Mortgage Brokering as a Freelance Opportunity

In the mortgage business there are two foundational areas of involvement. One is the position of "loan officer," the other is working as a "broker." The loan officer for the most part earns from what is called "personal production," which means you are earning from what you are able to personally produce by bringing mortgage business into your employer's office. In some cases you may be paid a base salary and/or draw, but then you will be paid less in commissions by the company (broker) you are working for.
The second - and most potentially lucrative for you - area of involvement is the broker. Most people start out in the mortgage business by working as a loan officer, gaining experience and expertise, and later they consider opening their own shop by becoming a broker. This can be frustrating for the broker who is training loan officers, because they are continually losing their best loan officers and creating their own future competition.
The broker hires, spoon feeds and trains their loan officers and pays them a commission out of the profits they receive from the lenders with whom they work. As the loan officer begins to learn the business they obviously start thinking about leveraging themselves through the efforts of others so that they can earn from the production of others as the broker does.
~ The mortgage business is currently experiencing re-definition by new leaders in the industry who are breaking old traditional earning models. ~
Within the last few years new leaders in the mortgage industry have been breaking the old traditional earning models, and have created revolutionary new approaches which allow just about anyone to build a business in the mortgage industry with very little knowledge or experience. Beginners are now able to make more money - in less time - with less effort!
In the past you would have started out as a loan officer - generally with a bachelor's degree in finance, economics, or a related field, and earned $30,000 to $50,000 a year. You then worked locally where the broker who hired you was licensed to do business. For the most part your income level would have been limited until you gained enough experience to open your own shop.
The downside of this was that even when you advanced to becoming a broker yourself, you also took on the financial liability of running a business. Opening a local mortgage brokerage can often be very costly, along with the many additional liabilities that go along with hiring, training and running payroll.
New approaches to the mortgage business now allow you to build a mortgage business of your own where you call the shots and your income is not solely dependent on your own personal production.
Here are just a few of the new advantages...
• You can now earn on mortgage business on a national level. These new business models now allow you to operate under a "branch license" so you can do business just about anywhere.
• You have the ability to immediately leverage yourself. You can earn commission overrides just like a traditional Mortgage broker can. This means that you can build a national team throughout the United States and earn from their activity.
• No major investment - Instead of investing thousands of dollars in franchise fees you can get started typically for around $200.
• You are able to tap into proven business models that will help you teach and train your inexperienced loan officer recruits.
How much money can you make?
Let's compare the traditional model of earning only from your personal production with the model of introducing this concept to others and being able to leverage yourself:
The following will give you an example of what you would earn If you based your earning level on personal production at three different commission earning levels. The following are based on a hypothetical $200,000 mortgage.
One House per month Commission paid out 30% $1,050.00 Earned 64% $2.240.00 Earned 70% $2,660.00 Earned
Two Houses per month 30% $2,100.00 Earned 64% $4,480.00 Earned 70% $5,320.00 Earned
Let's look at this a different way that shows the power of leverage where you are not depending entirely on your own personal production. The following example assumes that you are earning 64% from two personal loans a month and are earning from the personal production of five others who are doing just one loan each per month.
Personal Production 64% Earning Level Your personal earnings - $4,480.00 Loans From 5 Others Who Are At The 30% Level Your earnings from their production - $5,950.00
Total Earnings For Month - $10,430.00
As you can see, it really is to your advantage to immediately involve others in the business. Your personal efforts along with the combined efforts of others can really produce some exciting numbers, in this example over $125,000 a year in income! The exciting thing about this is that you are not limited to just five people, you have the ability to grow a very large income very quickly