Career in Mortgage Lending
Get a job in mortgage lending
The Mortgage Industry is currently a growing industry that is inversely related to the continual lowering of mortgage loan interest rates and it can prove to be a very lucrative career choice for those currently unemployed or seeking a career change. So here is some insight from someone who is currently working in the mortgage industry: How to get into the Mortgage Industry.
Just drive down the street every building, every house that you see is a possible revenue source for any lender. There are a few different sides of a mortgage transaction and each step in the mortgage process is a possible position you could be applying for. So lets look at the departments involved:
Mortgage sales is simply a position in which the individual, usually known as a Loan Officer(sometimes backed by a sales team) indentifies possible customers and pitches either a refinance of their current mortgage or a loan for a purchase of a house. Entry level positions in sales would usually assist a Loan Officer, but for those with any type of sales experience would just need to learn the way in which loans are priced and more specifically the bank's computer applications(after hired). Salaries sometimes have a base, but more often are mainly commission and the work schedule is flexible. The only licensing is a post hire background check that produces a NMLS number if cleared.
After sales submits an application for a loan it is sent to processing. Processing is a position for anyone good with numbers and an eye for detail. The processing team recieve documents and package a loan for review by an underwriter. Processors work closely with the underwriters, the sales team, and the borrowers to ensure all documentation is in the loan file and that all loan conditions are met. They also keep the borrower informed and ensure all government regulations are being upheld. Again, assistants in this field, generally are the entry point, but analysts from all backgrounds would make a great candidate for processing. Underwriters usually are promoted from the processors who stand out and can process the most quality loan files efficiently. Underwriters review the that the loan meets all of the qualifications of the lender and the secondary markets(loans are sold in the secondary markets to investors). They also review to see if the borrowers are candidates who would be likely to pay their mortgage on time and for the life of the loan. All positions involved in this aspect of mortgage lending are generally paid a set salary and work a 9-5 schedule in an office environment. This is a safe position in comparision to sales because of the steady paycheck and there is no prospecting or selling. Salaries are competitive and should be beacause they are evaluating the risk of the mortgages for the bank's safety.
There are some third party services involved in the mortgage lending process. Here they are in chronological order. In a real estate purchase real estate agents are involved. Real estate agents need to take specific classes, pass a real estate licensing exam, recieve their license from the state government. After this they can work under a brokerage company. They represent buyers and sellers of homes. The scheduling is very flexible and the pay is commissioned on the selling price of the home (generally 5%-6% split between the buying and selling agent). Then there are real estate appraisers. They need licensing through the state they are to work in and they need to meet a set number of hours of training in order to practice on their own. They are paid per inspection and generally have a flexible schedule in accordance with accessability of the subject properties. Next in the process are the title/escrow officers. They act as the third party who transfers the funds paying off one mortgage to the new lender. As far as title is concerned, they ensure that title in which the property is being held is correct and cleared, and that the names are transferred correctly to the new deed of the property. They also ensure that there is no other debt. They are genrally paid a set salary. Only in some states are there licensing requirements for this position. Finally there are notaries who are payed to be the legal accountability when the final loan documents are signed. They are paid per appointment, but are necessary on all mortgage transactions. Notaries must become licensed. Their schedule is determined by times and locations set by borrowers to sign final documentation. In this industy, the salaried positions' pay varies per region and the commissioned positions are generally related to the loan amount.
Well there you have it. A quick overview of the mortgage lending process/industry. There are many cogs that make this machine crank and if you are unemployed or seeking a change, there are many options waiting for you to pursue. Ask around I am sure you know someone tied to this process. This industry is all about who you know. If the barriers to entry seem to high to enter, a way underneath them is to work at any position in a bank for a while. Internal transfers generally have a leg up on outside competition.
Best of luck! Go cash in on the business of the low mortgage rates!