Freelancing In The Mortgage Brokering Business. - part 1

by Salihu Ibrahim

Do you want to get yourself involved in the mortgage brokering business as a freelancer? Well listn up. There are two areas you can do freelance brokerage work in.
1. as a loan officer. 2. as a mortgage broker.

Both areas have their own peculairities. The loans officer earns money from what is regarded as "personal production". This could be regarded as comission on what the loans officer is able to bring to the mortgage business (broker). As a loan officer you can also be paid a basic salary with or without the commission for bringing business to the broker. In which case you will then be paid less in commission.

The mortgage broker is a more lucrative area to do your feeelancing in. The gets his profit from lenders with whom he works. It is from these profits that he pays the loan officer. He trains the loan officer and gradually passes on the job experience to the loan officer. Because of the lucrative nature of this area of the mortgage brokering business, most loan officers soon open shop as brokers themselves after gaining the necesary experience required to operate as a broker. so for the mortgage broker , he is continually loosing loan officers. this is very frustrating for the broker.

Recently, there has been an upsurge in new ways of making money in the mortgage brokering business. Traditional methods of making money have been discarded for new models. These new methods have made it possible for virtually any new entrant to the business with little or no experince to succeed in less time than it would have been possible before.

Before the present times, a loan officer usually with a bachelors degree would be earning $35000 to $45000 per year. He works with a broker, acquiring the necesary experience to break out on his own.

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.

But the big advantage of this is that, you are in charge of the business and your earnings are not entirely dependent on personal production or commissions. All that is required of you is to groom or hire very dependable and resourceful loan officers.

Advantages of freelancing in the mortgage brokering business are;

a) 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.

b) 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.

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

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

Now lets look at how much money can be made in the morgage brokering business?

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 30% $2,100.00 Earned 64% $4,480.00 Earned 70% $5,320.00 Earned

Read the end of
Freelancing In The Mortgage Brokering Business.

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