Just Passed Exam Now Looking for an MGA

[ksigmtsu]

Why not have an MGA? You can start out making over street, with support, vs making street with no support. That's a no brainer if there ever was one.

 

[newagent70]

Newagent70, first of all congrats, having originated morts. sold re I really think that you need to get away from the idea that you have a built in client base. In order to do the right thing by these clients in most cases will involve underwriting, parameds etc. You're not going to hold up any re closing waiting on approval for an insurance policy. Good luck with it, go for um after the closing, unless you feel good about putting everybody in non med fast issue products.

I would never think of holding up a closing. In fact since escrows are typically 30 days my thought process was to have the prospect start the process during escrow with a start date on the contract being their closing date and have the check cut at title. Again this is a theory and not sure if it would go far but I'm the "think outside of the box" kind of person and thought why not try it and see.

Newagent70

 

[VolAgent]

I would never think of holding up a closing. In fact since escrows are typically 30 days my thought process was to have the prospect start the process during escrow with a start date on the contract being their closing date and have the check cut at title. Again this is a theory and not sure if it would go far but I'm the "think outside of the box" kind of person and thought why not try it and see.

Newagent70

Hate to tell you this, but you'll be lucky to get 30% of your underwritten policies issued in 30 days. Some of that will be the applicants fault, some will be your fault, some will be the MGA's fault, and some will be the carrier's fault. Too many things happen to drag out underwriting. Tell them 6-8 weeks, and very rarely will you be wrong. Most will get issued at 4-6 weeks if they are clean.

 

[thall]

newagent70, you've missed the point. I know you would not hold up the closing. It's not your closing to hold up. Too many varibles involved to throw your cog into the mix. Not to mention messing up debt ratio in some cases, I know insurance (life) premiums are not counted toward debt ratio, but if you've been in the mortgage business for awhile you never know what those little underwriters will come up with just to cover themselves. Once again good luck with it, but I think you'll find that for everyone involved, including the home seller. You will be better off showing up with a house warming gift after the closing.

 

[newbyagent]

Why not have an MGA? You can start out making over street, with support, vs making street with no support. That's a no brainer if there ever was one.

Do you think there is value in staying with a MGA after an agent has established themselves? Or should they work with an MGA until they are stable and then go without?

 

[newagent70]

newagent70, you've missed the point. I know you would not hold up the closing. It's not your closing to hold up. Too many varibles involved to throw your cog into the mix. Not to mention messing up debt ratio in some cases, I know insurance (life) premiums are not counted toward debt ratio, but if you've been in the mortgage business for awhile you never know what those little underwriters will come up with just to cover themselves. Once again good luck with it, but I think you'll find that for everyone involved, including the home seller. You will be better off showing up with a house warming gift after the closing.

I wasn't looking at adding the monthly premium into the mortgage payment, I was "thinking" about having the 1st year paid upfront via seller paid closing costs. The homeowner would be responsible the following years. I have read all of the problems that could come into play by going this route and come to realize this may be more of a hassle than intended.

I do like your suggestion about the house warming gift though.

Newagent70

 

[newbyagent]

Why not have an MGA? You can start out making over street, with support, vs making street with no support. That's a no brainer if there ever was one.

I've never heard the term "making street". What does that mean?

 

[VolAgent]

I've never heard the term "making street". What does that mean?

Street level compensation, i.e. what anyone walking in off the street with history of production can expect to get.

 

[ksigmtsu]

Most carrier start you off at like 70% commission direct, or you can go with a decent MGA and start at 90%. For someone like me that is primarily doing Health/Medicare, starting at 90% instead of 70% with possibility of higher with higher production makes a load more sense. For most agents that will burn out in the first 365 days, they'd be better off with an MGA helping them. For the agents who are part time, they'd be better off with an MGA because they'd never achieve higher commission for production.

The only scenario I can think of where you're not better with an MGA is someone who pumps out apps for 1 carrier or 2, has very high production and wants to be a GA or MGA themselves.