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With more and more emphasis being put on lenders for quality and compliance, more and more responsibility falls to the loan originator to meet these demands.
Larger lenders can provide more support and technology to assist their LOs, but smaller lenders struggle with the increased costs of compliance. As a result, will the small independent mortgage broker become a thing of the past?
Some LOs are seriously considering abandoning their long relationships with smaller independent brokers, seeking greener pastures in the safety and support of large lenders and banks. Entities which they believe can provide them the technology to support quicker loan originations, approvals and closings, while ensuring the quality and compliance of their loans. Does size alone guarantee success?
These opportunities are limited. The most productive experienced and successful originators may garner the top spots. Everyone would like to believe they will get one but how many opportunities exist, especially with the increased use of on line application services? Just because a lender is bigger, does it make it any better?
The mortgage loan originator of today must once again reinvent itself. For now, the refinance market is all but gone. Leads will not be provided.
An originator must go out and generate their business through a referral network. To do this they need to become a trusted advisor; one who can get the consumer (and Realtor) what they want, when they want it.
This can still be done working as, or for, an independent broker. Working as a team, an experienced, knowledgeable originator, supported by an equally knowledgeable assistant/processor, can service and educate their clients, originating quality compliant loans for supportive correspondent lenders. It’s not all about price (maybe, a big part of it, but not all).
All the technology, training and sophisticated systems mean nothing to a lender without qualified loan applications. These areas all represent expense. Applications represent income.
Some applications can be obtained by advertising and online services, but these also cost money, and someone still needs to service these applicants.
Income is derived from the closing and sale of loans. The better the loans and service…the better the income. Better loans come from better loan originators, regardless of where they work. Quality is king.
So, LOs who like the freedom and advantages of working for a smaller, more flexible, diverse, independent lender may find that opportunities still exist for their survival and success.
To achieve each, the LO of today must take the time to become educated on the new TRID rules and related process and fully understand, and accept, their role in the overall process as a trusted advisor and loan facilitator. They must take an active full time role in their originations. No more taking the app and dropping it off half complete, to a processor who needs to fill the gaps.
Working with the right business partner, these LOs can continue to originate quality business for small or large lenders alike. Just pick the right partner who understands the value of a qualified LO and deliver what is expected.
