I Need Advice!! Considering a switch to broker

Author

Previous Topic | Next Topic

Imaroxstar

37 Posts

Posted - 07/06/2008 : 12:38:05 PM

I am a retail lender, who runs a sold, honest, referral based biz. I do anywhere from 9 to 15 loans a month, mostly FHA. I am considering a move to the "other" side, and am looking for feedback. How is life on the broker/banker side vs the retail? Are there really no products left? Is underwriting really harder on the broker? Are Brokers considering a switch to the retail side? Any feedback would be helpful.

financeone

1646 Posts

Posted - 07/06/2008 : 12:46:39 PM

If you're personally doing 9-15 loans a month and you're making money (decent split + benefits) stay where you're at

MoneyLenderP

1616 Posts

Posted - 07/06/2008 : 1:38:09 PM

whatever you do dont go broker...if you can get on with a bank that corresponds with a bunch of different lenders with the ability to also broker then go for it.....being a plain old broker is horrible.

frank drigotas j

1518 Posts

Posted - 07/06/2008 : 1:42:04 PM

A strange post indeed. (imaroxstar, looking for attention?)

dollar

Dan-NewLifeLendi

286 Posts

Posted - 07/06/2008 : 2:53:22 PM

Stay on the retail side if you're hanging in there. If you go the broker route the underwriters will absolutely beat you up on conditions in ways you may not be prepared for & your turn times will suffer. Once you go the broker route you'll discover that your relationships with underwriters are not as valuable as you may surmise---

Dan
New Life Lending
http://www.newlifelending.us
dan@newlifelending.us
"Wholesale Loss Mitigation, Loan Modification & Debt Settlement Services in 41 states. Our programs turn your impossible loans into cold, hard cash."

Dan
New Life Lending
http://www.newlifelending.us
dan@newlifelending.us
"Wholesale Loss Mitigation, Loan Modification & Debt Settlement Services in 41 states. Our programs turn your impossible loans into cold, hard cash."

Imaroxstar

37 Posts

Posted - 07/06/2008 : 5:32:15 PM

frank, I am looking for advice, not attention. Please refrain from a pst unless you adhere to the topic.

frank drigotas j

1518 Posts

Posted - 07/06/2008 : 5:51:02 PM

Listen pal.

You do not join BO in the last 30 days (actually less) and presume to tell anyone who can post an opinion or not.

To the point:

Your post is hugely suspect because you obviously have no clue about what constitutes a "successful" level of closings in this business. Nine to fifteen loans each month, particularly in these times, is just about unheard of.

Then to ask whether there are any products left, whether underwriting is tough on the broker, etc, displays...

oh well, everybody here on BO can fill in the blanks.

If YOU are indeed a "retail lender" it does not show, but then again you might be one of the very few retail lenders left in the country.

That's my opinion. And it is right on topic, pal.

dollar

financeone

1646 Posts

Posted - 07/06/2008 : 5:54:46 PM

Well said dollar.

dtabar

768 Posts

Posted - 07/06/2008 : 6:15:34 PM

Dollar,

How's 9 to 15 closings unheard of? Just because you can't do it does not mean it's not possible. If someone is closing 5-7 loans a month, it wil only take that extra push to get to 9-15. All you do is complain on these post..

To Star: If you're closing that much and the business your receiving is not related to where you work. Then I suggest moving to a company that has correspondent lines, in addition to being able to broker out deals. Your income will most likly double(i'm assuming your cut is not that great now). However, you must make sure your current business is based on your actions, not your companies. Because if your pipe runs dry you'll be dead in the water.

Imaroxstar

37 Posts

Posted - 07/06/2008 : 6:25:57 PM

Frank, I respect the opinion of all, and your last comment helped shed light on why you posted what you did in the first comment.

the truth is that I joined this forum to better understand what goes on in the wholesale side of the biz. I have been in a retail capacity for a few years now, and have a great depth of knowledge on my products, and my business, however, I have no idea what goes on what I would call the wholesale side. Because of the recent constrictions, I am more and more limited by what I can do, and my company no longer does anything above and beyond the competition. I am simpily investigating other options.

My thought is that I can take my referral business to a brokarage, correspondent lender, or another configuration and make more per loan. While I know that I may lose some business, the majority will stay. I am trying to find out if I am blinded by dollars, and not seeing what is really going on. Again, I joined this forum to answer that question.

I am sorry if I hae offended you, however, I am just looking for some guidance. If you want to doubt me, or try to call me out, that is fine. The reality is that I am only here to answer my own questions, and help others when possible.

Imaroxstar

37 Posts

Posted - 07/06/2008 : 6:31:12 PM

Dtabar, thank you for your advice. I am just trying to get a handle on if my expectations are managed or not. When I said I do between 9-15 loans a month, I should explaind that range. In the last 6 months, the least amount of loans I have done is 9, and the most is 15. There are others in my area that are doing the same, so I don't really understand what dollar is saying. Dollar, if you read this, please clarify. also,I am not in a high cost area. My avg loan size is $165,371, as of last month.

Imaroxstar

37 Posts

Posted - 07/06/2008 : 6:42:31 PM

Dan, thank you for your input. Please help me understand what you mean by "Once you go the broker route you'll discover that your relationships with underwriters are not as valuable as you may surmise---". are you saying that is does not matter if you have a relationship with the UW, and that all that matters is the file? Because that seems to be happening everywhere. Relationships no longer matter, the strength of the file is all that matters. If the file is not strong, everything suffers. Is that how you see it?

quote:
Originally posted by Dan-NewLifeLending

Stay on the retail side if you're hanging in there. If you go the broker route the underwriters will absolutely beat you up on conditions in ways you may not be prepared for & your turn times will suffer. Once you go the broker route you'll discover that your relationships with underwriters are not as valuable as you may surmise---

Dan
New Life Lending
http://www.newlifelending.us
dan@newlifelending.us
"Wholesale Loss Mitigation, Loan Modification & Debt Settlement Services in 41 states. Our programs turn your impossible loans into cold, hard cash."

Dan
New Life Lending
http://www.newlifelending.us
dan@newlifelending.us
"Wholesale Loss Mitigation, Loan Modification & Debt Settlement Services in 41 states. Our programs turn your impossible loans into cold, hard cash."

frank drigotas j

1518 Posts

Posted - 07/06/2008 : 7:17:27 PM

"Just because you can't do it does not mean it's not possible."

dtabar, above

You have me there, pro. Most here know that after fifteen years in the broker biz, and having been in banking & finance since 1968, I am blissfully retired. I personally do zero loans per month.

So you leap to a false bit of sarcasm.

I don't think the original poster needs your skirt to hide behind. As a matter of fact, I find his recent additions sounding quite logical.

Is to question entries on BO "negative?" As if questioning is bad? I really don't think so. So chalk that up to your twice jumping to faulty assertions in one post.

I honestly think anyone closing 15 loans per month in this day and age is hardly to believe, that's all.

Having said that, my advice (which he is seeking from strangers here) is for the original poster to stay right where he is, put money in his bank, and count his lucky stars.

dollar

kellamtom

633 Posts

Posted - 07/06/2008 : 7:22:03 PM

are cw and wells retail lo's closing 9-15 loans per month, they're order takers and that's it all inbound leads it takes no effort at all; but on the flip side how much are they making 1500-2k in base plus a few bps

smoothlid

419 Posts

Posted - 07/06/2008 : 7:25:20 PM

I think the main point they are trying to get across to you would be that if you are self sourcing your business, & doing that much volume, then you would do well to make a move based on the factor that retail is probably not compensating you that well. ( I would assume a small base salary, basis points, & possibly bonus based on profits & volume., am I close?)
If on the other hand, you get this many loans due to the large scale marketing & the "brand" you work under, then you may want to reconsider the move. I did very well in a retail environ, closing avg of 12-15 a month for @ 3 yrs ( @ 3-4 yrs ago...) & the bonuses & perks, benefits, etc were awesome, & although I did not make as much per deal, I more than made up for it overall. When I made th emove to the wholesale side, I lost all my benefits, bonuses. Got paid twice as much per closing, & closed less than 1/2. So I took a paycut, but gained experience.
Now as a net branch owner, I have a better understanding of both sides.

Imaroxstar

37 Posts

Posted - 07/06/2008 : 7:25:48 PM

Frank, thank you for your advice. As you can tell, i am desperately seeking advice from any who will give it, as any carier (SP) move will take much research. The reality is that I have been in this business a short while, i have much to learn, however, I have been able to grow my referral partners and business in an uncanny way. I have approached the business in a seemingly different way, and have been able to grow in one of the worst markets my area has ever seen. while I understand your doubt, I am not trying to impress anyon,rather I am presenting a situation, and looking for answers. It is a "if you were in my shoes" type question.

Imaroxstar

37 Posts

Posted - 07/06/2008 : 7:29:37 PM

quote:
Originally posted by kellamtom

are cw and wells retail lo's closing 9-15 loans per month, they're order takers and that's it all inbound leads it takes no effort at all; but on the flip side how much are they making 1500-2k in base plus a few bps

Tom, i think that you have the wrong impression of a retail lender. While there are those that sit in call centers, make a salary, and make a few bps per loan, there are also originators in the field, who are 100% commision, have no expeses paid, and most importantly their phones only ring when they make them ring.

frank drigotas j

1518 Posts

Posted - 07/06/2008 : 7:30:25 PM

It is surprising how BO can eventually help.

Honestly, it must be tempting to consider a move.

I dunno, not having info on your personal situation (family, finances, location preference, etc) I still feel in my gut that you should stay put.

I would love to be proven wrong.

Good luck.

dollar

Imaroxstar

37 Posts

Posted - 07/06/2008 : 7:32:30 PM

Jeff,
I have another post asking about net brances, however, I have not really recieved any feedback. Again, if you see the earlier part of this post, you will see that I am in an exploration phase where I am trying to see beyond retail. Net branches continue to pop up. I would love some feedback from you. I know Freedom is a big name out there, and it would be great if you could give me some insight. Thank you!

Imaroxstar

37 Posts

Posted - 07/06/2008 : 7:37:59 PM

Dollar, thank you again for the input. I am not in the business of proving people right or wrong. I am just out to make an honest living to support my family, and maybe make enough to buy a bigger house or take a better vacation. That being said, i would love to prove you wrong, or at least succeed if I take a different direction. Most of the feedback points in the "stay where you are direction" however, more money per loan is very tempting. I understand there is risk, but >risk=>reward

ericabl1

306 Posts

Posted - 07/06/2008 : 7:52:34 PM

He is closing 9-15 loans per month-and i play centerfield for the Yankees

Thanks Frank for flushing him out!!!!!!!!!!!!!

smoothlid

419 Posts

Posted - 07/06/2008 : 7:59:26 PM

quote:
Originally posted by Imaroxstar

Jeff,
I have another post asking about net brances, however, I have not really recieved any feedback. Again, if you see the earlier part of this post, you will see that I am in an exploration phase where I am trying to see beyond retail. Net branches continue to pop up. I would love some feedback from you. I know Freedom is a big name out there, and it would be great if you could give me some insight. Thank you!

You can call me...Tues is better.

khoiey

1583 Posts

Posted - 07/06/2008 : 8:57:13 PM

Lol.. Don't be a hater. Just go out and do better next month. Believe it or not, some may originate higher numbers than you. If you believe it is impossible, then it is probably impossible for you.

My advice to the OP is stay put. The grass is not greener on the other side in this market. Try to focus on consolidating and strengthen your relationship. When the market get better, then you should make that move or even go on your own.

quote:
Originally posted by Imaroxstar

Dollar, thank you again for the input. I am not in the business of proving people right or wrong. I am just out to make an honest living to support my family, and maybe make enough to buy a bigger house or take a better vacation. That being said, i would love to prove you wrong, or at least succeed if I take a different direction. Most of the feedback points in the "stay where you are direction" however, more money per loan is very tempting. I understand there is risk, but >risk=>reward

Mandyvilla

3443 Posts

Posted - 07/06/2008 : 9:26:30 PM

quote:
Originally posted by Imaroxstar

quote:
Originally posted by kellamtom

are cw and wells retail lo's closing 9-15 loans per month, they're order takers and that's it all inbound leads it takes no effort at all; but on the flip side how much are they making 1500-2k in base plus a few bps

Tom, i think that you have the wrong impression of a retail lender. While there are those that sit in call centers, make a salary, and make a few bps per loan, there are also originators in the field, who are 100% commision, have no expeses paid, and most importantly their phones only ring when they make them ring.

Save your breath, the perception is we sit back take orders, collect a base (I wish), wear battle dress 24/7, and lead miserable lives. While we get bashed and trashed, many are emailing me on the side, looking for contacts to get into retail. What shop are you at now? I hear NatCity has some decent net shops and their financial woes are supposedly seeing relief w/ an infusion of cash from Wall Street. Our branch closed just over 50M last month, and I was in the bottom third with 8 closings. Our top loan officer closed 5M+ in June and at the same time, took 27 loan applications. (We had another team close 2x+ that, but with 2 Jr. LO's and a sales asst). Our office is in Virginia, 80% of his production is NYC. He also has no life, works around the clock and does this w/ just an assistant.

Doors open easier when you are retail. Right now you need every door you can get. Per loan you would make more, but many of those loans wouldn't happen because the listing agents are recommending the buyers w/ the brand name get accepted. I was recently asked to take a loan because the buyer's letter was from someone called East-West Mortgage, someone I thought had closed up. I won't say it's a black list, but there is some definite favortism towards retail right now. I couldn't do that loan, BTW, it was a 90% no mi with a 645 credit score.......SISA.

khoiey

1583 Posts

Posted - 07/06/2008 : 9:40:32 PM

See Frank...?!! Mandy closed 8. People still close loans either on retail or wholesale. Retail or wholesale, you just gotta work. On retail side, you tend to work harder since you have to report to corporate where wholesale side... you don't have to report and your boss doesn't do anything to make you improve.

quote:
Originally posted by Mandyvilla

quote:
Originally posted by Imaroxstar

quote:
Originally posted by kellamtom

are cw and wells retail lo's closing 9-15 loans per month, they're order takers and that's it all inbound leads it takes no effort at all; but on the flip side how much are they making 1500-2k in base plus a few bps

Tom, i think that you have the wrong impression of a retail lender. While there are those that sit in call centers, make a salary, and make a few bps per loan, there are also originators in the field, who are 100% commision, have no expeses paid, and most importantly their phones only ring when they make them ring.

Save your breath, the perception is we sit back take orders, collect a base (I wish), wear battle dress 24/7, and lead miserable lives. While we get bashed and trashed, many are emailing me on the side, looking for contacts to get into retail. What shop are you at now? I hear NatCity has some decent net shops and their financial woes are supposedly seeing relief w/ an infusion of cash from Wall Street. Our branch closed just over 50M last month, and I was in the bottom third with 8 closings. Our top loan officer closed 5M+ in June and at the same time, took 27 loan applications. (We had another team close 2x+ that, but with 2 Jr. LO's and a sales asst). Our office is in Virginia, 80% of his production is NYC. He also has no life, works around the clock and does this w/ just an assistant.

Doors open easier when you are retail. Right now you need every door you can get. Per loan you would make more, but many of those loans wouldn't happen because the listing agents are recommending the buyers w/ the brand name get accepted. I was recently asked to take a loan because the buyer's letter was from someone called East-West Mortgage, someone I thought had closed up. I won't say it's a black list, but there is some definite favortism towards retail right now. I couldn't do that loan, BTW, it was a 90% no mi with a 645 credit score.......SISA.

waynepbright

3678 Posts

Posted - 07/06/2008 : 11:14:35 PM

IT'S ALL ABOUT YOUR ATTITUDE AND YOUR HUNGER TO GO MARKET CONSTANTLY AND NETWORK AS WELL AND MOST DEFINATELY, ASK FOR THE BUSINESS - IF THEY LIKE YOU, THEY'LL GO WITH YOU REGARDLESS OF WHERE U ARE ..

Imaroxstar

37 Posts

Posted - 07/07/2008 : 10:49:00 AM

quote:
Originally posted by ericabl1

He is closing 9-15 loans per month-and i play centerfield for the Yankees

Thanks Frank for flushing him out!!!!!!!!!!!!!

wow, centerfield for the Yankees? I have no idea how you find the time to do loans. You must be one hell of a time management guru!

jbelman

254 Posts

Posted - 07/07/2008 : 10:59:02 AM

quote:
Originally posted by Imaroxstar

I am a retail lender, who runs a sold, honest, referral based biz. I do anywhere from 9 to 15 loans a month, mostly FHA. I am considering a move to the "other" side, and am looking for feedback. How is life on the broker/banker side vs the retail? Are there really no products left? Is underwriting really harder on the broker? Are Brokers considering a switch to the retail side? Any feedback would be helpful.

In my own opinion Get your Real Estate License which I am assuming you do.. If you do it is great because you have an open window of opportunity if retail is not good. Always moving up is good and I would consider it +++ ....Always aim to the top and disgregard the negative comments.

jbates3

2 Posts

Posted - 07/07/2008 : 11:07:41 AM

What states are you looking to buisness in? better off working with a direct lender
who has FHA support. I can help if Maine, NH, NH, MA is what you need

Imaroxstar

37 Posts

Posted - 07/08/2008 : 4:39:40 PM

Jbates - I am in Florida. Thanks anyway!

Rene Viloria

1826 Posts

Posted - 07/08/2008 : 5:21:55 PM

if what you say is accurate you are looking minimum 50k a month so i would become a broker, and join a net branch...

clos25

419 Posts

Posted - 07/08/2008 : 5:51:45 PM

Wow, if I were to be doing 9 loans per month, all self sourced I'll be grossing 33K a month. my brother in law closed 7 last month on the broker side and pocketed 17K...I have been lazy lately but like everyone else says if you stick to the basis and apply yourself there is no doubt you could still make lot of money on the broker side.

CoolMtgGuy

3700 Posts

Posted - 07/08/2008 : 6:34:30 PM

If you are convinced that you could continue to do 50% of those loans on your own ... consistently, you should consider becoming a net branch manager and recruit a few good LOs to supplement your production and have a lot more control over your life. Do not assume that your current book of business will follow you once you leave the unbrella of your employer. A broker's life is difficult these days because we are caught between people who can't qualify and lenders who won't approved loans. With a whole lot of wholesale lenders disappearing, a broker's life is becoming harder every day.

mojojojo_1

843 Posts

Posted - 07/11/2008 : 2:08:48 PM

my buddy works at bofa, retail, he does 15 a month also. he gets paid a quartly bonus of a few thousand. his yearly is about 50k.
base of 30k
is this similar to your senario?

Randy@TEN

44 Posts

Posted - 07/11/2008 : 3:06:17 PM

Imaroxstar,

I see you are located in Florida. We, WWW.THEEQUITYNETWORK.COM are based in Clearwater and Have Mini-Eagle FHA. If you are closing 7 to 15 loans a month and the leads that come from your own network, you must seriously consider the move.

The BOFA agent closing 15 loans and making 50K is fine if the leads are generated by the Bank. Let's consider your average gross profit per loan front and back. Banks generally pay a basis point spread any where from 35 to 65 bips. You will also get possibly 50% of overage. Problem is that the rate your bank has for the lock in date could yield me 1% or 2% or ???? My fees with the yield always will favor a broker delivering the same deal as the Bank. It is just the mind set of the Loan officer and to what they believe is the best deal.

I have always looked at every deal as an individual deal. Some are very small and some are very Large. When you get a million dollar deal and your bank caps your income, it is at that time you are seriouly being underpaid. I have personally closed deals over 3.5 million and most banks will not even look at it. As a broker, I had a list of available options. Lets do the math together and I will help you break down your current pay plan with any others you are considering. The math doesn't lie.

If you would like to discuss this and use examples or comparisons of your deals please feel free to call me at 616.308.5065 or email me at rwilliams@theequitynetwork.com

Previous Topic | Next Topic