Residential Mortgage Loans

Went to college with a kid pulling in around $1mm a year doing residential mortgage loans. His life seems exceptionally chill with the ultimate WLB. Am I missing something? I understand that this is effectively a sales job, and sales, like any profession, varies. Sitting here working in private equity feeling like a dumb ass, lol.

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The top residential mortgage broker in my area makes just over $500K, and he's been doing it for 20 years. There's plenty of commercial mortgage originators making $1MM+, but $1MM is shocking for residential. Assuming this guy is honest and gets to keep 50 BPS after paying his company, he has to originate $200MM of residential loans to hit $1MM. That's what, somewhere between 300-400 houses? Idk.

 

I’m a licensed residential loan officer (LO).

Depending on his comp structure, it’s possible he’s pulling in $1mm.

Some residential loan officers are able to make anywhere from 150 - 275 bps per loan.

If we assume he’s somewhere in the middle; at say 200bps, he’ll need to originate $4mm/mo, which is not inherently difficult if you have an established pipeline in a HCOL (even in this market of turmoil).

 

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