New survival LO 101

I remember in 2007 I told my neighbor that I was going to become loan officer. I had been working at Washington Mutual for a few months when I was offered the opportunity to become a mentor under two of the county’s leading loan officers. She looked me straight in the eye and said, “You’ll never do that.” At the time I was stunned and thought that she was a terribly negative person whose life must have gone wrong for her to say this to me, her sweet neighbor. She was the escrow officer, so I thought she had a good understanding of the industry; however, she was convinced that I would fail. At the time, I shrugged it off and followed the optimism of my mentor Ron Shaw.

Years later, I reflect on this conversation and realize that she was not full of malice, but had simply been around for a long time. Here’s the scary truth: Only about 30-40% of loan officers survive the three-year term. Having worked in the industry for 17 years, I can tell you one of the main reasons why many people fail.

New loan officers have little to no training and very little support. Every day a loan officer in America passed by. NMLS and is set to challenge the industry. They will have little chance of survival if they take the path of a broker or retail lender without a trusted mentor. The NMLS training and test will not prepare you for life as a loan officer or teach you recommendations or how to get a loan. The company or person who hires them tells them to “go get loans” but they are not taught how to structure them or close them. Imagine a plumber who is told to find clients but has no idea how plumbing works or how to fix anything. How could this end well? They are told: “Come and get it.” realtors” but were not taught how to set boundaries and what working as a loan officer 7 days a week actually looks like. They are set up to fail. If you “hire a realtor” and don’t close that loan on time and without drama, you’ll never do a deal with them again and they could slander you all over town. Career ended in an instant.

This is a systemic problem in the industry that harms loan officers and consumers. One of the requirements for obtaining a mortgage license is to know how loan structuring works and how to read and understand guidelines. It has always shocked me that with this level of regulation of the mortgage industry, the severe lack of education has not been corrected. Buying a home is the largest purchase most Americans will ever make, yet we refer consumers to “professionals” who may have no idea how loans work. We give people a license that identifies them as mortgage professionals without teaching them about loans. Take a moment to realize this because it is the hard truth.

There are no winners unless people are taught how to do the job they were hired to do. So what’s the solution? First, it would be great if someone from the CFPB would take a mortgage licensing course and try to get a loan. This would open eyes and lead to the need for more education, which would be a GOOD thing. However, this does not solve the existing problem. So what should new loan officers do to increase their chances of survival?

• Read the guidelines and talk to underwriters and processors. Read, read and talk to everyone you can. I learned how to structure loans by becoming friends with underwriters and processors. To this day, the most significant influence on my career has been learning how processors and underwriters look at files. This helped me qualify. I know what questions to ask and what problems to look for from day one. Processors and underwriters are key to providing a superior experience for your client.

• Find a mentor. I come from an era when people had an incentive to be mentors. Those days are gone, and finding someone to mentor can be difficult. However, you don’t have to have someone agree to be your mentor. I’ve had many mentors who didn’t even realize they were my mentors. It’s about taking all the information you can get, learning from them, watching what they do, and soaking it all up like a sponge. There is so much information on the Internet. Instead of watching how top lenders market their services and trying to copy them, LISTEN to what they have to say. This is where you learn.

I was fortunate to have mentors early in my career who guided me along this path: Ron Shaw, Bart Cort, Paul Carmouche and Corey Carroll. They were there the first three years I was in business. They didn’t build me a boat and sail it. However, they showed me how to survive and taught me the most important lessons: know your guides better, develop a thick skin, and most importantly, don’t dare try to sell something you don’t understand. They also taught me to laugh and enjoy life even in the most difficult times. This is a survival skill that we all need in this situation. industry.

If you’re looking for a mentor and don’t know where to start, check out YouTube. There are several channels that offer reliable recommendations to any LO willing to use them. Learn from videos.

Read posts like HousingWireScotsman, Mortgage News Daily and pick up one of the many books written by loan officers about loans. The best producers I know are referral experts. They are at the top because they know the ins and outs of the loans they sell. They know how to structure a loan and ensure convenience for the client. They also know how to convey to the client that everything will be ok if you work with them. They have done the hard work to become experts. To survive, this is what you need to do. Hope this helps.

Jennifer Beeston is an internationally renowned mortgage originator.

This column does not necessarily reflect the views of HousingWire editorial staff or its owners.

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