Loan Officer Compensation

Some wholesale lenders have formulated plans for the change which is part of the Loan Officer Compensation Rule which becomes effective April 1, 2011. Others have taken a wait and see approach, waiting for the largest wholesale lenders to act first. The National Association of Mortgage Brokers is distributing a petition to fight the ruling from the Federal Reserve, while the Mortgage Bankers Association is asking the Fed for written guidance to clear up ambiguities.

All this is certainly leaving mortgage professionals considering a future in the industry asking questions. Some are considering all their options for 2011. Here are a list of questions you might want to ask if you're thinking about changing mortgage companies as a loan originator or manager.

How long have you been in business?
How many states are you licensed in?
Which states are you not licensed in?
Is there a minimum volume requirement to become a branch?
Do you have warehouse lines and how much is your warehouse capacity?
What are the compensation splits and will loan originator compensation changes affect them?
Do you pay originators by 1099 or W2?
Do you require a minimum wage for loan officers?
Do you use a pricing engine? What engine do you use?
Do you offer any FHA loan programs below a 640 FICO score?
What loan origination software system do you use?
How long do files take to get through underwriting?
What separates your mortgage company from other national mortgage companies with branch opportunities?

If the challenges of the mortgage industry are making you consider a change, asking the right questions and evaluating the answers can make your transition much smoother.