The era of the non-profit mortgage broker has begun and it looks like the non-profit armies are rounding up the troops for battle.

I know, I know, for profit loan officers and brokers are saying, “Yeah, right! They can’t do what we can do? They are not has smart as we are and how can they help anyone get a mortgage without having a 745 Beemer, Prada shoes and charging 4 points a loan?

Well, let me tell you something, non-profits can sell loans just like any for profit and I am sure that the client will not have to worry about being baited and switched, undisclosed kick backs, 3 year hard pre-pays and down right fraud.

I will be following this closely because I feel it is a definite viable alternative to the decade of mortgage decadence, greed and fraud that was perpetuated by the lending industry. Personally, I feel that there are some legitimate economic reasons for non-profit/government intervention in the mortgage markets and we don’t have to look far to see what the for profit lending industry has done to our economy and housing market thus far.

The Neighborhood Works Organization (NWO) has started a new mortgage broker pilot program in which they are developing 25 chartered NWO’s to become non-profit mortgage brokers. They are looking for a “consultant” to help them bring this operation full force ahead. So, any out of work mortgage brokers out there, you may want to check this opportunity out.

Some non-profits like the Washington State Housing Fiance Commission have set up a special traing program for loan officers and brokers who want to be able to receive referrals from government sponsored loan programs.

The Neighborhood Assistance Corporation of America (“NACA”) is aggressively hiring mortgage consultants . Check out their website.

Mortgage Consultant

SALARY RANGE: 45,000-65,000+ Annual Compensation
BENEFITS: Excellent single/family health and dental PPO, 80% employer contribution, 401K & more.

The Housing Counselor/Consultant is responsible for providing comprehensive housing counseling services to the Members. The Housing Consultant works with Members to assist them through the home buying process and to overcome the roadblocks that would prevent them from purchasing a home. The Housing Consultant provides individual counseling from the initial intake to the mortgage closing including counseling regarding: credit, budget, mortgage qualification, property search and inspection, mortgage processing, and closing. They make decisions appropriate to the particular case, follow up with problem resolution, and take action to facilitate successful completion of the task(s). The Housing Consultant is in fact underwriting the mortgage and must make individualized judgment’s of Members cased based on NACA’s policies and procedures. The services performed by the Housing Consultant are a key component of NACA’s business, and of crucial importance to the organization and must administer the program to ensure the success of NACA and the continuous commitment of the funding sources.

NACA is the only job in the mortgage industry that allows you to provide low and moderate income borrowers with an incredible mortgage and to make a considerable income without engaging in sub-prime practices. The compensation at NACA is based on our own ‘Results Compensation Program- ‘NRCP’. The NRCP would begin after the first three months of employment during which the compensation is straight salary in order to allow for training and the development of a pipeline. The structure of the NRCP Program is results based (i.e. number of loans closed) with a draw providing a minimum cash flow. But it is very different from other commission-based plans used by for-profit mortgage brokers and lenders:

1. NACA offers one single product which is the Best Mortgage in America with no down payment, no closing costs, no fees, and a below market interest rate-NACA provides the lowest fixed interest rate for all mortgage applicants whether a prime or sub-prime borrower;
2. Compensation is paid at a fixed amount regardless of the loan amount or any other terms. Thus NACA staff do not have to balance their own interest against that of the borrower since they do not have to charge front-end and back-end points (i.e. yield spreads) to earn their commission;
3. The NRCP provides a minimum of pay: For pay periods without loan closings, NACA provides an advance to be repaid from future closings;
4. NACA staff are not required to generate leads since the interest in the NACA Mortgage and active participation already exists;
5. Housing Consultants counsel borrowers in the office and focus on getting them Qualified;
6. NACA Qualification is a ‘Character-Based Lending’ and not a risk-based pricing. NACA approves their members based on their overall circumstances and not on rigid criteria.
7. NACA staff have at their disposal a state-of-the-art computer hardware and software (‘NACA Lynx’) which makes for a fast, efficient and paperless mortgage qualification, processing and underwriting;

NACA has huge numbers of people accessing the program. These participants are extremely good leads that could not be generated through traditional sources. A NACA Housing Consultant is expected to close five to ten per month and earn $45,000 to $65,000+.

It’s not like the $100k plus years that most mortgage professionals experienced in the past. But hey, it beats working at Countrywide!

I suspect much more news to be coming out of the non-profit mortgage broker camp for some time to come and I expect many for-profits will be filing their 501 (c)  3’s  with the IRS in the coming months.