Over the past five years the mortgage industry has seen an explosion in growth. With super-low rates and a vast array of programs available, new purchases and refinances surged. And along with that boom came an influx of young, uneducated workers joining the ranks of veteran mortgage men and women.
It seems like everywhere you turn these days, you hear people talking about mortgage. And if you ask around, you'll likely have at least one friend or family member actively working in the mortgage industry.
The potential to make a ton of money with little experience or education has brought in an entire new breed of workers to the mortgage industry. And brokers, banks, and lenders took on as many of these employees as possible.
One position in particular requires very little experience or training, if any at all. This position also doesn't require a college degree to gain employment in this scorching hot industry. The position? Loan officer.
Loan officer is a fancy way of saying salesman, or better yet, telemarketer. Loan officers rarely get paid a base salary, and the only compensation they receive comes from the commission on funded loans.
Sure, the motivation is there. They must fund loans to make money, and will surely work hard to make that happen. But would you trust someone who knows a fraction more than you do about lending to handle your mortgage?
When homeowners put their trust into a loan officer who simply called them out of the blue on a random lead, they are definitely taking a risk. Sure, everything may work out, but it can really be dumb luck. And that's not the way one should approach the largest financial decision of one's life.
Loan officers can present themselves in a well-spoken manner and may make all the promises in the world. But while they have the motivation and the charm, they may not have the expertise to get your mortgage closed efficiently and effectively, or even legally.
Potential homeowners often put their trust in these loan officers, thinking they must know what they’re talking about if they’re working at a reputable mortgage company. But the simplicity of acquiring one of these positions would surely make homeowners think twice.
Article comments
1 - Elvira Black
From what I've read, the same holds true for the real estate industry--lots of brokers got in it for the quick buck when the market was red hot, and now the inexperienced ones are dropping like flies. All in all, this is for the best since hopefully only the strong (and the competent) will survive.