Starting up a one man shop

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rpatrick

447 Posts

Posted - 05/09/2008 : 6:40:23 PM

from setting up an LLC, renting low cost space or not, licensing, etc.
very low cost start-up

i don't need to reinvent the wheel. need to establish the steps to take in moving forward.

thanks a lot

ebaron

144 Posts

Posted - 05/09/2008 : 6:50:14 PM

bad time to jump in. As a new operation, you wont have FHA ability which is the core business right now. In addition, you will feel the pinch with the lenders signing up, since you have no significant volume to give them, and they will shut you off at the drop of a hat. I would put your ego aside and join an established mortgage lender that has multiple state licenses and FHA ability.

financeone

614 Posts

Posted - 05/09/2008 : 7:18:43 PM

Go for it.

Lenders are getting hungry for business. Don't worry about initial volume-just be a man of your word. I didn't check you're a man right?

rtrefflich

1796 Posts

Posted - 05/09/2008 : 7:20:40 PM

I would recommend the same as above. It is a tough market and unless you can show you are established and have a good enough volume you will not find a lot of lenders to help you with. Find a good place that will give you a good split and let someone else take the risk for a while.

If you really want to get into it, I would go to legalzoom.com to set up the corporation, and start out of my house. Get a virtual office for around $100 a month so you have an address and can meet clients in when you need to.

sc312001

879 Posts

Posted - 05/09/2008 : 7:21:06 PM

Work from home if you can.

rpatrick

447 Posts

Posted - 05/09/2008 : 7:26:49 PM

yeah i'd definitely do the virtual office.
what's the best way to do this?

legalzoom.com seems reasonable if it's legitimate.

i am wondering which lenders are easiest to sign up with??
would i have any shot with someone like TBW?

thanks again!

financeone

614 Posts

Posted - 05/09/2008 : 7:28:35 PM

IF you have referral base. IF you know how to do a loan correctly. IF you can work from home. IF you can use an escrow/title company's conference room. IF you are licensed according to the laws of the state(s) you do business in. Go do it.

You wouldn't be asking unless:
1) You think you can make it.
2) You are unhappy with your current employ.
3) You got ambition & optimism.

rtrefflich

1796 Posts

Posted - 05/09/2008 : 7:29:18 PM

It's legitimate, I have done LLC, corporations, trusts, wills, etc.

Find a place in your area that has one. I'm here in SD and thats how I started an office in SD as well as Oxnard

quote:
Originally posted by rpatrick

yeah i'd definitely do the virtual office.
what's the best way to do this?

legalzoom.com seems reasonable if it's legitimate.

i am wondering which lenders are easiest to sign up with??
would i have any shot with someone like TBW?

thanks again!

ulch

236 Posts

Posted - 05/10/2008 : 12:39:12 AM

From a former business owner that actually turned a profit in this market.

Do not open. Please trust me. Work for someone that has a good FHA u/w.

Learn FHA backwards and forward. Work for a big retail out fit if available.

If you know FHA and can get approved go for it! If not do not preceed any further.
go work for someone that has FHA and pays accordingly.

sc312001

879 Posts

Posted - 05/10/2008 : 06:01:21 AM

Sign up with Citi & Provident & GB(for 2nds).
I don't even think you need a virtual office depending on what you want to spend on overhead costs.
When I worked from home I also had all calls fwd to my cell.
Good Luck!

Janlynn

58 Posts

Posted - 05/10/2008 : 07:25:27 AM

quote:
Originally posted by rpatrick

i am wondering which lenders are easiest to sign up with??
would i have any shot with someone like TBW?

thanks again!

As far as signing up with lenders, I am assuming that you have enough experience in this business to get licensed as a broker in your state. If so, this means that you must have some relationships with certain AE's of lenders where you sent most of your files. Start with them. Your AEs will provide good references for you with those lenders. You may have to wait a little to sign up with some of the major lenders that you have no relationship with if they require a lot of volume, but a lot of them are looking for business so it can't hurt to try. When I opened up 5 yrs ago, I relied on my past experience and relationships and had no problem getting approved with anyone, and I just had myself and 1 LO.

But, I'd have to agree with a lot of the ohter posters. It's TOUGH to be a small independent broker in today's climate. You might be better off to look for a remote or affiliate LO position with a federally chartered company, where you have FHA, multiple states, access to their own lender programs, as well as ability to broker out to other lenders, etc. Even though you won't get 100% of the revenue, you won't have the expense, liability, compliance issues, headaches, etc. of being on your own.

Compare the costs and expenses you will have each month on your own with the revenue you realistically expect to bring in with a limited number of lenders, no FHA, etc. And, the expenses still have to be paid every month, regardless of if or how much money you bring in every month. Just something to consider. I am looking into this myself because in many respects, it's almost not worth being on your own right now.

You can always go out on your own later - Good Luck to you whatever you decide!

rkohl89

11 Posts

Posted - 05/10/2008 : 12:49:07 PM

I just got licensed in October and immediatly put in for an FHA approval which I got in February. Call me amazingly lucky but everything is working out so far. The only thing is all the admin stuff related to the setup strayed me away from personal production. I can say that investing in good equiptment like a good server(s) is ideally the best way to go because I can hire more loan officers and have them work remotely from anywhere via terminal services. I then don't need to worry about increased office space expenses (FHA does require that you have a net worth of 63k and an actual office). The struggle now is bringing in new originators to help us grow. If anyone wants a tour of our system look me up.

Ryan Kohl

Managing Prime

1510 Posts

Posted - 05/10/2008 : 1:11:24 PM

Smart move.

quote:
Originally posted by rkohl89

I just got licensed in October and immediatly put in for an FHA approval which I got in February. Call me amazingly lucky but everything is working out so far. The only thing is all the admin stuff related to the setup strayed me away from personal production. I can say that investing in good equiptment like a good server(s) is ideally the best way to go because I can hire more loan officers and have them work remotely from anywhere via terminal services. I then don't need to worry about increased office space expenses (FHA does require that you have a net worth of 63k and an actual office). The struggle now is bringing in new originators to help us grow. If anyone wants a tour of our system look me up.

Ryan Kohl

1stintegritymort

1192 Posts

Posted - 05/10/2008 : 1:13:57 PM

the judgment on your credit will be a problem. i am assuming this is why you started the thread about the wage garnishment and want to avoid the BK? the problem you will have is that most of the lenders will pull your credit and see it on there. they will be less inclined to accept your broker package. also, i believe with HUD, that you can not have outstanding judgments against you. i could be wrong, but when I sent in for my FHA Approval, I sent in my personal credit and a business DNB Report. they may want to see that your judgment is satisfied before they approve you. also, HUD requires that you have atleast 2 full time employees so it can not be a one man shop.

rpatrick

447 Posts

Posted - 05/10/2008 : 1:39:49 PM

good point. this judgment should be cleared up prior to opening shop. plus my 3 years in the industry (required in Ohio) isn't until 08/08. thanks for the insight.

yes, i am only licensed as an LO for now...
how much does it cost to get a surety bond?

MoneyLenderP

985 Posts

Posted - 05/10/2008 : 4:08:28 PM

I would just get on board with Fed Chartered Bank, they have every program out there, already lined up with a ton of banks.

enmcdirect.com is a pretty good one.

financeone

614 Posts

Posted - 05/10/2008 : 5:43:01 PM

quote:
Originally posted by rpatrick

good point. this judgment should be cleared up prior to opening shop. plus my 3 years in the industry (required in Ohio) isn't until 08/08. thanks for the insight.

yes, i am only licensed as an LO for now...
how much does it cost to get a surety bond?

Never mind my "go for it" previous posts.

Child support--really? Go get a job. Get out of the mortgage business. Your kid(s) need something stable.

rpatrick

447 Posts

Posted - 05/10/2008 : 6:23:51 PM

uh no child support, thank god.
it's a credit card judgment
should be cleared up soon

and actually i was going to start a shop outside of a 40 hour job. i think it is possible to close a few loans here and there.

Mtgpmp10

23 Posts

Posted - 05/10/2008 : 6:37:14 PM

I say do it, what's the worst that can happen

financeone

614 Posts

Posted - 05/10/2008 : 8:31:29 PM

quote:
Originally posted by rpatrick

uh no child support, thank god.
it's a credit card judgment
should be cleared up soon

and actually i was going to start a shop outside of a 40 hour job. i think it is possible to close a few loans here and there.

Okay. My mistake from a quick read.

Just go do it. Have a good nite.

FundStar14

565 Posts

Posted - 05/10/2008 : 11:31:34 PM

quote:
Originally posted by rpatrick

good point. this judgment should be cleared up prior to opening shop. plus my 3 years in the industry (required in Ohio) isn't until 08/08. thanks for the insight.

yes, i am only licensed as an LO for now...
how much does it cost to get a surety bond?

Your doomed.... Stay with a licensed shop until you have everything in order. Most LO's who dream of owning their own shop have no clue of all the costs and liability involved in opening their own shop.

MisterVA

4610 Posts

Posted - 05/11/2008 : 06:10:37 AM

quote:
Originally posted by rpatrick

from setting up an LLC, renting low cost space or not, licensing, etc.
very low cost start-up

i don't need to reinvent the wheel. need to establish the steps to take in moving forward.

thanks a lot

If it is you who is worried about the wage garnishment, then I think this would be an excellent time to pass.

rpatrick

447 Posts

Posted - 05/11/2008 : 08:17:06 AM

ok this MAY be a pass for now. however, i cannot think of a reason not to start the LLC for a few hundred bucks and apply with the state for MB license. i'm just not sure how much a surety bond costs.

what's the cheapest you could set up shop for? 2K might set me up bare bones

1stintegritymort

1192 Posts

Posted - 05/11/2008 : 09:03:30 AM

i believe in OH the surety bond is for 10k. once again, your problem is going to be the credit. all surety bond providers will pull your credit. they will see the judgment on the credit and will most likely decline your application. a 10k surety bond only costs about $100 for those with good credit. in your case, i dont think you can even get approved due to the judgment on the credit and im also sure that pulled your credit score down below a 580.

i am actually looking for someone to open up an office in OH. im sure we can work a deal out if you are interested. We are already FHA and VA Approved and will be nationwide very shortly. We are not looking for a lot of branches. I only want one office per brick and mortar state. We can work out a deal based on a per file or monthly basis depending on your volume. Since we do not have 100's of branches, we will be able to help you out with everything. We will pay for the bond and licensing fees as long as you pay for the office space. Other states we are looking for are AZ, TX, MO, NJ, and PA. We are exempt from brick and mortar in IL and NC due to meeting the net worth requirement with an audit. If you are interested, email me and we can discuss further in detail.

jcanepa

791 Posts

Posted - 05/11/2008 : 11:39:26 AM

I say go for it! Only YOU can determine your outcome! Advice is good but it all comes down to you! Good luck!

ebaron

144 Posts

Posted - 05/11/2008 : 6:52:52 PM

Your mindset is exactly what is wrong with this business. You are trying to do this part time, on your own. And we all wonder why lenders want to go the retail route and exit wholesale. As a one man operation, what procedures do you have in place to ensure the file is correct? Borrowers do lie from time to time. If you have an issue with the lender for a EPO, or fraud on the file, I doubt you would be able to handle the issue financially. What about the audited financials you will need for FHA? They run around 4k-15k per year. Oh yeah, you will need a net worth of about 60k, and an REAL office. How about the audits that the states will do on the files? Will you have time to handle the audit after 5pm, when your other job is over?

People like you make me sick, and make the good brokers difficult to stay in business. Why not realize that you dont deserve a "100%" splits (not that it exists when you realize the cost of an operation), and partner up with an established, honorable broker or lender. It your type of thinking that is bringing down this business.

khoiey

926 Posts

Posted - 05/11/2008 : 7:25:14 PM

WTH is with bashing crap on entrepreneur spririt? Everything start out at some level. If he cannot run a successful business, he will be out within months or years. Everything take a lot of determination and knowledge. Many of my friends with a lot of experience started restaurant business and failed but yet some of them have ZERO experience had succeeded tremendously. It's all take on how fast you learn, how you can utilize other's experience to help you, your personality and ability to operate and make decisions.

As to the OP, how long have you been in this business? If less than 5 years, I say go work at a bank and keep your learning hat on first. Everything will follow later.

quote:
Originally posted by ebaron

Your mindset is exactly what is wrong with this business. You are trying to do this part time, on your own. And we all wonder why lenders want to go the retail route and exit wholesale. As a one man operation, what procedures do you have in place to ensure the file is correct? Borrowers do lie from time to time. If you have an issue with the lender for a EPO, or fraud on the file, I doubt you would be able to handle the issue financially. What about the audited financials you will need for FHA? They run around 4k-15k per year. Oh yeah, you will need a net worth of about 60k, and an REAL office. How about the audits that the states will do on the files? Will you have time to handle the audit after 5pm, when your other job is over?

People like you make me sick, and make the good brokers difficult to stay in business. Why not realize that you dont deserve a "100%" splits (not that it exists when you realize the cost of an operation), and partner up with an established, honorable broker or lender. It your type of thinking that is bringing down this business.

ebaron

144 Posts

Posted - 05/11/2008 : 8:20:18 PM

I have been in the business over 8 years, am a lender with 4 offices. My point is that the business was ruined by every ex-ameriquest, or every loan officer thinking they can open their own operation. There is no barrier to entry, no financial requirement, no real licensing or training needed. This guy has been in not even 3 years, and thinks he should get his own license, so he can orginate a loan a quarter. Why should the lenders sign him up? It is people like this that will do the fraud and push through marginal deals to the lenders to earn a buck.

Bigger brokers and lenders have a fiduciary responsibilty to the banks, and historically write better business. Being in the industry less than 3 years, how many audits do you think he has gone through? How many CAIVRs numbers has he done? Do you really think this guy, 2 years in is knowledgeable enough and financially secure enough in the eyes of the lenders to open his own business? If he wants to be an entrepreneur, let him start a landscaping or painting business. The mortgage business should be for established professionals with "skin in the game", in case there is an issue or 2 with loans that were passed on.

ardividend

7 Posts

Posted - 05/12/2008 : 07:39:32 AM

ebaron, i cant believe the things I am reading. I dont post much but hey this is AMERICA!!!! He can do whatever he wants. Why do you care how many audits he's been through? You wont be on the hook for anythig. Who cares if he wants to do a loan a quarter? If the lenders allow him so what? What makes you the barometer of the mortgage indusrty? If a lender doesnt sign him up then they dont. I guess i wouldnt have a problem with things you said if they were not presented in a way in which you feel your OPINIONS are facts. You rant and rave about stuff that has absolutelty nothing to do with you. I've been in the business since 1999! The " you people make me sick" comment was just juvenile. Your rant about the industry is borderline communist. "go start a landscaping business" are you kidding me? Who do you think you are? What if he hired someone to take care of his audits? Ever think of that? You should keep your linear thoughts to yourself and work on what YOU DO BEST. As far as I read he is not signing ANYTHING with your name on it. I also don't believe he's borrowing any money from you. He is trying to make money and there is nothing wrong with that.

EMScommercial

3703 Posts

Posted - 05/12/2008 : 07:55:35 AM

legalzoom.... isn't that the one that shapiro is the face for? o.j.'s buddy?

go to trade shows..... get as many lenders in your pocket starting out as you can.... some won't let you sign up for a while, but that's o.k. others will....

cut as many corners as you can.... i started this thing on a kitchen table.... i'm still cutting corners to survive.... there will come a day when this won't be so neccessary.... but in today's market.... save as much as you can.....

go get em.... i don't blame you for wanting to do it on your own.... you won't know unless you try.....

have a nice day...

ebaron

144 Posts

Posted - 05/12/2008 : 07:58:11 AM

When people with minimal experience are allowed to open up a mortgage office, it is frightening. Reputable, established brokers and lenders are fighting a wave of negative publicity that this industry has never seen. In addition, we are fighting for our professional lives.

Who do you think did the most damage in this industry with the fraudalant loans and nonsense that brought this business down? The professional broker who has been in the business for 10-15 years that handles the clients correctly, ensures that the customer knows what product he/she is getting into, and most importantly, does a loan not for the max fees, but for the good of the consumer OR the start up broker who is trying to maximize his income and not work with a company that has all the systems in place for the neccessary checks and balances?

Finally, the statement that he can give this a chance, and if it doesnt work just close up shows how as Brokers, we really dont care about the lenders. What about ensuring that we will be around to handle any issues that arise in the future? This business should not be built with people that can pack up, close their doors, and have no responsibilty after they cash their check.

khoiey

926 Posts

Posted - 05/12/2008 : 08:44:26 AM

Dude... Your way of thinking is one way. The level of experience has nothing to do with business ethics or conducts. A guy who is in the business for over 10 yrs could commit fraud left to right than the new guy. In this mortgage industry, every man is for himself. I learn a lot of opening my own shop and run my own operations than working for someone who only care how much money I can charge to the client. My first day in mortgage was: a bunch of lead papers, a phone and a computer. The rest of the concept for me to learn about origination was on my fall out deals and Brokeroutpost. My manager didn't even bother. After 6 months of learning, a banker told me to work for him and allowed me to open a traditional office.

If you don't try, you never learn. But if he fail, it is his own problem. That's the beauty of America.

About who did the most damage to this industry included everybody. Starting with Wallstreet, Secondary, Banks, Brokers, Realtors and buyers. The problem with this industry is that there is no oversight or strict regulations.

quote:
Originally posted by ebaron

When people with minimal experience are allowed to open up a mortgage office, it is frightening. Reputable, established brokers and lenders are fighting a wave of negative publicity that this industry has never seen. In addition, we are fighting for our professional lives.

Who do you think did the most damage in this industry with the fraudalant loans and nonsense that brought this business down? The professional broker who has been in the business for 10-15 years that handles the clients correctly, ensures that the customer knows what product he/she is getting into, and most importantly, does a loan not for the max fees, but for the good of the consumer OR the start up broker who is trying to maximize his income and not work with a company that has all the systems in place for the neccessary checks and balances?

Finally, the statement that he can give this a chance, and if it doesnt work just close up shows how as Brokers, we really dont care about the lenders. What about ensuring that we will be around to handle any issues that arise in the future? This business should not be built with people that can pack up, close their doors, and have no responsibilty after they cash their check.

EMScommercial

3703 Posts

Posted - 05/12/2008 : 09:54:41 AM

States have minimum requirements as to keeping brand new brokers from opening their own shops (here in Florida they do anyway).

Now we are going to blame the new brokers for 'fraudulent' loans? Yea, o.k.! Whatever you say. First of all, these 'fraudulent' loans were OFFERED by the lenders and EVERYONE had them available to sell....

As far as follow on responsibility.... what do you suggest? that now brokers have the servicing responsibility? That is not what the profession is designed for. Brokers - broker; lenders - lend and service providers - service the loans.... Are the service providers responsible for drumming up new business? How about the lenders? Are they going to help out a broker down on his luck? NOPE.... we are independent.... that's good and that's bad....

Everyone was new once....

Openning up a shop is a scary undertaking.... it's not as simple as changing your business cards. You need your own e/o, bonding, webpage, email, phones, EVERYTHING..... you don't have the luxury that branch people have of being under the main company's umbrella. You are IT..... so don't take this move lightly.... especially in certain states - it can be over the top hard... like OH, IL, NY, etc.....

rkohl89

11 Posts

Posted - 05/12/2008 : 10:20:07 AM

This has developed an interesting discussion. Experience in mortgages AND running a business speaks for itself. If you can do both and survive right now then more power to you. Maybe you have something different to offer then the next guy in terms of service? If you don't then the business fails. I wouldn't judge or turn someone away when they are just looking for the facts of opening up a shop on their own.

I opened up in AZ in October and am growing. Almost everyone I talked to advised against it. Look where I am now and am FHA approved. If I didn't have experience in lending or a degree in business management I probably would have folded by now.

I would gladly show anyone how I got started and what I did to create an office with 10 loan officers in 6 months from scratch. Yes obviously there are challenges.

Ryan Kohl
Express Capital Mortgage Inc.
480-229-7029 direct

CoolMtgGuy

1084 Posts

Posted - 05/12/2008 : 10:39:35 AM

Other than rendering an opinion on the wisdom of setting up a new shop in this market, no one should pass judgement on the OP's ability or new LOs responsibility for fraudelant loans etc.

I applaud the OP's interest and passion for becoming a business owner. Those ingrediants are probably more than many other had at the time they started their business. Maybe the new business will succees or fail ... but the latter usually bring's an entrepreneur valuable lessons and experience for the next shot at it.

As I said before, I woud not take such a step in this market but I will not condem anyone for doing otherwise. I will just wish them well.

MisterVA

4610 Posts

Posted - 05/12/2008 : 10:43:51 AM

But since they cannot be merged....

http://www.brokeroutpost.com/loans/brokers/forum/topic.asp?TOPIC_ID=221134&

...close enough for government work.

gotdebt123

54 Posts

Posted - 05/12/2008 : 10:46:58 AM

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ebaron

144 Posts

Posted - 05/12/2008 : 10:57:41 AM

I am not frowning upon anyone opening your own business, or MORTGAGE business. I DO think the problems in this industry are stemming from this topic we are debating. A person with no net worth to speak of, just enough money to open up an office, and under 2.5 years experience should not be allowed to open up these days. Lenders are shying away from brokers because when the crap hits the fan, brokers meerly close the doors. No risk on the broker part. Put a crappy loan in, and get paid. Why should my company, which is established, sends in quality loans at a good volume, and has the financial resources to make good on issues arising from loans get the same pricing from a new company, with minimal skin in the game and much less volume?

If you have been following the state requirements, the banking departments are agreeing with my thoughts. MASS is requiring a 100 net worth as a broker, or a big time bond effective Sept. CT has similar legislation moving forward.

Finally, brokers that can get paid, and if need be close the doors ARE the one's that statistically are commiting the fraud (n/o/o as o/o...etc). The majority of the losses are not coming from the coorespondant channels, but rather the broker channel.

CoolMtgGuy

1084 Posts

Posted - 05/12/2008 : 11:06:11 AM

Anyone should be able to go into business, even this business, if they meet the legal requirements of the State/Fed. For anyone to suggest otherwise is ridiculous.

To suggest that brokers are a primary source of fraud in this business is also ridulous. I know retail LOs commiting fraud today! I guess the only exempt groug is CLs?

khoiey

926 Posts

Posted - 05/12/2008 : 11:11:20 AM

I disagreed. A lot of correspondent channels are shut down. Many banks stop handing out credit lines to mortgage bankers "IE. glorified brokers".

ardividend

7 Posts

Posted - 05/12/2008 : 12:19:15 PM

ebaron, whatyou still fail to realize is that you are doing exactly what the media has done to this industry which is to generalize. Who cares how much this person has liquid? Last time I checked having liquid assets was not the only factor in determining someones net worth. I'm glad you also continue to respond because the more you do more comes to light. It seems to me based off of your last response.......seems as if your jealous for some reason. You are irritated because this new person will be able to do or at least attempt to do what you have worked hard to do. Guess what..... experience has nothing to do with fraud. I would actually go on a limb to say that you must have some experience in order to commit the fraud anyway. I was in this industry for 2 years before I was promoted to vice president. Some people are qucker studies than others. For some it takes time to learn things. I'm not going to sit on a high horse and blame problems in the industry on someone who is not even in it yet.

ebaron

144 Posts

Posted - 05/12/2008 : 12:36:03 PM

quote:
Originally posted by ardividend

ebaron, whatyou still fail to realize is that you are doing exactly what the media has done to this industry which is to generalize. Who cares how much this person has liquid? Last time I checked having liquid assets was not the only factor in determining someones net worth. I'm glad you also continue to respond because the more you do more comes to light. It seems to me based off of your last response.......seems as if your jealous for some reason. You are irritated because this new person will be able to do or at least attempt to do what you have worked hard to do. Guess what..... experience has nothing to do with fraud. I would actually go on a limb to say that you must have some experience in order to commit the fraud anyway. I was in this industry for 2 years before I was promoted to vice president. Some people are qucker studies than others. For some it takes time to learn things. I'm not going to sit on a high horse and blame problems in the industry on someone who is not even in it yet.

Ardividend-My comments are only made out of frustration with the industry, not jealousy. I hope I speak for the reputible brokers. Liquidy is a VERY important part of this industry. A company with a significant balance sheet has much more to loose than one without. Therefore, better loans will be written and passed through. Lenders are choosing in droves to exit the wholesale channel because we are unable to financial ensure we are not writing bad loans. This industry is unlike any other, in respect to the fact that the commissions we get are greater than 90% of any other industry. It is very easy in this business to "burn a license" to make a profit, and the lender is the one holding the bag, since the company that gave the lender the loan made a quick buck, and moved on. Unfortunetly, we answer to no one, and the ability to open up a shop is far to easy.

I am not generalizing, and yes, there are good people that open shops, but for debate sake, it is this low capitalized group that has helped the problem. Look at Florida. Brokers open up shops, commit fraud, get shut down, only to pop up again under a different company. This wouldnt be possible if the company had significant money to loose.

khoiey

926 Posts

Posted - 05/12/2008 : 1:27:53 PM

That's up to the lenders' underwriters to make those decisions. I know a couple of brokers tried to submit dirty loans or bad FHA loans and FHA underwriters shot it down. In this weather, it is those big corporations are the one that went down fast.

ardividend

7 Posts

Posted - 05/12/2008 : 2:14:44 PM

Kholey hit the nail on the head. We as brokers do not underwrite our own loans. The lender does. It is their job to investigate the worthiness of a file. I would also assume that they would be more than dilligent about it seeing that it is their money. I am frustrated as well. What you wont hear in the media is how a broker can do a debt consolidation for a borrower and save him or her lts say $1200.00 a month on their monthly bills (including mortgage). The brokers pull the credit three months later to find they bought a car right after refinancing with a $1000.00 note. Thats the stuff you dont hear about. There is only so much a broker can do responsibility wise. The decisions to grant loans rest within the lender. The job of a state regulator is to pursue and prosecute the brokers that are doing things fraudulently.

rpatrick

447 Posts

Posted - 05/12/2008 : 5:32:02 PM

THROW ME IN JAIL!!!

I TAKE ALL THE BLAME FOR WHAT HAS HAPPENED.

thanks for the positive comments. it doesn't take a lot of money to originate loans. congrats to those who are already established with deep pockets.

neo-logic

397 Posts

Posted - 05/12/2008 : 6:44:23 PM

Do one man shops even work?

I mean ... your motivation level will be way down. You're more likely to quit when facing hard times with no support. And you cannot be as competitive as the guy or gal who does it full time, surrounded by others like minded, and in an environment that is specifically for that purpose and having more leverage than you in terms of volume, assets, and pull.

gotdebt123

54 Posts

Posted - 05/12/2008 : 6:48:53 PM

Go question Neo Logic..1 man shop..Strong discipline. It's like you will go stir crazy in the office. If he gets out and meets accounts all day. Then yes it can work. If he sits home alone.. good luck.
Anyway I set up one man shop and branches give me a hollar

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