In this guide, we will cover careers in the mortgage industry. As a loan originator, I have spent the last three years of my professional life helping people improve their financial situation to achieve their goals with their most important asset, their home. Dustin Dumestre, a top-producing loan officer and regional sales manager at Gustan Cho Associates says the following about changing careers and becoming a loan officer:
It has been a challenging experience that has given me great accomplishment. This post will include my insights and experiences on the characteristics of a top-notch loan originator. There was a sharp learning curve during the first year of my career.
I had just left the corporate world of wireless communications as an Area Director with one of the top three wireless carriers in the United States. I was excited to put my significant sales experience and management knowledge to the test in a new industry. After completing all required mortgage education and passing the national licensing exam on the first attempt, I began finding the right brokerage for my existing skill set, along with the staff meant to help me progress quickly in this challenging industry.
How I Changed Careers To Become a Loan Officer
I was hired by a local boutique brokerage focusing on seven states to originate within. I was initially hired as a transaction coordinator tasked with helping four experienced LOs with the minutia of the day-to-day follow-up. My role was to have communication with their current clients in the process of a loan scenario. It was a daunting task. But I took to it immediately and learned how a loan moves through the loan process from the borrower to LO, to the lender, and so on quickly.
How I Started As a New Loan Officer
I am grateful to have had the chance to start my career as a transaction coordinator. It truly helped me expedite my mortgage knowledge.
I handled transaction coordination for around three months when the Principal Lending Manager approached me at my cubicle on a Monday morning. He stated he had let the lowest performing LO go on the Friday before, and I was ready to become an active LO in the office. He escorted me to the former LO’s office and said, “Here is your new office. Get ready.
The phone is about to start ringing. That day I took twenty-plus calls, leaned on my sales, management, and transaction coordination knowledge, and hit the ground running! I started by listening to my prospects’ needs and expectations and then telling them what I could do for them today and in the future. I do not believe in a “one & done” client.
How To Develop a Book of Clients as a New Loan Officer
I firmly believe in converting a prospect into a lifelong client for all their mortgage needs. This has been crucial to my success over the past three years. I began to build a large client base quickly due to being able to talk to so many prospects weekly. On average, I talked to over 60+ prospects every week and converted about 40% of those prospects into borrowers.
Not all borrowers will make it to the finish line. But it is the job of a quality LO to do everything you can within federal regulation and ethically to get your borrower to the finish line. The remaining 60% of prospects would get added to my prospect list. That became my prospect drip campaign list. This piece is another key to my success over the past three years.
I still reach out to all prospects through drip campaigns to this day. This is where a quality LO will ask for referrals (at least three) from closed borrowers and build a referral list that must be dripped on regularly. Once I had a firm grasp of my day-to-day operations, I began to schedule Zoom meetings with the AE’s (Account Executives) and the lenders I worked with. This was another crucial piece in my success over the past three years. Build a quality relationship with your AE’s. They have a fountain of knowledge; usually, you only need to ask questions. Most Lenders have networking events and online classes to familiarize LOs with their loan products.
Take advantage of these opportunities! I quickly learned that building relationships with AEs, real estate agents, and title professionals was key to my success in this industry. People want to do business with someone they trust and feel comfortable with. I rarely meet clients in person, so I have always made sure to make my clients and other professionals in this industry feel as if they are my only client or partner on the mortgage side. Be knowledgeable, professional, and courteous to everyone you encounter! By the end of year one, I became proficient in finding the best loan options for each client by researching loan programs, guidelines, and lenders so I could provide accurate information during the first interaction with a prospect. I learned that every client has unique financial goals and circumstances that create unique scenarios every day. Quality LOs are responsible for finding the best loan for their client’s needs. In my second year, I focused on the process from start to finish. This included mastering my LOS (Loan Origination System). This is important to any LO, whether new to the industry or an experienced originator. This is what separates a quality LO from all the others. If an LO uses an LOA (Loan Officer Assistant) and delegates this key skill and responsibility to anyone else, this is a recipe for failure. I use Lendingpad; I have learned more through mastering this LOS than perhaps any other tool in the industry. Credit issues are one of the most challenging aspects of an LO’s responsibility to their clients. Dealing with a client’s credit history or financial aspects can be challenging. This is where clear and simple communication is an asset. It is for me daily. It is my responsibility to help them understand their options and find a solution. It is challenging to answer a borrower’s questions and guide them without steering them in a particular direction, letting them decide on their own as a family or team. It can be incredibly rewarding to help someone achieve their dream of homeownership, a refinance for a lower interest rate, or getting cash out from built-up equity in their most valuable asset, their home. I began to attend industry conferences and seminars online and follow experienced mortgage and finance professionals on social media who have been in the industry for over a decade to gain insight into what the future could look like in the mortgage industry. I kept adding states to my licensing portfolio. I began with one license, Utah. In my second year, I had completed enough continuing education classes to be actively licensed in seven states. UT, CO, ID, TN, MI, MS & FL.
In this 21st-century mortgage market, I needed to watch which states had opportunities for specific loan programs I was competent with and maximize my opportunity in those states. This was all achieved through continuing education, social media, and understanding which communities were underserved, what loan products they could use, and helping these prospects access these loan products to become borrowers. I wanted to stay current on industry trends, regulations, and how interest rates and the FED (The Federal Reserve) operate. This helped me and the intern help my prospects and borrowers navigate the mortgage game. I am glad I did. This was when the effects of the COVID pandemic reared its ugly head, and rates began to climb rapidly. This sent shockwaves through the entire U.S. economy, especially the mortgage industry. I could lean on the prospects I had created drip campaigns for and the referrals I have received from satisfied borrowers whom I helped achieve their mortgage goals. I also started to improve and manage my workflow. I found free applications (Trello & others) to streamline the loan application process, which helped me stay organized and efficient. I also started to use technology more, such as online application portals and digital document management systems. This helped me provide faster and more convenient service for my clients. In my third year, I began to focus on expansion. I started to explore new ways to grow my business by investing a percentage of my earnings back into my business with proven lead generation systems, a focused social media presence, and my content via YouTube. I created my Friday’s Mortgage Minutes, a weekly video post explaining current mortgage events and what may be right around the corner.
Then, I made the decision that changed everything. I decided to leave the boutique brokerage I began this mortgage journey with and look for a brokerage that could provide a far greater reach as far as lender availability, LO support in all aspects of my LO business, and, of course, the opportunity to make more money and help a larger borrower pool nationally. This decision allowed me to add a tool to my mortgage tool belt. They built relationships in my home state, Utah, with more quality real estate agents.
This was very scary as I made the transition. Although I was starting from scratch, it was just another phase in my journey in the mortgage industry, which I have been progressing in for the last three years. Reflecting on the last three years, I feel thankful for the knowledge and lessons gained from my experiences. Being a loan originator is a challenging job, but it is a rewarding one. Being a successful loan originator demands a distinctive set of skills, such as being well-versed in finance, having excellent communication skills, and the capacity to establish trust.
Moreover, it takes a significant amount of hard work and total commitment. Learning the significance of being honest and transparent with clients has been a valuable experience for me. Trust is paramount because people rely on us to guide them in making one of the most crucial decisions.
Let’s Make Your Mortgage Work For You!