amisconception

Not brokerage, but banking?

I have some questions...

Fibonacci

I'm not a banker, but know enough to be dangerous. What is your question(s) and are you referring to retail or commercial?

AS3.0CL

like a on the mortgage side from a bank? i'm in the mortgage industry as a broker but deal with a 100 different banks for loans?? if it's along those lines i can probably help you

amisconception

Residential mortgage banking.

My questions pertain to it as a career... general questions as someone interested in it.

I've been on http://www.mortgagebankers.org/ trying to soak everything up. I want to gain a solid understanding of the secondary mortgage market... And what it would take to actually work as a mortgage banker.

You can become certified through the MBA via CampusMBA, but I don't know how powerful that is.

Any advice?

MR1

MBA is a good professional organization. Some additional information available at dre.ca.gov . That's the CA Department of Real Estate site I think. The more you know about finance, mortgage lending and real estate the better off you are.

Classes are available at most state universities and community colleges if you are in CA. Some campuses even offer a major in Real Estate with various options. Classes are offered by private business and real estate course providers with some being independent study (not generally recommended).

There are also some businesses that will hire trainees and profess to train you (OJT). Generally by going this route you will not be trained to properly professionally and legally do the job.

MR1

Nationwide mortgage lenders like Countrywide, Wells Fargo, BofA etc also hire office personal from time to time and promote from within. I don't anticipate that they will be doing much hiring or promoting in the near future considering the current state of the market.

Fibonacci

Well, I can offer you my general assessment for whatever its worth.

IMO, mortgage banking does not differ much from being a mortgage broker these days. In a nutshell it's all about hustle and flow. You are essentially a salesman looking for a borrower.

In the old days, thrifts and banks were the only places to go to get a residential morgtgage. A studious banker would delve into your credit worthiness and determine if you, the borrower were a good risk. The reason they did this was because the only option was a 30 year fixed requiring 20% down and the bank would then service your loan from start to finish.

In the 70's, congress created Gov't Agencies like Freddie Mac (FHLMC) and Fannie Mae (FNMA) for the stated purpose of increasing home ownership and creating an active secondary market for residential mortgages. Lo and behold, this was a boon to the residential mortgage market. Now banks no longer had to carry your 30yr loan on it's books, they could now sell their loans to the Gov't Agencies and free up their capital to make new loans. The Gov't Agencies then sliced and diced these pools of mortgages to create CMO's (Collateralized Mortgage Obligations) which now exceed US Treasuries in total debt outstanding.

A significant reason for the recent housing boom is directly related to the profliferation of mortage financing options which really has only come about in the last 10 years or so. We are indeed living in a finance based economy. The result is vastly increased homeownership rates by allowing borrwers to custom tailor loans which suit their differing needs. The avg homeowner lives in their home for approx 7 years, why limit yourself to a fixed rate loan - so say the mortgage originators.

Anyways, I'm digressing somewhat - for all intents and purposes an advanced degree is not required to be a successful mortgage banker or mortgage broker. The difference between a banker and a broker is that a banker works for a bank which may or may not choose to service the loan originated - a mortgage broker will simply find a funding source for your loan and quickly move to the next deal. The advantage of being a mortgage banker is that you can leverage consumer relationships at the retail bank level, the downside is that your pay will not be as attractive as a good mortgage broker who is essentially a gun slinger riding the range on his own with lower creditworthiness standards than the typical bank.

I would suggest you dive into books on real estate if this is a genuine passion of yours, if you havent' already. Like Warren Buffet says, "do what you love and do it well" - it's really that simple. Sam Zell started out buying residential rental properties in Ann Arbor while a student at Michigan - he just sold Equity Office Properties for $39 Billion!!!

Leverage, used wisely is a great thing. Good luck!

saiko_cl_duck

Not true. My mom just signed on with Countrywide in MA about 5 months ago, mind you she's been in the banker/finance/mortgage business for about 26 years now.
I don't know how the market is in CA, but in MA it's bad to be in lending unless you already have a client list and a great understanding of the job. She told me that they aren't hiring newbies, just people that have at least solid experience.
I know that nation wide, the housing market is definitely down right now, too many houses for too few buyers. Great time if you want to buy a home, but bad for lenders and sellers.


If you have any other questions, I can email her for you. Like I said, she's got experience in the field for some time now.

Duck

MR1

My response was to the thread starter who appears to have no experience, understanding of the job or client list. That would make him a newbie = limited current opportunities. Six months ago is the market was slightly different than it is today. Our market is slow but active.

amisconception

Well, i'm not a complete "newbie". There's a difference between being a mortgage banker and mortgage broker. Understanding and growing into that mortgage banking role is what I'm considering, versus not.

Fibi pointed out (thanks a lot by the way) that the differences aren't as big as they used to be. Nonetheless there are differences.

The mortgage industry is in a down-turn, and I understand that, but competing in this industry isn't going to happen by staying stagnant. The mortgage banking world, and the secondary market, gives me a place to grow into beyond where I'm at now and where I could be. It helps with perspective.

Oh and, Capital is raining on my head I've had that stuck in my head all weekend

Fibonacci

It is a catchy litte ditty for sure.

In hindsight, Sam Zell certainly telegraphed his intent didn't he. What a stud - dayum!!!