Posted by Phil on July 29, 2003 at 01:44:57:
From an 18 year old novice, could you briefly explain how the mortgage banking industry works. I know what a mortgage broker does, but not a mortgage banker. Just tryin to learn a little.
Soon to be investor,
Phil
mortgage brokering - Posted by thomas matteo
Posted by thomas matteo on July 27, 2003 at 21:11:21:
I have been working for a mortgage banker for approximately 6 month’s. I have originated 50 loans and closed 22 since. I have found an attorney who will allow me to work under his license. I want to start my own small company. I need to know where I can get questions answered as to insurance requirements, Fha loans, etc. The previous company that I worked for gave me very little procedural information.I am a NYC police lieutenant that is retiring soon.I have developed many contacts in my 20years.I have no problem originating loans.Many of the mortgage broker companies I interviewed for turned out to be “Chop Shops”. I am willing to pay an experienced broker a large commission for his experience. I am not looking for any partners.
Re: mortgage brokering - Posted by cman
Posted by cman on July 28, 2003 at 08:32:45:
Thomas, how did u get into mortgage brokering? I was thinking of getting into it at least on a part-time basis but do not know how to start. BTW I’m also in nyc.
thanks for any help.
Re: mortgage brokering - Posted by James Strange
Posted by James Strange on July 28, 2003 at 03:43:58:
Here is a link to the rules in NY.
http://www.banking.state.ny.us/iambb.htm
One problem that you will run into is that most lenders will require 2 years experince and a high net worth before they will allow you to broker loans.
The reason for the high net worh requirement is so that if you have to buy back a loan you have the cash to do so.
As for the loans that you were doing were they A paper refis? I am sure that you have noticed that rates have gone up.
Re: mortgage brokering - Posted by Justin
Posted by Justin on July 28, 2003 at 24:39:00:
I’ve worked with StartBank out of NYC on some consulting within the mortgage banking industry. They have extensive experience with start-up mortgage companies, both broker and banker operations. I am sure they would be happy to assist. Seems to me they had some sort of consulting package specifically designed to get you off the ground and profitable in a short period of time. They have valuable contacts throughout the industry and can help you develop relationships with secondary market investors, set up warehouse lines, work within regulations, etc. http://www.startbank.com/
Brokering is a good place to start, but once you’ve got the track record and required net worth, mortgage banking is where the most profit is…
Kind regards,
Justin
Re: mortgage brokering - Posted by joseph zimny
Posted by joseph zimny on July 27, 2003 at 21:54:47:
Thomas,
Your contacts are useful insofar as they help you originate loans. If you’re still asking rather elementary questions about things like insurance then my sense is that what you need is more formalized training that you can only get through working with a mentor-like individual.
A partner might not be a bad idea for short period of time. You mighe consider going in with an established broker and pick his / her brain for a year or two before trying to set up your own shop. Pick up a portion of the overhead, pay a per-deal split to the broker in return for institutional information. This might be the most hassle-free way of obtaining the knowledge you seek. good luck.