Can someone explain the difference between the two?

I'm currently a Real Estate agent and I would like to take a small role in the mortgage side of the business. I would like to do loans for my buyers. My broker suggested I should also do loans since I understand how they work. More money for me, obviously. But I really don't know the difference between the two.

Any help?

First make sure that it is legal in your state to do loans for your real estate customers.

An Loan officer actually works on the sales side of securing loans, the processor does the back end stuff that knowbody ever really notices. The LO makes the majority of the money per deal and the processor makes a set amount per deal that is paid by the LO. Multiple loan officers normally share one processor as their able to deal with a lot of files at once.

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Officer is the originator and the processor does all the work.

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The loan processor is like a Transaction co-ordinator...

Usually either makes a few basis points per transaction or a set fee per transaction to Process all the paperwork.

FYI- if you do any kind of volume I would suggest you hire One Person to do both the Loan processing and transaction co-ordination for your deals. That way paperwork doesn't get lost.

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Well, processing is not fun and then you spend hours processing files and then they don't sign their loan docs. It can be frustrating. I should know, I've been doing this for the past 4 years. But if you're the realtor and feel good about your client, maybe doing their loan is ok. It's important to learn about doing 1003s (loan applications) and then crunching them into a good processing program like Calyx Point.

Alright, well i'm definetely staying away from the processing. Anyways, did any of you guys find the state exam difficult? I'm assuming it's something similar to a real estate license in terms of the work you have to put in it.

lol.

What are the legal ramifications of paying someone an under the table fee for referring me a deal?

Well it is kind of true... the processor makes all of my loans make sence for the specific underwriting guidelines.

Without a good processor, I wouldn't eat or sleep. I'm a LO, and the processors (a good one at least) are the real brains of the business.

Typically, though, they are not the most creative when it comes to putting together a transaction, thinking outside of the box, or selling... that's what I do well.

How do you get paid under the table for referrals? You don't.

If you really want, you can work something out on the side... illegal. Or, become an LO for a lender, most states this is easy. They hold your license, and they can actually pay you.

Very similar to "how you pay someone a referral fee in real estate" get them licensed if at all possible.

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With Regards to legal ramifications, plenty. It is a RESPA violation to do so, and both you and the broker who paid you under the table can be severly fined. I have a whole bunch of RESPA related stuff in my Loan Officer 101 training manual. There are some excellent links to related material that will keep you from losing your license.

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