Want to become a top producing mortgage lender, industry leader, and stay on top? Here’s what it takes.
Like real estate agents and brokerages, there are many individuals, entrepreneurs and executives who aspire to become big earners, notable personalities and to operate leading businesses. So, what’s the difference between the few top performers and the rest of the wannabes? Where’s the bar at for being a top producer today? Where will it be over the next few years?
There is tremendous appeal to becoming a top performer in the mortgage business. If it’s not simply being able to help thousands of individuals and families into homes and to manage their finances better, there are great opportunities for philanthropy with great success. There is prestige, the ability to create jobs, and millions and millions of dollars to be made.
If you look right at the top of the food chain you have legends like Warren Buffett whose favorite investments still include real estate and lending, and who now perhaps has more influence than anyone else.
Even among the ranks of relatively new mortgage loan officers there are incredible incomes to be made that can change your life in a very short period of time.
Of course, most won’t rise above more than average. They may not have the hustle, be thinking big enough, or be adapting fast enough. For those that do want to excel, here are some good benchmarks and tools for doing more.
According to Housing Wire, these are the top mortgage lenders by annual origination volume according to the most recent data.
The only three on this list which were gaining market share were UWM, Caliber and Fairway. All whom are big on mortgage technology, digital loan applications and mobile mortgage apps.
You can also check out the Scotsman Guide rankings of Top Mortgage Lenders which differs from this list HERE.
According to National Mortgage News, these are the top producing loan officers in the US by total dollar volume of mortgages originated annually.
Location may be an influential factor in loan officer performance as well. It can put you on the doorstep of big loan sizes, high volumes of transactions, or not. Of course, you can do business from anywhere today. Yet, if you want to put yourself in the heart of some bigger numbers you might consider moving to Hawaii, DC, California, Florida, New York or Massachusetts.
Ask A Lender’s top mortgage rankings for 2018 by state included and number of loans originated by the top LO are as follows.
So, maybe just move state and you’ll already be the #1 local broker. Or use this as inspiration to go even larger. Think in billions and think over 1,000 closed loans per year.
The mortgage market is always influx. Not only does market size often shift depending on what’s happening on the real estate side, but interest rates also change how the market is balanced between purchase and refi business. Investment activity, second home purchases construction all shifts too. So, do loan programs. You’ve got to be highly agile and always be thinking forward and prepared to create loan volume when these changes come along.
Another sizable change that loan officers and executives have to deal with is where the capital is flowing from, and how consumers are connecting with loan providers. Before 2008 brokers had grown to being responsible for over 60% of new mortgages. Then they were sacrificed by the big banks and served up to their death to the regulators. Nonbank lending is back in a big way today. They are largely responsible for a lot of the growth of top mortgage lenders. It’s wise to watch out for the next cycle change.
A part of the next evolution is likely to include new social lending solutions like SoFi, and perhaps super-lenders like Zillow. Whether the new generation of ‘private lenders’ lasts the next correction, we’ll have to see.
Through the short, medium and long term, the future of mortgage lending seems to rely on two things:
You might pull off ten, maybe even 30 closings a month between you, an amazing loan processor, and couple of good assistants. That’s about the ceiling.
Fortunately, you won’t need as large a team as it used to take. New mortgage tech and digital loan applications and mortgage CRMs are making much of the process effortless.
Yet, you will need strong people, people you can train well, people to decipher and apply efforts to all the data you are collecting, and probably the help of some other sales people and loan officers. At least until AI and VR take over.
If you are reading this and you are still at the loan officer level or are still aspiring to become a mortgage entrepreneur of some type, then you may begin scaling up with these steps.