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Top 10 can a loan officer do their own loan That Will Change Your Life

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Officers Don’t Use Their Own Company For Financing; No Loan Officer Models

Why Loan Officers Don't Use Their Own Company For Financing; No Loan Officer Models

Other Loan Officers Came To Me For Mortgages

Prior to the 2008 Mortgage Meltdown, ironically, a major source of business was other loan officers coming to me for mortgage financing.

They came to me back then for several reasons: 1) My rates were lower than theirs because of my model and the volume discounts I had negotiated; 2) I was notoriously honest, and 3) They knew I would not share any of their financial information.

Humorously, many loan officers were very concerned about privacy because they overstated their volume and income so much (aka “bragged”) – and they knew their secrets were safe with me. 😊

Flash forward to 2021, and loan officers and employees from other mortgage and commercial banks are still using us for mortgage financing – frequently in fact.

The reasons now have to do with the fact that our rates remain lower (much lower in most cases) than most of our retail competitors’, and because of speed, as we can often move much faster than our competitors.

I thought of this when Heejin (my wife and JVM co-founder) sent me a link to a company called Own Up.

I found the website very interesting for several reasons:

  1. Didn’t Use Themselves For Financing. The founders say this: “Our founders used to be mortgage bankers, yet they didn’t go to their own bank to get a mortgage.
  2. They Tout A “No Loan Officer” Model. The website explains that borrowers can save money because the firm does not have to pay loan officer commissions, which average “1.15% of the loan amount.
  3. Are They Brokers? I think they are “brokers” that shop borrowers’ loans among wholesales lenders for the best rate, but I am not sure.

I should add that I know nothing about this company other than what I can see on the website and I give credit to the founders for trying to carve out a clever niche.

I am only blogging about this because it illustrates some interesting trends and topics.

Loan Officers Not Going To Their Own Bank

When I see so many loan officers and mortgage employees not use their own companies for financing, it always gives me great confidence in our own model at JVM.

This is both because they often come to us for financing, as I mentioned above, and also because our internal staff always uses us for their own financing; if they didn’t I would be very concerned about our competitiveness.

No Loan Officer Model

This is the bigger trend we are seeing (particularly now that refis are waning and rate competition is heating up), as lenders fight for market share in the face of increased capacities and decreasing overall volume.

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Because loan officers really do add an additional 1.15% (of the loan amount) to the cost of every loan on average, loan officer models are almost always associated with higher rates.

When there is excess demand for mortgages like we saw in 2020 with the refi boom, those higher rates do not impact overall business that much.

But, when markets tighten, higher rates can massively impact volume – and that is why so many mortgage lenders are trying to establish no loan officer models like JVM’s.

Our rates are lower because we don’t have to pay loan officer commissions. It is that simple.

Rate Surveys

We know our rates are lower than those of most loan officer models because we do very extensive rate surveys every Tuesday.

While a rare few lenders sometimes have lower rates than we do for some very specific types of loan products, they are almost always lenders that do not have “independent loan officer models.”

I should add too that they are also lenders that focus on refis and that are often notoriously bad at purchase money mortgages – so “buyer beware.”

More importantly, our rates are almost always lower (much lower in most cases) than those offered by the loan officer models – because we don’t have to pay loan officer commissions.

Brokering

This is the last topic I want to touch on, as brokering seems to be coming back to the forefront.

But, there are a few misconceptions in regard to brokering:

  1. Only brokers “broker” for the best deal. This is a misconception because we too effectively broker for the best deal every time we lock a loan, as we shop among dozens of different “investors” that will buy our loans. This is especially the case with jumbo financing where mortgage banks can usually offer far lower rates than brokers ever can.
  2. Brokers can shop for the lowest rate/Capital Markets Pickups. One of our biggest sources of revenue at JVM is the additional “pickups” we get after a loan closes for loan servicing rights and other reasons, and this allows us to offer lower rates. Brokers and most loan officers, in general, do not get any revenues from these pickups and thus have to charge higher rates.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167

Extra Information About can a loan officer do their own loan That You May Find Interested

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Why Loan Officers Don't Use Their Own Company For Financing

Why Loan Officers Don't Use Their Own Company For Financing

  • Author: jvmlending.com

  • Rating: 3⭐ (911070 rating)

  • Highest Rate: 5⭐

  • Lowest Rate: 3⭐

  • Sumary: Loan officers models add 1.15% (of the loan amount) to the cost of every loan on average, and are almost always associated with higher rates.

  • Matching Result: They Tout A “No Loan Officer” Model. The website explains that borrowers can save money because the firm does not have to pay loan officer …

  • Intro: Why Loan Officers Don’t Use Their Own Company For Financing; No Loan Officer Models Other Loan Officers Came To Me For Mortgages Prior to the 2008 Mortgage Meltdown, ironically, a major source of business was other loan officers coming to me for mortgage financing. They came to me back then…
  • Source: https://www.jvmlending.com/blog/why-loan-officers-dont-use-their-own-company-for-financing-no-loan-officer-models/

Comment for 1026.36 - Prohibited Acts or Practices and ...

Comment for 1026.36 – Prohibited Acts or Practices and …

  • Author: consumerfinance.gov

  • Rating: 3⭐ (911070 rating)

  • Highest Rate: 5⭐

  • Lowest Rate: 3⭐

  • Sumary: The comment for 1026.36 is part of 12 CFR Part 1026 (Regulation Z). Regulation Z protects people when they use consumer credit.

  • Matching Result: The definition of “loan originator” does not include a person that performs only real estate brokerage activities (e.g., does not perform mortgage broker or …

  • Intro: Comment for 1026.36 – Prohibited Acts or Practices and Certain Requirements for Credit Secured by a Dwelling | Consumer Financial Protection Bureau 36(a) Definitions 1. Meaning of loan originator. i. General. A. Section 1026.36(a) defines the set of activities or services any one of which, if done for or in…
  • Source: https://www.consumerfinance.gov/rules-policy/regulations/1026/interp-36/

Can I Originate My Own Loan - AmeriSave Wholesale Mortgage

Can I Originate My Own Loan – AmeriSave Wholesale Mortgage

  • Author: amerisavewholesale.com

  • Rating: 3⭐ (911070 rating)

  • Highest Rate: 5⭐

  • Lowest Rate: 3⭐

  • Sumary: In this edition of Ask AUSSIE, we hear from a small mortgage shop owner in Arizona who asks if she can originate her own loan?

  • Matching Result: In this edition of Ask AUSSIE, we hear from a small mortgage shop owner in Arizona who asks if she can originate her own loan?

  • Intro: Can I Originate My Own Loan | AmeriSave Wholesale AmeriSave Wholesale Mortgage Solutions (AWMS) is closing its door Effective Immediately. However, AWMS will be honoring your existing pipeline. No new registrations after today 9/1/22. Loans in the pipeline must be locked by Friday, 9/2/22, by midnight. All loans must close…
  • Source: https://amerisavewholesale.com/hub/can-i-originate-my-own-loan/

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MLO Licensing: Small Business Regulation Guide

MLO Licensing: Small Business Regulation Guide

  • Author: dfs.ny.gov

  • Rating: 3⭐ (911070 rating)

  • Highest Rate: 5⭐

  • Lowest Rate: 3⭐

  • Sumary: This guide is intended to assist small businesses and individuals in complying with the regulatory requirements of revised Part 420 that the Department intends to adopt to conform Part 420 to…

  • Matching Result: Licensing requirements also do not apply to individuals who offer or negotiate the terms of a residential mortgage loan with or on behalf of an immediate family …

  • Intro: MLO: Small Business Regulation Guide This guide is intended to assist small businesses and individuals in complying with the regulatory requirements of revised Part 420 that the Department intends to adopt to conform Part 420 to changes in Article 12-e of the Banking Law which became effective on July 11,…
  • Source: https://www.dfs.ny.gov/apps_and_licensing/mortgage_companies/mlo_guide

Loan Officer's handling "Family" member loans - Bankers Online

Loan Officer's handling "Family" member loans – Bankers Online

  • Author: bankersonline.com

  • Rating: 3⭐ (911070 rating)

  • Highest Rate: 5⭐

  • Lowest Rate: 3⭐

  • Sumary: Ok, let me first say the concept makes me uncomfortable but I have been asked to research it so here goes. Many of our Loan Officers are protesting that we do not allow them to take the applications and handle the loans of their own…

  • Matching Result: Many of our Loan Officers are protesting that we do not allow them to take the applications and handle the loans of their own famly members …

  • Intro: Loan Officer’s handling “Family” member loans Thread Options #1765468 – 12/09/12 11:22 PM Loan Officer’s handling “Family” member loans niche girl 100 Club Joined: Jan 2012 Posts: 159 Ok, let me first say the concept makes me uncomfortable but I have been asked to research it so here goes. Many…
  • Source: https://www.bankersonline.com/forum/ubbthreads.php/topics/1765468/Loan_Officer%27s_handling_&q

What Does a Loan Officer Do? - Assurance Financial

What Does a Loan Officer Do? – Assurance Financial

  • Author: assurancemortgage.com

  • Rating: 3⭐ (911070 rating)

  • Highest Rate: 5⭐

  • Lowest Rate: 3⭐

  • Sumary: A loan officer can help you find the right loan type and mortgage terms for you. Learn more about the role of a loan officer and apply online with us today!

  • Matching Result: A loan officer works for a bank or independent lender to assist borrowers in applying for a loan. Since many consumers work with loan officers for mortgages, …

  • Intro: What Does a Loan Officer Do? | Assurance Financial If you’re looking to obtain a mortgage for your dream home, you’ve likely heard of loan officers. A licensed loan officer is required to obtain a mortgage, but what does a loan officer do? Why is working with a loan officer…
  • Source: https://assurancemortgage.com/role-of-loan-officers/

Dealing With Mortgage Loan Officers and Brokers - Investopedia

Dealing With Mortgage Loan Officers and Brokers – Investopedia

  • Author: investopedia.com

  • Rating: 3⭐ (911070 rating)

  • Highest Rate: 5⭐

  • Lowest Rate: 3⭐

  • Sumary: What’s the difference between mortgage loan officers and mortgage brokers, and which one can get you the best deal on a mortgage?

  • Matching Result: A mortgage broker is an intermediary who brings mortgage borrowers and mortgage lenders together but does not use its own funds to originate mortgages.

  • Intro: Dealing With Mortgage Loan Officers and Brokers If you’re shopping for a mortgage you will eventually find yourself dealing with a loan officer or mortgage broker, and perhaps both. Here’s what you need to know about what they do and how you can make sure the mortgage offers they come…
  • Source: https://www.investopedia.com/articles/pf/lending-loan-officers-perspective.asp

What Does A Mortgage Loan Originator Do?

What Does A Mortgage Loan Originator Do?

  • Author: rocketmortgage.com

  • Rating: 3⭐ (911070 rating)

  • Highest Rate: 5⭐

  • Lowest Rate: 3⭐

  • Sumary: A mortgage loan originator (MLO) is a person or financial institution that helps borrowers find home loans. Find out what an originator can do for you here.

  • Matching Result: The term “loan officer” refers to an individual acting as an MLO. Loan officers may work for a direct lender or as a mortgage broker who …

  • Intro: What Does A Mortgage Loan Originator Do? Now that you have a surface-level understanding of mortgage loan originators and what they do, you’ll likely have some questions. Below, we answer some of the most common questions about MLOs. How much are mortgage origination fees? Services provided in a real estate…
  • Source: https://www.rocketmortgage.com/learn/mortgage-loan-originator

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Loan Officer Job Description - Expected Salary and What Your ...

Loan Officer Job Description – Expected Salary and What Your …

  • Author: thetruthaboutmortgage.com

  • Rating: 3⭐ (911070 rating)

  • Highest Rate: 5⭐

  • Lowest Rate: 3⭐

  • Sumary: So you need a job and you’re thinking about becoming a residential mortgage loan officer? Or a mortgage loan originator (MLO) as they’re now known. Well,

  • Matching Result: What Does a Loan Officer Do on a Daily Basis? … loan officer, may provide sales leads to the loan officer, or they may be completely on their own when it …

  • Intro: Loan Officer Job Description – Expected Salary and What Your Day Will Look LikeSo you need a job and you’re thinking about becoming a residential mortgage loan officer? Or a mortgage loan originator (MLO) as they’re now known.Well, there are probably job openings right this very second, but it’s not…
  • Source: https://www.thetruthaboutmortgage.com/loan-officer-jobs/

Frequently Asked Questions About can a loan officer do their own loan

If you have questions that need to be answered about the topic can a loan officer do their own loan, then this section may help you solve it.

Can a loan originator provide financing for a relative?

The act of acting as a mortgage loan originator in connection with a loan to a member of the borrower’s immediate family is exempt, so the answer is no.

Is there a distinction between a lender and a loan officer?

Remember, an MLO can be a person or lending institution. While the loan officer is the person who works with you, the lender is the institution that initially funds the loan. The MLO will continue to work with you through the application process, into underwriting, and help ensure you’re prepared for closing.

Is it challenging to earn a living as a loan officer?

A mortgage broker or bank may tell you that it’s simple, and yes, you may not have to work very hard in the traditional sense, or participate in any back-breaking work. However, being a loan officer is not an easy job.

Can a loan officer have a website of their own?

Theoretically, any loan officer can own a website, but depending on the business you work for, there may be a corporate policy that prohibits loan officers from having their own websites. This is typically the case with mortgage companies that are concerned about compliance issues

What distinguishes a loan officer from an originator?

Mortgage Loan Originator: The Person A mortgage loan officer’s job is to guide you through the mortgage approval process. A mortgage broker will take your application and show you your options from several lenders so you can compare prices and servicing policies.

As a loan originator, are you able to work from home?

It has never been simpler to work remotely as a loan officer, but if you want to be among the best in the mortgage business, you’ll need to modify your work habits and pick up new skills to suit your needs for both your home office and on-the-go needs.

What qualification makes a good loan officer?

A bachelor’s degree in finance, or a related field like business or accounting, is typically required for loan officers, as it gives them the essential business and financial knowledge they need to do their jobs.

How can loan officers attract customers?

Building your own social media presence makes the deal sweeter for agents who want to work with you because they’ll be getting in front of more potential clients, which is good for them AND for you. Agents rely heavily on referrals and are always looking for ways to expand their network.

What exactly does a loan officer do all day long?

A loan officer meets with applicants to assess their creditworthiness before deciding whether or not to offer them a personal or business loan. Their duties also include reviewing, authorizing, and recommending loans for approval.

Why do loan officers get such high pay?

A Mortgage Loan Officer’s salary is typically based on commission, with pay varying from office to office and state to state. Mortgage Loan Officers make their money through loan origination fees, closing costs, and servicing and selling loans.

How many hours do loan officers put in each week?

Work EnvironmentWith the exception of consumer loan officers, who spend the majority of their time in offices, these employees may travel to clients’ locations, most loan officers work full-time, and some work more than 40 hours per week.

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