It's also no secret that firms across the country have been trying to lure established LOs to keep origination volumes up.
And then there's Chicago-based Interfirst Mortgage Company, which ceased operations in 2017 after years of declining volume and relaunched operations last year. Private equity-backed Interfirst is doing something quite different (beyond this humorous recruitment video). So let's take a closer look.
The retail-and-wholesale lender isn't interested in filling its ranks with experienced LOs. In fact, Interfirst doesn't want any experience. They're recruiting former teachers and first responders to become LOs. Interfirst is betting that a seven-week licensing and education course can turn someone with no mortgage banking experience into a highly competent LO who does things by the book.
"The green approach allows us to teach the best practices to people," Dhaval Patel, senior VP at Interfirst, told me in an interview on Friday. He added that they're often "great communicators" and handle stressful situations better than the average person.
Interfirst, which claims to have originated $1.65 billion in volume between June 2020 and June 2021, pays new LOs between $44,000 and $68,000 annually, which is based on base salary and quarterly performance-based bonuses. They don't do FHA, VA or USDA loans (conventional, jumbo only) and they do not pay their LOs commissions.
I asked Patel why someone who's not from the industry would join Interfirst and work in their call center as an LO when other lenders will likely pay them more. He said that by going to Interfirst, they'd get proper training (the cost of which is covered by Interfirst) and also work for a lender that "shares the same values."
"I feel that we do a good job in maintaining our processes, and make sure that we're sensible in how we pay," he said. "Our loan officers, our team, they know that they can probably make more money somewhere else, but they're gonna take it from someone, and it's not going to be the company. They're taking it from the customer. So you have to really decide that the work that you're doing is worth more before you go out there and try to take more money."
He added: "And it's kind of neat because once you get into this market and you realize that you're a rate table company, you're the lowest rate in town, you don't charge fees, and you're really trying to provide a customer forward product, then you're happy to be here."
LOs, what do you think of the sales pitch? Do you expect to see more lenders opting to go with noncommissioned sales forces? And how do you feel about it? Hit me up anonymously at jkleimann@housingwire.com.
James Kleimann
Managing Editor, HousingWire
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