United States
Hong KongIs 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, and the first year is where most of the attrition happens.
Worth answering honestly rather than as a sales pitch, because the entry cost is low and the attrition is high.
What is genuinely good about it
- A low barrier to entry - 20 hours, one exam, no degree required
- Income that scales with what you produce rather than with a pay grade
- Portable licensing, so you can move employer or add states
- Work that matters to the person in front of you
What is genuinely hard
- Commission income, which arrives after closings and not before
- Volume tied to rates, which nothing you do controls
- A first year that is mostly business development
- Regulatory exposure, where a mistake is a licensing matter
Origination volume moves with rates, and a market that halves takes your income with it regardless of how good you are. Anyone entering should understand that they are taking cyclical risk.
Who it suits
People with an existing network, or a genuine ability to build one. People comfortable with variable income. People who like solving a puzzle for somebody who is anxious.
Who it does not
People who want a predictable salary. People who dislike prospecting - and the job is prospecting for at least the first year. People who cannot absorb several months of low income.
The cheapest way to find out
Ask three working originators what their first year was like, and ask an employer what proportion of last year's new hires are still there.
That second answer is the most honest number available to you, and it costs nothing to obtain.
Common questions
Is being a mortgage loan originator worth it?
For people who can build referral relationships and tolerate commission income, often yes. For people wanting salaried stability, usually not.
What is the hardest part?
The first year, where income arrives later than expenses and the work is mostly business development.
Is the income stable?
No. It is commission-based and origination volume moves with interest rates, which nobody controls.
What is the barrier to entry?
Low: 20 hours of education, one exam, a background check and sponsorship. No degree is required.
How can I judge an employer?
Ask what proportion of last year's new originators are still there. It is the most honest number available.