Mortgage officers or brokers are usually paid by the bank but not always by the borrower but more often than not by the third party. The mortgage officer or broker obtains a percentage of the loan based on their agreement with the bank. They receive a commission based on the fees they charge the borrowers for services such as credit searches and origination. Borrowers also may pay the mortgage broker or officer themselves, which is also known as borrower compensated compensation.
To become an officer you need to have a four year college degree, be in the banking field for at least five years and have worked at least 20 years as a mortgage officer. Some loan officers begin their careers as entry level loan officers. Others begin as regional or local office staff. You do not have to be related to finance to work as an officer.
To qualify for this position there are some basic requirements. You must have worked for a mortgage loan originator and you must have worked for a bank or thrift institution that lends money on residential mortgages. You must also have a clean credit record and be in good standing with all of your current financial institutions. This means that you need to have not defaulted on any of your home loans.
Qualification requirements vary from lender to lender but generally all mortgage officers require borrowers to meet a few minimum standards. Borrowers who want to work with federally insured loans, direct lenders and thrift institutions are required to take and pass a FHA/HUD (Federal Housing Administration/HA) inspection. The inspection is a pre-screening to ensure the borrower’s finances are sound. Borrowers who are self employed or have received a large down payment are also encouraged to apply because these lenders often have better underwriting policies. These factors are also required for all borrowers applying for traditional loans.
A person can become a mortgage officer by taking the FHA’s Refinance Tour. In order to qualify, the individual must be at least 18 years old. Prior to taking the tour, however, applicants can meet other pre-qualifying requirements, including: having excellent credit with no collections; not having a bankruptcy or foreclosure judgment against their name; and being able to provide proof of having held a mortgage loan for one year or more. Some borrowers may be exempt from these requirements if they meet other requirements prior to being considered for the Refinance Home Loan Tour.
Some states require aspiring loan officers to be licensed in order to work. Other states do not regulate licensing. Each state has different rules so it is important to check with your lender to see what licensing requirements you must follow. Most loan officers will receive an education during their time working for the company. During this time, they will learn about the history of FHA loans, along with tips on how to make the application process easier and reduce the risk of default. Lenders also give loan officers hands-on training on how to evaluate home buyers and assess the marketability of a home.
The salary of a mortgage officer ii differs greatly depending on where they work. Some areas offer higher salaries than others. For example, in Florida, there are several areas that offer higher starting salaries, but those same areas generally have lower average salaries. Applying to become a home buying officer requires applicants to submit an application, pay a fee, and pass a background check. Once the paperwork is completed, applicants are expected to submit three to four years of work experience, as well as pass a licensing exam, before becoming licensed.
A mortgage officer ii can work in many different offices of home loans. Depending on the specific lender, he or she may be responsible for: collecting applications, answering questions from loan officers, receiving payments, and sending correspondence to prospective clients. Home buyers often hire officers because of their familiarity with the industry and familiarity with the process. Many brokers and realtors also use them because it is less complicated to reach out to a lender for a mortgage than to write a letter. Applying to become an officer is an excellent choice for anyone interested in reaching out to a lender for a mortgage loan.