Thread: Loan Officer how to?

I have to ask, it's killing me!
I read some folks on here also do loans. RE and mortgage are parallel biz so I guess it makes sense.
Question: how does one become a loan officer?
Not thinking about it, the math I have to do as RE agent is about all I want to handle, I'm just being nosy.

Originally Posted by FlaGal

Question: how does one become a loan officer?
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Assuming you are a RE agent and sell houses, the answer is simple: next time you have executed contract and a buyer in need of mortgage that is willing to use you not only as a RE agent but as a loan officer as well - you go to any mortgage broker you like, bring your executed contract along and tell them that you want to be a loan officer.

They would want that contract and they will train you for free.

Make sure you get legal check from mortgage broker (kickbacks are illegal!)and that you are listed as loan officer on the case in 1003 form. Make sure you signed employment contract with mortage broker.

In order for everything to be legal you should get a set of disclosures and have your buyer sign it (he will sign that he is aware that you are getting money as RE agent and loan officer). If necessary, pay a hundred bucks to RE attorney for consultation on how to get paid on both ends legally in your state.

Negotiate your commission split up with mortgage broker as you bring more deals.

I'm a bit horrified; no license requirement? No schooling requirement? No exam?

Originally Posted by FlaGal

I'm a bit horrified; no license requirement? No schooling requirement? No exam?

I speak only for the state of NY: loan officer needs no license, no schooling and no exam. Check with your state rules.

However, in order to become a loan officer, you need to undergo background check with NY Department of Banking. I don't know their exact requirements. I did pass. I assume same as RE agents, loan officers may not be convicted of felony, etc. Also one can work for only one mortgage broker so pick your employer just as careful as you did in case of RE broker.

Naturally, you should interview mortgage brokers long before you actually get a case for them. Put your commission split in written.

In Florida you need a mortgage broker license to work for a mortgage broker business. You can however work as an unlicensed loan officer for a bank or a correspondent lender.

RESPA has issues with "fake" employment agreements and requires the person that is getting a commission to do enough work on the loan. The standard is 7 items.

I aslo think there are also rules that you cannot work for a company that does FHA loans while you are a real estate agent.

Hope this helps
Danny