Loan Simple Reviews

Company and Model Overview Loan Simple Consumer Direct is a lead based strict call center that specializes in first time home buyer purchase mortgage transactions. Nearly every loan officer hired has 0 mortgage experience. Management cultures and nurtures new loan officers to do things the way they want after training and licensing the new loan officers. This is done for many BUSINESS reasons- not because they want to give you an opportunity or whatever reason they say. The model is extremely flawed, and the mass turnover reflects it- EVERY SINGLE LOAN OFFICER WITH OVER 6 MONTHS OF EXPERIENCE HAS LEFT AT THE TIME OF WRITING- consider this division a free-falling company trying to salvage by mass hiring, similar to a penny stock. This division’s first non-management hires were in July of 2020. There last will probably be around July of 2022. This company wont make it much longer as it’s complete trash. The model works as follows: by hiring new money hungry loan officers that know nothing, they can be trained in what is deemed the proper manner and paid industry low compensation with industry high PURCHASE MORTGAGE standards. The compensation plan for new loan officers is as follows: MINIMUM WAGE if you close less than 4 loans per month, 22.5BPS for all loans when closing 4 to 6 loans, 37.5BPS for closing between 7-9 in a month, and finally 10+ loans at 55BPS retro for all loans. If you don't know what BPS is- think of it as a percentage of loan amount (the division average is ~$260k loan amount). For example- if you close 6 loans per month- here is the math and your approximate annual compensation- $260k X 6= $1.56M. $1.56M X 0.225% = $3510. $3510x12= $42,120 annually. This plus your minimum wage plus overtime base (~$3300 per month) and you are looking at an annual compensation of ~$82k to fund 6 loans per month. This sounds good to new loan officers who are broke but is extremely below industry standard compensation. For reference- no loan officer has been able to make over $160k since the date of hiring despite management consistently saying you can determine however much you would like to make. At nearly any other company- that $82k is $200K+ for the same production. This model is EXTREMELY PROFITABLE for the business though. By closing less than 4 loans in a month, you get minimum wage, and the company makes all the money. No matter what tier you are, the company makes out incredibly as you are paid so many BPS below industry standard (80-150BPS is normal) that their per unit profit margin is incredible. What makes this model awful for the individual loan officer is that given the nature of the MONTHLY tiers for loan closings, you will be constantly stressed as you are one appraisal, processor, or anything else out of your control from making minimum wage in the month. If you do- your managers will just tell you to put 15 loans in each month so you never will have to stress- NOT 1 Loan officer has been able to consistently do this or even come close- best loan officer averaged just under 8 per month... One major flaw in this is that the tier system is built for refinance not purchase. There is so many things out of your control for purchase mortgages. This is the hardest and most competitive purchase market ever- some homes get 50+ offers on them- that this model absolutely sucks for the current market conditions. It does even when the market turns back to a buyer’s market as if you can close 10+ loans in this model in a good market, you can do the same and get paid 2.5x as much at another company- either way it is a bad business decision by you the future or current employee. Why the Company is an Absolute Joke They lie to you and tell you leads cost $40-100 per and how much overhead you have. The reality is- for the exact same EXCLUSIVE leads- they can be purchased for about $15 per. I know this because I am doing it at a much better mortgage company as I write this. They are either too incompetent to figure out how to do this or openly lie to their loan officers- pathetic either way. The day-to-day environment feels that of a dictatorship- the reason being is because there is a very limited amount of time this division has left before it goes bankrupt. Despite the insane profit abilities that the model has to offer if done properly (refer to above)- management is so incompetent that this division bleeds money somehow. Despite leads being so cheap, they would rather force you to have hour long conversations with borrowers who clearly do not qualify and to educate them on how to qualify in a year. Problem with this is neither you nor the sham of a company division will be around in a year to reap the rewards. Every loan officer at the company views it as a 1 year starting job to get them in the mortgage industry door and then to leave. Hardly anybody actually views the place as a long-term career and rightly so. No good company in any industry can have the turnover that this one does. The Chief person leading this division is a complete schmuck who is the most selfish, arrogant, and egotistical person I have ever met. He thinks every decision he makes is smart and the best for the company. He has so much pride that he can not even take a step back to realize that HE is the single reason that there are less active loan officers today than 1 year ago. No one wants to work for such a two-faced loser. Management decisions are so incredibly incompetent I do not even know where to start... Example: they signed a $40K a month lease for an office space that went unused for 6 months next to the one they had in anticipation for growth- too bad everyone left. They still pay on it, and no one is in it except for an occasional meeting. The similarities between this division and North Korea is immense: information censoring, a military-like daily routine that consists of strict call blocks and management listening to your calls (surveillance), and daily lies and cover ups. CYA is their motto. The company is failing so badly that they got rid of their entire Consumer Direct Underwriting department. To get more and better processors and underwriters, loan officers are told to get more loans so they can hire other people. This makes for an absolute mess as there are either never enough loans to hire more people or enough loans, but they can’t hire people quick enough, so you miss every closing. Out of the 100+ loans I closed, probably about 30% closed on time. The rate of closing didn’t increase as time went on either. The CEO of the company listens to phone calls of individual loan officers. If as a CEO you have time to do this, your company is clearly a joke. In conclusion, this company is a failing start up division within a mortgage company that won’t make it much longer. Management has already stated a standard of production that must be met by June of 2022. With all the loan officers that have ever funded a loan leaving in a mass exodus over a 1-month timeframe, they will achieve 25% of the stated goal. This company is just pathetic.

This company is a joke. They do lay offs once a month and when you ask the CEO of you should be looking he lies and says “No you’re safe, we only have the best of the best left” the following week to be laid off. Then you see on LinkedIn that they’re hiring new positions and PATH positions. What for? I’m happy to watch this company sink now.