Hey everyone just joined about five minutes ago to the website. But, the reason why I joined is because I am seriously considering making the next step in my career but, wanted to seek out some professional advice before I did it.

Basically to keep things as short as possible here is my situation. I am 24 years old and work in Minnesota as a Loan Officer for a bank. Business has been good and I am doing well. I have been with the company for over a year but, I am looking to expand my career becoming a mortgage broker and starting my own individual company as one.

I am seeking any advice whatsover in terms of what my next step would be, if anyone has a similar situation, and if it is a wise thing to do? Should I look into getting my own office, should I slowly transition into this and not just all out quit my full-time job, what is the easiest steps to make the transition, etc. The reason why I am exploring this is because of the freedom and the opportunity to succeed on my own.

Anything would be helpful, hope I gave enough info for a response. I have developed a lot of contacts even though I am only been in the business for a year but, I know with my work ethic and with my drive I can be a great success. Thanks in advance for any advice.

I feel this is a good way to start.

You can look into the licensing requirements for your state. You may run into trouble as most states require a pre-determined amount of industry experience as a requirement.

My personal advice would be to stick around in your current role for a while longer. While I am sure you have learned a ton in one year you probably have not been around long enough to know what you don't know...

If you were truly serious about this proposition and you are VERY confident about the book of business and referral partners that you have developed, you would probably want to go work at a mortgage company for a while. The wholesale world is much different than the retail world...the business is far more focused on direct marketing and building trust over a long period. These are some of the features that are "built in" when you work for the bank. If you find that you have continued success over a period of two - four years working as a wholesale broker, then you could get serious about starting your own shop.

I would also add that a large barrier that exists now to the small shop model for someone such as yourself is that getting licensed FHA is much tougher now. Obviously FHA makes up a huge portion of the business in today's market and the new licensing requirements call for audited financials and (i believe) 1,000,000 in net worth. These changes take effect very soon per my understanding.

Without the ability to offer a full range of products it is difficult for a small shop to survive....and this change to FHA will be the death of many small brokers.

One last suggestion...there are a ton of shops out there that will essentially let you rent their license in return for a small percentage of your fees on each loan plus a small "per loan" charge. This allows you to orginate loans on your own and essentially be your own boss, without the complications associated with getting licensed on your own as a broker.

This is an increasingly common model for many successful wholesale originators.

Good Luck,

Jason

stay where you are

Check out the NMLS site http://mortgage.nationwidelicensingsystem.org/Pages/Default.aspx to find out what you need to do as a MLO and a Broker Shop under the SAFE Act. Did you know Minnesota is the only state that has not yet passed a state law in compliance with the SAFE Act?

I would research the whole idea during 2010 and if you are still interested in 2011 then plan to open your shop in that year after the dust settles with the nationwide rollout of NMLS. Minnesota is behind the curve.

Stay put for at least another year, preferably two.

If you want some sound advice from a Minnesotan...look up Kent Mikkola in this site's directory.

Good Luck-Bob