There are many different people involved in the home loan process.
I have already written about this in detail, but perhaps I did not include everyone.
Because getting a mortgage is Beautiful Big deal, a lot of hands are needed to ensure things go according to plan.
There are also several ways to obtain a home loan, which require different participants.
For example, if you choose to use a mortgage broker to obtain your loan, there will be an Account Executive.
Role of Mortgage Account Executive
A mortgage account executive, or AE for short, acts as a liaison between the mortgage broker and the wholesale lender he represents.
In terms of mortgage lending, wholesale simply means business-to-business (B2B) rather than retail, which is direct-to-consumer (B2C).
Simply put, AEs are no It is consumer facing and has no interaction with borrowers at all.
Instead, they contact a mortgage broker, who in turn matches the borrower.
Typically, CEOs take on an in-house role at the wholesale lender they represent, meaning they don’t leave the office unless they’re making a sales pitch.
They simply take phone calls from outside mortgage brokers and work with their staff internally to originate and close loans.
Mortgage brokers rely on brokers to obtain loan rates, bring loans underwriting, explain terms once approved, provide status updates, and ultimately fund their loans.
In a way, they act similar to a retail loan officer, but they deal with another mortgage professional instead of a consumer.
What does a typical day look like for a mortgage company in the UAE?
I worked as an account executive in the early 2000s, so I can offer some personal insights here.
In general, mortgage institutions operate regular banking hours, such as 8am to 5pm daily. Maybe staying up late on very busy days.
On a normal day, an AE will review and approve loan files that have already been submitted for underwriting.
They will identify outstanding conditions for moving to the next step, whether that is pulling loan documents for signing or financing the loan.
At the same time, AEs are salespeople. This means they need to make a lot of outbound phone calls to mortgage brokers to drum up new business.
On these phone calls, they will ask brokers if they have any loan scenarios that need pricing.
If so, we will quote the mortgage rate in hopes that the broker will like what they hear and send them the loan.
Assuming this happens, the AE will need to organize the file by gathering the necessary paperwork, ordering the credit report, uploading the loan application, and delivering the entire package to the loan underwriter.
Once the guarantor decides to file, he will contact the broker and, if approved, send him a list of pre-application conditions (PTD).
Again, they’ll need to facilitate the process of gathering paperwork, make sure a home appraisal is requested, and provide condition updates along the way.
What they communicate to the broker will be shared with the borrower and everyone will work together to close the loan in a timely manner.
The mission is to integrate sales and operations into one process
As you can see, the mortgage holder must be a salesperson and a member of the operations team.
They need to bring in new business and oversee their loan pipeline to ensure the mortgages in processing reach the finish line.
This means being a good communicator, staying organized, having good time management skills, and the ability to put out fires when they inevitably pop up.
Mortgage loans rarely go exactly according to plan, so AEs will have to step in to provide solutions, do filing, make difficult phone calls, and more.
If the appraisal is low, they will need to contact the broker and work on a new plan to make the loan work.
Likewise, if something comes up during the underwriting process, they may need to get creative to keep the file in good standing and move forward.
And remember, while all this is happening, they still need to generate new business. It’s a bit of a juggling process and can be very stressful.
To make matters worse, there are often quotas that must be met each month to ensure they receive the highest value for the work they do.
How are mortgage dues paid?
The company I worked for paid a base salary and commission on loans closed during the month.
The base salary was very low, but it still offered guarantees that you wouldn’t leave with nothing.
However, it was the commission through which you could make the most money. It all depended on how many loans you closed each month.
Those who were able to close above a certain dollar amount each month were entitled to a larger reduction.
So you are motivated to finance more loans. This was also very stressful, as closing an amount below a certain threshold could reduce your take home pay significantly.
For example, if you finance less than $X, you may only be paid a flat fee per loan. But if you fund more than $X, you’ll get a percentage that’s worth a lot of money.
Today, entity mortgage companies may pay a higher commission per loan but do not offer a base salary. This can be a great trade-off if you close a lot of loans.
Conversely, those who accept the base salary may not receive the same amount per loan, despite the guaranteed salary.
Ultimately, being an AE isn’t much different than being a retail loan officer.
The main difference is that you work for a wholesale lender and interact with mortgage brokers rather than homeowners and/or homebuyers.
There are pros and cons depending on who you ask. Sometimes it may be easier to deal with another mortgage professional than a first-time homebuyer, for obvious reasons.
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