Loan Officer
A loan officer, also known as a loan originator, is critical in aiding borrowers in one of the most important financial decisions they will ever make - purchasing a home. As a financial consultant, the loan officer provides a menu of services including refinancing a mortgage, getting a home equity line of credit, credit counseling and real estate investment activities.
Professionals currently in the insurance, accounting, tax preparation, sales and education fields can make a quick transition to the mortgage industry. This level of service requires the successful loan officer to be well versed in analyzing clients' financial portfolios and identifying the appropriate financial products to meet their needs. The success of a loan officer can be attributed to preparation, planning and presentation. Having knowledge of the industry, including products, programs, compliance and other related areas, is a prerequisite to success.
Loan officers may work in a number of settings including banks, institutional lending companies and mortgage brokers. With the advances in technology, many loan officers work from home, which is an excellent alternative for stay-at-home moms. Generally, loan officers are paid on a salary plus commission or on a commission-only basis. The earnings range is determined by the amount of time invested. A part-time loan officer can supplement income with thousands of dollars annually. It is not unusual for a first-year loan officer to average in excess of $60,000. There are several career paths available to a loan officer within the industry including mortgage broker/banker, account executive for a lender and branch manager.
Loan Processor
A mortgage loan processor plays a critical role in validating all supporting documents and preparing the loan file for underwriting. Loan processors are tasked with the responsibility of preventing fraud and protecting the mortgage company and the loan officer. Attention to detail, excellent follow-up skills and outstanding customer service skills are necessary to be a successful loan processor.
Loan processors must have a complete understanding of the mortgage process and general underwriting guidelines for different types of mortgages. Loan processors generally work inside the mortgage company providing critical support needed to have successful loan closings. An experienced loan processor can work independently from home or in an office environment. This is an excellent opportunity for individuals interested in a home-based business.
Salaries for loan processors vary depending on experience and knowledge. A full-time loan processor can earn $22,000 to $55,000 annually. The exciting element of loan processing is that it does not take very long to reach the top level of earning potential. This is an excellent opportunity for a career transition. The career path for a loan processor is processing manager, underwriter and business owner.
Mortgage Broker/Banker
A mortgage broker/banker is generally a licensed individual or entity working under a specific state or licensed in numerous states. Mortgage brokers are able to work under their own business entity either as a sole proprietor, limited liability company (LLC), partnership or corporation. They can hire employees and thus generate earnings from their own efforts and their employees' production.
The benefit of becoming a mortgage broker is the ability to work with numerous banks and institutional lenders providing many financing options for clients. Additionally, as a mortgage broker, all the broker compensation comes directly to the broker and does not have to be shared. The broker also generates earnings on the production of loan officers working for the broker. Mortgage brokers can generate hundreds of thousands of dollars in annual revenues.
This is one of the easiest business opportunities available today, where substantial earnings can be achieved with the proper education and planning. There is usually an education requirement to become a mortgage broker, including complete knowledge of state and federal compliance requirements.
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