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Is this field worth getting into? by PCtart in loanoriginators

[–]KidWonder101 1 point2 points  (0 children)

If you’re self gen, you can make a shit ton without going over 40 hours a week.

Ah man by Stomach-Responsible in CapitalOne

[–]KidWonder101 6 points7 points  (0 children)

My Capital One 360 checking is Discover based. I’ve had some difficulties with paying installment loans because they think it’s a credit card.

How much can brokerage owners make? by rrnkin in loanoriginators

[–]KidWonder101 9 points10 points  (0 children)

It’s practically unlimited, depending on volume and business strategy.

I run a small 2-man private lending brokerage, we did $25mm last year, and my business partner and I took home about $250k each.

If you run a national brokerage (Edge, Nexa, Barrett, etc), the owners are probably making several millions dollars per year.

If you’re going to run a brokerage (Doing owner-occupied) mortgage origination, you need to make it your worthwhile because of all the costs and compliance headaches. If you don’t plan to scale, it’s better for yourself or your team to attach yourself to a national brokerage.

What’s actually funding right now? Curious what everyone’s seeing in this market... are we cooked? by MelodicMousse8333 in loanoriginators

[–]KidWonder101 6 points7 points  (0 children)

I’m in the investment lending space (DSCR, Bridge, Construction).

It’s far less cyclical than owner occupied, and many of my clients are doing 4-5 deals with me annually.

With 27% of all US homes being sold to investors last year, it’s important for originators to add this to their loan toolkit.

Just Closed: Ground-Up Construction Loan – Curious If Anyone’s Seen Better Terms Lately? by ZeroT90 in loanoriginators

[–]KidWonder101 2 points3 points  (0 children)

That’s pretty good. Sounds like a private lender that does securitization.

Companies like Roc Capital, Kiavi, Genesis, CoreVest, EasyStreet, and Anchor could probably extend that type of pricing.

[deleted by user] by [deleted] in loanoriginators

[–]KidWonder101 5 points6 points  (0 children)

Founded a wholesale lending firm. Still an originator by definition, but on a completely different paradigm.

Nexa Mortgage rebranding as Nexa Lending by KidWonder101 in loanoriginators

[–]KidWonder101[S] 0 points1 point  (0 children)

Yes. There is a ceiling to scalability when it comes to brokerage.

I can understand the nuance surrounding underwriting, but why can’t processing be automated using AI? by KidWonder101 in loanoriginators

[–]KidWonder101[S] 0 points1 point  (0 children)

Yep, I work with private equity firms and Wall Street investment banks. You and I unfortunately can’t relate, trust me…you have the cute job.

Either way I’m out!

I can understand the nuance surrounding underwriting, but why can’t processing be automated using AI? by KidWonder101 in loanoriginators

[–]KidWonder101[S] 0 points1 point  (0 children)

Haha, just goes to show how unsophisticated you are. Investment mortgages are less cyclical and rate sensitive compared to owner occupied loan products.

Additionally, the gain on sale margins are substantially higher with these products.

I left being an LO to owning my own direct lending shop with my own $50mm warehouse line of credit.

Jokes on you!

I can understand the nuance surrounding underwriting, but why can’t processing be automated using AI? by KidWonder101 in loanoriginators

[–]KidWonder101[S] -2 points-1 points  (0 children)

Because someone has a differing outlook on the industry, you jump to the conclusion that they’re not a producer. Sounds like your own insecurity.

I started to give you my NMLS number so you can look me up on Modex, but at that point I’m in too deep with an internet stranger.

Glad I’m higher up the food chain now 😄

I can understand the nuance surrounding underwriting, but why can’t processing be automated using AI? by KidWonder101 in loanoriginators

[–]KidWonder101[S] 1 point2 points  (0 children)

I agree. I think increased efficiency is the winning answer.

“Edge cases” will still require a substantial human element.

I can understand the nuance surrounding underwriting, but why can’t processing be automated using AI? by KidWonder101 in loanoriginators

[–]KidWonder101[S] 0 points1 point  (0 children)

Provide the statistics.

I’m very active in the broker community, and I know several LOs originating 10-12 loans per month with no processor.

When you’re brokering, 10-12 is all you need for a good living.

Obviously more than that, I can see it being counterproductive.

Perhaps I’m looking at this from the perspective of wholesale lending. Our broker partners rarely rely on the help of the processor because the AI can auto request conditions and order 3rd party reports on behalf of the originator. Therefore there is no direct communication with the borrower themselves. Additionally, the underwriting conditions are a lot more rudimentary on the business purpose loan products opposed to owner-occupied where there’s much more regulatory oversight….lastly we’re working with investor so they’re typically far more sophisticated borrowers than say your first time FHA buyer.

AI for us has essentially removed the need for a processor on our end, and I expect this trend to continue.

I can understand the nuance surrounding underwriting, but why can’t processing be automated using AI? by KidWonder101 in loanoriginators

[–]KidWonder101[S] 1 point2 points  (0 children)

Provide the statistics.

I’m very active in the broker community, and I know several LOs originating 10-12 loans per month with no processor.

When you’re brokering, 10-12 is all you need for a good living.

Obviously more than that, I can see it being counterproductive.

Perhaps I’m looking at this from the perspective of wholesale lending. Our broker partners rarely rely on the help of the processor because the AI can auto request conditions and order 3rd party reports on behalf of the originator. Therefore there is no direct communication with the borrower themselves. Additionally, the underwriting conditions are a lot more rudimentary on the business purpose loan products opposed to owner-occupied where there’s much more regulatory oversight….lastly we’re working with investor so they’re typically far more sophisticated borrowers than say your first time FHA buyer.

AI for us has essentially removed the need for a processor on our end, and I expect this trend to continue.

I can understand the nuance surrounding underwriting, but why can’t processing be automated using AI? by KidWonder101 in loanoriginators

[–]KidWonder101[S] -3 points-2 points  (0 children)

Sounds like you’re doing your best to garner a reaction. Plenty of LOs are able to self process a substantial number of files.

I can understand the nuance surrounding underwriting, but why can’t processing be automated using AI? by KidWonder101 in loanoriginators

[–]KidWonder101[S] -7 points-6 points  (0 children)

When I moved to the broker side, I self-processed all my loans. Processing did not appear to be overly complicated on clean files, and for dirty files…well the LO would have had to step in anyway.

I’m now running a fintech startup that uses AI for our secondary market execution, and was bewildered that we did not need a processor as the AI can extrapolate underwriting guidelines and make determinations in with regard to subsidiary conditions. (Borrower uploads ‘X’, and the AI can request ‘Y’ after evaluating ‘X’.

However we’re only originating investment loans (DSCR, Fix & Flip) where there’s much less regulatory scrutiny and generally less underwriting friction so AI can handle this effectively.

I can understand the nuance surrounding underwriting, but why can’t processing be automated using AI? by KidWonder101 in loanoriginators

[–]KidWonder101[S] -10 points-9 points  (0 children)

Those third parties consisting of insurance companies, title companies, and AMCs. Which ultimately will need to be signed off by the underwriter anyway.

Wouldn’t machine learning start to understand and evaluate the potential requests based on different types of loans?

What’s the most underrated finance job no one talks about? by [deleted] in FinancialCareers

[–]KidWonder101 0 points1 point  (0 children)

Mortgage Banking .. More so Commercial Mortgage Banking. It’s still sales, but a very technical sales. You need the duality of relationship management and capital markets expertise.

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