Longtime lurker here and at FOH. Been following Lyrical and Corndog's threads for probably 2 years now. I am starting my own mortgage brokering company in the next few months. Wanted to know if anyone has any experience with this and if you all have some useful tips or wish I knew then what I know now kind of stuff. Business will be in Clarksville, TN and my niche is Veterans Administration Loans. I am a combat veteran myself (actually in Afghanistan right now!) and I think I can serve the military community pretty well. What do you guys think?
Starting a Mortgage Company
- Thread starter anthonyquail_sl
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Tmac
Adventurer
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You should check outHome | Automated Asset Verification. My company does a lot of their media.
They approve mortgages within 5 minutes by syncing to application accounts.
Durin the gov shutdown, it was one of the only ways to push loans through, due to its process.
They approve mortgages within 5 minutes by syncing to application accounts.
Durin the gov shutdown, it was one of the only ways to push loans through, due to its process.
PM me any specific questions. My mom is an SVP of the mortgage side of a large regional bank in the area. Brokerage and bank lending are quite different but she has been in the business for 40 years and is pretty salty. I'll pass on what I can.
Focus on building relationships with realtors. The refi business is drying up with rates ticking up. People will still buy homes even with higher rates, but they won't refi. Reliable realtors that will give you consistent business is the key.
Anyone have any suggestions on companies to use to pull borrowers credit, AUS services and LOS software? Still have not made up my mind on which to use for each of them.
Dyvim
Bronze Knight of the Realm
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Asshat Brando
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Pick a different business to get into if you have any brains. Loan origination is the most regulated business in this country and it's only getting worse with new rules in 2014 that affect compensation and credit quality that makes you criminally liable for violating. Launder money for drug cartels and terrorists, no problem! Have a loan default 5 years down the road and you had nothing to do with the credit decision, go to jail! This business is getting more difficult, the amount of business is shrinking and the big banks are just buying business by offering port products way below conventional terms. Unless you have a set network of referral sources I would expect you to lose money, possibly a lot, before you start seeing any traction. Do yourself a favor and find another business, if I could go back 13 years and make another choice even with all the money I've made I would not choose to do this with the way things are now.
Credit Services - There are a bunch and they all charge about the same, Informative Research, Credco, etc.
AUS - VA takes Fannie Mae's DU, this ties into your LOS as you run DU through that. You need Fannie Mae credentials
LOS - Most popular and easiest to use system for brokers is Encompass, would highly recommend it.
Credit Services - There are a bunch and they all charge about the same, Informative Research, Credco, etc.
AUS - VA takes Fannie Mae's DU, this ties into your LOS as you run DU through that. You need Fannie Mae credentials
LOS - Most popular and easiest to use system for brokers is Encompass, would highly recommend it.
Wow, pretty bleak assessment of the business. I am pretty committed at this point but I will be the first to admit you told me so if I don't do so well. Thanks for the advice on the services though, definately more informed now than I was.
Asshat Brando
Potato del Grande
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I'm not saying you're going to do well or not well, just that you're getting into a business that is getting excessively regulated for the worse. The government created this bubble to a large degree by telling Fannie and Freddie they need to make everybody home owners, yet now they are acting like the complete opposite even though the damage was done a long time ago.
Lots of truth here!
Also there are a lot of crooks in the brokerage world. My moms old boss from the 80's is still in Federal Pound Me In The Ass Prison for reselling loan packages to multiple sources. Good times!
Shonuff
Mr. Poopybutthole
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What research have you done on this industry? Because, from this post, it looks like you haven't. When I was a few months out, I'd already had 100's of hours of research in and no one could tell me it was a bad idea. I'd already made my decision.
I haven't counted the number of hours I have spent researchhing the new business but I am sure it is over 100. Question for you Lyrical: Who do you have your business checking with? Pro's & Con's?
Shonuff
Mr. Poopybutthole
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We do business with a small local bank, because we are in a small country town on the outskirts of the main cities. The seller lived there. I've started moving ops to those cities, and the only thing left to move is the Secretary.
I ended up opening my business checking with BB&T. Seems like a good no fee account for a business with a very low transaction log. Will let everyone know how it turns out a few months down the road.
Wanted to post an update since it has been a while. On Friday I officially applied for my license with the state of Tennessee. It should take about 3 weeks for them to review and then I will be in business. Thanks for the help in this thread and if you have any additional suggestions, I would love to hear them.