Comments on: Banker, Broker, Consumer Lender or Credit Union? Part 3

By: Banker, Broker, Consumer Lender or Credit Union? Part 2 | Rain City Guide | A Seattle Real Estate Blog...

Fri, 27 Jul 2007 06:05:53 +0000

[...] Banker, Broker, Consumer Lender or Credit Union? Part 2 July 5, 2007 This is part two in a four part series in which I outline advantages and disadvantages of different types of lending institutions. I will also offer suggestions to empower the reader on how to help yourself before and during your loan process. Part one covered banks, part three will cover consumer loan lenders, and in part four we delve into credit unions. [...]

By: Banker, Broker, Consumer Lender or Credit Union? Part 4 | Rain City Guide | A Seattle Real Estate Blog...

Fri, 27 Jul 2007 05:13:48 +0000

[...] If you enjoyed part four of this four part series on different types of mortgage lending institutions, here are links back to the other three: Part 1 Banks and Mortgage Banks Part 2 Mortgage Brokers and Correspondent Lenders Part 3 Consumer Loan Lenders [...]

By: Jillayne Schlicke

Jillayne Schlicke — Sat, 21 Jul 2007 06:21:42 +0000

Federal banks are exempt from state mortgage broker licensing laws including licensing and testing of individual loan originators.

Remember though, that all institutions follow federal laws governing the practices of mortgage lending such as RESPA and Truth in Lending.

By: Rhonda Porter

Rhonda Porter — Sat, 21 Jul 2007 06:02:45 +0000

Jillayne, if a LO is out of state and working for a big bank lender (like Wells Fargo, Countrywide, WaMu or Chase…etc…) do they need to be licensed?

BTW you correction just goes to show that licensing is very confusing. We ALMOST qualified to not have to be licensed…but I’m glad we are…I’m viewing it as a distinct advantage over “unlicensed Loan Originators”

By: Jillayne Schlicke

Jillayne Schlicke — Sat, 21 Jul 2007 05:32:10 +0000

I have added a correction to this blog article above, in the main body. For readers following the comments on this article, here is the correction:

“In Washington State, 1099 independent contractor loan originators who work at a consumer loan company must become licensed and pass the state competency test. W-2 employees of consumer loan companies are exempt. For our out of state readers, if you’re not sure about the licensing status of your loan originator, contact your state’s regulator.”

By: Rhonda Porter

Rhonda Porter — Thu, 19 Jul 2007 13:29:52 +0000

“It’s interesting that they’d have their consumer loan division telemarketing their own existing clients”

This is a common practice with banks, too. For example, when I send a loan to Chase or Countrywide, they actively pursue “my client” (the person I orignated the loan for). I’m not sure if Wells is still doing this, but at one point, if I was refinancing a mortgage that I had sent to Wells, the action of Escrow ordering a payoff would trigger Wells to FedEx an offer to refi to the borrower.

By: Jillayne Schlicke

Jillayne Schlicke — Thu, 19 Jul 2007 05:55:24 +0000

Hi David,

That WOULD be an interesting compare/contrast. It’s interesting that they’d have their consumer loan division telemarketing their own existing clients.

By: David Young, LO #510-LO-34429

David Young, LO #510-LO-34429 — Thu, 19 Jul 2007 01:01:26 +0000

Oooh. I got one. My 2nd mortgage lender HSBC had their consumer lending division: Household Finance/Beneficial Home Loans contact me today, asking me if I ‘wanted to save money and get a lower rate!!!’.

I told them I was a mortgage loan originator, and that pretty much ended the discussion.

However, when things slow down, I think I’d like to get a quote from them just for kicks and see what the current shadiness is up to…how much YSP they’ve got (I’d just compare it to an HSBC 2nd mortgage secondary marketing ratesheet) and what kind of fees they have.

Fun stuff eh!!

Kindly.

By: Jillayne Schlicke

Jillayne Schlicke — Wed, 18 Jul 2007 06:11:01 +0000

Hi Russ,

Thanks for stopping by raincityguide.com

How’s the market in Chicagoland? It looks like you have a good blog going on to help educate consumers. Part one of this series covered banks and the loan officers that work there, in great detail. Here’s the link:

http://www.raincityguide.com/2007/06/17/banker-broker-consumer-lender-or-credit-union/

If you believe it would help your readers, feel free to ping back to us.

By: Russ

Russ — Tue, 17 Jul 2007 13:43:06 +0000

This is an excellent series. Regarding training and non-training of LOs, there is definitely more training at large mortgage banks such as Countrywide et al. However, it is rare that the best LOs stay at those employers. At some point, top producing loan officers will almost always make the jump to a brokerage simply because the pay is better. Much better.

Once you develop your referral sources and are no longer in need of lead, there is absolutely no reason to be at bloated mortgage bank.
From my observation, it seems that the LOs at large banks are usually brand new to the business.

I always explain the difference in that mortgage brokerages tend to have the best and the worst loan officers, so it is very important you shop the LO and know exactly who you are dealing with. Mortgage banks on the other hand tend to just be mediocre all around.