22Aug/10Off
Questions on opening a loan brokerage office
Hi there,
I just got my california broker license and plan to open my own loan office. I've done about 20 loans (purchase and re-fi). Due to my relative inexperience, I would like to ask the following:
1) what are the major potential pitfalls, common mistakes for people starting out with their own loan brokerage firm? How to minimize exposure to potential liabilities (besides buying insurance) in the loan business?
2) How long would it take to a newly started firm to establish relationships and get competitive pricing with major lenders? 3 months? 6 months? Or maybe a year?
September 1st, 2010 - 09:21
How does one get licensed in a state and not even have experience in the business, nor the business plan in place for a new office. This just blows my mind. Nothing against you personally, but this is what we’re talking about that is all wrong with our industry, not excessive fees. If, states would quit licensing every “Tom, Dick and Harry” that don’t even have a clue on the business, let alone the ethics and legalities involved, we wouldn’t be facing the issues we are today!
September 14th, 2010 - 10:51
Mike, I agree with you wholeheartedly. But there is a way to address this persons issues.
1. Join your local NAMB affiliate.
2. Get a mentor, preferably working under close scrutiny.
Regarding getting lender approval, if you can fog a mirror Countrywide will sign you.