How to be a mortgage broker in Michigan.

With the recent shift in the mortgage industry, many loan originators are wondering how to become a mortgage broker. The rise of a major trade organization, the Association of Independent Mortgage Experts (AIME), has made huge advances in educating the public on the benefits of using a mortgage broker.


Rapid Growth for Mortgage Brokers

This public education has resulted in the rapid growth of the mortgage broker share of mortgage originations.  Large lenders and banks are investing large amounts of capital into their wholesale lending platforms to compete for a share of this growing market.

Many loan officers at retail lenders and banks are now competing with mortgage brokers and losing deals due to lower mortgage broker rates and costs presented by mortgage brokers. If you are finding yourself more and more in this situation, you may be wondering how to become a mortgage broker in Michigan.

What is a Mortgage Broker?

A mortgage broker is an independent mortgage advisor that represents the client in shopping for the best mortgage that fits their needs.  They will interview a client to find the specific mortgage goals, then compare several mortgage lenders and banks to present the best options to their client.

Mortgage Brokers partner with multiple lending partners that will offer their best rates and programs to the mortgage broker to present to their client. These lending partners compete for mortgage broker’s business by offering low rates, low costs, fast turn times or unique loan programs to set themselves apart.

In many cases, mortgage brokers have lower overhead than retail lenders and banks. Since their lending partners take care of many roles in the mortgage process, they can operate more efficiently with less costs. These savings can be passed on to the consumer in the form of lower rate and fees.

The Benefits of Being a Mortgage Broker

Just as the public is getting educated on the broker model, industry insiders are also learning about the new and improved broker model.

If you are a retail loan officer considering becoming a mortgage broker, you may be wondering about mortgage broker benefits.


Mortgage Broker Loan Support

You may have preconceived notions based on what mortgage brokers were 20 years ago however much has changed with compensation, the growth of lending partner support and trade organizations like AIME.

Lending partners provide endless support for loan originators. With guideline tools, scenario desks, account executives, direct underwriter access, To-Be-Determined underwrites and a thriving online broker community, you will not be left in the dark on how to best help your clients.

Tools and Technology

Lending partners provide a great deal of technology and tools for mortgage brokers to use.

Much like many retail lenders provide to their loan officers, wholesale lenders invest and develop in tools that they provide to mortgage brokers to compete, win deals, and ultimately send them more mortgage business.

Full Transparency on Rates and Fees

Being a mortgage broker puts you in control of the loan terms that you offer your clients.

At a retail lender, you may have one rate sheet. If corporate adds extra margin to the rates, you have little to no control of what rate you can offer your client.

A mortgage broker can compare rates and find the best option for different loan programs.

Typically, mortgage brokers will have the same compensation at all lenders. A mortgage broker would simply review lender rates and find the lowest rate offering for their clients.

Endless Loan Options

As a mortgage broker, you will have access to multiple lender programs. Each lender will have a different combination of pricing, guidelines and portfolio loan options.

Some lenders may focus on clean, conventional borrowers so they will be very competitive on rates and systems to close quickly while other lenders may focus on renovation loans or lower score borrowers.

Non-QM lending is the fastest growing loan type for mortgages. As a mortgage broker you will have access to multiple non-QM loans and portfolio loans in addition to the standard Conventional, FHA, VA, USDA loans.

Many lending partners focus on specialty niche programs such as renovation loans, down payment assistance loans, manufactured homes, or even lower score government loans.

Having the ability to choose the lender for your client makes for the best loan experience that fits the borrower’s goals.

How to Become a Mortgage Broker

If you are interested in becoming a mortgage broker, you have two options:

Go it alone and start your own company.

– or –

Join a mortgage brokerage that has licensing, established relationships, marketing, processing, compliance, systems, technology and support provided.

Going it Alone and Start your own Mortgage Brokerage

While there may benefits to each option, I can confidently advise you that starting your own business will be a rough road if your goal is to be better at originating mortgages.

If you choose to start your own company, you must instantly become a one-person legal expert, compliance attorney, web designer, marketing manager, human resources manager, systems engineer, payroll administer and accountant.  

All these roles are necessary to run a successful mortgage brokerage business all while still originating mortgages and not losing sight of a positive mortgage experience for your clients.

There is a Better Option! Be Independent Together!

A better way to get all the advantages of being an independent mortgage broker is to join a successful, experienced mortgage brokerage that can mentor and support you in your growth as a loan originator.

Riverbank Offers:

  • Health Insurance
  • Employer Matching Retirement Plan
  • Multiple Approved Lending Partners
  • Custom CRM to Stay in Front of Clients
  • Automated Marketing
  • Credit Pull Alerts
  • Post Close Follow Up
  • In House Processing Team
  • Leading Technology and Processing
  • Unbeatable Work Culture

If you are considering becoming a mortgage broker in Michigan, please reach out to me and have a conversation on how joining our team could help you compete, win more deals and grow your business.

    Request Information on Becoming a Mortgage Broker!