What Most Loan Officers Don't Know About Their Commission

By DJ Christofferson

After being downsized in 2007, DJ shifted from corporate America into real estate and ultimately found his true lane in mortgages. He built his production on one core principle: be the kind of partner to Realtors he wished loan officers had been for him. Be valuable.

Loan officers have no idea how much commission they’re leaving on the table. It’s not because they don’t know the math. It’s because their company keeps quiet about how much money is actually being made on their loans.

On the retail side, you’re getting a fraction of the margin. Most loan officers there are making somewhere between 100 and 150 basis points. What they don’t realize is that on those same rates, there’s over 400 basis points of margin being made on the loan. That means your borrowers are paying higher interest rates, and the company is taking home more on the deal than you are.

In our model, we flip that. We pay the loan officer most of the margin made on the loan, so loan officers who come to us are typically almost doubling their commission overnight. And because we run on a lower margin as a company, those same borrowers still get lower interest rates. You could close the exact same clients you’re closing right now, give them lower rates, and make more money doing it.

Working harder isn’t the answer. Working smart is. Most companies tell their loan officers that if they want to make more, they just have to put in more hours. I’m a big believer in working hard. But I’m just as big a believer in working smart, and in what it looks like when you do both. That means you keep doing what you already do to win the business, you just get paid more for the business you’re already closing.

Run your own numbers and see it for yourself. We built a calculator that lets you plug in your personal numbers and see exactly how much more you could be making. Run your own scenario and get the report. It shows you what you’d be earning on a setup that pays you more for the work you’re already doing.

Then take it further with a one-on-one audit call. If you want to dig in, you can schedule a call with me where we’ll go through your goals, your current setup, your compensation, your pricing, and the support you’re getting, then look at what you’d have with us. From there, you decide for yourself which setup is better for you.

If that’s something you want to dig into, run your numbers, and let’s talk. Click this: highercomplowerrates.com to get your report, call or text me at 262-751-3415, or email me at DJ@NEXAmortgage.com, or visit djchristofferson.com. Run your numbers, and I hope to talk to you soon.