| SECRETS EXPOSED!
| Insights, Opinions & Commentary
| | A Shift In Methodology | It's been about one year since I started to notice more and more Loan Scenarios being posted on mortgage discussion boards; in fact a couple of the larger ones are almost full of nothing but Loan Scenario requests!
Why is it that LO's spend so much time trying to hunt down funding sources for their transactions? Since every LO I have spoken with in the last year or two believes they are individually the best 'salesman' on planet Earth ... then why is it they spend a third (or more) of their time looking for wholesalers? I see LO's post one Loan Scenario after another wishing the magical wholesale AE of their dreams will see it, do everything STATED (of course), pay them 4 YSP, and then easily and smoothly fund their loans in 24 hours! It's a nice wish-list, but probably not reality.
Considering they feel the position of being an LO is a sales job (which I happen to personally disagree with BTW - it's really more like a customer service help desk position), how come they don't spend all their time selling instead (since all that hunting is a clerical function anyway)?
It's pure mathematics, if you look at a few hundred posted Loan Scenarios, you'll actually see very few replies to most of the requests, so I'm puzzled why they continue to do it? Yes, I realize there's hundreds of wholesalers and literally thousands of loan programs available, don't you think there's something like an Excel spreadsheet published somewhere, where their processors could look it up? Or maybe a directory of the various niche players online someplace? Surely either of those would be easier, quicker, and far more dependable then relying on the dream AE to stumble over their Loan Scenario on a website somewhere, and save their commission!
Because I know of such an Excel spreedsheet type publication, and a reliable online resource as well, why won't their employer's tell them? They gotta know themselves, right? CLICK HERE to give us your two cents
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| | | Frothy Mortgage Market | You've been hearing for several months about a housing value collapse in many areas all across the Country; rising mortgage interest rates - The End is Near!
So what are you going to do about it? You just gonna sit there and let the obvious end of the 'good times' come crashing down on your career, or are you getting prepared?
Prepared how you may ask? Start off my realizing values customers give you from now on my be high, and understand rewriting their loan, which lowers their rate will become more and more unlikely as time goes on. Start looking around for reliable second mortgage lenders to place your customers into their products, or you might think about sending them on to their local Bank if they insist on a line of credit (HELOC) where they're typically are no points or closing costs. You'll look like a hero and may get a referral from them ... someday.
Learn how to think more in terms of loan Benefits to the customer - like lower overall monthly payments, and probably a lower weighted average rate for them (when you do a new first mortgage bill consolidation that may increase their interest rate) instead of selling Features, like interest rate and other 'numbers.' Remove YSP from your brain, as it will contribute to the new rate shock they'll be facing, and you'll see more No Sales or cancellations if you don't. Concentrate on those fundings for home improvements, to sustain property values (as they may be falling), and to enhance future equity so you can help them in the future.
On the other side of that coin, start to bone-up on the foreclosure bail out wholesaler programs available, since you'll be seeing more of that type of a customer. Learn now, what you have to do (from a packaging and processing viewpoint) to get the proper paperwork all together when a customer is in a Chapter XIII, and you need to payoff the trustee to get them out and make your new loan (because you can't do your new loan unless you do). Understand how to thoroughly read a credit report, where there's a forbearance situation and how that effects rated mortgage lates on the report, and how your wholesalers will see/judge them (like maybe somebody who takes bank statements and ignores mortgage lates, etc. could be a good idea). These two issues can be particularly tricky and create last minute hang-ups on fundings.
CLICK HERE to tell us your views on our Discussion Board
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