The job on the other side

What loan originators earn, how they are paid, and what the license is worth.

What mortgage loan originators earnThe Bureau of Labor Statistics publishes wage data for loan officers, but most originator income is commission and the reported wage understates a pro…
How loan originators get paidMost originators are paid basis points on volume, sometimes against a draw. Regulation Z prohibits pay varying with a term of the transaction and proh…
Becoming an originator with no experienceThere is no experience requirement for the license. What gets a new originator hired is evidence they can build a referral pipeline, since lenders can…
Bank, broker or independentA depository institution means federal registration and no test. A broker or non-bank lender means state licensing and this exam. The trade is between…
The first yearThe first year is mostly pipeline building, and commission arrives only after closings. Attrition is high, and the originators who last are usually th…
Building a referral pipelineReferrals come from people who meet buyers before you do: estate agents, builders, financial advisers and past clients. RESPA Section 8 governs what y…
Moving from registered to licensedA federally registered originator moving to a broker must complete 20 hours of approved education, pass the SAFE MLO test, submit a background check a…
What the license does not let you doAn MLO license does not permit originating without sponsorship, originating in a state where you are not licensed, or performing activity reserved to …
Is being an originator worth it?It suits people who can build referral relationships and tolerate commission income. It suits people who want salaried stability considerably less, an…
What a good first employer looks likeA good first employer provides training, some lead flow and realistic expectations. The single most informative question is what proportion of last ye…
From processor to originatorProcessors have the product knowledge and the document flow already, which shortens preparation considerably. What they usually lack is a referral net…
From estate agent to originatorAn estate agent arrives with the referral network that takes new originators a year to build. What needs building is the federal regulation, which is …
Originating part timeNothing prohibits part-time origination, and the licensing requirements are identical. The difficulty is structural: borrowers and agents expect immed…
Commercial or residential lendingThe SAFE MLO license covers residential mortgage origination for consumers. Commercial lending is largely outside the consumer protection framework an…