25/75 split to be a loan officer? am i getting ripped?

[alvin]

interviewed a mortgage broker who also does real estate and theyre offering me a 25/75 split for loans and 70/30 split to do real estate?

basically i would originate the loan then pass the lead to the broker and he takes care of the rest.

the real estate split is fine for me but i once had an offer to do get 40% to do loans.

broker mentioned the split will go up after i take a loan officer classes and a few transactions.

[macp]

That is horrible. Dont ake less than 50 if they are offering you leads. If your bringing in all the business look for shops that offer 100% splits.

[COLOANHound]

I concur. That sounds pretty bad. What state are you in? I may have some options for you.

[alvin]

thanks. im in southern california.

my primary would be real estate and secondary would be loans.

also i will be bringing in my own leads through my site and referrals.

i got the contract through email and im thinking of renegotiating the 25/75 split.
also i will be mainly working at home so theyre telling me that i will have a $200 monthly fee if i dont produce.

$200 monthly fee might be mainly for E&O insurance and desk fees?

are loan officers supposed to have any monthly fees and pay for E&O?

[alvin]

by the way. i dont have any experience with loans. so is this why he's offering 25%?

[COLOANHound]

Shouldn't matter, that's still a pretty bad split if you already have a book of business. You can use that as leverage, I would. I'm talkin to my branch manager to see what kind of split he could give you. I'll send you an email when I know more.

[Secret!]

alvin, in ths industry the grass is always greener somewhere else, PLUS somebody always has a friend that has a better deal for you. I know people who spend all their time looking for a bettrer deal.

What you need to do first, is learn your trade so you're worth more

[alvin]

What you need to do first, is learn your trade so you're worth more

right. i mentioned to my broker that i know of creative financing(lease options, wraps, notes, etc) and i am familiar with some of the loan terminology and interfacing with clients on prequalifications and loan origination. i just dont think 25% will do it for me. im going to counter above 50% or ill take a walk.

how much do typical rookies start off with anyways without company lead generation?

[COLOANHound]

I would start with reviewing the guidelines of some wholesale lenders. If you would like some guidelines in pdf. let me know I would be willing to send them to you. Understanding what qualifies a client, and whether or not they are "conforming" is a good place to start for you. You will develop the skills to provide "creative financing" or hard to place deals. Having a quality processor and spending time with them throughout the process would probably be your next step. Come to think of it, there is a lot of info. you need to brush up on. Let me know if I can help.

[Greg]

Whoaaa.

Hey Alvin tell us about what the 25% split entitles you to do.

Reason is if he has someone else doing all the "grunt" work (enter loan in los, price, shop, collect docs) it might not be so bad. Especially since you are doing both Agent and Broker.