How to Choose a Sponsoring Company as a New MLO

Every state-licensed MLO must work under a licensed mortgage company sponsor. Your choice of sponsor significantly impacts your training, income, and career trajectory. New MLOs at companies with strong training programs close 50% more loans in their first year compared to those without structured support.

Understanding Sponsorship

What Sponsorship Means

A sponsoring company:

Holds the company mortgage license
Takes responsibility for your activities
Provides compliance oversight
Enables you to originate in their name
Typically provides technology and support

Sponsorship Requirements

Before originating, you must:

Complete all licensing requirements
Be approved by a sponsoring company
Have sponsor submit through NMLS
Receive state approval of the relationship

Types of Mortgage Companies

Retail Mortgage Lenders

Description: Originate directly to consumers, fund loans in their name

Examples: Rocket Mortgage, LoanDepot, Guild Mortgage

Pros:

Brand recognition
Marketing support
Structured training
Technology investment
Typically some base salary

Cons:

Lower commission splits
Less flexibility
Corporate structure
May have quotas

Mortgage Banks

Description: Fund and sell loans, often retain servicing

Examples: United Wholesale, PrimeLending, Caliber

Pros:

Broader product access
Competitive pricing
Professional environment
Career advancement paths

Cons:

Variable culture by location
May have geographic limits
Production expectations

Mortgage Brokerages

Description: Originate through multiple lenders, don’t fund directly

Examples: Local and regional brokers

Pros:

Typically higher splits
Product flexibility
Often more entrepreneurial
Less corporate bureaucracy

Cons:

Less brand recognition
Training varies widely
May lack technology
Higher personal responsibility

Credit Unions and Banks

Description: Depository institutions with mortgage departments

Examples: Local banks, regional credit unions

Pros:

Stable salary often included
Benefits packages
Existing customer base
Less pressure

Cons:

Typically lower commissions
Limited products
Federal registration (not state license)
May have rate constraints

Compensation Structures

Common Models

Model	Base Salary	Commission	Best For
Salary + small commission	$40-60K	25-50 bps	New MLOs, lower volume
Draw against commission	$3-5K/mo draw	75-100 bps	Experienced, ramping
Commission only	$0	100-150+ bps	High producers
Basis points	Varies	Per-loan basis	All levels

Understanding Basis Points

Commission often expressed in basis points (bps):

100 bps = 1% of loan amount
$300,000 loan × 1% = $3,000 commission

Calculating Total Compensation

When comparing offers, calculate:

Base salary (annual)
Commission per loan × expected volume
Value of benefits
Costs you’ll bear

Example comparison:

Factor	Company A	Company B
Base salary	$50,000	$0
Commission	50 bps	125 bps
Per $300K loan	$1,500	$3,750
36 loans/year	$54,000	$135,000
Total potential	$104,000	$135,000

But Company A has less risk if you close fewer loans.

Evaluating Training Programs

What Good Training Includes

Initial training:

Product knowledge
System training
Compliance requirements
Sales process
Pipeline management

Ongoing support:

Mentorship program
Regular coaching
Advanced training
Certification opportunities

Questions About Training

What does new MLO training look like?
How long is the initial training period?
Is there assigned mentorship?
What ongoing education is provided?
How do you help MLOs who are struggling?

Red Flags

“You’ll learn as you go”
No structured program
Training costs deducted from commissions
Sink-or-swim mentality

Technology and Support

Essential Tools

A good sponsor provides:

Loan origination system (LOS)
CRM for lead management
Point-of-sale application platform
Pricing engine
E-signature capability
Mobile tools

Support Staff

Consider availability of:

Processing support
Underwriting access
Compliance team
Marketing resources
IT support

Marketing Support

Does the company provide:

Lead generation
Co-branded materials
Social media content
Website presence
Brand recognition

Questions to Ask

About the Company

How long have you been in business?
What’s your annual origination volume?
How many loan officers do you have?
What’s your average MLO tenure?
Are you licensed in states I want?

About Compensation

What’s the full compensation structure?
What costs am I responsible for?
When and how often am I paid?
Are there quotas or minimums?
What happens if I underperform?

About Support

What technology do you provide?
How does processing work?
What’s your turn time on loans?
Do you provide leads?
What marketing support exists?

About Culture

What makes successful MLOs here?
How do loan officers collaborate?
What’s the management style?
How do you handle problems?
Can I talk to current loan officers?

Comparing Opportunities

Evaluation Framework

Rate each company on:

Factor	Weight	Company A	Company B
Training quality	25%	8	5
Compensation	20%	6	9
Technology	15%	9	6
Support	15%	7	6
Culture	15%	8	7
Growth potential	10%	7	8

For New MLOs

Prioritize (in order):

Training and mentorship
Support systems
Culture and environment
Technology tools
Compensation (less important initially)

Better training at lower commission beats higher commission with no support.

Making Your Decision

Interview Multiple Companies

Talk to at least 3-5 companies
Include different types (retail, broker, bank)
Ask similar questions to compare

Talk to Current MLOs

Request to speak with loan officers
Ask about real experience
Look for consistency with company claims

Trust Your Instincts

After research:

Did you feel welcomed?
Were questions answered honestly?
Can you see yourself succeeding there?
Does the culture fit you?

Key Takeaways

Sponsorship is required to originate
Company type affects culture and compensation
Training is critical for new MLOs
Technology and support impact productivity
Compare multiple opportunities before deciding

Ready to get licensed and find your sponsor? Start with our state licensing guides to understand requirements.