One of the good things about the brokers that I work for is that I am given leads. As a result, I don’t need to “pound the pavement” or pay for my own marketing campaigns. The closing costs that are charged to borrowers, however, are not as competitve as they could be. Essentially, I make about 40% off of any amount over $3,200 that I gross in. So, somehow, some way, I need to cover that $3,200. Either the borrower pays for it, or I pay for it with the rebate that I get from the investor. Unfortunately, when I want to beat another company’s rate, I tradeoff with the rebate. So, I end up charging the borrower the full $3,200. That’s not good. Today, I lost a loan to WAMU because they were offering the same interest rate at half the cost. How can I beat that? I can’t.
To make matters worse, I will only get 30% from B-paper loans unless I net the company more than $20,000 per month. That means I have to fund around five to eight loans a month! I could barely fund two this time around. What will this new policy do to me? I am not yet sure. The only comfort that I have is that other B-paper loan officers have been paid in this manner all along. Since I’m going to be a B-paper rep myself, now, then I ought to work under the same conditions.
C’est la vie. This new policy wasn’t meant to be pleasant. If I feel like I’m getting a stick in my ass, then I just will have to think happy thoughts. The goal is to produce more. If I net more than $20k for the company, then I wouldn’t have a problem. So, I’ll just have to net more than $20k per month for the company.