Time for Loan Originators

Written By: Bonnie Wilt-Hild
Senior DE Underwriter & NAMP Instructor

As a normal course of business, I teach an FHA Loan Originators course for Mortgage University. In the past, registration for this course was generally very large. As FHA returned to popularity it seemed that the originators out there could not wait to understand the program so that they could sell it effectively. Very interestingly, registration for this course is now almost non existent which for a time I thought was strange.

Now, I want to also say that I teach a Loan Modification course as well and registration for this webinar is insane. The webinar itself is capped at 100 participants per webinar and for the most part, it sells out at least 2 times a month. Well, I have now determined where all of the Loan Originators have gone, they have become loan modifiers.

I want to say that this is great news for die hard loan originators. As we are all aware, a loan originator’s bread and butter income is dependent upon the business partnerships that they have developed. Referrals play an important part as do business relationships with realtors. Refinance business is nice but more of what I would consider icing on the cake. The bottom line is if rates are not low enough to support mass refinance then income sources for loan originators will dry up.

So with that said, now is the time for the true loan originators to establish their business partner base and that being the realtors. I have several friends that are realtors and I can’t tell you how often I get calls from them asking if know just one good originator that knows FHA. In some cases they are asking if I know just one good loan originator. Several of them have actually told me that they never even see originators because they no longer stop into their office. Talk about not tapping a huge business source.

If the average real estate office sells 8 properties a month and as an originator, you can take 3 of those deals, you have a steady source of business regardless of market conditions or the refinance market. All of the successful originators that I know, they guys and girls who have been originating for20 years or better, consistently cultivate the purchase business. The bottom line is people are always going to buy homes. They were buying in the 70’s and 80’s when rates were as high as 11% and I can assure they are still purchasing. 70% of the current business I am underwriting is purchase business and it is all going to just a few select loan officers who are visiting the real estate agents on a regular basis and can demonstrate a solid knowledge of FHA as well as VA. The bottom line is the mortgage veterans are getting all of the purchase business. They prequalify the borrower, understand the credit report and quite frankly when they say they can get the done, they usually do.

For those originators out there who are serious about the business, both new and veteran, now is the time to get out and solidify your business relationships. Once your business partners trust your ability as well as your stability and professionalism, you will have a solid source of business for as long as you want it.

About the Writer. As an NAMP staff writer, Bonnie serves as a senior instructor for FHA Online University as well maintains a full-time job as Senior DE Underwriter for a major banking institution. If you would like to become a writer for NAMP, please email us at: blog@mortgageprocessor.org.