How to Start a Mortgage Brokerage While Working as a Loan Officer (Without Losing Income or Momentum)

Starting your own mortgage business can feel overwhelming — even impossible — when you’re still originating loans every day. Maybe you’re afraid it’s too risky. Too expensive. Maybe you’re worried you’re not ready, or not producing “enough” to justify the leap.

Here’s the truth: you don’t have to leap. You can build your mortgage brokerage step-by-step while still earning as a loan officer.

After more than 20 years in the industry, opening multiple brokerages, and helping dozens of loan officers do the same, I’ve learned that mortgage business ownership isn’t about being fearless — it’s about following the right frameworks.

And if you’ve been curious (but cautious), this guide is 100% for you.

Below, we’ll walk through the three-step process to start a mortgage brokerage while working as a loan officer, plus a bonus step most people overlook that can make or break your success.

Step 1: Clarify Your Mortgage Business Vision

Most loan officers skip this step — and it’s the biggest reason their business never gets off the ground.

Before you think about licensing, systems, or staffing, you need complete clarity on what you’re building, why you’re building it, and what you want this business to become.

Because here’s the truth:

You can’t build a business you can’t see.

Start With Your “Why”

Ask yourself:

• Why do I want to become a mortgage broker owner?

• Is it for more income?

• More control?

• The ability to build something lasting that can run without me?

• Am I building a legacy for my family or a scalable business for my team?

If you haven’t read Vivid Vision by Cameron Herold or Start With Why by Simon Sinek, add them to your list. These two books will flip the switch that so many loan officers never turn on.

A Real Example of a Vivid Business Vision

To show you how powerful clarity can be, here’s an excerpt from my own Vivid Vision:

“Co/LAB is on a mission to disrupt the mortgage industry by helping mortgage and real estate professionals realize their inner entrepreneur so they can achieve financial and business freedom while leaving a lasting and meaningful impact. Traditional mortgage models say ‘Come work for us.’ Co/LAB says, ‘Come collaborate with us and build your own thing alongside us.’ We provide an affordable model that skips the trials and failures and sets you up from year one to focus on growth, freedom, and legacy.”

This clarity didn’t just help me create a company — it shaped every decision, hire, investment, and partnership we made since.

Define the Type of Mortgage Brokerage You Want

Close your eyes and picture the business you want to run three years from now:

• Is it just you?

• A small, elite team?

• A multi-branch operation across multiple states?

• Do you want to stay in production forever?

• Or eventually step out and lead?

• Stay local? Or go national and remote?

Nothing is off the table — and the more honest you are, the better your business decisions will be.

Identify Your Non-Negotiables

These will guide your licensing decisions, your business model, and your hiring strategy.

Examples:

• “I want to step out of production eventually.”

• “I don’t want to work weekends anymore.”

• “I want to build something my kids can take over.”

• “I want to run a virtual, multi-state operation.”

Your vision is your roadmap. Without it, every next step feels overwhelming. With it, every next step becomes obvious.

Step 2: Learn the Mortgage Business Frameworks

Being a great loan officer is not enough to run a great brokerage.

And that’s not an insult — it’s a reality of business ownership.

When you start a mortgage brokerage, you take on new responsibilities no one prepared you for:

Licensing & Compliance

This includes:

• State licensing requirements

• Bonds

• NMLS filings

• Maintaining renewals

• Compliance systems and audits

  State-specific rules

Could you figure it all out yourself? Yes.

Should you? Absolutely not.

There are experts — and entire business models — designed to help you.

Processing

Before you launch, decide:

• In-house processing?

• Outsourced contract processors?

• Hybrid model?

This decision affects your margins, your workflow, and the experience your future loan officers will have.

Marketing & Lead Generation

This is where most brokers struggle.

You’re no longer just selling yourself.

You’re selling a company with systems, a brand, and eventually an opportunity for others to join you.

Your marketing strategy must include:

• A clear brand identity

• Automated lead nurture

• Content creation or outsourcing

• Systems your future team can duplicate

• Technology Stack

This is your infrastructure.

Think:

• LOS

• POS

• CRM

• Pipeline tools

• Calendar + appointment systems

• File management

• Analytics

You don’t want tech that slows you down — you want tools that support growth.

Team Structure

Even if it’s just you, define:

• What does an LOA do?

• What does your processor handle?

• Who handles marketing?

• Where are the handoffs?

A business without clarity becomes chaos — fast.

Financial Systems

One of the biggest mistakes new owners make?

Not understanding their financials before launching.

You need:

• A business bank account

• Accounting software

• Bookkeeping processes

• Compensation plans

• A clear understanding of your break-even point

You cannot run a business blindfolded.

Choose Your Ownership Model Wisely

This step alone prevents more burnout and failure than anything else.

Your options:

1. Do Everything Yourself (Full Independent Broker)

Great if you love control and have time + money to build systems.

2. Plug Into a Mortgage Brokerage Support Model

This gives you:

• Licensing support

• Compliance management

• Technology stack

• Processing systems

• Marketing templates

• Training

• Support team

And you still own your business.

3. Transition Team at Co/LAB (The Hybrid Model)

Perfect for loan officers who want:

• Full ownership

• Retail-style support

• More income

• Step-by-step guidance

• A smooth transition

This is ideal if you’re somewhere you can’t talk about opening your business — but you still want to build it the right way.

Step 3: Start Your Mortgage Brokerage While You’re Still Earning

Here’s the part most loan officers don’t realize:

You do NOT need to quit your job to start your mortgage brokerage.

You can:

• Apply for your company license

• Build your systems

• Set up your tech

• Prepare your brand

• Create your financial plan

• Build your operational foundation

ALL while still closing loans.

Yes — privately.

Or, if you use a transition model like ours, even openly.

How the Transition Team at Co/LAB Works

Some loan officers choose to remain sponsored under a Co/LAB brokerage while building their new company.

This lets you:

• Keep earning on every loan

• Avoid secrecy at work

• Learn the business model

• Let our team help you get licensed

• Transition when approved

• Never lose income in the process

Here's what it looks like:

The Path:

• Schedule a Discovery Call

• Learn how the transition works.

• Review the Financial Templates

• We show you exactly what your income looks like now vs. as an owner.

• Meet the Support Team

• Understand who handles licensing, compliance, lenders, processing, etc.

• Begin Your Slow Transition

• Once your new brokerage is generating income, you gradually shift production.

• No panic.

• No income drop.

• No quitting before you’re ready.

This is the smartest path for loan officers who want ownership without chaos.

Bonus Step: Know Your Numbers

Launching a brokerage without knowing your numbers is like flying a plane without instruments.

You need to know:

• Your monthly income goal

• Your fixed business costs

• The number of loans needed to break even

• Your profitability per loan

• Where your money is actually going

Once you’re an owner, every decision affects your bottom line.

That’s why our brokers get access to templates and dashboards that track:

• Cash flow

• Loan profitability

• Fixed + variable expenses

• Revenue projections

• Break-even analysis

When you understand your numbers, you make better decisions — and sleep better at night.

Final Thoughts: You Don’t Need to Wait for the “Perfect Time”

There will never be a perfect moment to open your business.

You’ll always have loans in process.

You’ll never feel 100% ready.

That’s why the smartest path is to start the foundation while you’re still earning.

To recap:

• Clarify your vision

• Understand the business frameworks

• Start your brokerage while still working as a loan officer

• Know your numbers (bonus — but essential)

Whether you want a small boutique brokerage or a multi-state firm, the best time to start laying the foundation is now — not “someday.”

Ready to Start Your Mortgage Brokerage the Right Way?

If you want support, templates, licensing guidance, systems, compliance help, or a transition model that lets you earn while building, we can help.

Book a discovery call by clicking this link

We’ll walk you through:

• Your income comparison

• Your best brokerage model

• The step-by-step transition plan

• The support team behind you

You’re closer than you think to being a business owner.

Megan Marsh
CEO/ FOUNDER of Co/LAB Broker Concierge

In Case You Missed Our Previous Blogs & YouTube Videos..

Read Here: Mortgage Loan Officer Career Path: Choose the Right Future in Lending

This guide breaks down your options, help you evaluate opportunities, and empower you to make the best decision for your career, lifestyle, and financial future.

Read Here: How to Start a Mortgage Company Fast: The Complete Step-by-Step Timeline for Loan Officers

This blog breaks down the fastest, most efficient way for loan officers to open their own mortgage company—without wasting time, money, or momentum. Using the same step-by-step process Megan teaches her clients, it shows you how to go from idea to fully operational in as little as 45–90 days.

Mortgage Broker Support

Need help starting your mortgage business? Our Mortgage Broker Concierge Team is here to assist you!

If you’re curious about how we can help you simplify your operations beyond what our videos offer and want to know how you can make launching or running your brokerage stress-free, the link below explains everything. No fluff, no “exclusive training” gimmicks—just a straightforward way to see how we work with brokers to take backend tasks off their plates. Check it out here:https://colablendingfranchise.com/book-a-discovery-call