There are "nine ways" to determine if one is in this business for the right reasons or not. Image: Fotolia.
There are "nine ways" to determine if one is in this business for the right reasons or not. Image: Fotolia.

Nine Reasons That Argue Against Being In the Mortgage Business

JAN 10, 2014 11:21am ET
Comments (9)

With the mortgage rules, compliance issues and compensation limits, it’s difficult to change the way industry execs do business. While some loan officers are struggling or quitting the business because of it, there are also “other” reasons why some LOs just aren’t making it.

So, here are nine ways to determine if you are in this business for the right reasons or not.

1. You’re In It for the Money—LOs can make an obscene amount of money, but not without doing what it takes to be successful, including investing in education, classes, database software and marketing strategies.

2. You Are in Charge of Your Own Schedule—Of course you are, but the failure to “schedule” each day and each activity will hold you back.

3. They Told You It Would Be Easy—If that were true, everyone would be doing it.

4. People Like You, So They’ll Do Business With You—While being likeable and sociable will get clients in the door, it isn’t enough to keep them there unless you know how the entire loan origination process works.

5. No Sweat! You Are Supported by a Team—While that’s great, what would happen if one of the team members left? Do you have the skills to fill in? Continually improve your own skills, because you won’t always be on a team.

6. You Are Good at Marketing and Getting Leads—See No. 4.

7. You Work for a Top Company—Well, every company calls itself a “top” company. While the company is important, people only do business with people who can help them through the complicated mortgage process.

8. You Are a Hard Worker—Yes, this business is hard work. But if you spend every waking hour at the office or on the phone, you are working “hard” and not “smart”and will eventually burn out!

9. They Promised to Train You—You are not getting business because you are sitting around waiting for someone to train you? If the company promised to train you, constantly bug them to get the training you need. If they still aren’t training you, take on the responsibility of training yourself.

Comments (9)
10. Invest in yourself. If your a W2 employee paying for business development out of pocket, STOP it. Never invest in a company you don't own. If your employer isn't investing in you(business development), quit and find one who will. Or, start your own company if you can truly afford to invest in yourself.
Posted by Martin H | Friday, January 10 2014 at 4:37PM ET
It;s not what you know, but who you know.
There is still too much corruption in this business. By company/bankers/realtors/customers.
All are involved to meet their sales quotas, and if you are not greasing someones hands then sales quotas will not be met. Corruption/greed still in this industry. Change is needed!
Posted by JEFF O | Friday, January 10 2014 at 11:06PM ET
Jeff, blanket hating on residential real estate and finance industry doesn't elevate individual MLOs who are making an honest and ethical living representing best interest of their clients under fiduciary. Heather, do you want to break a story on how MLOs individually licensed under fiduciary are foundation of promoting CFPB's mission statement in mortgage protection for consumers?
Posted by | Saturday, January 11 2014 at 3:20AM ET
most LOs do not know to prospect. few truly make cold calls. even fewer know how to ask for business. one out 100 have ever charged a fee or points to be paid out of customers pocket--boy do you have rude
awakening come after today.

to be successful in this business you must be able to afford to make very little for perhaps a year spending every weekend calling on realtors-this aien't no 9 to 5 gig with dolly parton.

by year three you should be making six figures if rates stay down and your lender does FHA loans. all of the above does not matter if you are a broker or one with suck-city rates.

good luck!

Posted by allen h | Saturday, January 11 2014 at 8:51PM ET
The author is removed from the problem and has idealistic comments.Example in point "...If your employer isn't investing in your business, and start your own company..."
Posted by Vitaminds | Saturday, January 11 2014 at 10:25PM ET
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