Selling Loans

majesty2009 · #1 02-08-2007, 04:02 PM

I was at a starbucks going over a project with my partner and I overheard this guy talking about a business that he had. I didn't catch it all because I was somewhat focused on my own conversation, but I still found it interesting so I thought I would post the basics of what I heard.

This guy was using Indian companies to get leads on loans. He said it was extreamly cheap. He would then re-sell these leads to loan companies. He started out with just him and his friend. Then he met a guy with a liscense and they "piggybacked" onto his and started doing the loans themselves. They would use these Indian companies to get the leads cheap. They ended up having 30 employees or something. I dont know how loans work and I only caught pieces of the convo but I thought I would share it.

Anyone ever think about getting work doan by oversea's companies?

scotty M · #2 02-08-2007, 04:20 PM

They're overseas telemarketers calling people trying to get them to refinance.

I used to be a loan officer. Never tried it, but I would imagine it might be a viable business model.

majesty2009 · #3 02-08-2007, 04:26 PM

Can you explain what he was talking about when he said they used someone elses license. He said he didnt want to take the time to get licensed. I know nothing about loans.

scotty M · #4 02-08-2007, 04:31 PM

You don't have to have any license to be a loan officer. To be a broker (where the real money is) you have to have experience in the field, take some test, and pay around $10k for a brokerage license.

majesty2009 · #5 02-08-2007, 04:32 PM

So I asume they were using a brokers license some how and they were acting as a loan officer and giving the broker a cut.

scotty M · #6 02-08-2007, 05:42 PM

That's how it works. Loan officers work for brokers. The broker pays the loan officer a commission of the loan fees.

In my shop, the L/O's did all of the hard work, and the broker pretty much just sat back and gave us a 30% cut of the profits.

It was actually a pretty shady deal, but there are better opportunities out there for L/o's to make some serious money.

SossMan · #7 02-08-2007, 05:46 PM

they are all sorts of lead generation companies out there. Most of them suck since if the leads were any good, they could easily do the loans themselves and make a lot more money. Some companies do lead generation, keep the good leads for their "in house" brokerage and sell the other crappy ones. The Indian based telemarketed leads have a particularly bad reputation.