do loan officers keep the 2% commission or is it like R/E

[Alexander Levit]

Do Loan Officers keep the full 2% of the mortgage loan or do they have to split it? In real estate I know the 6%-5% is split between both sides of sale (sellers/buyers) and then the remaining amount is split with the agency, so typically a real estate agent makes 1.5% of a deal. What is the real amount a LO makes. I'm looking to either get back int R/E but am consider the LO road.... Thanks for any and all help/insights ahead of time 

~Alex 

[Account Closed]

Originally posted by @Alexander Levit:

Originally posted by @Dennis Wasilewski:

I’ve met commercial loan brokers that charge 2% to setup the deal. I didn’t think it was worth it. Loan officers don’t earn 2% on origination. They are commission-based but not anywhere near that.

 I should of been more specific, my mistake, I'm referring to & asking about Residential Loan Officers? So they don't make 2% of the mortgage loan? What is their % commission? 

 When I was an independent Loan Officer in the nineties I had a desk in an office along with about 110 other LO's, I could charge anywhere from 1% to 5% (or more) depending on the deal. The Broker charged a reasonable fee for the transaction which I passed onto the client. Since it was entirely commission based only about 20% of us actually made a living at it. You have to meet a lot of people to have enough business to keep things going.

A good interest rate at the time was 8% for a refinance for good credit and good work history. The other 80% of LO's came and went and there were always new people there to make their fortunes as Loan Officers. It's a tough business and I have regard for those on BP that still do single family financing with all of the new laws since the melt-down of 2008.

I got involved in Fixing and Flipping houses as a result of the leads I got from my "refinancing" clients way back when. Some didn't really want to refinance. They deep down wanted to sell but didn't have the money to fix the house up to list it in the MLS. I helped them with their problem by buying the houses Subject To and with Wraps, giving the seller cash for their equity, fixing the property up and selling the house. That solved all kinds of problems for all kinds of people. These days I hold on to the properties for cash flow instead of selling them but the idea is the same.

So, bottom line, there is a lot more to be made doing real estate (when done right) than there is in being a Loan Officer and I wouldn't begrudge a 2% commission if it helps YOU be successful.