C G Barbeau the Loan Lady Mustard Field

You Want to Become a Loan Officer?

Getting licensed as Loan Officer. Mortgage Banker, 

Loan Originator does not prepare you to operate the business and earn income. 

Getting licensed is about knowing all the laws and regulations. 

Working a desk also requires: marketing, sales, organization, ethics, intuition, and grit.

There are almost Fifty licensed schools who provide the NMLS 20 hour course.

Average price for the course is $239.00 None of these are in a university setting.

https://mortgage.nationwidelicensingsystem.org/courseprovider/Course%20Provider%20Resources/Updated%20AP%20List.pdf

In addition licensees must complete eight hours a year of classes. Study includes the following topics:

Three hours of Federal law and regulations;

Two hours of ethics that shall include instruction on fraud, consumer protection, and fair lending issues;

Two hours of training related to lending standards for the nontraditional mortgage product market; and

 One hour of undefined instruction on mortgage origination which can be programs, products, and marketing

States also layer additional education requirements,

There are more than five hundred thousand licensees in the United States with the largest percentage in California as Southern California has been the home to the majority of Mortgage Companies. 

In the last quarter of 2018 the Mortgage market has seen numerous companies merge and tighten belts as interest rates rose. This is expected to be a short term correction and in the past thirty years every year there was consideration, the banks and mortgage companies found themselves understaffed and unprepared when the Ten Year Bond corrects and pulls interest rates down. Many companies are still expanding in operations jobs, computer applications and sales positions. 

Companies that offer NMLS classes offer online study which carefully measures the student’s time. An eight hour class typically takes eleven hours to fulfill with time outs, breaks and retesting. There are few live classes offered perhaps because the cost would be higher. Saddleback could offer a combination or choice of live class time, live study by Skye or Youtube, and traditional home book study with testing completed after the reading. NMLS is particular about having sources which verify student identity. 

Bank employees who are mortgage originators don’t have as rigorous requirements and the institution usually provides the classes for free online. Mortgage bankers and originators who work for mortgage companies would be interested in taking classes that are less expensive but more importantly less time consuming. 

Mortgage loan originators work on commission. The average income is $100,000 but some earn $600000 at the higher end. Entry level jobs are typically found from insiders and like a trade. The license testing is specific to a certain set of skills that demonstrates ability.  Having a license before hiring is a foot in the door. Assistant positions in Orange, Los Angeles and San Diego Counties earn forty thousand dollars as starting base pay. It is not required to hold a four year college degree in this business. The community college system could provide the class training but also the much needed guidance for job hiring and ongoing help with marketing. 

I see the following courses as highly desirable:

Law and Legal Aspects of Mortgage Origination

Ethics and kindness  Guiding Towards Homeownership

Marketing, Sales and Building A Book of Business

Niche Products, Hard Money, Closing the Difficult Client

Teaching the business is mentorship and as I like to refer to it get

ready for every type of beating.

I hope this answers your questions and gives you a place to start.

Please feel free to call me with questions.

Sincerely,

C G 

Caroline Gerardo Barbeau

NMLS # 324982

Cell (949) 784-9699

List of Lenders Wholesale HELOC First

Bridge Lending All in One, first position HELOC

AFCU does 80% LTV on NOO. Utah

America first 80% LTV on noo 65% LTV Utah

Arvest Bank AR, OK, AL, MO

Bancorp South, TX Lines of Credit on free and clear houses

Bank of Southern California, CA

Bank of West (BNP Paribas) 60% LTV CA, AZ, OR

BB&T will loan on a rental portfolio not individual only commercial

BBVA, now PNC

BECU for OR

Bellwether Community Credit Union, NH and MA 85% to 100%, draw 10 yrs

BMO Harris, 3 HELOCs to 70% LTV

Boeing Employee Credit Union

Cal Coast Credit Union, CA

Change Wholesale

Chelsea Groton Bank, CT

Citizens Bank -MiN, only in-state. Kyle Potswald

Citizens, first position HELOC

CMG Financial 70% LTV CMG Financial in Idaho will do 100% on owner occupied.

Coastal Federal Bank of NC

Consolidated CCU, high LTV NOO LOC, OR, WA

East West Bank, up to 60% LTV with "no docs" San Fran CA area

Eastern CT Savings Bank, CT

Figure 80% on a rental, not in LLC

Finance of America, 95% CLTV, second home only, 680 FICO, not TX

First Bank CO and AZ 75% LTV

First Florida Credit Union FL

First Commonwealth

First Midwest, IL up to 90% Chicago area

First Tech Federal. OR and other Western states. Up to 80% if FICO is over 780, no appraisal under $250k value.

First Republic - CA

Fremont Bank- CA

Frost Bank - TX

Fulton Bank, PA, NJ

GFA Federal Credit Union 10 yr draw, 10 yr repay, MA, NH

Granite State CU, NH 90-100%

Great Lakes Credit Union, Chicago area IL

GTE Financial, Tampa, Sarasota area FL w 2 yrs tax history on property

Hanscom FCU, TX

HSBC 70%, for premier clients only. FL, NY, MD, CA, VA, NJ,

Horizon Bank, Kalamazoo MI

Huntington MI 75% LTV 5 yr IO product available. Someone reported 80%…need confirmation

Hurst Lending and Insurance Investment property HELOC in Texas. No seasoning. Bridge, portfolio, foreign national and other specialty loan products.

KeyBank, flexible lender, HELOCs on second homes and rental properties. 90% LTV on primary. BLOC FL, CO, OH, UT, ID

Lafayette Ambassador Bank

Merchants Bank MN See: Pavel Ushakov

Mid-Hudson Valley FCU

Mountain America CU Utah, ID, MT, NV, AZ, NM. 85% LTV, promo rate of 1.99%. Can refi an existing mortgage to a shorter term "Mini Mortgage."

Navy Federal 80% LTV

Norway Savings Bank, Maine

Omaha Mortgage

Oregonians CU - OR

Pen Fed - max 3 other properties, including primary. 80% LTV, prime + 1%, <4 properties. Pulls Equifax.

Peoples Bank of NC

PSECU up to 80%

Quorum Federal Credit Union 80% LTV, owned by LLC is OK. Very flexible lender. NY. 5 year draw, IO for 5 yrs and PI for 10 year repayment period. FICO at least 680. Not in Texas.

Quontic

Red Canoe Credit Union, WA OR

Regions

River Bank & Trust, AL

Rivermark Credit Union, OR 90% LTV

SCCU Florida 80% LTV, 2.75% first year promo, not LLC

SECU NC 65% LTV rate 2.75% Oct 2021

Signature Federal Credit Union 75% LTV (100% on primary residence), VA

Silvergate Bank, CA

Sound CU "non-owner occupied HELOC, capped at $150K and interest rates are prime + 2%, 3% or 4%, based on credit, not to exceed 70% ltv." CT

SouthEast Bank TN

Symmetry

S&T Bank, PA

TCF Bank, FL, GA Now Huntington Does not accept wholesale

TD Bank 75% line with FICO about 740. Up to 4 properties.

Torrey Pines Bank, see also Western Alliance Bank Corp. Commercial real estate solutions for developers, home builders.

Troy Bank & Trust, AL

Trustco Bank, FL, NY, NJ, MA, VT

Trustmark Bank, Texas. Call it a LOC rather than a HELOC

Union Bank, specializes in noo HELOC. KCMO, NE., MUFG.

Upstate Bank in Rochester NY, LOC up to 80%

US Bank 80%. “Business equity line of credit: Use Real Estate as Equity” up to $500k, interest only. gather your business and personal tax returns, financial statements, articles of incorporation and other legal documents.”

Vectra Bank - Colo

Veritex, Texas HELOC

Webster Bank, CT

WAFD Bank. Origination fee 1% or $700. Can be in an LLC, max 75% LTV. WA, OR, UT, NV, ID, NM, AZ, TX. All-in-One construction loan, too.

Wells Fargo 60% LTV Up to 5 properties.

Workers Credit Union, MA 80-100%

WSFS...up to 70% on rental

Zions Bank, Utah

NO: Truist

TEXAS https://www.cutx.org/home-equity-loans/helocs WAFD, Frost, Trustmark

High primary, not investment, HELOC:

Mortgage Rates Verses Historic Recessions and Economic Inflation

30-year Conventional Conforming Mortgage Rates

Verses Economic Crisis, Inflation, then Recession

1973 Oil crisis and 1974 Stock market crash

1/1973     8.54  1 point

11/1973   8.58  1 point

3/1975     8.89  1.1 point

12/1975   9.1    1 point

 

 

January -July 1980 Volker tries to curb inflation/ W shaped

 

12/1978   10.3  1.4 points

 

July 1981 -11/1982 Iran Revolution oil prices

 

9/1981     13.9  1.7 points

10/1981  18.16  2.1 points

 

 

July 1990 -March 1991 Oil prices skyrocket

 

7/1990  12.03  2.5 points

3/1991  9.52    2  points

 

3/2001- 11/2001 dot com bubble

 

3/2001  6.05  2 points

 

11/2007- June 2009 Housing Crash

 

11/2007 6.01 .5 point

12/2009 4.98 .5 point

 

1/2020- 4/2020 Covid

11/2020 2.77 .7 point (lowest point)

 

 

5/2022 -  future post covid/ oil/ Russia/supply chain

January – current rate

3.45 0.7 3.76 0.8 4.17 0.8 4.98 0.8 5.23 0.9 6.25

I am not an Economist but as you see in the past most recessions were triggered by oil related financial crisis. I'm saying we are in recession now today 6/23/2022. Our current Administration had a goal to get US off oil dependency but we are no where near that reality today. Gas at my local pump is $6.50

Mortgage rates are determined by market forces. Some of the market is data but most is emotion in my opinion. Today American news media is governed by fear, that is what sells. My prediction is rates will rise to 7.75 during the summer and fall back in around Halloween to 5 percent. Rates are for conforming conventional loans which is governed by the GSE's.

Overall historic chart here from Freddie Mac

https://www.freddiemac.com/pmms/pmms30