Posts Tagged ‘Loan Officers’

Including Comfort in Your Mortgage Broker Marketing

December 22nd, 2009

As a loan officer, an essential component of your success is loyalty from Realtors. When you begin mortgage broker marketing, your focus should not be on your rates, service or loan programs. None of these things inspire loyalty the way comfort does.

How so? Ask Realtors why they stay with a particular loan officer. The answer is not a result of a specific mortgage broker marketing; almost always the answer is that they are comfortable with the loan officer.

Remember, Realtors are being constantly bombarded by requests from loan officers to work with them. These loan officers make all kinds of promises, great communication, friendly service, low rates, etc. All too often these promises are broken.

Each time promises are broken, the Realtors defenses go up. Their income is dependent on the performance of loan officers; it makes sense that they would view the loan officer with trepidation. » Read more: Including Comfort in Your Mortgage Broker Marketing

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Your Lenders And Mortgage Brokers Information To Better Assist You On Your Loans

October 21st, 2009

Mortgages are offered or promoted by various kinds of lenders. Your loan can be obtained from mortgage brokers, banks, credit unions and mortgage bankers, where generally, the lender gets an origination fee or brokers fee when dealing with mortgage brokers.

The lender then is the one that provides you, the borrower with the money at the closing table, whereby the lender obtains a note or written contract as evidence of your debt and your obligation to commitment and responsibility to repay, along with a legal claim on your property.

Mortgage brokers never lend, they are actually independent contractors offering the different loan products or deals of several lenders, referred to as wholesalers.

Essentially, wholesale lenders employ mortgage brokers to perform the duty of loan officers. The lenders propose to their brokers a much lower rate so that the broker can add on his compensation so that the rate is generally almost the same when compared to obtaining a loan from mortgage banks. The rate will sometimes be lower or higher, that is dependent on how much compensation did the broker added on.

Borrowers usually can only approach or gain access to the portfolio lenders and wholesale divisions of mortgage bankers by contacting a broker.

A mortgage broker is an individual or a company licensed who can obtain mortgage loans by choosing the best program that is obtainable and at the best rate for debtors. This normally includes discovering customized or tailored Bad Credit mortgage programs for individuals with Bad Credit situation.

In order to become a mortgage broker, there are certain experience and insurance, educational and net worth requirements.

A mortgage brokers job basically is to find potential clients and educates them regarding the loans that are available from various lenders. Likewise, mortgage brokers counsel clients on any difficulties they may have involving qualifying for their loan, credit problems and are usually the ones who process their loan, which includes file information regarding the transaction, verification of assets and employment, appraisal, etc.

In cases where credit is with errors, or involve nonconforming properties, mortgage brokers can easily find funding.

Sometimes, it may not be clear who you are really dealing with, because a few financial institutions function as both brokers and lenders. And almost all brokers advertisements never use the word broker. So for this reason, always ask if there is a broker that is involved. This is important since brokers are normally compensated on commission basis. A brokers fee can either be in points or added-on to your interest rate, or even both.

You must ask your broker how he will be paid in order that you can evaluate the different charges. Be ready to bargain with the lenders and brokers. Whereas mortgage brokers are compensated through commission basis, they are permitted to charge any amount that they want for document and loan processing. So you need to ask first their fee before deciding on a broker.

Do not just presume that slight difficulties or credit problems resulting from circumstances like temporary income loss or illness, will restrict your loan options to only high-cost lenders.

Should your credit report include negative data that is true, yet there are valid reasons for having the confidence in you to pay back a certain loan, make certain that you explain and defend your current situation to your broker. When your credit difficulties can not be justified, then probably you will have to pay more compared to borrowers having good histories of their credit.

However this is not to say that your only way in getting a loan is for you to pay a higher price. Inquire how can your past credit affects your loan price and what you must do in order to obtain a much better price. It will help if you shop around first and negotiate for the deal that suits your situation well.

Finding the best mortgage broker:

Contact your State Board of Realtors for a listing of mortgage brokers.

Call the recommended mortgage brokers and inquire how many lending firms they are working with.

Ask prospective mortgage brokers how are they usually compensated.

Ask about several loan programs which are available.

Good mortgage brokers will know right away what is available on the market and will state that he can help you get a special deal.

Brokers can help individuals who does not like going into the tiring process of getting a loan or individuals having marginal credit.

Finally, a note of caution: Think twice if a broker tells you exactly what you want to hear.




By: Joel Gray

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How to use Mortgage Brokering as a Freelance Business Opportunity

October 7th, 2009

The best course of action to take sometimes isn’t clear until you’ve listed and considered your alternatives. The following paragraphs should help clue you in to what the experts think is significant.

In the mortgage business there are two foundational areas of involvement. One is the position of “loan officer,” the other is working as a “broker.” The loan officer for the most part earns from what is called “personal production,” which means you are earning from what you are able to personally produce by bringing mortgage business into your employer’s office. In some cases you may be paid a base salary and/or draw, but then you will be paid less in commissions by the company (broker) you are working for.

The second – and most potentially lucrative for you – area of involvement is the broker. Most people start out in the mortgage business by working as a loan officer, gaining experience and expertise, and later they consider opening their own shop by becoming a broker. This can be frustrating for the broker who is training loan officers, because they are continually losing their best loan officers and creating their own future competition.

The broker hires, spoon feeds and trains their loan officers and pays them a commission out of the profits they receive from the lenders with whom they work. As the loan officer begins to learn the business they obviously start thinking about leveraging themselves through the efforts of others so that they can earn from the production of others as the broker does.

~ The mortgage business is currently experiencing re-definition by new leaders in the industry who are breaking old traditional earning models. ~

Within the last few years new leaders in the mortgage industry have been breaking the old traditional earning models, and have created revolutionary new approaches which allow just about anyone to build a business in the mortgage industry with very little knowledge or experience. Beginners are now able to make more money – in less time – with less effort!

In the past you would have started out as a loan officer – generally with a bachelor’s degree in finance, economics, or a related field, and earned $30,000 to $50,000 a year. You then worked locally where the broker who hired you was licensed to do business. For the most part your income level would have been limited until you gained enough experience to open your own shop.

The downside of this was that even when you advanced to becoming a broker yourself, you also took on the financial liability of running a business. Opening a local mortgage brokerage can often be very costly, along with the many additional liabilities that go along with hiring, training and running payroll.

New approaches to the mortgage business now allow you to build a mortgage business of your own where you call the shots and your income is not solely dependent on your own personal production.

Here are just a few of the new advantages…

* You can now earn on mortgage business on a national level. These new business models now allow you to operate under a “branch license” so you can do business just about anywhere.

* You have the ability to immediately leverage yourself. You can earn commission overrides just like a traditional Mortgage broker can. This means that you can build a national team throughout the United States and earn from their activity.

* No major investment – Instead of investing thousands of dollars in franchise fees you can get started typically for around $200.

* You are able to tap into proven business models that will help you teach and train your unexperienced loan officer recruits.

How much money can you make?

Let’s compare the traditional model of earning only from your personal production with the model of introducing this concept to others and being able to leverage yourself:

The following will give you an example of what you would earn If you based your earning level on personal production at three different commission earning levels. The following are based on a hypothetical $200,000 mortgage.

One House per month Commission paid out

30% $1,050.00 Earned

64% $2.240.00 Earned

70% $2,660.00 Earned

Two Houses per month

You may not consider everything you just read to be crucial information about mortgage brokering. But don’t be surprised if you find yourself recalling and using this very information in the next few days.

30% $2,100.00 Earned

64% $4,480.00 Earned

70% $5,320.00 Earned

Let’s look at this a different way that shows the power of leverage where you are not depending entirely on your own personal production. The following example assumes that you are earning 64% from two personal loans a month and are earning from the personal production of five others who are doing just one loan each per month.

Personal Production 64% Earning Level

Your personal earnings – $4,480.00

Loans From 5 Others Who Are At The 30% Level

Your earnings from their production – $5,950.00

Total Earnings For Month – $10,430.00

As you can see, it really is to your advantage to immediately involve others in the business. Your personal efforts along with the combined efforts of others can really produce some exciting numbers, in this example over $125,000 a year in income! The exciting thing about this is that you are not limited to just five people, you have the ability to grow a very large income very quickly.

Positive Points

1) You don’t have to wait until you’re experienced, you can start right away.

2) You are not limited to earning from the efforts of just five people, your earnings can come from as many personal recruits that join your business.

3) You can earn from the personal efforts of those you recruit as well as the people they themselves introduce to the mortgage business!

4) Your earnings can be generated from other team members throughout the United States representing every conceivable city you can think of or have never heard of.

Am I beginning to get your attention yet?

By now your mind might be flooded with additional questions. One prevailing question might be…

“There are already many people in the Mortgage business, how can we compete?”

To be perfectly honest, many people who are approaching the mortgage business with old worn out models are finding it difficult to survive, while companies and individuals who are embracing these revolutionary new concepts are exploding in growth.

In the USA, the housing market has been booming, but now it is leveling out or even shrinking in many areas. Most of those homeowners would love to save on their mortgages now, and their need is likely to increase if the market keeps going down. There are some very creative mortgage services available online, with some research you can make a very good offer to your customers.

If you want a real, tangible business that you can run from home, using the Internet, this is a good one to consider. Spend some time searching the web and reading up on this and I think you will find the information you need, and some good groups who will be happy to help you launch yourself into this business.

It’s a win/win. You will be helping others at the same time that you build a long-term income and a business to be proud of, for yourself.

As your knowledge about mortgage brokering continues to grow, you will begin to see how mortgage brokering fits into the overall scheme of things. Knowing how something relates to the rest of the world is important too.




By: Michael Hehn

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Mortgage Broker Marketing: How to Use Open Houses to Meet Agents

September 24th, 2009

If you’re searching for a proven method that leads to fast results, than this article is for you. Many times I come across loan officers who are either new in the industry and need to earn immediate income or who joined during the height of the refinance boom and now needs to build purchase business.

Either way, this strategy I’ve tested with dozens of loan officers and have had great success. In fact, it’s one of those ideas that’s commonly known, but is uncommonly practiced – meaning that it’s another way of getting ahead of your competitors.

Captive Audience

With the housing market appearing to cool off and inventory climbing in many towns across America, it prompts agents to hold open houses again. This is great news for you, because it means they’re captive. It’s one thing to approach an agent at their office, when they’re on their natural turf, but when it’s an open house, you’ll discover their behavior is strikingly better. For one thing, if the traffic for the open house has been slow, they’ll be happy to have someone to speak with.

So the first step, which believe it or not, is the most difficult for loan officers, is to give up some personal time on a Saturday and visit several open houses. How much time? If you’re efficient, meaning you’ve spotted the open houses in Friday’s paper and planned a route, you could knock out a dozen in three hours.

Your Plan

If you’re going to take some personal time on a Saturday to pursue agents, you definitely want to make the most of your effort. So let’s review your objectives; an open house visit is your chance to:

Schedule Appointments – Don’t miss this point – Your primary objective in visiting open houses is to schedule appointments, not to share every reason in the world why they should do business with you. You’re not there to socialize longer than 20 minutes. If you’re staying longer than that, you’re giving up too much information.

Build Your Prospect List – If you visit a dozen open houses, you should gain at least four appointments. But what about the other eight? If you don’t get an appointment, always seek permission to market your services to them in the future. Just say, “If you’re like most agents I meet, you’re interested in ways to grow your income. If I come across ideas from time to time that can help you do that, would you be offended if I send it to you?” Of course, very few will turn you down and now you’re building a list of prospects who have granted permission for you to send them information.

If you find yourself quickly accumulating a permission-based list, consider implementing a regular email or direct mail campaign so you can build familiarity, which leads to future originations.

Demonstrate Your Professional Commitment – Just by showing up on a weekend, you’re making a statement about your willingness to service agents.

Make Friends – You might find open houses to be a less confrontational method to meeting agents. Some of my toughest clients, loan officers who never called on agents before, found open houses to be less intimidating and trouble-free.

The idea of visiting open houses has been around since the dawn of time…ok, maybe not that long, but hopefully you get the idea. It can give you a quick jump start to meeting agents, developing some familiarity and if you schedule several appointments, a real chance to interact with agents who will send you originations.

If you’re new in the industry or haven’t marketed your services to agents before, it’s a strategy worth trying. You’ll find that it’s not too difficult, and agents recognize the effort you’re putting forth, so they’re more empathetic to your cause.




By: Jeffrey Nelson

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Including Comfort in Your Mortgage Broker Marketing

September 16th, 2009

As a loan officer, an essential component of your success is loyalty from Realtors. When you begin mortgage broker marketing, your focus should not be on your rates, service or loan programs. None of these things inspire loyalty the way comfort does.

How so? Ask Realtors why they stay with a particular loan officer. The answer is not a result of a specific mortgage broker marketing; almost always the answer is that they are comfortable with the loan officer.

Remember, Realtors are being constantly bombarded by requests from loan officers to work with them. These loan officers make all kinds of promises, great communication, friendly service, low rates, etc. All too often these promises are broken.

Each time promises are broken, the Realtors defenses go up. Their income is dependent on the performance of loan officers; it makes sense that they would view the loan officer with trepidation.

That is why it is so important to establish a bond of trust with Realtors, or a sense of comfort. So, how do you build comfort? There is actually 6 ways to establish a comfort level with Realtors.

Become the Familiar Face

Realtors look for names and brands that are recognizable. They look for a reputation that they can count on. When it comes to choosing a loan officer, they will look for one they are familiar with.

Keeping your name visible creates that familiarity. Whether it is making appearances at real estate offices or at networking events, getting quoted in local papers or business journals, or sponsoring fund raising events, all make it possible for your name to become a familiar entity.

Make Yourself Clear

Look closely at your marketing materials. Are they as clear as they could be? Do you use jargon, is your message vague or ambiguous. When you strive for clarity, you build confidence with the Realtors in your abilities.

Keep your message simple. If you cannot say what makes you unique in thirty worlds or less, you need to reevaluate your service until you can make the message clear and refined.

Become the Expert

Without a doubt, relying on another person for your income is a scary proposition. But that is exactly the position Realtors find themselves in on a daily basis. They have to rely on loan officers to do exactly what they say they will.

When they know they are dealing with an expert, they can relax. Do you give the impression of being an expert? Whether it is the way you dress, your website or your materials, all Realtors will develop and impression based on the visual clues you offer.

Work with Integrity

When you deliver upon your promises, you operate with integrity. In a rapidly changing environment of the loan industry Realtors respect, and are willing to work with loan officers that operate with integrity.

Genuineness Inspires Comfort

Realtors are looking for someone who holds their interests as part of the process, the want someone they can genuinely trust with their income. They look for you to express an interest in building a relationship and protecting them.

Be Passionate

Do you love what you do? When you love what you do, it is important to you to do that job well. Passion is a powerful emotion that comes through in your message. When you are passionate, you are invested in doing your job well. Realtors know they can trust you to do everything you can to make the process work for them and their clients.

Passion is a love for the job. It is communicated through your attitude. Are you positive? Is it fun to be around you?

When you work to combine all these components in your mortgage broker marketing, you establish a level of trust and comfort with Realtors. And that trust builds into a great relationship that brings them back to work with you.




By: Jeffrey Nelson

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