There are two career options within the field of mortgage brokerage: residential mortgages and commercial mortgages
What will I be doing all day?
A mortgage broker acts as an intermediary between real estate buyers and lending financial institutions. Mortgage brokers research and compare the various lending terms, including interest rates and closing costs, that are being offered by lending institutions and present those to the buyers, advising them about their different options as well as the legalities associated with repayment of the loan. From the buyer’s end, they evaluate the buyer’s eligibility for a loan, based on his financial standing, credit history, and current employment. Once the loan is agreed upon from both ends, the broker completes all the necessary closing paperwork with the lender, title agency, insurance broker, and any other relevant party.
What kind of schooling do I need?
No specific degree is required to become a mortgage broker. A bachelor’s degree in business administration, finance, or accounting can be helpful in expanding job opportunities, but not necessary. The main training for this career is on the job. In order to practice in the US, a mortgage broker needs to be licensed, which requires completing continuing education courses. License requirements vary by state.
What can I expect to earn?
Most salaries in the mortgage field are commission-based, although in larger companies, they’ll often offer a base salary as well. Average base salary in the US is $95,385 plus $52,000 in annual commissions. Commercial mortgage salaries average at about $120,000 plus commissions. Income rises considerably with experience; a first-year broker will make $50–60,000, and with three years’ experience, $150–250,000. Note that in higher cost-of-living locales like New York City, the salaries and commissions can be significantly higher.
Do I have the personality for it?
A good mortgage broker should have excellent communication and customer service skills. He should be a good negotiator, detail-oriented, adept at gathering, crunching, and analyzing financial numbers and statistics, and be able to explain complicated ideas in easy-to-understand language.
What kinds of settings can I work in?
Some mortgage brokers work for established broker companies (especially helpful when first starting out in the field) while others work on their own, running their own businesses. There are two career options within the field of mortgage brokerage: residential mortgages and commercial mortgages. A residential mortgage broker helps homebuyers receive loans for their private property purchase, while a commercial mortgage broker arranges loans for properties owned by a business.
TALES FROM THE TRENCHES
THREE MORTGAGE BROKERS DESCRIBE THE HIGHLIGHTS AND THE CHALLENGES
BARRY (BORUCH) LEFKOWITZ Lakewood, N.J. Managing Director, Meridian Capital Group, led by Ralph Herzka and Israel Schubert Years in Field: 16
MY TYPICAL DAY AT WORK
As a commercial mortgage broker, I close numerous acquisition financings and refinances per year across an assortment of property types, including multifamily, mixed-use, office and retail, and transact with more than 50 unique lenders. My job is to serve as an intermediary in commercial real estate transactions, working to the benefit of both lenders and clients. If a client wants to purchase a building, for example, I’ll assist him in obtaining a loan with the most favorable terms. Working with a broker ensures our clients receive the best interest rate, loan terms, and structure available. My clients range from established real estate professionals who have owned real estate for decades, to young owners who are just beginning their careers in the real estate business. On a typical day, I split my time between reviewing deals already in the pipeline for existing clients and sourcing new deals, which includes making introductory calls and introducing myself to prospective clients via email. Working on a loan already in the pipeline varies depending on how far along it is in the process. For deals that are in preliminary stages, I’ll review the underwriting and have discussions with banks. For loans that are farther along, I’ll make sure all required paperwork has been completed, the appraisal has been ordered, and for loans that are almost ready to close, I’ll mediate any last-minute complications that arise (which often do).
HOW I CHOSE THE PROFESSION
After learning in kollel in BMG for six years, it was time to choose a career path. Many of my peers suggested I look into sales, but I didn’t think it was for me. I was actually recruited by a mortgage broker who had heard from a close friend that I was looking for a job and would be a good candidate. I started my new career with zero knowledge of the business. I was calling prospective clients and following up so when the right opportunity presented itself, I would be on their radar. I’d come home many nights in the beginning discouraged, but then I’d wake up the next morning with a burning desire to stick with it and become successful. For the past ten years, I’ve worked for Meridian, the country’s most active commercial mortgage advisory firm, and have eight brokers who report to me.
A JOB CANDIDATE SHOWS POTENTIAL IF HE OR SHE
has an outgoing personality, is a people person, is willing to take risks, and has the ambition and drive necessary to become successful. Commitment is also a key quality to have in order to be successful in this field. Not everyone is resilient enough to stick it out: constantly introducing yourself to prospective clients is challenging, as is waiting months — or longer — to close your first deal and subsequently earn a commission.
HOW I CHOSE TO SPECIALIZE IN COMMERCIAL MORTGAGES
When I decided to broker mortgages as my career, I also decided that I’d go for the hardest and most lucrative branch within the field. That’s definitely commercial mortgages, where the average loan size is well over a million dollars.
THE DIFFERENCE BETWEEN COMMERCIAL AND RESIDENTIAL MORTGAGES
Residential mortgage brokers typically work with homeowners who are looking for the highest mortgage with the least amount down at the best interest rate. Arranging commercial mortgages is a much more complex process — you assess the value of the real estate being purchased based on how much income that property produces, and then decide on the most suitable type of lender based on the client’s business plan and needs. Another large difference between the two is that as a residential broker, your long-term relationships are primarily with lending institutions, as your buyers may only come to you once or twice for loans throughout the course of their lives. As a commercial broker, however, your relationships with your clients and your lending institutions are both very important. With every new client, you know there’s an opportunity to build a long-term relationship and work together on multiple projects. Commercial mortgages also typically feature five- to ten-year terms as opposed to the 30-year terms seen on most residential mortgages, which means your clients will refinance more frequently — yet another reason why it’s important to maintain strong relationships, stay in constant contact, and act as an advisor on their portfolio so they don’t miss any opportunities in the market.
WHAT I LOVE MOST ABOUT THE FIELD
What everyone else hates: the challenge! I enjoy the opportunity to tell a client, “Trust me. I’ll get it done.” I also enjoy being creative at structuring deals so the lender will want to lend on them.
WHAT I FIND MOST CHALLENGING ABOUT THE FIELD
The most challenging thing is how to define success. Meaning, the ability to understand that monetary success is not the end goal. Ultimate success is the ability to maintain a Torah and family life together with your career while not compromising on your values. For me personally, teaching a blatt Gemara in the evening is most rewarding. In my business, there are many challenges that can come up while working a loan. The appraisal can fall short, the borrower’s credit may not be pristine, the property may experience occupancy issues while the loan is being processed, the cash flow may be reduced, which translates into a lower loan amount, and so on. But with strong commitment, expertise, and siyata d’Shmaya, you push through — and the rewarding feeling when the loan goes through is tremendous.
SOMETHING I WISH PEOPLE KNEW ABOUT THE MORTGAGE BUSINESS
You must be committed to the business long-term to see results. We live in a world where everyone is looking for instant gratification, but you don’t get that in this business. It takes time to cultivate strong relationships and to get a shot at a new client’s business. Also, there are brokers who still believe the lowest rate will always win. While that is an important consideration, the reality is that the best brokers are valued for their honesty and expertise, both in good times and bad.
MY ADVICE FOR PEOPLE STARTING OUT
Work for a company that has your best interest at heart and find someone to mentor and guide you. There’s a mentality that loan originations or cold calls are a numbers game — call 150 prospective clients and statistically you’ll find a few who are interested. In reality, with the amount of competition that’s out there, advance preparation is the key to winning new clients. Researching prospective clients before you call, having a mentor to guide you, and working for a reputable company are all essential components that will put you on the track for success.
ANN ZEILINGOLD Pomona, N.Y. Vice President/Branch Manager, FM Home Loans Years in Field: 33
MY TYPICAL DAY AT WORK
A typical day for me begins at 8 a.m. and ends at 6 p.m. I usually start my day reviewing leads for new clients and loans in process with my employees. Management of the office and pipeline takes about half my day. I problem-solve, research guidelines, and make sure all deadlines are being met. The rest of the day I’m on the phone with new clients, current clients, and other parties involved in the real estate transaction. My job necessitates using my brain constantly, which is both stressful and rewarding. I’m responsible to accurately qualify my clients for a mortgage loan. Realtors, attorneys, sellers, and clients rely on me to deliver as promised, to close their mortgage loans. If I don’t do my job properly, and I don’t properly communicate with attorneys and realtors, I can cause a client to lose their down payment! Baruch Hashem, that’s never happened.
HOW I CHOSE THE PROFESSION
I got into the field by chance. I was working as a real estate agent, but wasn’t so comfortable with the environment of my office. So when an elderly attorney, who knew my father, offered me a job originating loans for a mortgage company, I decided to go for it. I’ve always been adventurous and was willing to learn, but going into a brand-new field that was 100% commission-based was difficult. It can take a few years until you’re knowledgeable enough to be able to market yourself to new clients, and during that time, I made almost nothing.
WHAT I LOVE MOST ABOUT THE FIELD
I love the people side of the job — dealing with the clients and turning renters into homeowners. I feel immense satisfaction upon every closing. Another thing that I love is the flexibility. Especially when I was a young mother, this was very important to me. For years I worked mostly from home and I was only in the office when my children were in school or playgroup. In this field, it is very possible to work from home or in the evenings. While there are deadlines, they are not the life-and-death kind, and they are predictable and manageable.
WHAT I FIND MOST CHALLENGING ABOUT THE FIELD
Juggling it all. Managing the office and pipeline takes a lot of time. In a perfect world, I would be meeting or talking to clients all day.
I’LL NEVER FORGET WHEN
I once had a client who was an NYPD detective. Every loan that we close goes through a fraud guard, which checks all previous jobs, addresses, and other information. But this man’s record was completely blank. When I asked the client, he said that because he’d worked on high profile cases, including Mafia and murder cases, all his records were wiped out to prevent these undesirables from finding him.
SOMETHING I WISH PEOPLE KNEW ABOUT THE MORTGAGE BUSINESS
There are so many moving parts and so many details that can all make a huge difference. For example, the difference between a credit score of 719 and 720 can cost you tens of thousands of dollars over a 30-year period. Also, if your name is on the deed of a home, even if there is no mortgage on the home, this can make a difference in your qualification for a mortgage. This comes up often when children are added to the deed of their parents’ homes. We have to count the carrying costs (tax and insurance) as part of their debt ratio, even if they have never paid those bills themselves. Another example is when people cosign for others on car leases, student loans, houses, etc. If we can prove that the other party has been paying the bills — and on time — for the previous 12 months, we can exclude the debt from the debt ratio calculation. I’m often told, “Oh, that’s my son’s car, and he makes the lease payments.” Then I find out that the son actually gives the money to the parents, and they pay the company. There’s no way for me to prove that the son is the one paying the debt.
MY ADVICE FOR PEOPLE STARTING OUT
I think that anyone starting out should work a year with someone else on their files to learn the business. I didn’t do that, but I wish I had.
HOW WE WERE AFFECTED BY COVID-19
At first, interest rates were jumping daily to such an extent that it pretty much put the mortgage business at a standstill. But following that, the interest rates fell to record lows, which was a real advantage for us. We have a lot of new guidelines, which creates stress on the processing of each loan, but we’ve gotten through it.
AARON MORGAN Ramat Beit Shemesh, Israel Owner, Morgan Mortgage Graduated from: University of Western Ontario (Canada), B.S. in Actuarial and Statistical Sciences Years in Field: 15
MY TYPICAL DAY AT WORK
I arrange financing for people who are buying properties in Israel. My clients are based in Israel and also abroad. Part of my job includes helping my clients work out their budgets for buying, and helping them manage the different pieces of the home buying process. In Israel, for a number of reasons, getting a mortgage is much more involved than in other countries. The mortgage options in Israel are more complex and sophisticated — for example, it’s possible to get mortgages in a number of different currencies, and there are many types of mortgages that are tied to different indexes. There are also many mortgages in Israel that have hidden costs that can seem less expensive than other seemingly more expensive mortgages. To make things even more complicated, in Israel, you generally segment your mortgage into different parts. Given the complexity of the options, it’s important for the mortgage broker to be able to match a client’s financial needs to the mortgage options that are available. Finally, a big part of being a mortgage broker in Israel is managing a lot of hurdles in the Israeli banking system.
HOW I CHOSE THE PROFESSION
Twenty years ago, I was about to move to Israel and felt it was time for a career change. I’d been working as an actuary in Canada, but wanted to change professions to something that would allow me to tap into a lot of qualities that I felt I could offer, such as being able to engage directly with clients.
A JOB CANDIDATE SHOWS POTENTIAL IF HE OR SHE
Is good at juggling numbers, able to work really well with people, and has at least some sort of financial background. A mortgage company that’s looking to hire a new and inexperienced employee would probably also be looking for someone who can be a sort of “jack of all trades” — someone who is, on the one hand, detailed and highly organized, and on the other hand, has good communication skills and a good rapport with people. Most of the training is on the job, but a business owner would be looking for signs that a potential candidate is highly motivated to learn and succeed.
WHAT I LOVE MOST ABOUT THE FIELD
I love people and I appreciate the opportunity to help them. In Israel, especially, where properties are expensive and budgets can often be tight, being in the position to give my clients encouraging words is very meaningful to me. I also love that I spend my day helping clients who are looking to own a chelek of Eretz Yisrael, either to live here now or to at least to own a property that they hope to one day live in.
WHAT I FIND MOST CHALLENGING ABOUT THE FIELD
If you run your own business, it can be challenging to deal with the workflow. Sometimes, you can be blessed with a big project, but the workload can be challenging to manage. It’s important to delegate work to others or to hire people quickly when necessary to ensure that clients continue to be serviced well.
I’LL NEVER FORGET WHEN
I once met a nice religious Christian couple in Israel who told me that they loved the Jews and loved Israel, and they wanted to buy an expensive property in Jerusalem. They asked me to arrange a mortgage for them. After asking a sh’eilah, I understood that it was halachically problematic for me to help them. While I was a little apprehensive about explaining why I was turning them down, I thought it was best to be as upfront with them as possible, and possibly even discourage them from buying. I explained to the couple that Jews understand from the Torah that Hashem intended the Land of Israel for the Jewish People only, and therefore, I wasn’t able to help them with their purchase. They were very surprised, but I think they appreciated my honesty.
SOMETHING I WISH PEOPLE KNEW ABOUT THE MORTGAGE BUSINESS
Mortgage options are very complicated and sophisticated. There’s a lot of fine print, and without guidance, you risk getting into a mortgage that has hidden costs and risks.
MY ADVICE FOR PEOPLE STARTING OUT
Being a mortgage broker requires a lot of different skills: working well with people, marketing yourself, being good with numbers, a strong financial understanding of currencies and interest rates, and organization and communication skills. It’s difficult to be good at everything. It’s important to be aware of your strengths and also your weaker areas, and to focus on ways to grow in those areas. It can also be helpful to partner with others who have complementary skills.
HOW WE WERE AFFECTED BY COVID-19
As with all challenges, there are hidden blessings to be found. With all the uncertainty that this last year has brought, it seems like more people living outside Israel are interested in making aliyah, or at least taking a step forward by buying a home for the future. Recently, I’ve been seeing an increase in the number of Americans that are making inquiries into buying in Israel.
