1) Slam your
competition with baseless reviews: I recently
received a one star review on my team page. Horrified I immediately clicked
on who this was as it was the first bad review we had gotten. It was
another local lender who I have never met, shared a client with etc... I
emailed him to see how he came to this review and got nothing back. Why did I
get nothing back? Because it was a baseless review meant to try to lower my
overall rating. If you are so desperate for business you have to become an
internet troll you should probably just leave the business now. Hating is
not going to boost your business it is just going to show you have too much
spare time on your hands.
2) Promise what you
This is like the golden rule of sales. Never over promise and under
deliver yet is it something we see every day in the mortgage business.
There is always a lender quoting 1% lower than the rest of the market to get
the deal. Do they ever deliver that rate? No. But their
theory is that once they get the deal far enough then they can give the client
the bad news that they have a higher rate but the client will be too entrenched
to switch. This may get you one deal but you will lose the Realtor and
future referrals. As a Realtor if you hear from client that the lender
you are suggesting is doing this you need to switch lenders because this is a
reflection of you and you just lost the referral too.
3) Take every deal; even ones that
will never close: Some loans are not going to happen. The
borrowers do not qualify. It will not close. Part of being a good
lender is being able to say no and put the client on the path to become a yes. Unfortunately there are some lenders who in a
desperate bid to boost business take every deal and try to "get it to
stick." You see this a bit more in the broker world then in mortgage
banking because as a broker you have multiple different sources to shop it
to. This is terrible for the client and Realtor because what they keep
hearing is "II have submitted it to XYZ and I really think they will go
for it even though ABC and HIJ did not." What happened? XYZ
declines. This is a deal that would never close but the client,
the seller and the realtors have been put through an escrow that will never
close and emotional turmoil because the lender was giving it a shot. The
client/borrower may lose thousands of dollars on inspections and their deposit just
because “Bob” thought he would “see if it could stick.”
Bottom line: I
understand everyone has to make a living.
You can make a great living in this industry and stay ethical. Know your
guidelines and treat your clients and realtors as you would want to be treated and you will always have a living
If you have been a victim of one of the three above I stongely suggest this song. It is fun and reminds you to Shake it off. www.guaranteedrate.com/jenniferbeeston
CARD SKIMMING : The act of using a
skimmer to illegally collect data from the magnetic stripe of a credit, debit
or ATM card. This information, copied onto another blank card's magnetic
stripe, is then used by an identity thief to make purchases or withdraw cash in
the name of the actual account holder
The problem: Did you know one of
the fastest growing ways for identity thieves to access your credit is via
skimmers?Â Â Did you also know that the
number one location to place a skimmer is a gas station pump?Â Indistinguishable to the naked eye thieves
can easily put skimmers on gas station pumps.Â
When you swipe you card to pay for your gas you are giving them
everything they need to make a duplicate credit card of yours and empty your
bank account/credit card.Â This is
happening all over California in even small towns.Â I thought that in my small town there was no
way thieves would infiltrate.Â I was
wrong both myself and two of my friends got emptied at the same gas station.
This is happening EVERYWHERE!!!
Solution:Â I really
like this solution because it protects you but also helps schools and charity
organizations and costs you no additional money.Â It is super simple. Buy scrip gas cards.Â They cost no more then you would pay at the
pump and you use them exactly like a credit card but your identity is safe the
entire time.Â Thecharity or school
makes money from you protecting yourself.Â
That is clearly a win win.
Check out and pick
your organization today http://www.escrip.com/
As a lender one of my main sources of business is realtor referrals.Â These are people we work time and time again, that know how we work and what we can accomplish.Â They trust their livelihood with us every day.Â If we canâ€™t close the loan then they do not get paid, they have an unhappy client and may get bad mouthed in the community.Â We take our responsibilities as lenders very serious because it is never just a house at play.Â
Part of working with Realtors is qualifying their clients or getting them approved.Â Often clients bristle at this as they feel there must be some secret deal between the Realtor and the lender.Â For the record there is not. Â If a lender ever paid a realtor or gave them gifts as thank you for clients both the Realtor and the lender could lose their license.Â A lead is not worth our livelihoods or the realtors.
Why Realtors insist on clients getting qualified with a trusted lender:
1) So you do not go home shopping when you should be saving or working on your credit
2) Going shopping in too high of a price range.Â If you have been looking at 400k homes and only qualify for $325,000 it will be a tough trade down.
3) If you have 12 pages of collections on your credit report, no job and no money down you have absolutely no business looking for a home.Â And Yes, I run into people like this every day.Â You are wasting the realtors time and gas. Realtors only get paid if you purchase closes.Â Looking without the potential to close is completely rude.
4) So you do not lose your deposit.Â When you fill out a purchase contract a deposit is required.Â If you cannot meet the obligations of the contract you lose that deposit as well as any inspection and appraisal fees you paid.Â If the lender you chose online canâ€™tÂ close or you do not really qualify it could cost you thousands of dollars
5) To put your purchase contract together the Realtor has to know what exactly you are qualified for.Â Saying I am qualified up to $450,000 is not enough.Â If you were qualified for VA up to $450,000 that is a lot different than other loan programs and the purchase contract has to address that
6) So they can sleep at night.Â If they know you are using their lender, they know you are taken care of and can actually closeÂ this helps them to sleep. And a well rested Realtor is a happy realtor who has a happy client etcâ€¦.
The Obama administration in yet another move to stall our housing economy (they say save all indicators and historical data points to stall) has decided that the annual mortgage insurance premium on FHA loansÂ should be raisedÂ again.Â Yes, again.Â This was part of their FY 2013 budget they just sent to Congress.Â
A brief history of Mortgage insurance: It was raised from .55% to 1.15% last year which horrified lenders and borrowers.Â Not paying any attention to the negative circumstances they created and increased borrower hurdles they created they are increasing it again.Â Apparently, the Obama administration needs a reminder lesson on cause and effect.
The New Increases:
1.25% annual premium for loans under $625,500
1.5% annual premium for loans over $625,500
Example of why this is horrible: On a $700,000 loan that is an extra $204 per month, making the monthly mortgage insurance $875 per month.Â That is a very nice car payment except there is no car and it does not go towards anything tangible for the borrower.Â
Why: They claim that FHA's delinquencies are increasing, which they are.Â But they are not on loans originated in the past few years but rather loans originated when FHA had very loose credit score requirements and allowed the borrower to do 100% financing through down payment assistance programs. AKA 4+ years ago.Â Also they are not on the higher end loans yet that is who is being hit the hardest.Â Seems fair?
When: The changes are expected to occur in mid April.