Would you get mortgage advice from a disc jockey with a nice conference room? Can you tell the difference?
With 80% of the pre 2009
mortgage service providers out of the mortgage industry, the value of a
Mortgage Loan Originator’s, MLO’s, career is at an all-time high and its
continuation depends on choices made today.
As the yield curve begins to
hold trend in a northerly direction, our industry is entering a phase of the
recovery cycle similar to the 2001 – 2005 surge without the unsustainable high
risk products. The products that will be
sold are primarily QRM or “Standard Loans” provided by the GSEs, “Fannie,
Freddie & Ginnie (Conforming, FHA, & VA)”. MLOs will need to be close to the source of
these products which is the Seller / Servicers approved by these entities. As you move away from the GSE source as a
correspondent, local bank registered MLO, or broker; service, accessibility,
and pricing suffer. Do you get a better price buying an apple direct from an apple farmer
or Publix? Same concept and principle in the mortgage
industry and both are commodities.
The mortgage service providers
in this cycle will primarily be two types:
Ø
Banks that employ Registered Mortgage Originators and cannot sponsor a Licensed Mortgage Originator
AND
Ø
Non-Bank Mortgage Lenders that employ only Licensed Mortgage
Originators. Non-Bank participants can be a broker, correspondent, or
a vertically integrated GSE Seller / Servicer.
All specialize in mortgage products and employ Licensed Mortgage
Originators according to the S.A.F.E. Act, Dodd Frank Act and State banking
agency requirements.
MLOs in our industry have to
make choices today to secure their career as our industry evolves. As everyone knows, if anything is certain its
change in the Mortgage Industry.
Understanding the truth about earning
a higher certification as a Licensed Mortgage Originator versus being a
Registered Bank Mortgage Originator is critical to a good choice. Avoid the fear tactics and miscommunication
and focus on the facts that dispel the myths.
The Truth
·
Based on prior
history of other products requiring a license to sell, regulators will require
banks to license all Registered Loan Originators. Banks have similar experience with Mutual
Fund Sales (Series 6/63) and Consumer Loan Insurance. Both had a period of adjustment and both eventually
required all sales people selling the products to be licensed by FINRA
(formerly the NASD) and the Insurance Commissioner respectively. Neither of those caused a recession,
Mortgages did? Either through reserves
or direct intervention, Banks will license all MLOs at some point.
·
Non-Bank Mortgage
Lender’s like Southeast Mortgage (SEM), have higher mortgage certifications
than many Banks.
·
Get licensed today
and remove uncertainty before time runs out.
It will.
·
Non-Bank Mortgage
Companies pay MLOs more than Banks. Same
work why not receive higher pay? Why?
Because registered originators allow it and inertia has them.
·
Since Non-Bank
Mortgage Companies specialize in one product, service is superior and faster.
·
Name your
shareholders at a Bank? Are you a member
of the LLC? Do you really know who you work
for? Build a career and trust your
shareholders and hopefully they work alongside you.
Dispel the Myths
·
Don’t succumb to
fear tactics. Becoming a Licensed
Mortgage Originator is a straight forward process. Would you buy stock from an unlicensed stock
broker? Would you seek retirement advice
from a Disc Jockey that appears to talk the talk? Your family deserves the certainty of
licensing as set forth by Congress.
·
Don’t talk yourself
into believing Bank comparable training is the same thing as studying and
passing the national NMLS with state content exam. Ask any Bank Registered MLO that has passed
the test if there is a difference.
·
The Georgia Department
of Banking and Finance is very cooperative and will discuss issues to help you
through the process. They respond
promptly and will answer your questions.
It is important to follow the rules during the licensing process.
·
For Realtors and
Builder’s service and speed matters.
·
If you have a
license, you will welcome change. If you
are unable to be licensed, you know the deficiencies and can make a plan to
correct them before it’s too late.
Becoming a Licensed Mortgage
Originator removes the inherent risk of Banks switching to employing only licensed
MLOs. Protect your career and your family’s
income by earning your MLO License and enjoy the next 5 years without concern.
www.southeastmortgage.com
Southeast Mortgage of Georgia, Inc.
3496 Club Drive, Lawrenceville, Georgia 30044
Phone: (770) 279-0222
Georgia Residental Mortgage Licensee #6578
NMLS #103956
