Pros and cons of working as an MLO | Cullen Gandy 

Ya it’s a process definitely.

He’s born now. How are you doing now what did you end up doing?

I’m glad I could help and thank you so much for watching!

You’re very welcome!

You're very welcome!

Congrats and good luck!

Absolutely spot on.

and the comp for a lead is really low BUT depends on what the person is up for....an external LO works a lot harder for the lead and gets paid WELL for that effort but its hard.

@@brookebenatural worst time to start being in mortgage business due to inflation and higher rates. At this point only big companies (lenders and brokers) are going to survive and the new ones will go out of business. If I were you I would pick a company that has flexible products and been in business for at least couple years. Have no expectations for the first year and only focus on building your book of business and master your skills as a sales person

@@brookebenatural sure I think it’s a good idea but don’t stay too long. 6 to 12 months is all you need to learn the business from A to Z if you put the hours. Then if you are entrepreneurial type person you can go work commission only with any broker and scale up.

Hey Dominic! Thanks for the comment and for watching! Always happy to network with mortgage pros.

Ya you can have both licenses in most places I think. My old manager moonlit as a realtor when we wasn’t dealing with my chaos ;). Haha thank you and thanks for watching!

Thank you so much for watching and commenting!

Thanks. And thanks for being my PE!

I forgot to circle back to you on this. I hope you give it a try because so many great salespeople have social anxiety or are introverted.

This is my girlfriends account but im cullen. Lol.

@@cristalsanchez4792 thank you. I didn't know that. I actually finished my course at the end of August. I'm scheduling my test this month.

@@cristalsanchez4792 lol oh ok, I had to look at the video again. Thanks Cullen!

Watch wolf of wall street, I shit you not that movie is what motivated me to want to break out of my shell of comfort and become a salesperson, it was difficult at first but now I literally thrive off of cold calling, taking my mlo test next month and am so eager to start making bank!

Here's to many more!

Fance: How are you doing now? I coach LO's and can help if needed. If not me....find someone that can help guide you so you dont take 10 years to be elite learning lessons the hard way. There are much easier ways but if you dont know it will blow right by you.

@@fance9694 Good thinking.....if you look at the national numbers for last quarter EVERYONE was down so it wasn't just you. Purchase is king but never turn down a refi!

@@dominicfrank77 I would definitely be interested in your lo coaching. I'm a new loan officer

@@dominicfrank77 I'm interested I'm new and I really need a closing within a few months

Dude, I tell you what. There are a ton of folks like us stuck in nothing jobs that come in earning 5 figures a month as an MLO! No other normal job like it. #championstatus

Thank you!

You can talk to Shelly Hadley about my former company Interfirst if you like. I know amerisave and others are also hiring. Shelley should be on LinkedIn.

@@CullenGandy Tanks so much for the help! I will look her up, and again thank you for the videos they really help! :)

Good luck definitely. And thanks for watching. I will think on options and get to you. My email is in the profile page.

@@CullenGandy Thanks!

Absolutely yes!! I have a little bit of a backlog because I have been changing things up in my professional space but I will resume normal video schedule next week.

You’re very welcome.

I work at Interfirst Mortgage Company. How do you like it over there?

Hi Makenzie, If you work in a DEPOSITORY institution (like a bank) then there is no need to be licensed to originate loans, however some/many banks might want that. Or you can also have education requirements individual to those institutions that they may want you to get - as they can have more wiggle room on the types of loans they can offer and how to qualify them, depending if they "portfolio" their loans, or keep them on their books for profit. Thanks! C

So I had a bit of an odd journey. I applied everywhere I could after getting licensed approved inactive, a lot of companies often don’t even give you the time of day so you have to make sure you can interview well. After I got my first job, I tried to suck in as much info as I could. My job was at a major online lender though, so a lot of those leads are fed inbound leads so after a short training period I was into closing deal within a couple months. My advice would be to apply to as many lenders as you can and then see which one feels right for you of the ones that show interest. After you get a ton of licenses and experience, you will be able to go anywhere else you want. Especially if you can close.

@@CullenGandy Thanks for the quick reply brother! Would you recommend that I should work for a company with inbound leads, cause I'm sort of turned off against cold calling for my sales.

@@tvy9176 it’s a great way to get training on sales and start getting sales quickly definitely. The draw back is that down the road you won’t have experience with your own lead gen, building out your own book of contacts or realtor partners. I think to start out though, it’s a great way because I started making a lot of money in a fairly quick amount of time this way.

You’re welcome!! I have had my license for about three years on now.

I do have a bachelors degree also!

Hi Bailey! You should get in touch with Shelley Hasslett on LinkedIn. I know that Interfirst hires folks all across the country so it wouldn’t be a stretch. You could also consider a fairway affiliated company.

I will thank you! I was very interested by your explanation of MLO compensation, particularly about the companies that have a base structure and then bps added to that if you exceed your production! Is that what Interfirst does?

Call Keisha at AmCap Home Loans in Andrews.

@@baileyhickel4904 Interfirst has a tiered pay structure based on units and that is guaranteed for at least two quarters at a time.

Awesome, the good thing about this work is you will probably see whether or not you enjoy it earlier on. But you will really probably enjoy it more once you get your first big commish check going.

@@CullenGandy heck yes I’m a truck driver and I’m tired of companies that don’t value skilled drivers.

Hi! So yes, I had to craft my approach to this over most of my later adult life. The key is to compartmentalize your work directives and separate them from your personal preferences. I treat sales with the feeling that it is a performance or an performing art piece, one that you can rehearse until it becomes intuitive. Secondly, it is important to pace yourself. I was getting so many emails at the end of my last position that I felt like a lateral move might be best, so that is why I work as a sales analyst and consultant now.

@@CullenGandy Good for you! I sometimes need my quiet time (no phones; no people.). However, I’m in the legal management business and I’m sure anything is better than that!

Haha definitely. Yes you will do fine!!

I work for Interfirst but there are plenty like AmeriSave, Quicken, Fairway, Mutual of Omaha etc.

Get in touch with our recruiter Shelley Hasslett on LinkedIn from Interfirst. They may be able to accommodate an interview for you.

@@CullenGandy thank you!!

@@CullenGandy hey starting off what was the pay, I just recently received my license

You definitely could stay with a consumer direct, inbound lead lender for your career if that’s what you are comfortable with. You can make good money. It is a cyclical industry though, so it may be beneficial long run to build a book of referrals independently, and form community relationships with realtors and clients over time too.

You’re welcome!

Ya I mean it has definitely been a wild/hard year for mortgages, but the market can be cyclical this way. Getting the foot in the door and building your network in sales will eventually bring a payoff, but the timescales on that return won’t be as immediate as during the refi boom. The good news is, I think we are on a trajectory towards a better market atmosphere than we have been having fairly soon, and there will be some opportunities if you are primed for them.

@@CullenGandy thanks for your reply appreciate the information! Blessings

I actually was just at Interfirst as an LO and will prob be returning as a sales consultant there. Shoot me your number in an email and I can give you a detailed insight when I get off.

Hi there! So right now is a very tough time to sell money as you might know as a realtor or if you watch the fed. That being said I think now is always a good time to get licensed and start working on soft skills and making sales. You can throw down that ABA and cross sell your clients on both ends of the spectrum. When the markets cycle back to easing you be perfectly and easily situated to make great money.

Hi there. So right now the mortgage industry is experiencing a down cycle in applications so the best thing to do imo is to get in where they are hiring just to get your foot in the door and get your feet wet. Obviously you want to avoid scam companies like nexa and the like, so get them. If I had to choose I would either choose a community depository or an all in one shop like a fairway or independent outfit. That way you get yourself started doing EVERYTHING an LO needs to do and not just fielding inbounds when the iron is hot.

Just dive in! That's what I did, and that's the best thing you can do to get off on the right foot. I know that many companies such as the one I consult with, Interfirst, recruit straight out of college and, often, high school.

Ha yeah, that's the late night version.

So you have to move to New York and the job is all commission? Where do you currently live, can you not just do it remotely? Usually companies will just mail you infrastructure remotely. I would say if you are confident you can make a ton of money if you relocate then I would do it, otherwise I don’t know if I would. It’s all about cost benefit analysis, ya know?

Personally I would like some guarantees salary wise if I were to relocate.

@@CullenGandy I just graduated from college this month (OSU) and still live in Columbus, OH. Have been looking for opportunities to relocate to a city, normally I would avoid completely commission based jobs but this offering caught my attention because its office is literally 57th floor of One World Trade Center, you can't get more new york than that... and then it has paid trainings, promising potential incomes. I am doing researches on this career/industry as well as the company itself, I am not sure how realistic it is for an unexperienced person to become consistently in closing deals. But on the other hand if the chance of establishing high income is legitimate, I would love to try my best. So.... really uncertain about the situation.

@@CullenGandy And no they specifically mentioned no remote working, 10AM-7PM in office only everyday

@@riverxuanyu ya I mean to be honest. There are too many great companies that offer way more flexible terms and guaranteed income on a draw to seriously consider that IMO. Just my take.

Honestly none of that stuff matters (to an extent). What matters is how well you are able to sell whatever the unique selling point of your product is to whoever the client is. That’s the goal, and if you are able to do that effectively, you will write your own check.

@@CullenGandy Wow I really appreciate that quick reply for a 6 month old video :) Gotcha! I'm based from Fremont (Bay Area) and I applied as a MLO Assistant, I want to prepare and take that exam, but just wondered what the process was after obtaining that license. I feel like some RU-vidrs were a bit misleading with the career expectations. Also subbed, thank you for this info!

@@unitedpvp1372 working as an lo assistant honestly is a great place to start to give you a solid foundation in the origination side of this business. Def! Keep me in the loop on how things go with your test and everything.

@@CullenGandy Do you recommend just diving into the realm of mortgages? Like getting the training, getting the license and then applying to certain places to become one and start working?

@@CullenGandy In other words, what's the process like after getting that license? I appreciate you helping me out!

Hi Steve. So I don't know anyone who hasn't had to majorly shift their expectations and practices during this period in 2022. Home prices, while they appear to be in the beginning stages of going down, haven't gone down by too much writ large, and some places they haven't at all. Rates, because of QT, are continuing their upward trajectory, and this, as expected, has really hit the consumer refinance market. That being said, folks are still buying houses, and I am still consulting on a Loan Estimate for friends or by appointment every couple of days. The LOs who have set themselves up with networks are continuing their course, and the larger online outfits are going to struggle to keep up unless their LOs get solid referals, or already enjoy larger portions of the money market share. It is going to be very difficult for a new LO to make the kind of money they were making a year or two ago, and they will have to manage expectations and take the fastidious slow and steady approach. This is, in part, why I have held off on some of my LO content for the times being. I still believe that this is a great business to cut your teeth in, and the money market will always be relatively inelastic when compared with almost every other kind of industry.

I mean I have two degrees, but they're in music. I think if you get the licensure and you apply and articulate yourself well, you should have a fairly good chance of getting a job. Especially with your real estate experience.

MOST lenders wont sponsor you if you have an active RE license. There are actually rules around employing an MLO that has a RE license. You cant be on both sides of a transaction is the big one and that includes owning a RE firm that profits from a loan one of your agents did with your company you hang you MLO license with. It can be done but companies have to monitor and are responsible for missing those that try to get away with it.

Ya that’s not uncommon with self generated leads especially with brokers. I am at Interfirst Mortgage. Large online inbound lead fed lender. This is my last week there though, I will be transitioning into being a broker in the coming months.

@@CullenGandy nice broker is the way to go build your own business brand team ect

As an originator coming out of the box I would be hesitant to open any kind of brokerage or independent lending franchise at first. I would say if that is your aim, I would start off at a “boots on the ground” shop like fairway or a depository institution first and get the feel for things for a year or two. That helps you get acquainted with the industry and build up your book of business.

@@CullenGandy perfect! Yeah I would assume you would have to really get into the industry before doing such thing, but I’m glad it is possible. My true end goal is to have my own brokerage.

Hi there. So if the loans have been originated by someone other than you then no, however if you work for a depository institution and aren’t licensed then it’s a possibility. Licensed LOs are the only ones who can originate loans unless you work for a depository institution (a bank) in which case you can originate loans under them without a license.

Remember an LO is someone who: 1) quotes rates and 2)takes applications for compensation.

@@CullenGandy thanks for the response! I attempt to modify default loans ( I don’t originate them.) I always wondered the similarities (if any) because the owner of the company I work for always said that he holds us to the same standards as LOs.

@@CullenGandy I am wanting to attempt to become an LO! Love all of your info

@@CullenGandy I also collect comp for my modified loans.

Hey Nathan! So that is really up to whichever firm you end up employed with, and what state you are in. I am an MLO at Interfirst mortgage, and they structure pay as a salary that is tied to quarterly production in “units”. It took me three full months taking calls before I funded enough loans to get to the top bracket, BUT they are constantly bathing the sales team in warm leads, AND I’m licensed in 13 states. If you are just a normal licensed LO with a broker, that gets paid on commission but it responsible for your own lead generation, it’s going to be really important to create your own lead gen and referral infrastructure and network. That could take better part of a year or more of grinding, but then it will pay off for the rest of your career. I will do a video on that fairly soon as well.

@@CullenGandy thank you! Looking forward to your video.

How did your test go?

Keep your job and still become one

Hi there! So I worked ibtiaukly for a local brokerage, and then at a larger online lender called Interfirst. I am also familiar with companies and the mo’s like fairway, Wells Fargo, and amerisave

Hi there, so I used MEC (mortgage educators and compliance) with David Luna. I liked it pretty well. People also use things like affinity for supplemental stuff too.

Hi Nick!! So my first inclination is that the best shop to work for is the one that will hire you haha. Because it’s competitive I have found that it can be hard to get your foot in the door, rather than pivot to another firm once you are in (regardless of how much experience). I have heard okay things about amerisave, and fairway is independently owned and people have good things to say about that shop.

Its definitely a challenging field for sure!!

Where did you get your sales license and how much was it. Thanks!

@@CullenGandyIt will be better this year as it’s being reported interest rates may plummet twice at least Cross fingers

⁠@@marjn1030IEvery state has its own requirements but California is Mortgage Educators for MLO and for Sales the State of California has its own approved vendor list approved by them. Best wishes

@@marjn1030 i got my first license in illinois and while I dont remember what the license fee was off the bat I think it was in the 100 something dollar range. You should be able to see at nmls.org

So when you’re in a down market this is when you have to really lean on your purchase market (via tapping realtors, and targeting major areas of influx in the states in which you work, as well, you’re going to want to try to tap refis for people who need to pull equity out for whatever reason. So those are going to be your cash outs to pay down debts or any cash out where the net tangible benefit isn’t necessarily a rate reduction.

This is also why we do all of the realtor and community networking.

I’m not sure I understand the question but the company where I took PE was mortgage educators and compliance. The first company I worked for was Interfirst.

If you can find an employer that will hire you part time, then I say go for it. Whoever the lender or broker is, I imagine, is going to want you to produce as much as you can. If you show a propensity to be fairly productive, I imagine they will give you a very long leash (this was the case with me when I expressed going back to my opera job). If you have a lot of connections too, it might be viable. But in general I think a lot of lenders and companies won’t want to sponsor or pay for lo’s if they aren’t getting maximum production value.

@@CullenGandy thank you so much for your help. I love your content and how you present it! 💫

@@kaio-jem thanks for watching!

Congratulations Ana.

Hi Jim, that's an interesting question. If you work for a depository or are a representative mortgage banker somewhere, you will have the opportunity for that cross flow with respect to leads that the bank will have access to. The only thing is, you will be subject to the comp of whatever that institution is, and I have had a weirder time trying to negotiate advantageous comp at banks. Brokers are going to have access to an exceptionally wide array of products, and individual brokerages or one person shops can get you in the door with some nice comp. Lead-flow can be dependent on your/the broker/brokerage's book of business though. The comfy but less glamorous choice I would say for right now would be mortgage banker, but I myself like the idea of end-gaming with or becoming a broker.

@@CullenGandy either way I’m trying to get 500 a week + 40% or about 60 basis points and deals, pre-approvals, and on the weekends open houses. I’m going to have to learn calyx or encompass and possibly relearn eating out because I have social anxiety so eating out with a real estate agent will be an interesting experience. Funny story I can tell u privately some day. ❤️

@@jimrhee5229 haha I feel you. That comp should be totally doable most places I would think. I know that a lot of outfits do a tier bps commission structure on top, I haven’t worked for a depository so I don’t know what their comp structures might look like.

@@CullenGandy do you have to do compliance and ce?

@@jimrhee5229 just have to re-up on ce every subsequent year.

Always do

Haha yay!!

Hi there! No, I do not have a degree in mortgage finance, and I am not sure that a degree is even a thing that exists in a traditional 4-year college sense. Usually folks just get a degree in finance or business management if they want to study in a related field. But I have to say, it is very unusual that any LO study a concentrated field prior to entering the industry, since licensure requirements are so easy to attain.

@@CullenGandy great info. Thank you for the response. Very grateful ! Love the channel btw. Keep up the good work!

I currently work for Interfirst Mortgage Company as a retail sales analyst and consultant. I was a loan officer for them for most of last year as well.

@@CullenGandy gotcha so are you no longer a loan officer? Im in the Chicago nw suburbs and looking into MLO career

@@Pzurek18 I went back to singing opera but the schedule at the opera is lenient enough to do consulting but would be too much for doing loans full time.

@@CullenGandy oh that’s awesome you have time for that again! do you recommend the career path for MLO? How many hours did you work and income potential at a company Ike yours? Was your MLO position remote?

@@Pzurek18 I worked a toooooon the first quarter. Probably 10-13 hours a day for three months to build my pipeline. Once I got it up and running I pared it down and worked my normal hours while keeping my customer service capabilities up. I was remote because of the pandemic. But also I stayed remote when I demonstrated that I produce. There are a ton of remote lo’s at my company though.

That can be true especially if you are doing a lot of inbound stuff. That’s because with the rates being less attractive, you are only going to be getting clients who are more motivated but generally less qualified to close on purchases or pull cash out to settle debts. Because of this you kinda have to wade through everything.

@@CullenGandy I was always an outside loan officer. From 2001-2007. Just got my license when the rates went up. This big agent in the city Andrew klima is an opera singer. I’m trying to work for a team and get a small salary plus some deals for a reduced split. Like 50 basis points

@@jimrhee5229 oh I’ll have to look him up!

@@CullenGandy I think he’s a tenor too. He works for serhant. 👍