How to become a Successful Mortgage Broker

The mortgage industry accounted for $1,815,949,279,000 in loan transactions every years. That's one trillion, eight hundred and fifteen billion, nine hundred and forty-nine million, two hundred and seventy nine thousand dollars !

Mortgage brokers average better than 1% commission on every transaction...so a conservative
estimate is $18,159,492,790 to the mortgage industry in commissions. Eighteen billion
is a lot of money to go around.

Consider a profession that doesn't require any formal schooling yet offers a six-figure plus
income potential to any broker who wants it.

Here's how the business works...

A mortgage broker is an individual or company that charges a service fee to bring borrowers and lenders together for the purpose of loan origination. The broker’s job is to help loan applicants obtain a loan product that both benefits the borrower and represents a good investment for the lender. There are approximately 40,000 mortgage brokers in the United States. The brokerage business has increased from 20 percent of originations in 1987 to about 60 percent in 2002.A loan officer is an individual who originates mortgage loans directly for a mortgage loan company. This entails the taking of loan applications and educating potential borrowers in the home buying and financing process.

How does being a mortgage broker differ from being a mortgage banker?

Unlike mortgage bankers, mortgage brokers typically do not fund or service the mortgage loans they originate. Brokers pass on the actual funding and servicing of loans to wholesale mortgage lenders. A mortgage broker works, on average, with 40 wholesale lenders at any one time. Many mortgage brokers are also licensed as real estate brokers and provide these financing services as supplements to their realty services, being careful to avoid any conflicts of interest.

Do I need to be licensed to originate loans?

Mortgage banking is regulated by numerous federal laws and enforcement agencies, and over 45 state laws or licensing boards. Individuals interested in becoming either a mortgage loan officer or broker should check with their state for specific education, insurance, net worth, and experience requirements.What skills do I need?Mortgage brokerage firms and mortgage lenders generally hire individuals with:

• Previous sales experience with demonstrated potential to transfer skills to mortgage
origination
• Excellent communication and interpersonal skills (bilingual abilities a plus)
• College degree or equivalent
• Personal computer skills and typing skills
• Ability to work flexible hours (including nights and weekends)

How much can I make?

The Department of Labor reports that the median annual earnings of loan officers were $41,420 in 2000. The middle 50 percent earned between $30,610 and $57,250. The lowest 10 percent earned less than $24,200, while the top 10 percent earned more than $82,640.

(Source: Department of Labor, Occupational Outlook Handbook).