Differences of a Bank and Broker Loan Originator
A loan officer who works at a bank or a credit union is many times the smiling face of the institution, their primary job is to accept an completed loan application from the borrower, and then give it to the underwriter. If all goes well, and the loan is approved, the loan officer may schedule an appraisal.
An independent loan originator, on the other hand, who typically works for a mortgage company provides a lot more service to the borrower, such as advising the client about the best possible loan for their purposes, collecting necessary documents during the entire process, ordering the appraisal and speaking directly with the borrower and underwriter to confirm documents received and that the loan closes in a timely manner.
What happens if you don’t use an independent loan originator?
In many cases, a large bank or credit union will have the underwriting or loan processing department take care of all of the tasks an independent loan officer does. What does this mean for the consumer?
Mortgage rates obtained with an independent loan officer, whether it be a mortgage broker or a small shop, won’t be significantly higher than those offered through a big bank. In fact, oftentimes, the interest rates are sometimes less, in part because independent mortgage brokers usually have additional loan sources as opposed to the big banks, which commonly only have a smattering of loan products to give prospective homeowners.
Flexible Schedule
The number of hours you are in the office or doing work from another location varies according to the type of loan officer you are. Many loan originators can be connected to their main office and clients through a smart phone and laptop. As a whole, loan originators generally have more control over their schedule and extra flexibility when compared to friends and colleagues working in other occupations.
Potential for High Earnings
The pay rate for a loan officer changes constantly. The median salary for a loan officer is at this time is $62,620 – with some highly-skilled originator earning more than $128,390.
How your pay is decided varies according to the type of company you work for. With some companies, loan officers get paid on 100-percent commission; while with others, a loan agent’s income is a split of a nominal salary and commission. The mortgage originator who works on straight commission has the income potential to become almost unlimited or reach a levels to be a top national originator.