Question Details

Infinity Rea…,  in Saratoga, CA

Re Pros - What is your take on Loan officers in the current Market

Asked by Infinity Realty Network, Saratoga, CA Mon Nov 5, 2007

I know many of us Realtors used to be bombarded with loan officers or mortgage brokers offering us there services. Alot of shined them on, and thought there were a nuisance. I am starting to realize that a loan officer could become more important than ever in a Realtors success in todays market. Through actually closing your deals, when it is harder than ever before to get a loan done. And also as a referal partner, with so many people not being able to refinance mortgage brokers are getting these leads first. I just want to ask whats your take.

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I don't know WHO was doing your loans before? Just the big boys? Wells, Chase,CountryWide,BofA? I've made it a regular habit to use mortgage brokers as I wish them to keep me posted as to any trends, new loan products, etc which can make me more competitive in the marketplace. However, I'm also using the big boys more as I want to CLOSE the deal and feel the closer to the "source" gives me a better chance of funding. We are starting to have broker's come to our weekly Realtor meeting and "pitching" new and exciting programs for homebuyers. We have Cal-CFHA loans, "grant money" loans, "Acorn" loans plus many others which I feel one lender can't offer you and your clients. Some of the big boys can't broker out loans and some of the broker's won't make you aware of certain "lender specific" loans such as Wachovia's $25,000 grant money loan. So those pain in the tush folks you spoke of I've also considered an opportunity to find a new program for my buyers and/or Seller's to use in selling their home. Remember, we only have one job in this busienss--to be accoutable to our Seller or Buyer!
2 votes Thank Flag Link Mon Nov 5, 2007
The Walkers are dead on target. Every agent needs to have relationships with mortgage brokers and mortgage bankers....the right lenders are going to be crucial to your success...they always have been. There are literally HUNDREDS of different loan programs available, and new products are being offered all the time. a buyer that may have been turned down by one of the "Big Boys," may be able to get financing quite easily by a mortgage broker who can shop your buyers loan package to several different lenders at once. Many times, the "Big Boys" will offer more flexible loan products through a broker, that they will not offer through the local branch. You do need to choose your bankers and brokers very carefully and pay attention to the products they can turn a potential buyer into a buyer with the right lender and the right loan program, even if they were turned down elsewhere. These types of loans sometimes do not pay a great yield to the broker, and there is often much more work involved, so many brokers ignore these programs and concentrate on loans and borrowers that are easy to get into a loan. I call them the "A Paper Princesses." I make a habit of keeping tabs on the products offered by several area lenders. Depending on what a particular buyers financial picture looks like, I know which lender will have the best product for their particular lending situation, and therefore, I greatly improve my chances of doing the job they hired me to do!
1 vote Thank Flag Link Tue Nov 6, 2007
I think the creme will rise to the top and the rest will sink to the bottom of the barrell where they belong.

And, yes you are right. We all need each other right now and a good mortgage broker and/or loan officer is invaluable regardless of market conditions.
1 vote Thank Flag Link Tue Nov 6, 2007
I do work with 2 brokers and we work together with clients. I send them to the broker and when the broker has them qualified, they send them to us. It's a good partnership when you have a knowledgeable broker to work with. Many times the buyer isn't qualified right away so they have to work on their credit or other aspects so the broker keeps in touch with them and lets you now when they are ready.
Web Reference:
1 vote Thank Flag Link Mon Nov 5, 2007
Great answer Holly thanks for the feedback.
0 votes Thank Flag Link Mon Nov 12, 2007
Yield Spread Premium (YSP).
It's the $ made on the back end of the loan that was traditionally not disclosed to client. It is the hiked up interest rate the loan broker makes for selling the loan interest rate above par.
In CO the good old days of loan officers not having to disclose this are OFFICIALLY over. Now mortgage brokers have to disclose YSP to all potential borrowers but banks don't. HUH?
0 votes Thank Flag Link Tue Nov 6, 2007
what the heck is the YSP?
0 votes Thank Flag Link Tue Nov 6, 2007
Wheel and deal with them. Ask them for no closing costs-- they are getting the YSP!!!!!!!--they always make more than they let on.
0 votes Thank Flag Link Tue Nov 6, 2007
It's all about the money after all, isn't it?
0 votes Thank Flag Link Tue Nov 6, 2007
Great answer Michael.

I work with everyone and bring in retail banks and specialized lenders to my marketing meetings as much as possible. We also have an inhouse lender, and they understand that there are programs that they just cant offer. Making them feel wanted and appreciated though is my main concern, i just wanted to get this post out there to bring awareness that Loan officers are a great asset in todays market.
0 votes Thank Flag Link Mon Nov 5, 2007
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