I remember in 2007 I told a neighbor that I was going to be a loan officer. I had been working at Washington Mutual for a few months when I was offered an internship under two of the top loan officers in the region. He looked me dead in the eye and said, “You will never make it.” I was surprised at the time and thought that he was a very bad person whose life must have gone sideways to say that to me, his sweet neighbor. He was an escrow officer, so I thought he had a good understanding of the industry; however, he was sure that I would fail. At that point, I blew him off and followed the hope of my mentor, Ron Shaw.
Years later, I reflected on that conversation and realized that he was not filled with malice but had just been around for a long time. Here’s a scary fact: Only about 30-40 percent of loan officers survive the 3-year mark. After being in the industry for 17 years, I can share one of the main reasons many fail.
New loan officers have little or no training and very little support. Every day, the loan officer in America has just passed the NMLS and will start the venture in this field. They have little chance of survival if they go directly to the dealer or lender channels without a strong advisor. The NMLS education and exam does not prepare you for the life of a loan officer, nor does it teach you guidelines or how to make a loan. They are told by the company or the person who hired them to “go for a loan,” but they are not taught how to set it up or how to close it. Imagine a plumber being told to get clients but not knowing how plumbing works or how to fix anything. How could this end well? They are told to “go get real salespeople” but are not taught how to set boundaries and what a 7 day a week loan officer job really looks like. They are set up to fail. If you “get a seller” and don’t close that loan on time and without drama, you will never get a deal from them again, and they may bad mouth you all over town. The job ended in an instant.
It’s a systemic problem in the industry that hurts both the loan officer and the consumer. One of the requirements for getting your mortgage loan license should be education on how loan processing works and how to read and understand the guidelines. It always shocks me that with the number of regulations the mortgage industry has, the severe lack of education has not been addressed. Buying a home is the biggest purchase most Americans will ever make, yet we lead buyers to “experts” who may not have a clue about how a loan works. We license people to identify them as real estate professionals without teaching them about loans. Take a moment to let that sink in because that is the brutal truth.
There are no winners if people are not trained to do the job they were hired for. So, what is the solution? First, it would be great if someone at the CFPB took a mortgage license course and tried to get a loan. It can be eye-opening and lead to more educational needs, which can be GOOD. However, that does not solve the problem we are facing. So, what should new loan officers do to increase their chances of survival?
- Read the guidelines and talk to underwriters and processors. Read and read and talk to everyone you can. I learned how to arrange a loan by making good friends with underwriters and processors. To this day, the most important impact on my work has been learning how processors and underwriters look at files. It helped me to be able to succeed right out of the gate. I know the questions to ask and what problems to look for from day one. Processors and underwriters are key to providing an amazing experience to your client.
- Find a mentor. I belong to a time when people were encouraged to be directors. Those days are long gone, and finding someone who is committed to being a mentor can be a challenge. However, it is not necessary to have someone willing to be your mentor. I’ve had many coaches who didn’t realize they were my coaches. It’s about taking all the information you can, learning from them, watching what they do, and soaking everything in like a sponge. There is a lot of information on the Internet. Instead of watching how the top loan originators are marketing and trying to copy that, 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 the way: Ron Shaw, Bart Kort, Paul Karmouche, and Cory Carroll. They were there the first three years I was in business. They didn’t build a boat and sail on it. However, they showed me how to survive and taught me the most important lessons: to know your directions better, develop a tough skin, and most importantly, never try to sell something you don’t understand. They also taught me to laugh and enjoy life even in difficult times. That’s a survival skill we all need in this industry.
If you’re looking for a mentor and don’t know where to start, visit YouTube. There are several channels that provide solid guidance for any LO willing to take it. Learn from the videos.
Read publications like HousingWire, Scotsman, Mortgage News Daily and pick up one of the books written by mortgage loan officers. The top producers I know are guidelines experts. They are at the top because they know the ins and outs of the loans they sell. They are able to arrange loans and provide a seamless customer experience. They also know how to convey to the customer that everything will be fine if they work with them. They have done the hard work to become an expert. To survive, that’s what you need to do. Hope this helps.
Jennifer Beeston is a nationally known mortgage originator.
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.
To contact the editor responsible for this piece: [email protected]
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