Written By: Shawna Greene
For any loan processor that enjoys their work but want to increase their earning potential, it would be a great idea to look into getting started as a contract processor. There is opportunity out there to make a great living and own your own business. For some it could be an easy transition if they have already made a great name for themselves and it can be a bit harder for others but it all depends on how much you are willing to put into it.
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Before taking such a step it would be best to do your homework first. Taking a course about the essentials for setting your business up is a great start. Taking some business classes can help in learning how to operate a company efficiently is always helpful as well. The main thing you want to be sure of is knowing the type of products and programs you can and can’t work with and taking courses to build your skills up accordingly. When you are marketing your business you do not want to advertise you can do something that you really don’t understand.
To get an idea of some essential components of starting a contract processing business you need to learn about what is required of a contract processor first. Get familiar with the SAFE Act and requirements for being licensed with your state. You’ll also want to learn about the different kinds of business formations and what would be best for what you want to accomplish. Develop a business plan for yourself to get your vision written down so you will know exactly what you will be working towards.
In order to be an effective contract processor you really have to view yourself as a salesperson. You have to know how to market yourself properly and when you start receiving contracts with loan officers and brokers you have to wow them to make sure they want to stay with you. It is a good idea to learn how to retain your clients, improve your customer service skills and understand who exactly your customers are. As pointed out in previous articles there are several types of customers we have to work with on a day to day basis and that doesn’t change for a contract processor.
When working with customers daily do you take time to get to know who they are and what they really need? Have you been able to determine and resolve potential problems that weren’t showing up in their documentation just by having real genuine conversations with them and actually taking time to listen? These are skills that a contract processor definitely needs to have in order to make a successful business. Spending time on customer service and relationship building will take you to the next level even if you plan to stay working as an employed loan processor it will help you grow in your career.
Another good thing to start doing now if you haven’t already is developing a good time management system that works for you. It is not always easy to juggle so many things to do but when you learn how to balance yourself and your time that will save you a lot of issues down the road and will help you in retaining your business.
Other things to look into is how to setup your office and what will be needed to run efficiently. You operations are only good as your office and yourself has the capacity to do. Figure out if you will need more processors working for you and what the requirements are for hiring them. You’ll need to know about any legal documents needed to contract with your clients and employees/independent contractors. You’ll also need to know what type of forms/checklists to be used in your daily operations.
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Owning your own business can be fun and very rewarding but it takes some effort to make the switch from being an employee to business owner. There are plenty of opportunities to make a successful business so if you feel you have what it takes, do your research, do some good planning, and go ahead and get your contract processing business started!
About The Author
Shawna Greene - As an active NAMP® member, Ms. Shawna Greene is a Senior Loan Specialist working full-time with a major U.S. Homebuilder (NVR, Inc). Her work includes processing, training, and assisting loan closers. She has been in the mortgage industry for 12 years working in several aspects of the business including being a mortgage broker, loan officer, loan processor, servicing settlements, loan modifications, special loans, investor reporting, and mortgage defaults. Shawna enjoys this business and looks forward to helping many others learn about it as well. Shawna is also a mortgage instructor for Loan Processor University (www.LoanProcessorTraining.org). If you're interested in becoming a writer for NAMP®, please email us at: contact@mortgageprocessor.org.
