Expert: Jessica Bryan - 2/6/2005

Question
I hate to keep asking questions, but what is a mortgage loan officer? Is that the same as a mortgage banker or mortgage broker?



-------------------------
Followup To
Question -
So, if someone works for a mortgage company would they be a banker or a broker?



-------------------------
Followup To
Question -
Also, what is the difference between mortgage bankers and mortgage brokers? I've heard individuals referred to as mortgage brokers and mortgage bankers before. Can they be the same?




-------------------------
Followup To
Question -
Just to make sure I understand the commission correctly. If I sell someone a home for, let's say $1,000,000. The standard commission I'm told is 6%. So, that's 60K, and then is that divided between the two offices, and then again for me to get my commission?




-------------------------
Followup To
Question -
Hi. I'm new to the real estate business and I have a couple of questions. When you have clients that are looking for something very specific, and there is absolutely nothing on the market that matches what they want, what do you do? Also, is it true that some real estate agents don't work in the winter months because the market is slow? Thanks in advance!
Answer -
Hello Danielle:
Let me answer your second question first:
I have no idea what market you are in, but if your area experiences heavy winters it is possible that some agents take that time off since it is difficult and even hazardous to get around and drive from house to house.  In most areas that experience mild winters this is not true.  In my area, for example (Chapel Hill, North Carolina) winter is a lovely time to show homes and I wouldn't think of taking off at this time.  My advice is to use good judgement when showing homes and make sure conditions are favorable for driving, walking up steps and getting in and out of cars without slipping and sliding.

Your first question is the age-old problem for real estate agents.  I would first ask the clients if they are willing to wait for the right property to come along and what their timing is.  Some people are willing to wait years, while others realize that they need something sooner and while they have very specific needs they sometimes have to compromise.  After a short interview with people I quickly assess what their needs are, and what is available.  I tell them honestly what their options are and let them tell me what they want to do.  I explain that they are the ones that call the shots and I will do my best to accommodate their needs.  If I find that they have something in mind that they simply can't live without and are unwilling to wait, the first thing I try to do is look for the listed property.  If there is nothing out there, I then check for the FSBO's.  If I still can't find anything I look for properties matching the client's description that is not for sale and send a note to the owners asking if they would be willing to sell for the right price.  Sometimes you can get lucky with this approach.  Other ideas: email agents in the area asking if they know of a property that is not yet listed that they have coming up and to let you know about this property because you have buyers NOW.  This is often a great approach since agents sometimes talk to clients who are dragging their feet getting their property listed.  If they are told that there are buyers ready to buy right now, they are often moved to action.  

I hope that this helps you.  Best wishes in your new profession.

Sincerely,
Jessica Bryan
Managing Broker
House to Home Realty Services

Answer -
That is correct.  So, if you sell someone else's listing and the listing is a 6% listing, your brokerage would get whatever fee (probably 35) that is normally offered for a coop broker sale.  Then, whatever you have worked out with your broker (say 50%) means you would end up with 1 1/2% of the total sale commission or $15,000.

Jessica Bryan
Answer -
A mortgage Banker works for a specific lending institution while a broker represents many different banks--just like a travel agent--they select the program right for the client by accessing thousands of programs.  They get paid a commission from the bank they broker the loan through.

Jessica Bryan
Answer -
They would be a broker

Answer
A mortgage loan officer is simplay the person who "sells" the program. It is a generic term for the type of profession.  He/she can work for a bank or can broker loans.  A loan officer meets with the clients and qualifies them then turns everything over to a loan processor who does the back end work for the loan.  

It seems like most of your questions are focused on the loan process rather than real estate and I think that you should probably sit down with a lender and talk through everything with this person (he/she can give better insight into the entire process, and it will be good to have a lender with whom you establish rapport.)

Jessica Bryan