New LO working for big call center, make change to direct lender from home?

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Slush Puppy King in Jacksonville, Florida

38 months ago

I started working for a big lender here in Jacksonville that is the private label solution for some bigger name banks. I'm a complete newbie, started late November 2010. So this company has introduced me to mortgages and paid for me to get licensed in 25 states. It's a pretty easy job. Calls come in from various business sources and I take apps and register loans. I'm averaging about 15 closed loans per month. The big dogs here are closing about 35+ loans a month.

Average payout per loan: $135
Base salary: $24k/year
Normal bank hours: 40 hour work week

So far this has been a "good" job, but I don't feel very challenged and can't help but wonder if there is a way to make more money in this industry. Of course I am new so I don't nearly have the experience or resources to go out there and just drum up my own business.

I saw a craigslist posting and responded. It's a direct lender looking for loan originators. The guy I spoke with was impressed that I had 25 licenses and offered me the opportunity to work for his company as a loan originator.

The offer is this:
Setup a virtual office for me at home
Provide me with 3-5 leads daily
2% commission per loan that closes

So....yeah sounds pretty amazing but since I am new to this my caution lights are flashing. He is offering all this to me at NO COST. Of course there is no base salary offered all, but 2% per loan? My average loan amount I close now is about 200k. So that's like $4000 per loan. More than I make a month now currently....and that is just 1 loan!

What am I missing here?

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Smart guy in Sioux Falls, South Dakota

37 months ago

You're missing that you found the job on Craigslist and you problably haven't done your due diligence in researching the company that is offering you this "opportunity". Also there is pending legistation that a LO cannot be paid a % of a loan, but only a set $ amount per loan (there are other options they have as well, please research this legislation it is all over Google if you search Loan Officer Commission).
Also, some companies call random phone numbers in a phone book a "lead". More or less you will need to generate your own leads.

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Slush Puppy King in Jacksonville, Florida

37 months ago

Smart guy in Sioux Falls, South Dakota said: You're missing that you found the job on Craigslist and you problably haven't done your due diligence in researching the company that is offering you this "opportunity". Also there is pending legistation that a LO cannot be paid a % of a loan, but only a set $ amount per loan (there are other options they have as well, please research this legislation it is all over Google if you search Loan Officer Commission).
Also, some companies call random phone numbers in a phone book a "lead". More or less you will need to generate your own leads.

Well the company is has been in business since 1994 and as far as I can tell have good ratings across the board.

As far as the % commission structure perhaps that can change, but you said yourself it's a pending legislation so there is no reason why it can't be offered now as compensation.

As far as the leads go the company uses www.lowermybills.com as their lead source, and THEY purchase them from that website, no cost to me.

Also the company is offering me a somehwhat of a sign on bonus to compensate for the commission I would not be recieving at my current job.

I appreciate you responding to my question but so far the company and opportunity seem to bypass the concerns you bring up. I had the exact same concerns and doubts, and I still do because it does seem a bit too good to be true. But if they offer me in writing the sign on pay AND that they will provide me with 3-5 purchased leads daily that I do not pay for.....then that sounds pretty solid.

Haha, I do agree no matter what it's not a good thing I found them on craigslist, but there can be a few decent jobs on there right?

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web in Newport News, Virginia

33 months ago

Hi slush puppy I am interested in an entry level job for mortgage origination what company do you work for?

Slush Puppy King in Jacksonville, Florida said: I started working for a big lender here in Jacksonville that is the private label solution for some bigger name banks. I'm a complete newbie, started late November 2010. So this company has introduced me to mortgages and paid for me to get licensed in 25 states. It's a pretty easy job. Calls come in from various business sources and I take apps and register loans. I'm averaging about 15 closed loans per month. The big dogs here are closing about 35+ loans a month.

Average payout per loan: $135
Base salary: $24k/year
Normal bank hours: 40 hour work week

So far this has been a "good" job, but I don't feel very challenged and can't help but wonder if there is a way to make more money in this industry. Of course I am new so I don't nearly have the experience or resources to go out there and just drum up my own business.

I saw a craigslist posting and responded. It's a direct lender looking for loan originators. The guy I spoke with was impressed that I had 25 licenses and offered me the opportunity to work for his company as a loan originator.

The offer is this:
Setup a virtual office for me at home
Provide me with 3-5 leads daily
2% commission per loan that closes

So....yeah sounds pretty amazing but since I am new to this my caution lights are flashing. He is offering all this to me at NO COST. Of course there is no base salary offered all, but 2% per loan? My average loan amount I close now is about 200k. So that's like $4000 per loan. More than I make a month now currently....and that is just 1 loan!

What am I missing here?

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