Loan affiliate programs are an increasingly popular way for financial institutions to drive new business and cross-sell their services. To make this possible, lenders work together with professionals known as loan affiliates.
Loan affiliates are a particular type of loan officer that works with lenders to help them sell more loans. Loan affiliates work directly for the lender rather than being employed by an outside vendor like most loan officers.
As an affiliate, you will have the opportunity to sell a lender’s product and get paid for it. You’ll need to have a minimum of three years of experience and meet other lender requirements before becoming an affiliate – but it can be well worth your while if you want to build your career in the mortgage industry or increase your income potential.
Let’s look at who precisely a loan affiliate is in detail and how you can become one.
Who Is a Loan Affiliate?
First and foremost, a loan affiliate is someone who is part of a lender’s affiliate program. The fellow will work with the lender to sell the lender’s products. The affiliate will earn a commission on the loans they close.
Traditionally, loan affiliates would go out and knock on doors and try to get people to sign on the dotted line. Now, the vast majority of loan affiliates work online.
Their job is to sell the lender’s products and arrange loans for clients. This can include reviewing the terms and conditions of the loan and then arranging the paperwork.
How to Become a Loan Affiliate
Becoming a loan affiliate is not an easy process. You can start by visiting the lender’s website and reading their affiliate program information. Look for a way to contact someone at the lender and ask them any questions you have.
You should also check out sites like the National Mortgage Affiliate Association to see the industry standard for joining a program.
As you complete your application and prepare to start selling loans, you should get your marketing materials and business plan in order. You’ll want to ensure you have all the information you need to sell a lender’s products and services.
The Bottom Line: What Does It Take to Become a Loan Affiliate
To become a loan affiliate, you’ll need to meet the minimum requirements set by the lender. While each lender is different, most have the same basic requirements:
- A minimum of three years of experience as a mortgage professional. You’ll need to pass a background and credit check.
- Have an established business with a good credit rating.
- Have the right licensing and certification, including the ability to sell in whatever state you’re targeting.
- Take a test or attend a training class before becoming an affiliate.
- Willing to work with a specific type of borrower or in a specific geographical area.
As you research potential lenders to work with, ensure you understand their requirements and are ready to meet them.
Becoming a loan affiliate is a great way to build your career. You have the opportunity to specialize in one type of lending and become an expert in your field.