Are you looking for a new career? You may want to think about becoming a mortgage broker or loan officer, or sell useful training material for brokers and loan officers.

If you type Mortgage Broker or Loan Officer in your search engine, you will find links to thousands and thousands of websites. This is because Mortgage Brokers and Loan Officers provide a much needed service to the public. They take applications for mortgage loans from potential homebuyers, and help the buyers find the right loan. If you ever applied for a mortgage loan for the purchase of a home, you worked with a broker or loan officer.

A mortgage broker works on his/her own bringing a borrower and lender together for the purpose of a mortgage loan. Brokers are quite often real estate agents in addition to working as a mortgage broker. According to the Mortgage Bankers Association of America, there are approximately 40,000 mortgage brokers in the U.S.

The mortgage loan officer is an employee of a mortgage company, bank, or other mortgage lending institution. The U.S. Department of Labor reports that mortgage loan officers earned between $30,000 and $100,000 in 2005. However, highly motivated loan officers earn much more.

There should be no shortage of business for mortgage brokers and loan officers as numerous real estate properties are bought and sold every day in the U.S. The mortgage broker, loan officer field is a lucrative, well respected field that thousands of people are in now or want to start. There are also brokers and loan officers who are interested in enhancing their present business and knowledge.

You can sell well respected items that really do sell and get paid up to 50% in commissions. Mortgage Broker Training provides banners and text links to make it easy for you. Click below to take a look at some of the products.

Linda worked in the mortgage industry for several years and now manages her websites at: http://www.mortgageproducts.org and http://www.my-home-services.com/broker.html

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Which is preferable - the mortgage broker or the direct lender? The answer will vary depending on whom you ask. The broker touts a variety of sources and claims that this yields the most favorable loan terms. The lender says that the mortgage broker is just a middleman and if you go directly to the lender then you’ll avoid paying broker fees. If you walk into a store that sells blue shoes, then I’m sure you’ll hear that blue shoes are your color and if you walk into a red shoe store then, conversely, red shoes are more becoming. And as this author is typing, he is wondering whether you think he works at the red shoe store or blue. I’ll tell you that I’ve worked at both and I’m not impartial; but, rather than giving you my opinion, I’ll present some facts. Pay attention, ’cause the red shoe store charges too much.

Wholesale Access (wholesaleaccess.com) reports that mortgage brokers originated 68% of all mortgage loans in 2004. While this is certainly an impressive statistic - bigger does not always equate better. The real question is whether or not borrowers pay lower rates and fees on mortgages originated through brokers or on mortgages originated by direct lenders. The answer can be found in a study of data from (Q3) 1995 through (Q1) 2002. This data set was supplied by American Financial Services Association and is so encompassing that it accounted for approximately 40% of all subprime originations in 1998. The results are published in a 2004 paper titled Mortgage Brokers And The Subprime Market (ftc.gov/be/seminardocs/0405elliehausen.pdf). Please refer to the top of the first page, which effectually states that this paper can’t be quoted. In compliance with this directive, I shall direct you to the conclusion on page ten of the document. The first sentence can be translated as (and I don’t quote) - loans originated by mortgage brokers cost less than loans originated by the creditors. That difference was quantified (page 9) as 1.132% cost savings for those who used mortgage brokers on a first mortgage and 1.973% cost savings for those who utilized mortgage brokers on a second mortgage. There you have it! On average, it is cheaper to work with a mortgage broker than going directly to the lender; but there’s still more to tell. Let’s talk about these broker fees.

A broker by definition introduces buyers and sellers - by all intents and purposes, yes a middleman. The misnomer in this equation is the fundamental difference between wholesale and retail. Take for example, a lender that is in one geographical area of the country and seeks diversification of its portfolio of mortgages through the origination of loans in another state. The lender has two choices. The first is to open a retail office in that state, hire staff, buy equipment, advertise and absorb all of the associated overhead as an expense to originate retail mortgage loans that he can ultimately service. The second option is for that lender to contract with a mortgage brokerage that incurs the expense of finding the client and also originates, processes and packages the loan for submission to that lender’s wholesale department. With the second option, the lender forgoes the expenses listed above and is willing to offer the mortgage broker a wholesale price in return. The broker has this same type of wholesale relationship with numerous lenders and competition among the lenders drives prices down for the broker. Yes, the broker charges a rate or fee that is higher than its wholesale cost but (as the 2004 study reveals) that rate and fee combination is still considerably lower than the retail cost charged by direct lenders.

In conclusion, I hope this article has shed some light on the difference between wholesale/retail, brokers/lenders, and blue and red shoes. Just to recap: wholesale is better than retail, brokers are better than lenders, and there is compelling evidence to explain why 68% of us prefer blue shoes.

Copyright 2006 Paul Jerome

Paul Jerome is a mortgage expert and frequent contributor to the Broken Credit Blog. The BCB is a free website created to assist the general public with information regarding credit repair and responsible mortgage lending.
www.brokencredit.com

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Mortgage loan brokers make a ton of money and most of the ones that I happen to know never work over 35 hours a week anymore. Why would you want to be a mortgage loan broker and how do you become a mortgage loan broker?

The beginning sentence of this article should be enough to spark your curiosity about becoming a mortgage loan broker. There are many more benefit including: very high income level, freedom of being your own boss, an industry that will never die, and the added satisfaction of helping people with one of their most important decision in their lives.

So, how do you become a mortgage loan broker and get all these benefits. I recommend first starting with some basic online training. This will allow you to move at your own pace and learn the industry while working at your current job. There are plenty of courses that can help you learn about this industry.

I also recommend reading up on the real estate industry. This will help you have a better understanding of what you are getting into. You will also have to check with your state about licensing and start contacting actual lenders. You will need the lenders so that you can actually take care of your customers.

You will also need to get in contact with some telemarketing firms and advertising firms to set up different options for your advertising. I prefer direct mail marketing myself. It is proven and allows the customer to contact you with a true interest in your product.

There are a few more steps including setting up accounts with the lenders, finding an office space to work out of, hiring loan officers ( if you decide to), and getting the basics of your business set up.

The mortgage brokering field is a very lucrative one and is not very expensive to get started in. The most important thing is to know and learn the products the lenders offer for you to sell. This will make it easier for you to recommend the right product for your customer’s situation and sell them on a good deal.

Take the first step to becoming a mortgage broker today. Get the online training you need by following the link below.

http://www.ready-repair-my-credit.com/loanmortgage.htm

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