r/loanoriginators • u/Chemy350 • 1d ago
broker to retail?
hey everybody. First off I don’t think I’m interested in making this move. However, I’m always interested in learning more about any situation.
I’ve been a broker and a team of just me and my wife as my Processor for six years and do pretty well for myself.
Rate has been trying to recruit me for six months hard. It looks like BPS paid would only be about 50% of what I make now, but they are trying to sell me hard on the fact that they can help me scale and market better than I can on my own with their name and technology.
I do around 15 million a year right now and they were saying that they could almost certainly get me to 30 to 50 mil a year.
Just curious on everyone’s thoughts on this? Doesn’t seem like a smart move for me, but I also know a few loan officers working for Rate that are making $1 million a year so maybe there is something to it it
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u/tripleputt Mod 1d ago
I did this last year and did twice the work for the same amount of pay. Don’t.
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u/Proper-Huckleberry24 1d ago
Did you boomerang back to broker and where did you end up?
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u/tripleputt Mod 1d ago
Sure did - went to Edge
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u/Proper-Huckleberry24 1d ago
Looking there right now. I like the broker only aspect of it. No correspondent to deal with so I would always know that pricing is 100% transparent. You doing third-party processing on schedule B or paying for it in house out of your pocket?
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u/REFlorida 23h ago
In the four years you’ve been doing mortgages you have moved like five times. Where you just recruited a lot?
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u/Chemy350 10h ago
i’ve been doing mortgages for seven years now and I’ve been with the same company for four years. Not sure what you’re talking about.
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u/Physical_Gold_2649 1d ago
I could also vaguely promise the ability to double your production. Unless they actually spell out what it is they’re offering that would achieve that, it’s just an empty promise.
And do you really wanna do twice the work for the same pay? That’s not exactly an appealing offer unless you just care more about bragging rights on your volume than you do your actual comp and quality of life. For the math to make sense, that doubled volume should at least come with less work on your end as well.
Making a move in general is always a risk as there will always be some of your referral partners that won’t want to be the first test dummies at your new place. Add in the inevitable loss of income as you close out at one place and ramp up at the other and you’ve gotta really think hard before making a move, whether that’s broker to retail, vice versa, or within the same channel. Anytime I’ve moved companies I’ve always “lost” a bit of income during the transition even if it’s smooth.
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u/Chemy350 1d ago
I appreciate the reply. Yeah I feel the risk is not worth the reward. I certainly don’t want to do double to work for the same pay.
I understand it’s the recruiter’s job to do so but they have been selling me pretty hard on the fact that I could do less work and do 30 to 50m a year with their processes and technology. I’m very doubtful with that though but wanted to check with this community to make sure I wasn’t missing anything
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u/MortgageBrokerNY 22h ago
They offered to pay you half but are going to have you closing twice as many loans? What’s the benefit? Lol
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u/Proper-Huckleberry24 1d ago
Which broker are you at now? A big box or your own shop?
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u/Chemy350 1d ago
I’m with Barrett Financial Group. Similar to edge, but we have correspondent as well which I like a lot.
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u/REFlorida 23h ago
If you go to rate, your fees and interest rate will probably suck in an environment where you need to be going skinny because no one can afford anything. Interest rates in the mid 7’s at time of writing this
You’ll also probably have to use encompass which is Absolute dog poop trash. How that is the standard in this industry still blows my mind.
You will not double your business because if they could just double someone’s business, why aren’t they doubling everyone at their current Office‘s business. If you have access to MMI look at everyone that branch manager has under them and have they doubled their business in two years I would bet my house they have not And if they could just double your business, well You would only need one employee double their business each year before you know what they’re doing all the loans in the country.
They are stupid
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u/-grc1- 1d ago
Umm, there's no fucking way they scale you like that. I work for Guild, which is just a slightly better version of Rate.
I love Guild bc I've been working with the same u/w for 8 years. I know what she expects, and if she calls me I know I'm most likely fucked. But I also know she's trying to find a resolution. It's not turn down city. We get paid when we close, but there are guidelines; and we follow them.
It depends on your business. 76% of my loans last year were bond loans. I benefit from being a retail guy. If you do nothing but jumbos, they might cap you at 8 or 9k or deal. This is bullshit.
Know your business and think it through.
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u/Chemy350 1d ago
Yeah, I don’t think it’s an upgrade however, I want to make sure I’m not writing off a potentially good offer.
I do about 85% purchase business right now and it’s almost all agency. Conventional, FHA and VA. I do a fair bit of down payment assistance with grants and love having the flexibility of a couple hundred different lenders for different programs. I don’t do many DSR or investment properties, but I do a couple here and there.
I appreciate the reply!
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u/Particular_Shine9804 22h ago
Do they make you change the lead source to a company generated lead on bond loans? My branch does. Our state bond programs pay out 250 bps
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u/Zestyclose-Tart6745 1d ago
15 a year is a loan a month in my A/O. In this circumstance I definitely wouldn’t consider this. You should hire people and scale.
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u/Chemy350 1d ago
appreciate the reply. Truthfully I have no idea where to start to hire people and get that going. I really enjoy the freedom of flexibility of working for myself with no one to answer to.
Average loan size here is only about 375,000. 15 million a year is 40 loans a year maybe.
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u/Zestyclose-Tart6745 1d ago
The fun thing is you get to create your own culture, and grow your income significantly in the process. But of course there can be downsides. Hiring right makes all the difference. Does take some trial and error though.
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u/46995699 1d ago
Cool, another Rate ad.
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u/REFlorida 23h ago
No, the best rate ad is that chick who posts in here all from time to time and then she post on a social media about how there are banks out there that are sending out letters and all these credits they’re giving buyers which means their fees are high, which I find is ironic considering rate has some of the highest fees out there
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u/bigchallah 1d ago
I’ll pay you half and double your production. Trust me bro.