Step 1 – Get a brokers license.
Step 2 – Start a company.
Step 3 – Check requirements and Get the company an NMLS License. You will have to pull your license from your current company and hang your license with the new company. Then wait 2 to 3 weeks for the company to be active. You will not be able to originate for a few weeks. Call the NMLS to make sure you’re doing it right. They are very helpful.
Step 4 – Get a shred box. I pay about $20 a month.
Step 5 – Get access to credit pulling service. You can use any company you’re comfortable with. Some credit agencies will not set up a new company, so look around if you need to. I hear CBCInnovis has an easy on boarding process. They will have to come out and inspect your office which could take weeks. The office must lock, have a shred box, and have cabinets that lock for files. Some companies are ok with home offices, others are not.
Step 6 – Get an account with Calyx Point. $15 a month per computer. This is to take applications and pull credit.
Step 7 – Get DU and LP accounts.
Step 8 – Sign up with wholesale lenders. There are a ton out there and there’s no limit to how many you can sign up with. Some are great for 500 FICO FHA/VA refer/eligibles. The best one to start out with is UWM. Website is easy to use, underwriters, funders, AEs, are very accessible. They are strictly wholesale lending – no retail division. They offer a lot of help to brokers. UWM is the lender that offered the $10,000 grant for new brokers to go on their own. They partnered with NAMB to give away the money no strings attached. They also offer compliance help.
Step 9 – Pay attention to compliance. For the wholesale lender applications, you’ll have to create a lot of compliance docs. Anti money laundering, employment agreements, policies and procedures, etc. Some lenders will want more than others. Good thing is once you create it, you can use the same ones for each lender. There’s also companies that will create these for you for a few thousand bucks. You’re going to need to keep records of everything for the correct time period, file Mortgage Call Reports quarterly with the NMLS, and Financial Info at the end of the year along with continuing education. UWM was very helpful with compliance questions. You can also call the BRE, NMLS, or an attorney with questions on compliance.
Step 10 – Look for contract processors. Good ones are hard to find. Ask your Account Executives for recommendations.
Step 11 – Submit a loan. You can have your AE hand hold you through your first few.
Step 12 – Get an account with TheWorkNumber.
Step 13 – If you don’t know HECM’s, get to know them well. They pay a lot more than forward mortgages. Liberty is a good wholesale lender to send reverse mortgages to. Until last year, they were paying 12%+ commission. 1200+ bps. New regulations lowered the commissions but they’re still high.
I’d suggest becoming a member of AIME and go to one of their conventions if it’s not too much of a hassle. You’d meet a ton of lenders. It’s like a reverse job fair where they’re all trying to sell themselves to you. I think they also give you some free legal counsel. I know CAR does for sure.