Answer to Keiya

Keiya said...
Hi Ameen,
I have been in the industry only 9 months. I don't like working with realtors much because they are overly interested in my fees. The majority of my market is sub-prime so I don't have the opportunity to work with A credit which makes it difficult to secure loans with low interest rates as well. I have had several realtors "take" customers to other mortgage companies. Case in point, how do I work with realtors and not have to be concerned with them taking a referral I have given them to some one else?

Keiya,

Why don't you do A paper as well? It's easy to do. And if you don't, you are tying one hand behind your back. You don't have to spend money marketing for it, but you should be able to do it.

And if you can't, then the realtors will take the loans to places that can.
If you give a realtor a lead, you should make it clear to bring that loan to you, or you will not be giving them any more leads. Whoever has the lead makes the rules. But you have to deliver.

If you have the leads, you just need to find a realtor willing to send you all his leads in exchange for yours. It should be a two way street. If anyone took a lead of mine to another mortgage company, there would be hell to pay.

There are 1.2 million realtors out there. Find the ones that will work with you, not against you.

Answer to Glen

Glen said...
Sunday, June 26th, 11:38 p.m.

Ms. Ameen

I'm considering starting my own mortgage brokerage though I don't want to pay for a franchise to get a list of financial institutions. What other options would I have and how would I go about doing it?

How does one become qualified to be able to approve customer's VA and FHA mortgages?

Glen,

Contact your local Association of Mortgage Brokers and get their latest newsletter or magazine and a list of their members. Then do the same for the Association of Mortgage Bankers. That will give you a huge list of lenders.

You can also search on the web, or visit any mortgage trade show, or read any mortgage magazine.

For FHA and Va you will have to meet their requirements. They have a net worth requirement, and a financial requirement. Your books must be audited by a special accountant every year. This is what costs several thousand dollars to do.

But you can find more info at hug.gov for FHA.

We are working on a book How To Start A Mortgage Company which will answer all these questions for you and give you all the info, but it will still be a few months before it comes out.

Question from Kim

Kim said...
Hi Ameen

Thank you very much to taking my question. I would like to know if you use a script with your clients.If so would you be willing to share?

Kim,
I assume you mean a script for the initial interview. I don't use a set script. But I do have several items that I cover. It really depends on the prospects and how they came to us - ad, referrals, etc.

There are several psychological factors that we use and clues in the office to get them to do what we want. This is actually the topic for this month's Millionaire Loan Officer Newsletter. It's such a large topic that I am having to break it up into three issues. But the stuff is really good.

I'll give you one tip: Reciprocity is one of the laws of persuasion. One way we use it is by giving the prospect a free book when they come in for an interview. By giving something free, the prospect is now in your debt. It is harder for them mentally to say no to something you suggest. The book is just a gift. Has nothing to do with the loan and is not mortgage related. And they must accept. You cannot let them give it back.

It works wonders. For more tips get the newsletter: mortgagebrokertraining.com/mortgage-newsletter.html

Question from Consumer

Anonymous said...
Hi Ameen,

I just started working with a mortgage company the does mostly sub-prime lending, the problem I have is the amount of fees charged by the broker and then again by the lender. How do they justify the fees for people just because they have lower scores? I was going to do my loan which is 680 + but the fees are making me reconsider. $5,000 for a simple refinance.

It all depends on what you can negotitate. 680 is not that bad as a credit score. Have your been to any other mortgage company?

If the loan is harder to do, and takes longer, they deserve to be compensated. Information is power. And they know the lender that will do the loan, so that is their power.

Marketing question

Anonymous said...
Being new to this business (one week), what are inexpensive ways to market myself? Do you have tips on how to give out business cards? or attractive ways to leave them say on a table at a restaurant with the tip? Clever marketing strategies is what I need. Thanks!

Hello,

Welcome to the biz.
Get yourself a generic marketing book. Like Guerilla Marketing. You'll get a ton of good ideas from books in that genre.

Answer to Diaz

DIAZ said...
How can this Real Estate market sustain? Is anyone else waiting for a collaspe or is everyone drunk with the euphoria? I lived in Southern California back in the early 90's and watched the market deflate by 30%, does everyone think it is not going to happen, or are they just hoping to keep cashing in until it does?

Diaz,
Make money on the way up, and on the way down. That's how the pros play.

Answer to Visionar7

visionar7 said...
Question..Loan Origination...if you work at home...isn't loan origination nothing more than requiring certain documents from your prospective mortgager..and then submtting those forms to a bank you work with online...provided we are just talking about a conventional loan...or is there more to it

Hi,

Well you have to get the prospective mortgager. That is the hard part. Processing a loan is easy. You can even outsource it if you don't want to do it yourself. But you also need to collect actual, hard copy paperwork and submit it to the lender.

I Wish We Could Do This Question

Anonymous said...
If a seller has a current appraisal for $200k and is willing to take a buyers offer for 180k. Can the buyer finance 200K (or what the lenders appraisal reveals)and receive cash back at closing?

Hi,

Nope.
Fannie Mae won't allow it. A private lender might - if they were out of their minds.

If it's an 80% loan, it's 80% of the price or the appraised value. Whichever is lower.

Answer to Suzanne

Suzanne said...
How can I research a mortgage product that is being advertised by another mortgage broker. I have clients asking me about the product and my competition is not willing to share who the lender is that is offering that program.

Real Example: No mortgage payments for a year...All I was able to find out from the advertising broker is that it depends on credit and equity position and it is a one year arm.

Suzanne,
This is a common problem for newcomers. There is no easy answer except to be aware of most of the lenders in your area. Or to ask someone who already is. Call your favorite lender and ask if they have this program or something similar. If not ask them who does. Your rep should be able to help if he/she does not have the program.

Programs come and go. You will not be able to keep track of all the crazy programs from all the lenders. Just get on the mailing lists of as many lenders as you can find. And go to the free seminars put on by the lenders to learn as much as you can.

Referral Question

Anonymous said...
Hello Ameen,
What are 4 or 5 ways to delicately
ask current and / or past clients for referrals without appearing as pushy or a begger

:)
Buy Referrals On Demand and see for yourself. www.referralsondemand.com

Answer to Mee-Mee

Mee-Mee said...
Hello Ameen,

I would like to know how to become a preferred lender at a subdivision, who do I need to contact the builder, sales department? How do I approach a builder to make them interested in me versus other big companies? Please Help!

Mee-Mee,

Interesting name!
And a good question.

The builder is usually the one you need to talk to.

First, find out if they have their own lender or if they need one. You can do this by just talking to the sales agent. Then get the name and contact of the main person you need to talk to.

If they need one, you need to make a strong pitch. What are you willing to offer and what will you want. When you contact the builder by phone, try to arrange a meeting where you can present "10 ways (the builder's name here) can make more money in (subdivision name here)".

If you cannot get them on the phone, mail them something with your proposal.
Something that I have learned that builders and developer's like, is if you have a desk or office at their location. This might not work for you, but it might help.

Or you can try to get the sales rep to send buyers to you. If you are a lender you can hire the person without then needing a license. But if the builder has it's own mortgage company this won't work.

There will also be several smaller builders in your area that build 1 home at a time. These people could really use a good lender on their team. You can find them by contacting any mailing list broker for names of the companies and their contact info. Then mail or call them.

We actually had a realtor approach us about being a lender at a subdivision. The developer/builder is a friend of his and wants him to sell the homes for him. But this guy also wants to make money on the loans. Since he does not have a mortgage company, he contacted us to see if we could work something out. He wants a piece of the action and so does the builder.

So we might just open a new company - a partnership between the three of us. That way we do not violate any RESPA laws. The agents will also be the loan officer and I will open the company and my company will process the loans. The builder will provide a space in the sales office.

That's the way it stands now. Hope it works. The subdivision has over 1000 homes to be built!

Loan Product Question

Anonymous said...
Hi Ameen,

As a new loan officer, what is the most expeditious way to learn about the loan products I have to offer my customers. Until I get a couple of loans underway, I am finding it difficult to professionally sell something I know very little about! I am told by my broker it comes with hands on experience, however how can I offer something to realtors or builders etc... that I don't know enough about???

Hello,

A fast way is to look through old files. Look at the circumstances of the borrowers, what loan they were put in, and question why. Then see if there was any other product that might have been better for them, or would serve as a back up incase the best product didn't work.

Another way is to talk with lender reps. Take one out to eat and quiz them on what they have and what the benefits are for each product. Most lenders offer similar products so once you understand the main ones, the rest is easy.

Go to the bookstore and buy a mortgage book that lists the different programs. Any book for consumers will do.

Another general question

Anonymous said...
I am new to the industry; how do I generate more leads? Where so I start? Should I just concentrate on realtors, CPA's, and Financial Planners? What books should I read? Who Should I market to first to get leads right away? Or should I just try to concentrate on Rafi's first to get started?

Hi,
Refi's are just about done. Going after refi's right now will be a tough road. So ignore them for a while.

Go where the buyers are. Identify the demographics of your target buyer: Age, Sex, Occupation, Neighborhood, Income, Hobbies, etc.

Then market to them.

But you must have a marketing plan. You can;t go after anyone and everyone. You need to determine who will go after. This is called your niche. You will have much greater success going after a niche then the general public.

What do you enjoy doing? Swimming? Then join a swimming club and offer everyone a way to afford their own pool-refi. Then contact several pool builders and tell them how you can help them win over clients who think it is too expensive.

Do you like Motorcycles? Contact all the dealers in your area and show them how you can help them sell more bikes by refinancing their prospects.

Any group that is passionate about their hobby is a great niche market. And easy to dominate.

Do you go to church? That's one of your niches.

If you used to be a Financial Planner, then they would be your niche because you can related to them and talk their jargon. It will be much easier to get them to like you.

Organize your business, build systems, and plans. Only then will you be strong when the winds blow.

Answer to Kalen

Kalen said...
Being fairly new to the mortgage business what is the quickest way for a new broker to find their first deal? Also, what do you think is the best advertising medium to find clients (direct mail, newspaper, radio, etc)?

Kalen,
You want your first deal? Ok, go ask your parents or relatives. If not, then ask your friends, and get your friends and relatives to ask their friends and relatives. That's how it starts.

The best medium is the one that brings the best results. Your message has to match what your prospects want. The medium is not important. Create a powerful message that will make someone want to call you and you can be successful using any and all mediums.

Answer to general question

Anonymous said...
Hi Ameen,

What are the differences between mortgage broker, mortgage processor, loan officer, and loan originator?

Hi,

In my book So You Want To Be A Mortgage Broker is use the term Mortgage Broker to also mean loan officer. And most people do the same in the real world. But they are actually different.

A Mortgage Broker is a company or the owner of a mortgage company that brokers loans. They don't lend their own money. A processor is the person whose job it is to take a loan application and do all the paperwork to get the loan to closing. A loan officer is the person who works for the mortgage broker and brings in loans or just takes loan application. A loan originator is the same as a loan officer.

Make sense?

Answer to Beth

Beth said...
I have just applied for my broker's license in PA and am getting set up. I was a processor for a one-man shop for two years and then a loan officer for one year. I took off the past two years because I had babies #3 and 4. I know I will be a great broker for my customers. I absolutely love the business and love learning about the business.

My question is this:

What's the best way to go about getting signed up with lenders? I understand that the "best" way is to have a relationship with Account Executives by having done lots of loans with them. But that's not the ONLY way, right?

Beth,

Getting lenders is actually easy. I don't understand why newcomers think it is going to be so hard.

Remember, you are the customer of the lender. Lenders need you. So they advertise heavily and spend large sums of money to get you to send them loans. Plus they are all over. A large number of websites nowadays have lists of lenders that you can contact. Read any mortgage magazines. Get back issues of newsletters from you local Mortgage Broker Association. Type in the word wholesale lender in your favorite search engine. Or, if your office is in a building where there are other mortgage companies, the lender reps will bumble into your office as well.

Once you find one, ask for a broker application. They will be happy to send one to you. Fill it out, and send it in. Some lenders have requirements like experience. So if you don't have that, put them aside and work with the hundreds that have no requirements. When it comes to lender, it's a mortgage broker's market.

Answer to Judi

Anonymous said...
I see I am not alone out here as a new loan officer. I spent 23 years in the healthcare industry, but wanted the opportunity to do more in the latter part of my career years than I did in the first. I still see this as a service industry. My boss is terrific and has spent money to have training materials available for the new folks, but I still find myself at a loss as to how to market myself. I have tried a few of the techniques I've read about, but so far have had very little response. I am determined and committed to this business and know I will be successful at some point in time, but I could still use some help along the way. Any tips you and your readers can give me will be greatly appreciated. I really liked Conrad's idea about a handbook. There is so much to remember.
Judi

Judi,

The materials are out there. You just have to find them. We have had great success in having new loan officers use our materials and have success with them.

But your concern is noted, and that is why we are writing Jump Start Your Mortgage Career, a marketing book for new loan officers.

Anything you want to see covered in this book?

Answer to Conrad

CONRAD said...
I want to assemble a loan officer handbook/training manuel for our office.
This information already exists so I don't want to re-invent it.
We have a not-for-profit Native American housing office to service first time home buyers on our reservation land.
As a Pay It Foreward project why don't we put this info on line?

Conrad,
Nice try, but I have mouths to feed.
We can sell you our training manual at a discount if you order in quantity. So that might an option for you.

I applaud your efforts. Watching the series "Into The West" on TNT brings back the horrors of how this country was founded.

Answer to John

John said...
I am a broker in Michigan and am looking for inexpensive ways to market my company. Because of a lack of marketing in the past, I find myself without enough customers to support my business. I have learned my lesson and need a way to get started.

There are many great ideas out there but they all require a lot of capital that I don't have because of a lack of marketing ...it's a vicious cycle.

John,
Start with the basics. Mine your database. Create relationships with your past customers and stay in touch with them. Meet new people and add them to your database. This will grow your referrals as well as business.

If you have 300 people in your database, you can assume 10% will move every year. That's 30 potential loans for you right there. Not to mention the refinances, equity lines, second homes, investment properties, etc.

Referrals on Demand can show you all this and a lot more.

Try using some guerilla marketing tactics.
Flyers on cars and such.
Have a booth at a women's trade show. This has shown to bring great returns. You'll be the only mortgage company there.
Website
Join a local real estate investment group.
Subscribe to my Millionaire Loan Officer Newsletter and I'll give you even more ideas.

Another Answer

Anonymous said...
With experience it is not easy .....
I have been in the mortgage business for 15 plus (heavy on the plus smile)yrs..as a Sr. Loan Processor/Closer... I now strongly desire to become a LO but I finding that alot of Mrtgage Companies are only looking at me to be their Ops Mgr/Processing Mgr becuz of my strong back ground in the "Operations" side of the mtg business and/or that I'm not in my early 20's that I would not make a good LO ..... How can I get my foot in the door as a LO with strong Mortgage background and not be pre judged because of my experince?????

Hi,

As a mortgage company owner I want one thing: More Loans. If you show me you can bring the goods, you are hired. I don't care if you were the President of FannieMae.

Finding a job on a commission basis should not be too difficult. If you are looking for a salary, you might have a problem. Good processors with experience are hard to find.

I suggest, you find a place you want to work and strike a deal. Part time as processor, part time as LO until you make enough as LO to go full time.

Or you can go straight commission. Any smaller company would love to have you as an LO.

By the way, I need a good Processor too, just kidding. :)
But if you are interested in helping us develop a processor training manual or curriculum let me know.

Answer to Phil

Phil Midas said...
1. I left a large finance company to work with a broker. I am doing my own digging to come up with leads, can you offer any suggestions for getting leads with out paying up front? (I am currently searching county courthouse files for deeds on b/c lenders and cold calling. Takes time and I'm not getting very many applications.)

2. When I go to a Real Estate office to try to get leads, everyone says, "Fax us your b-card, mail us some info, or, just drop off your info and we'll put it around the office." How can I get IN with the realators?

3. On my cold calls, I am using was I was taught on my previous job, and I feel like I'm striking out. Can you offer info on scripts or fresh info on how to get peopl's attention?

I've been reading your info for the last few weeks, great stuff. Like the idea of "Paying it Forward."

Phil,

Seems like you need more business. :) Who doesn't want more business. There are many great ways to get leads and prospects. My company sells many systems that you can use to get more business.

What you need is an entire system. I cannot answer your question in just a few lines here. And if I told you all I know then who would buy my stuff? :)

I sound like I am just promoting my own stuff, but if you want realtors, you should try, The Marketing to Realtors Toolkit


As for cold calling - don't waste your time. The best way is to think like a person wanting to buy a house. What does this person do, where does he go, what does he read, and what does he want.

Then offer this person what he wants, at the place he goes, in the publications he reads, while he is doing the things he does.

Get him to raise his hand and say "yes, I need a loan".

I am not going to give you any cold calling scripts because I don't want you to get in trouble with Do Not Call, and I don't want you wasting your time talking to answering machines. The people you need to talk to aren't home anyway.

Determine your marketing budget. Determine a way to get prospects to raise their hands. Then follow up religiously.

Check out the marketing products page at www.mortgagebrokertraining.com for more options.

Answer to Tim,

Tim said...
As a new branch manager for a national mortgage lender, what is the best method for recruiting loan officers? I don't mind recruiting people who are just entering the market because I can recommend www.mortgagebrokertraining.com for training and provide them with
licensing, mortgage software and procedure training. The one thing I really need is a good source to find these people who are serious about becoming loan officers and have the drive to succeed.

Tim,

We are currently thinking about recruiting real estate agents. Abby, (who is my father and runs our mortgage company) just got his re broker license. We are thinking of opening a 100% commission real estate company to attract realtors. Then pitch them to use our mortgage company.

There is a lot of turnover, so any customers or loans we get will be marketed to from the company, so if the agent leaves we still retain the customer.

Other ideas, are job fairs. Booths at local colleges and universities. Being a guest speaker at the Chamber of Commerce. etc.

Be creative. Find someone who already knows how to succeed, and then get them hooked to you. People that know a ton of other people, make good loan officers.

Answer to Toni

Toni Candelas said...
I loved that movie! what a neat concept! We need to use this concept in all sorts of situations in life.

I just recently became a loan offcicer here in GA. though a small brokarage firm. I am only doing it part-time right now. I am still a full time employee and my present job. I am excited about the business, but I still feel clueless in a lot of ways. I feel like I have the opportunity to become very successful in this business being that I am bilingual. Since I am at a small office, I don't really have the opportunity for any training. Everyone is always so busy. I already have several pre-qual forms.

Is there a web-site for self-training?

On customers with credit issues, do you have any recommendations on raising credit scores a little bit?

Toni,
We have competitors that offer high priced training products. If you can spend close to $1,000 that might be an option for you. Or you can buy our training manual for $137 at our website.

I don't think there are any self-training websites. And that is why we are creating a curriculum to be delivered via website where you can go at your own pace but still have an instructor. This should be done by the end of the year.

For credit stuff, I havea good resource for you. How To Make Your Credit Sparkle.
I wrote it, so I think it's good!

Answer to LLO

Anonymous said...
A friend of a friend encouraged me to become a loan officer. It has been a MONTH since the state issued my licence and this friend of a friend that processed my employment verification has yet to do any training or anything.
I am clueless about what to do next. How do I self-train?
Thanks so much!
LLO


Self-train? That's an easy one. Buy Residential Mortgage Loan Origination Made Easy from my website . This is a training manual designed to get you up to speed in the fastest time possible.

Also, talk to the guy you work for and offer to process a couple loans for him. Sit in when he meets with a prospect to see how the interview process goes. Spend time at the office and soak up the jargon and ask a lot of questions. Take someone out to lunch. Have a lender rep take you to lunch, or go dutch. Read the mortgage magazines.

Answer To Matthew Lee

Matthew Lee said...
For Pay It Forward Questions?
!. How much do your charge in Points on Average-How do you differ in pricing b/t prime and sub prime
2. How do you explain your brokers fees to clients so they have no objections to what you are charging?
3. If you were creating a Operations Manual for your business and were outsourcing it- What would be your criteria(experience) for the company/person that writes the manual for you?Do you know of any good resources to get this done(outsourced)?

1. We normally charge 1% origination. No application. $495 processing, plus credit and appraisal. We increase the pricing based on the difficulty of the loan. Sub prime are harder to place, more work involved so we charge more. On smaller loans, we charge more. Anything under 80,000 pays 2 points or more.

2. We talk about them as if they are a given. We don't ask to be able to charge them. We tell them this is what we charge. Like a lawyer quoting a per hour fee. Some have objections. So we show them a list of everything we do for them. Then we show them that paying us a little now, will save them a lot in the long run because of the way we will handle the loan and get them a great rate.

We also presell and use physiological influence to make them want to work with us. We create an aura of, "we don't need your business", but you should give it to us anyway.

3. A mortgage company Operations manual has to be done by a person with mortgage experience. You can pay to have a general one created and then you would probably have to modify it. Even if you took a manual from another mortgage company and wanted to use it, you should not. Make yourself stand out and put that in your operations manual.

If you are interested, call my officer at 713-782-5626 and talk to Mike Larson about our operating manual. I haven't thought about it, but if you want to purchase a copy of it, we might be able to work something out.

Another option is the E-Myth people. They have a program where they walk you through all aspects of your business and help you develop your own. It's a time intensive project, but I think making your own is still the best way to go.

Matt said...
Pay It Forward Questions:

If you had to pick one single attribute that makes a successful mortgage broker/loan officer, what would it be?

What is the best and most cost-effective training you have ever received that has contributed toward your success (seminars, schools, self-help, etc)?

What is the most effective way to market yourself as a mortgage broker?


Matt,

One attribute is hard to single out. Being a personable person, being liked by others, is a huge benefit. And if that is all you have, then you can make a living. But to be truly successful, you need to be disciplined. Have the discipline to be organized, manage your business properly, do the things that need to be done on a daily basis, and set up systems to run things for you.


The most cost effective training would be the small courses I have bought. They provide more info than a bookstore book and almost as much as a seminar. I don't like seminars too much because they take so long. And with the ones nowadays, the speakers just tease you and want you to buy their stuff. I have also taken part of expensive coaching programs, but they do not teach anything new. The material is out there. You need to discover what you need and fine it.

The more effective way to market yourself is without a doubt, have a database and marketing to it. Building friends and getting referrals. It is easy, the most fun, and can set you up in a referral only business the fastest

Answer to Jeff,

Jess Asks:

I am strongly considering entering the mortgage business as a loan officer. I will be leaving the high-tech industry, most recently the Internet security market, after nearly 28 years.

My question is: Is there still life in the mortgage business for the next several years for someone to do well?

I know this is subjective so please include as much personal as well as industry trends information with your answer.


Jeff,

There will still be life in the mortgage industry for decades at least. Homes are getting more expensive and more and more people need loans to afford them. So the mortgage industry is not going anywhere.

The question really is, is there an opportunity for the individual to make a ton of money? The future is cloudy. Merger mania is making larger companies. Shopping portals like Nextag and lendingtree are spending millions. Real estate companies are creating or joining forces with banks to have in house mortgage companies. More Real estate agents are getting their mortgage licenses.

But a new study just showed that borrowers save more money on average with a mortgage broker than a lender. Brokers are still doing over 65% of all loans.

And the Mortgage Broker Associations are not as strong and organized as they can be. So things can definitely improve.

For the next 10-15 years at least we have nothing to fear, as long as we keep changing and keep our skills up to date - websites, ways to process loans faster, etc.

Answer to Ann

Ann said...
Can you explain how YSP works? My broker/boss always avoids the subject with me.

I am planning on opening my own mortgage company in October of this year, is it hard to get a surety bond?

Last but not least, what advice would you give to someone going out on there own in the mortgage business?

Ann,

1. YSP is a way brokers earn a little more (or a lot) on a loan on the back end.
Let's say a client with A+ perfect credit comes to you looking for a loan. You check your rates sheets and you see that Lender A is offering 5.00 at par (no points). Lender B is offering 5.375 (2.00). If you get the loan from Lender B, the borrower gets the rate of 5.375 and you get 2 points as YSP, meaning 2 percent of the loan amount. I just made these numbers up, but you can see how it works.

But if you do not know what the Lenders are offering, if your broker keep this from you and he doesn't share it with you, then your best bet is to give the lowest rates possible. If you think your broker is giving you rates that are higher than par, you can check your rates and compare them to lenders on their websites. Or if you can call the lender, just call and ask what is today's rate for this program. If your broker's rate is higher then he is pocketing the YSP.

2. A surety bond is easy to get if the company is reputable. Contact your state's Association of Mortgage Brokers and they should be able to help you.

I am also coming out with a book, How To Start Your Own Mortgage Company, but it won't be ready for a few months.

3. My advice to someone new, would be to have some money set aside or another income stream. Then study and learn all you can about the business and about marketing. It's ok if you don't know all the loan programs if you have 10 people waiting in line to talk to you.

Getting loans is the name of the game. And you don't have to spend billions to make it happen. Make your own gameplan of how you want to proceed, and do it. WoW your customers with Amazing Service. And learn from others who are successful at what you want to do.

Answer to Chaps

Chaps said...
I am in the military an I am considering the mortgage business for when I retire. I would like to start working part-time nights and weekends. What would your suggestions be to get hired by an industry that seem to only want to hire experienced people who can work 9-5. I am in the Norfolk, Va area. VA requires three years experience before running your own mortgage brokering business.


Chaps,

Well, you won't be able to start your own business anytime soon will ya? :) Unless you partner with someone who meets that criteria.

Even in your area, there much be small mom and pop mortgage companies that will hire you on a commission only basis. They won't train and will treat you as a nuisance if you do not produce but at least you can get started.

Working part time is how many people get started. And I recommend it if you can do it because the first few months are the roughest in terms of income. Don't quit your day job until you earn enough in fees.

You are just going to have to keep searching. Get your phone book out and start calling. Ask for the manager, and make your pitch. Tell them why they should hire you instead of asking if they have an opening.

"Hi, I am Chaps, a hard working, motivated loan officer with a large sphere of influence, and I am looking for a company to work at on a commission basis where I can submit my loans from. Are you interested in my loans?"

They will ask "How many loans?" You answer, "Well if you are interested and have an opening, we can arrange a time to meet, so I can check out your operation as well." or whatever you want to say.

Good Luck!

Answer to Dylan

Dylan Asked:
This is a piggyback on Jeff's question above: How will people just entering the mortgage brokering field today make money in the next several years when and if the housing bubble bursts?

Dylan,

Over the last few years, we have had an amazing amount of new loan officers and mortgage brokers enter the business. Everyone is looking to make money quick. And with rates being so low and every homeowner wanting to refinance, it wasn't hard to find loans.

But that is over. The Housing Bubble on the other hand, is causing home prices to rise. Too quickly. Low rates, recovering economy, lack of confidence in the stock market, easy to get loans: ARMS, interest only, etc, have caused many people who have no business being in real estate to become real estate investors.

Let's say the bubble bursts today. Prices in many parts of the country will stop rising. In some areas they will fall because there will be no more investors causing prices to rise. If rates go up, there will be more people who cannot afford their homes and there will be more foreclosures.

As a loan officer, I don't see much trouble. People will still be buying. In fact, the smarter ones will wait until then and snatch up great deals. Investors with money or smarts will make fortunes buying when everyone else is selling. As long as people keep buying homes, we will be ok. Times will get tougher. Competition will get more fierce. But many of the people who we compete with today, will be gone as well, looking for easy money somewhere else.

As for me, I am saving my money. Hoarding it until the sky falls. And it will. Maybe not this year or next, but this mania cannot keep going at this rate. Eventually people will not be able to afford the high prices.

I am in Texas, and the prices here have not gone up at all. In fact, we have several neighborhoods around Houston where prices have gone down. We can't refinance these people because they are upside down. They owe more than the value of the house, even though they have lived there for more than 3 years.

So I plan on buying outside of Texas when prices start dropping and foreclosures start happening. If any of you remember the S&L scandal and the REO coroporation, it'll be similar but with single family dwellings this time.

Be ready for it.

Pay It Forward

I watched the movie Pay It forward last night. Loved it. It has Kevin Spacey and Helen Hunt, I think that's her name - the woman from Twister. Anyway, the movie was based on a kid who wanted to change the world. And he came up with the idea of Pay It Forward. He did one huge favor each for three different people. Something they couldn't do for themselves and that forced him to change his behavior.

So he does three favors, and the people he helped cannot repay him, they have to Pay It Forward by doing huge favors for three other people. And that's how it spreads until everyone is doing favors for everyone else.

Simple idea, but genius.

It got me thinking as to how I could pay it forward. So I decided to do something a little different.

What I am going to do, is allow everyone who reads this three questions. You can ask anything you wish and ask by posting it here to this blog. I will, as fast as I can, answer them all. We have thousands of people on our email list so we are looking at a potential of several tens of thousands of questions. So I don't know if this will work or not. But let's try. I think most of the questions will be similar anyway, and not everyone will ask.

By posting your questions here, you can read others' questions and the answers I give as well. So here we go, post away.

1st Post

Why the heck would anyone want to read what I think about everyday? Beats me. But so many of our customers wanted me to do a Blog that I had to start. it's not like I dont have enough to do already. Anyway, this is my first post. So cut me some slack.

I guess I should advertise my site too: Here's the link: http://www.mortgagebrokertraining.com

By the way we have other sites as well. Should I just list all of them? Ok.
http://www.marketingtorealtors.com
http://www.referralsondemand.com
http://www.creditsparkle.com
http://www.kamrockpublishing.com

If you want to buy any of my stuff, go to any other the above sites.

I am wondering if you can help me as the reader. I am working on a new book for brand new loan officers and for those that need some help in the marketing department. Basically it's for any loan officer that wants more loans.

What do you think I should put in it? What should I cover? And if you are a new loan officer, what would you want to know?

You can post your repsonse to this blog.
Thanks
Ameen