Meet the Mortgage Broker: Bob Cawley

Ever wonder what it is that mortgage brokers do? Are you intrigued by the world of real estate and enjoy crunching numbers? Mortgage brokers help their clients secure loans when buying houses and condos. If you enjoy real estate, finances and working with people, earning your mortgage broker licence may be a good fit.

Bob Cawley, a licensed mortgage broker with Abacus Financial Inc. in Allentown, Pennsylvania would agree. Here, he discusses on his profession, why he loves helping others find mortgages and what prospective mortgage brokers should know about the field.

I have been self-employed all my life. I owned a number of rental properties and did a lot of my own construction work. I also owned a chain of health clubs and tanning salons for a long time. As a real estate investor, I bought properties and saw how everybody put deals together. After a few purchases I discovered that I really liked the act of putting deals together.

I thought about getting my mortgage broker's license a long time, but never went for it. I got to the point in my life where I thought: What would happen if I were to get hurt and could no longer do this physical construction work? I felt that I had to do something else.

I went to work for a local office of a large, national mortgage corporation. They sent us to school when I first started. To get your mortgage broker license in Pennsylvania, you must complete at least six hours of continuing education and training each year, which can be completed online (that requirement may soon be increased to 20 hours). You also have to pass state and national tests and prepare for the exams by taking courses.

When I started at this company I knew I wanted to learn the mortgage broker business and that eventually I wanted to go out on my own. I worked at the mortgage company for almost five years and then my buddy in Colorado split from his company at the time and we set up our own branch of Abacus Financial here, where I live in Pennsylvania.

My favorite part is getting to the closing table and putting someone in a home that they've dreamed of owning. Years ago, getting someone a mortgage was a slam dunk, but these days it can be a real challenge as the regulations and guidelines (thanks to the sub-prime mortgage crisis) are changing almost every day. It's always changing and is crazy that what you thought you knew one day might not be true the next.

Some mortgage loans are easy--if someone comes to you with a credit score of 700 or more, has 20% to put down, and a steady income they should have a relatively easy time getting a loan. But for those who may have some blemishes on their credit, you've got to do some jumping through hoops to get them a mortgage with which they are comfortable.

With some people, it's best to show them how they can save and what they need to do to improve their credit. These individuals might be better off coming back in six months and reapplying for a mortgage. You've got to know your business and how to help people. When you get someone a mortgage and everything goes well, it can be very rewarding.

First, be willing to work hard and long hours. I make myself available 24/7. You've got to be there on Saturdays and Sundays when someone calls you and wants to know what the payments would be on a house they want to buy. You can do some calculations and give them a ballpark figure and say that you'll talk to them again on Monday when you can work up the numbers in more detail.

When you're first starting out you're going to want to put in the time. All of my business comes from referrals-- I don't advertise. If you do things properly, people will appreciate that and will refer clients to you. You have to build connections with a number of people as it's not just real estate agents who make referrals. There are financial planners and attorneys who can send potential clients you way too.

It can be hard getting your foot in the door, but it's all about proving yourself. If you enjoy helping people achieve their dreams, it can be a great business.