20% to become a loan officer? is this a rip off?

alvin · #1 (**permalink**) 03-21-2006, 03:12 PM

ive seen loan officer ads for 100% commission and i got an offer for 20% commission. what's the difference? id like to have some leverage in my negotiations during my interview. please help

Erik · #2 (**permalink**) 03-21-2006, 05:04 PM

20% is the lowest commission rate I've ever heard of, but you have to look at the big picture. If you're getting a base salary + commission, then it may not be that bad. However, a full-service shop will usually start you at 50% and include office space, copying, biz cards, and basic costs. 100% shops will have a per loan fee and have a desk fee or minimum fundings per month for no desk fee. The resident net branch folks here can fill you in on what they do for their 100% programs.

20% is very low, IMHO.

Greg · #3 (**permalink**) 03-21-2006, 05:15 PM

Run as fast as you can!

The Wizard · #4 (**permalink**) 03-22-2006, 10:51 AM

What type of marketing is the company doing to bring in leads? Are they providing training? Is the company branded? Does it come with a complete benefit package?

Those are some questions you may want to consider. It they provide you with enough leads to close 20 loans amonth, training, have a brand name that people know and trust, give you a benefit package.
Then do the math against say a shop that would give you 50% and a shop that gives you 100%. The 20% may not be a bad thing when you do a 360 degree review of the offer. If it is a straight 20%. I agree with Greg run!

alvin · #5 (**permalink**) 03-22-2006, 12:15 PM

its ComUnity Lending affiliated with World Financial Group

www.comunitylending.com

he says theyre a direct lender and i dont need to hang my license since theyre with the department of corporations. also they dont provide leads since they focus on the warm market(soliciting friends, family, coworkers, etc)

they have training 3 days a week. the way he explain the 20% commission was kinda weird from how i got paid as a Realtor.

as a Realtor its pretty much a straight 70% split of the purchase price. plain and simple.

the 20% split this person was referring to had to do with loan fees, front and back points and forgot the rest because i was confused.

20% split for the jr loan officer
30% split for the sr loan officer
50% split for the house

alvin · #6 (**permalink**) 03-22-2006, 12:17 PM

also i will be working from home so he mentioned theres no monthly fees at all. but i have a feeling theres some hidden fees that i have to pay upfront before joining.

alvin · #7 (**permalink**) 03-22-2006, 12:28 PM

heres another reply

First of all thank you for responding to the ad for a Mortgage Originator. Let me tell you a little bit about Freedom Equity Group and instructions on how you will be able to submit an employment application.

Over the past 4 years we have hired over 4000 Mortgage Originators and opened over 10 major processing centers in the United States. Though We can originate any type of mortgage we spend great time in educating our new originators in a loan some banks call the wealth builder loan. Today we are the number one producing entity of these type loans for the number 2 residential lender in the USA. Once you are approved, you will learn your mortgage basics on line through class room type classes, but the art of selling these products will be learned by interactive conference calls that we hold for our reps each week and training sessions.

Freedom Equity Group is not hiring you as an independent contractor, You will actually be an employee of the Mortgage Banking firm known as Freedom Equity Group Financial Services and when you earn any compensation it will be as a W 2 employee!

Please note when you apply on line you will be charged a $35.00 fee to pay for your back ground check. If you answer yes to any of the first 2 questions it will not allow you to go forward nor will it charge you the $35.00. The 90 day probationary period does not begin until you satisfy any state requirements, in most states there is none, You must receive a letter from FEG stating you can originate prior to talking to anyone about mortgages.

We recommend several books that will help educate you!

* Missed Fortune 101 Douglas Andrew
* Rich Dad Poor Dad Robert T Kiyosaki
* Why you should carry a Big Long Mortgage Ric Edelman (dvd)
* Mortgages for Dummies

To fill out your employment application: Please go to http://www.fegcorp.com/ Click on the word join, the next page repeat again click on join.

* Click on my Recruiter, Where it says code # type in feg 40
* Weiner Ellisville, MO will appear, Click on add my Recruiter
* In the box below select the state you are in and begin the application
* please fax back the completed application to 636 273-0407 with your 2 forms of ID
* Please mail back the original Employment Contract

We should have you approved to begin your training on the web within 24 - 48 hours!

The Wizard · #8 (**permalink**) 03-22-2006, 12:52 PM

Alvin,

I NOW FULLY BACK GREG! RUN, RUN AS FAST AS YOU CAN IT IS AN MLM. MIGHT AS WELL JOIN PRI-AMERICA AT LEAST THEY DO NOT HIDE THEY ARE AN MLM AND WITH THEM YOU CAN SELL INSURANCE, PRE-PAID LEGAL AND MORTGAGES.

brendo927 · #9 (**permalink**) 03-23-2006, 04:15 PM

I would apply for a lender....after such bad experiences with broker shops with (Profanity) splits, little training, and managers who cherry pick the good leads for themselves.

Lenders give u a small base plus commission based on volume....not fees.

Edited to remove swearing - GP

jimswainbbmc · #10 (**permalink**) 06-10-2006, 06:29 PM

About 10 years ago there was a group of leaders that split off from AL Williams/Primerica that called themselves World Marketing Alliance. I am wondering if this is the same thing in its evolved state. Anyone know anything?