Taking a gamble in life
 

Through dumb "luck" I received a job offer as a loan officer from a Fortune 500 company. The company specializes in subprime home equity loans.

I present the gamble. I would take a substantial paycut until I get comfortable in the position.

The job pays commission only with a $2000 a month guaranteed draw. I do not have to payback the $2000 if I do not reach commission. I have benefits from day one. The first week I do orientation and in sit with other loan officers. On the second week of employment, I travel to either Milwaukee or Denver for a week of training. The company covers all travel expenses. Week three I sit in the office and take tests based on what I learned in training and continue in office training. Week four I hit the pavement and go sell.

The company does provide leads, however, the company pays a higher commission on self generated sales.

The company has a 80% turnover rate. 1 in 5 loan officers stay with the company. The grinders who stay average $80,000. The top dogs earn over $200,000.

I work in middle management now and this company believes in promoting from within. After 6 months if I have success I can enter the Manager in Training program. The top district managers and regional managers top out at $500,000.

The gamble comes from the fact that I know absolutely nothing about the mortgage industry. According to the way I interviewed and the computer personality test I took my skills sets and personality fit this position very well. I would start at the bottom and have to work my way up.

Has anyone here ever held a job, or known someone, who has had a job like this?

Re: Taking a gamble in life
 

HOw do you deal with uncertainty?

Re: Taking a gamble in life
 

How easy would it be to get back into your current position (or something similar), how much does it pay, ect?

Re: Taking a gamble in life
 

sounds like something George Costanza would do..

I say go for it...if it gets bad, tell them you're gay and firing you could be construed as sexual harassment. - LOL

RB

Re: Taking a gamble in life
 

Depending on commission is a stressful bitch

Re: Taking a gamble in life
 

I think it would be helpful to know what you do and what you have done in the past. Having a background in sales is probably way more helpful than having a background in the mortgage industry. You can learn one much easier than the other.

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I work in middle management now and this company believes in promoting from within. After 6 months if I have success I can enter the Manager in Training program. The top district managers and regional managers top out at $500,000.

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Can you clarify whether the bolded section refers to your current company or the new one?

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Has anyone here ever held a job, or known someone, who has had a job like this?

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One of my friends from school works a real estate finance firm doing banking. He interned there during his junior year, then got a job doing i-banking at BoA after he graduated. He left BoA after 6 months to go back to he real estate firm.

He is one ofthe smartest people I know and he could work for just about any firm he wanted to, so I assume he likes it (even though "it" is not exactly what you'd be doing).


Congrats on the offer, Mike. Hope it works out well for you.

Re: Taking a gamble in life
 

I had a friend who did financial planning, which was similar in that :

1) You start with nothing and must build a customer base
2) Commission with a draw
3) High turnover

Some people love it, some people hate it. I would have been one of the "hate it"s, but my friend was a "love it". The question should come mostly down to whether you enjoy what you are doing right now or not, and your other life circumstances that dictate whether you are in position to make a gamble of this nature (eg, if you are 35 and have two kids and a mortgage yourself, no. if you are 25 and renting and not attached, yes.).

I'd also be concerned about the longterm market for "subprime home equity loans" but that's just standard "aren't we in a real estate bubble?" thinking which I have no idea whether is true or not.

Re: Taking a gamble in life
 

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if you are 35 and have two kids and a mortgage yourself, no. if you are 25 and renting and not attached, yes.

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That sums up my opinion.

Re: Taking a gamble in life
 

I've been in commercial real estate (on the corporate financial planning/budgeting side) for about 6 years, and I would caution you that this is probably not an ideal time to enter the mortgage industry. As interest rates rise transaction volume is going to decrease significantly, leaving those who have been in the business a long time and have already built solid relationships in an advantageous position over those who are just getting started.

Certainly there is always room in any industry for those with above average talent, but it's going to get very tight in the next 5 years or so.

What asset class does the company loan against? If it's residential/single-family I would advise against taking the plunge. If it's industrial, office, or multi-family commercial assets it will be a little safer, but volume is definitely dropping. A lot of the easy money has already been made for the foreseeable future.

Just my $0.02. Good luck with your decision.

Edit: Just re-read and saw the part about sub-prime home equity loans. I have a feeling that this market is going to take a beating as variable rate loans start pushing people into bankruptcy. Tread with caution.

Re: Taking a gamble in life
 

I have been a loan officer for the last four years, and if I could give you any advice it is this: Now is the wrong time to get into the mortgage business.

Rates will eventually go back up, and the loan officers who will make it either love to pick up the phone and telemarket for themselves, or have an established base of business. I live in a state that will continue to have a booming housing market, have a pretty established base, and I still worry every day about whether or not I am in the right position.

I do make a fair amount of money, but I also work very long hours. I often find myself wishing I could take a job like yours.