loan officer, you can start there in the loan department as a processor, but chances are you could be there for ten years and still be a processor. A college degree and most often in accounting or finance will be required in a bank. I knew a very good loan officer in a 150M dollar bank and after years of experience, they had to move him out of lending because he did not have a degree as required by corporate policy. You can walk into a bank and be a teller off the street, never a loan officer!
After you have a few years of lending under a broker, and get to know the wholesalers, you might break away and start your own office.
There are other things to do as a mortgage broker too. You could service loans held by individuals, buy and sell privately held notes, assist people in seller financing, provide underwriting services, just depends on how creative you are. Those functions require the license, and you could take applications and walk into another lender for the deal, working with loan officers at different banks. Your client, the borrower will have to pay you since the bank probably won't or can't. You might justify that fee saving people time and money finding the right loan. You might work with private lenders, but they will not give you money to loan out unless you are really, really good! There ya go! Gotta go, I ws just handed a big bowl of ice cream! Bill

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