My husband and I have started looking at moving several states away in the next 2 years or so, and even though I've learned my market here and done well as a Realtor, I'm thinking of going the other way and I have a few questions.

1. What type of degree do most Loan Officers have? Obviously they want something in the business/finance realm, but what specifically. Also, a 2 or 4 year degree?

2. I know working for a bank where salary is offered you get paid a certain wage each hour anyway so it doesn't matter. But fo those who work at Mortgage Institutions where you are paid on commission, how does it work? I know you get paid more for certain loans, and probably based on the percentage, but what fees do you pay when that happens. Just a ballpark figure would be fine.

3. How hard is it to find clients. As Realtors we spend hours upon hours each day out of our office, and where I work we do not get walk-ins, so we constantly have to be out drumming up business. I'm hoping it doesn't work that way in Loans, but please let me know if it does.

4. Would this be a good job for someone who has been on the other side, or would you not advise it for a has-been realtor?

Anything else would be great too, please let me know!

Well I can't think of a worse time to get into the loan biz than right now.

Deals are few & far btwn due to lender guidelines tightening drastically, lack of equity for refi's & lack of buyers.

LO's who can originate FHA should fare better but you can't get approved for that as long as you have any dealings in selling real estate.

Yup it's the same, constant farming, marketing, etc.

I do both & I've all but let go of the loan side & am back to the RE side almost 100% doing REO's.

Here in CA loan originators have to have RE licenses, dunno about other states. It's harder for agents b/c they have to hang their licenses under either their RE broker or the mortgage broker. Since I'm a broker, I can originate under my mortgage co's lic & run my own RE brokerage under my license.

I sure would not count on making a living doing loans right away.

This isn't anytime soon, or even a for sure thing. However, see I live in the middle of the US, where we really haven't had a hard time with this, and where we are thinking of going, is in the same boat, they aren't having the same problems that the coastline states are having. I just hate the idea of restarting as a Realtor again somewhere else. Realtors have so much start up, and to go somewhere that I know NOBODY is going to make it more difficult I think.

True that you may not know anybody, but I'm hoping you've packed some experience after all the years. Regardless of what career you pursue (or both) it will be difficult either way.

Quote:
"2. I know working for a bank where salary is offered you get paid a certain wage each hour anyway so it doesn't matter. But fo those who work at Mortgage Institutions where you are paid on commission, how does it work? I know you get paid more for certain loans, and probably based on the percentage, but what fees do you pay when that happens. Just a ballpark figure would be fine."

Not all banks are structured the same when it comes to compensating loan officers. Some offer a salary, some offer a base salary plus commission and/or bonus, and others offer just straight commission.

When it comes to commissioned loan officers, the banks and mortgage companies pay a % of the loan amount. As an example, a lender may start a new loan officer at 0.50% (50 bps) of the loan amount and pay out higher based on production goals (maybe up to 0.80%). Also, banks/mortgage companies often allow loan officers to charge an "overage" on the rate - e.g., if the par rate (0 pts) is 6.00% but you charge your customer 6.25%, your bank will pay you a percentage of the overage or 0.25%.