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If
you're a Loan Officer these days, you probably
were hired as a salesmen/bird-dog hunting down
potentials applicants. Spending money
‘Advertising' is the real answer to that task,
but since that's what today's Broker/owners
think is the primary role of a LO, you need to
be careful not to get caught in this
‘referral' trap by an inexperienced employer.
One point you need to carefully consider, is
just how talented is your employer and the
degree to which they train you to be the best
you can be(or is he/she merely a former LO and
that's all they know about being an owner).
Because they don't know any better, far too many
broker/owners push their newer LO's to attract
potential applicants via the
"referral" method. That's where you
pester all your friends, relatives, and others
to use you themselves, when they have a mortgage
need, and to also send you their contacts.
The boss – who should already knows better –
neglects to reveal to you those friends and
family and the carefully cultivated referral
sources will probably blow up in your face when
one of their loans: 1). has an appraisal that
comes in 'short'?; 2). The credit score doesn't
support the loan they need; 3). your wholesaler
stips you to death - and many of them are silly;
4). The doc prep girl at the wholesaler drops
the ball getting your docs correct and out on
time; 5). the notary/closer messes up the
signing – oops; 6). and the next 50 things
that DO go wrong on most loans every single day.
So you simply CAN'T be efficient and keep your
promises to the customer, providing excellent
service like you want to. This is where your
supplier/vendors make YOU look clueless and
seriously unprofessional.
Consider at what's that will do to your
'relationships' -- be honest. I have found over
the years the "referral" biz plan
simply doesn't work over time. A definite way to
stay small, Yep - on that issue I agree - but
growth? Nope
What you seriously have to offer any applicant
– if you get properly trained - is (a). your
own skills at being an LO, (b). which includes
the loan programs your employer makes available
to you, AND (c). the supporting vendor/suppliers
who have a major effect on all the moving parts
that come into play between 1003 and funding.
Instead of ‘referrals', These are where you
should concentrate your attention, getting
trained, clearly understand loan programs you'll
use, understanding what all the vendor/suppliers
do and how you can help manage them, as your
loans move through your pipeline – focusing on
referrals isn't gonna be a good idea, you'll
quickly discover if you don't do these things.
Far as customer/potential borrowers, cold
markets (strangers) are far easier to handle
when things go wrong (plus they won't expect you
to earn nearly near zero on their loans). If you
don't have a boss who can supply you with these
things, and to advertise for customers to come
to his/her company, it's time to resolve to
change employer's right away this new year! Get
with a company that prides itself on its
Integrity, Ethics, and solid Values - these are
the characteristics which will help you the most
in your career. CLICK
HERE to tell us your views on our Discussion
Board
Former Fannie Execs Face Charges
The Office of Federal Housing Enterprise
Oversight has filed charges against three former
Fannie Mae executives, including Franklin
Raines, for manipulating earnings to maximize
bonuses and for leading the mortgage giant into
a $6.3 billion accounting scandal. Along with a
notice of charges, OFHEO is seeking $100 million
in civil money penalties and disgorgement of
$115 million in 1998-2003 bonuses paid to Mr.
Raines, a former chairman and chief executive
officer; former chief financial officer Timothy
Howard; and former comptroller Leanne Spencer.
"The notice explains how they submitted six
years of misleading and inaccurate accounting
statements and inaccurate capital reports that
enabled them to grow Fannie Mae in an unsafe and
unsound manor," OFHEO Director James
Lockhart said. "The misconduct cost the
enterprise and shareholders many billions of
dollars and damaged the public trust." An
attorney representing Mr. Raines said the
charges are "false" and called the
OFHEO director a "fatally biased
regulator."
There should have been criminal charges filed
against these people in my opinion.
CLICK HERE
and talk about this on our Discussion Board
CRL: 19% of '05/'06 B&C Loans Will
Foreclose
Almost 20% of all subprime loans funded over the
past two years will wind up in foreclosure,
according to a new report issued by the Center
for Responsible Lending. At a news conference on
Dec. 19, CRL president Mike Calhoun said that
when refinancings of troubled loans are factored
into the equation, one-third of all B&C
loans could go bust. In particular, the
nonprofit chastised mortgage bankers for
qualifying borrowers -- especially minorities --
using low teaser rates (instead of the fully
indexed rate). Analyzing six million subprime
loans funded since 1998, the CRL said
foreclosures could eventually cost consumers
$164 billion. The Mortgage Bankers Association
criticized the group's findings, saying the
CRL's numbers are cumulative and ignore the
potential for delinquent loans to be worked out
prior to foreclosure. "Their projections
are incredibly pessimistic," said MBA
senior economist Mike Fratantoni. At the end of
the third quarter, just 3.8% of subprime loans
were in foreclosure, according to the MBA. One
in four loans in the foreclosure category are
cured prior to actually being foreclosed upon,
the MBA noted. Pat Vredevoogd, president-elect
of the National Association of Realtors,
participated with the CRL during the news
conference, but the NAR did not fund the new
report.
For those of you that have been around for a
while and have much servicing in your
backgrounds, you know this: "...at the end
of the third quarter, just 3.8% of subprime
loans were in foreclosure" is enough to
make you gag!
CLICK
HERE and talk about this on our Discussion Board
2006 Subprime Vintage Rumblings
The 2006 subprime vintage "is
distinguishing itself as one of the worst
performers," Dominion Bond Rating Service
said in a recent report. Delinquencies on loans
originated in 2006 that are 60 days or more past
due are higher than the 2005 vintage, the agency
said. The current year is approximately
two-thirds higher than the 2004 vintage,
according to the analysis report.
CLICK HERE
and give us your two cents on our Discussion
Board
Credit Fees to Rise in 2007
Equifax and Experian will begin charging higher
credit reporting fees on the first of January,
2007. "This significant increase in costs
will ultimately limit consumers' ability to
comparison shop for loans," the National
Association of Mortgage Brokers was quick to
say.
CLICK HERE if
you wanna give us your Opinion on our Discussion
Board
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