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Why Can't The Mortgage Process Be Transparent?

I see it time and again. The day of closing or 24 hours prior to there is a glitch. Why wait until a day or less before closing to do your work??? People with truck loads of furniture, children in tow and even the family pet with no where to go. It is disgraceful how the system treats people as numbers or objects, not human beings with needs and feelings. "I'm sorry for the delay" is not good enough. If we as Realtors have to take fair housing and ethics training every several years how about the mortgage professionals having a training on empathy and communication. Does anyone else suffer through this process?

Posted by Rich Cotton Realtor® Cecil County MD Waterfront Specialist on 06/02/2009 06:39 AM

Comments (78)

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78 Comments on Why Can't The Mortgage Process Be Transparent?

JUN

Rich...

Yes we have. We've even gone halves with the agent on the other side of a deal to pay for hotel accommodations. Sometimes I think that as long as we continue to solve these problems on our own, Lenders will continue to leave entire families with no where to sleep. To say it pisses me off would be a bit of an understatement :)

TLW...ROAR!

Finding a good mortgage person that is proactive and communicates is tough. They are out there and with the ever changing guidelines, we really need the best working with us more than ever.

well said. . . it is the lack of communication most often. . in our closing we are on top of the lender and if they don''t respond. .we contact their superiors. . sometimes we have to force on people to get the job done right.

Unfortunately, it is the nature of our business.

Another reason to work with trustworthy lenders, of course some buyers insist on using their lender and that is when I have encountered this problem. I have had this happen, my clients spent 2 nights in a hotel because the paperwork didn't get done. WOrking with the buyers lender was like pulling teeth the whole process... calling asking is this done is that done where is the xyz. Yes you are right, lenders need training in what the end result of their "delay" the PEOPLE in the process.

I wish they read the sentence ' time is of the essence' in our agreement of sales.

Rich,

My brokerage has sister companies that do mortgages and insurance. If buyers use all these services, they and the sellers each get a $5,000 guarantee that closing will happen on time. Believe me, it is rarely paid out but would more than cover additional costs. Guess I'm very fortunate to have it!

The porcess is often very confusing and for sure not transparent. I am with you on this 100 percent

NO, I DO NOT!!!!

And I have gotten a lot of grief from agents and loan officers on ActiveRain because I take control of my buyer's home buying process INCLUDING THE LOAN PROCESS.

I'm inspired by this post. I think I'll rant a bit.

The personal touch on the end lenders is gone, but thankfully not on the reps that I encounter. They all do a fabulous job.

Part of the problem is the amount of documentation required now that is ever changing. Many times the reps are blindsided when they get the list back from the underwriters.

I'm with you on communication though..just tell us. We're big boys and girls and we can handle it if we know what is going on.

The short answer is No....have not ever had that happen...thankfully...we do our homework...and the whole team does as well...the midwest somnetimes like a different country than either coast...and while it makes us less progressive in some ways...I'll take it.

We are getting to the point that when we decide whether to take an offer it is not just the price and is it best to tak an FHA, VA, or conventional offer, we are now looking where the loan is coming from. Suggestion, put in the remarks that the seller prefers a local lender. I have had Realtors whose buyers want the house so much that they have asked for our suggestions on who to go with.

My lenders usually have a clear to close well in advance of the closing date. This has allot to do with the fact that I did mortgage for well over 10 years and babysit the file.

TLW,

It is a sad state of affairs but there has to be an answer.

Mark,

How do we find them. I have burnt through more than I care to count!

Fernando,

But does it have to be that way????

Gail,

Amenn!

Gita,

Do you really think taht would help??

Some are so lackies daisies on some loans. I have one that was suppose to close yesterday and the loan officers is asking questions that should have been asked last week not the day of closing now me knowing this, it looks like we wont close till friday. And this is an out of state closing! Go figure!!

Irene,

You should consider yourself very fortunate. It would be nice to have your stats on successful transactions with no major glitches.

Charlie,

It certainly causes alot of unneeded grief.

Lenn,

That is probably the best approach but even with that we have had uncontrolable situations pop up!

Kris,

I am all for MORE communication!

Sally & David,

I wish the coasts with get in line with you. It would make our lives less streeful. Thanks for that comment.

Joe,

Using locals is a great idea. Our problem is we only have 2 local banks. The rest are Biggies.

Laura,

Your past experience is "priceless." Not many of us have that I suppose.

Jeanette,

My point exactly!!!!!!

It's all about communication and having the buyers work with lenders that are responsible, and with whom they have had a history. Having a buyer come in with a pre-qual from a lender with whom they are unfamiliar, but were recommended by a friend starts the trouble. Typically our office will offer up 3-4 choices of lenders that we know perform and on time.

I had it happen last week, one day before closing.

We found out a condo was bought on the Ann Arbor Affordable Housing project. One of only 5 in the whole complex.

It had to be posted for 60 days on their site.

Of course the listing agent didn't tell us and it was dumped on the lender on Wed at 4:00 and we were to close on Friday.

The seller had done that but we should have known. Then it required a letter from the A2 City Attorney to say it was good to be sold.

She was out of town.

So we closed on Monday.

But, it should have been known.

I inform my buyers not to make any final plans until the loan has been funded and recorded to avoid any delays. This is reality in our market today.

I hate the double standard. I had a lot of luck with local brokers and bankers, but when it comes to out of state offices it is a different story.

Rich,

I'm with you on this.

Matter how much we try to control the process and make sure that we are working with lenders that care as much as us (if possible)...these days it just seems that there is that little extra "glitch" with the appraisal, picky underwriter, PMI company and well, you know the list could go on.

I was very impressed with your post this morning. Thank you very much sharing it with AR. I always enjoy your posts. Keep up the great work.

I have had people wait 3 hours in an attorney's office for closing papers to be emailed over. It is disgraceful. And that was the first time the attorney had to review. What kind of service do you think that gave the purchasers?

Good post and I totally agree.

Lately it seems to have gotten worse! I diligently track the loan process during the entire transaction. But lately, trying to get the lender to return phone calls and emails is disgraceful. In certain instances I've escalated my complaints to superiors and they are not returning my calls either.

The biggest offender in my book lately, is Bank of America. I realize they are going thru a transition merging with Countrywide. But that is no excuse for not providing any service. We have two loans that are in limbo right now because we can't get any kind of feedback on where they are in the process. If we weren't already 30 days past the scheduled close date on one of them, I would advise the buyers to get alternate financing. At this point, I will not accept any future offers from Bank of America as they've not proven that they can get the job done.

I love the idea of mortgage brokers paying $5,000 if the loan doesn't close on time! Maybe that would motivate the lenders to provide service!!

I have worked with some great loan officers. I have also encountered many of the problems others have mentioned here on this post. I personally only trust a couple of loan officers to handle my deals. Sometimes, I feel I may have contributed to tough situation by haveing less than 30 days before settlement. However, I have had a loan officer close a deal in one week as well.

Ed,

You are fortunate. As of this writing I have NO lender that falls into that category

Missy,

My psoition, It should have been known.

Harry,

What do they do about moving out?

Bettina,

If only our local lender would be more compeitive with rates I think half the problem would be solved.

Hello Everybody,

This kind of blog sometimes really gets under my skin. It becomes this bashing of lenders, banks, brokers, etc when really I can understand your frustration Rich, but a lot of times there are some situations out of the control of the loan officer. Lets go over some "very" typical situations.

Disclaimer: This is not about everyone or anyone...just situations I have run into.

1. Realtor brings me a buyer that has never been pre-qualified, already has contract to purchase with anticipated closing date 30 days down the road. The buyer shops brokers for one week, takes another week to get the documents over the the broker, etc. First, the realtor should have never had the borrower in their car without that individual or couple being pre-qualified. Second, it is more important than ever to make sure that your client has their documents already lined up if not already over to the broker, bank, lender, they will be working with.

2. This brings me to the second situation. For months now I have been warning referal partners that we are experiencing difficult underwriting turn times. Some lenders as much as 45-60 business days. Even after I told the Realtor that because of the type of loan we had to use a lender with longer than usual turn times, they put a contract thru with a closing date 30 days down the road. Do your job! Understand how long it WILL take to close and put in the correct terms. No one is "Super" Man or Women. It's the nature of the industry and we have to follow it.

3. Underwriting has become very difficult lately. When you have to document what size shoe they were because size 9 showed on their credit report...obviously I'm joking but the first part is true. Sometimes we will ask a client to verify something, and they will flat out get upset and deny to help us out. Now you think it's our fault it's not closing on time. Don't you think I agree that it's stupid they want to verify a $100 deposit when the borrower has $45k in the bank. Yes, but there is nothing the LO can do about it. So just get it done and we'll get it closed!

Well thats my 2 cents. I truly think the real estate world has to stop blaming the mortgage world for 7/10 of the problems. Rich, you truly need to find a broker that will communicate with you every step of the way and when issues arise, you are aware of them upfront and not on the 11th hour. I will never say I have not had a closing delayed, but I will never say that everyone in the transaction was 100% aware of the issues at hand prior to the day before and knew exactly what we had to do to get to closing. We all need to work together!

Shelia,

Yes the list does go on...how sad!

Eric,

Thanks

Norma,

And they WORK for the Buyer????

Paul,

Not returning calls...no excuse for that. Just awful customer service. I am all for the fine...why not? Let them get some skin in the game. They complain they are wasting their time when they can be closing some other loans. Hello! There are people involved here!!!!

Brien,

Count youur blessings. You have some you can trust.

I read all the comments with interest. This is more of a problem today than before. I find in my area, the larger lenders usually perform, and on time. I'm sure there are smaller lenders that perform as well as well. It has just been my experience recently that larger lenders are better prepared in this environment.

Joshua,

Point 1 . I agree

Point 2 Mortgage guy says no problem...we can do it! Under promise, over deliver. The truth never hurt anybody!

Point 3 Communicate the problem. We are all in this together. We can help out when needed. The problem is, we don't know there is a proble.

Blame lies where blame is deserved. Granted maybe all my agents and their delayed/cancelled closings are at fault... I listen to BOTH sides and I have to tell you...the lenders ARE the problem. Thank you for being the only lender to enter the discussion. Yes I would truly give anything for a LO I can recommend without tranishing my 20+ reputation.

Scott,

My experince spans all sizes and shapes.

The buying or refi market has gotten harder and harder to work in the last two years. That said.....If you find a mortgage professional who is proactive as I am they should know days in advance if they is going to be some sort of hold up. I have been in the buyers shoes-Stayed in a hotel for one full week with a dog and three cats as well as paid a mover to hold our furniture in storage. NOT FUN!

Please remember that underwriting takes more time then it used to (approx 45 days).

Buyers need to get us the paperwork asap-not next week.

Realtors need to be sure contracts, addendum's, etc are signed by all parties and given to the loan officer quickly.

Copy of earnest money check asap-not the day before closing.

Bottom line-Find a mortgage professional to partner with that you trust and things should go smoothly. We can't always prevent hold ups but we can make all parties aware of issues before they become big problems.

Janet,

Thank you for your comment. I agree with all said. It is nice to know therer is a LO out there such as yourself.

It's not always the mortgage persons fault. How about the undisclosed info a buyer leaves out...like they were planning on quitting or changing jobs during the final days of drawing up loan docs. This is when a 2nd employment verification is usually done. The appraisal review is often done at the last minute as well due to the clinet not paying for the appraisal right away....and don't forget the 4506T transcripts from the IRS that can come back with different info than what the tax returns show the client gave us. The IRS is now taking several days to process those. Also, all files go through an additional quality control audit before going to docs to make sure everything is in compliance...that takes 1-2 days.

There is only so much a good loan officer can do to bullet-proof the approval. There are underwriters and procesors, regardless if you are working with a banker or broker, who can drop the ball as well.

I got an email from my Wells Fargo AE and she sent out a blast email apologizing for Wells Fargo losing conditions that get sent in. This shows you human error is everywhere.

Remember, there are probably 20 to 30 times more moving parts, people, and items of paperwork involved in a mortgage transactoon than what you may be used to dealing with on contract paperwork.

If was that easy it surely would have been completely automated by now, right?

In my experience, the key is to use local lenders you know and trust, and who can get the job done. I do understand that there are limitations to what lenders can do these days. However, if you have that trusted, known lender who is easy to reach and with whom you, the REALTOR have an ongoing relationship, you will know as soon as he or she does about any issues. Here is my best lending story: http://activerain.com/blogsview/792931/lending-lessons

Just proves once again how very important it is to develop a partnership with a reputable local lender. "LOCAL" is the key. I see my clients at the grocery store, at the ball field and on the streets. These are my neighbors. I will do everything humanly possible to help my clients have a great home buying experience. If you let your clients choose and out of state or Internet based lender because of 1/8 difference on the rate you only have your self to blame.

I does get a bit confusing....you need to ask lots of questions if you don't kow, ASK..

Patricia Aulson/Portsmouth NH Real Estate

Rich: Great post. All of us should be transparent. If the transaction is communicated to all the parties throughout there shouldn't be a problem. No one likes to deliver bad news, especially when the deal won't close on time. But delivering any news is better than not answering the phone or not knowing. Most people are pretty understanding and have seen transactions go awry. Utimately most deals should close on time although we've all been late once (at least I have) due to unforeseen circumstances. The key is how is the problem handled. Thanks again for the post! Unfortunately it's the few bungled ones we always remember. Take care.

Every closing offers their own challenges, the process is never the same. Setting expectations that your buyers will get the keys on a certain date no matter what is in my opinion a risky thing to do, because at the end of the day what ultimate control do you have at that point.

Brad,

Don't get me wrong. Yes there are many things that can put a deal sideways. No it is not always the LO at fault. My major concern is this........communication. It does no one any good when a LO will not stay in touch with their customer and Realtor. The imagination is the deadliest tool a person has....no news is NOT good news. It is out of respect and decency when someones life is in turmoil to at least keep them updated on things that have a tremendous impact on their well being.

Diane,

Thanks for your comments

Melissa,

I totally agree with the internet lender. Local is better. We are located in a very rural area and the big boys rule.

Patricia,

I agree. You do not know if you don't ask!

Paul,

Thank you! Can you do loans in Maryland???

Morgan,

I understand the uncertainty but we all need a timeline.

This is an interesting post. Some valid points made here. Not returning phone calls is 100% inexcusable. Not communicating with Realtor partners? 100% inexcusable. I feel your frustration. Many of these delays CAN be avoided if you work with the right Loan Officers!

Having said that, our industry is changing. Many banks in our area, are 30-60 days out in underwriting! Thankfully, at our company our turn around times for purchases have not changed! We pride ourselves on rarely missing a closing date. I'm not saying that this could not happen, but we try very hard to avoid this. If there are problems, our partners are informed as soon as possible.

However, many of the issues that you are encountering are the direct result of the extreme credit tightening that has gone on, and is NOT the fault of the loan officer! In many instances, your mortgage broker has nothing to do with it, and has been hit with an underwriting condition that he/she has never encountered before, that has been newly instituted by the lender that is purchasing the mortgage.

Someone mentioned fining a broker $5,000 if the file doesnt close on time. This hopefully does not have to be explained as to why this idea would not be a good idea.

You will want to educate your clients on why, more than ever, working with a trusted adviser is so crucial. If you don't have a lending partner, ask around at local title companies who does an excellent job. Ask the top agents in your market (you know who they are!) who THEY use.

Many Loan Officers do not understand how difficult a Professional Realtors job is. Some see them as glorified chauffeurs and order takers, when that's the furthest from the truth. Likewise, I can tell by the flavor of this post that some agents do not know how intricate and difficult our job has become. Lack of communication is just bad business practice, plain and simple-but please also understand that the days of collecting one pay stub and a drive by appraisal are long gone! Also, the really good loan officers DO care as much as you that the deal closes on time. I, like many of you, have lost sleep over this!

It is my responsibility to be upfront with both the clients and their realtors. I stake my business on referral relationships and cannot afford to allow miscommunication to ruin that.

I had a friend in another state recently purchase a home. He used a large trust bank that will remain nameless. They didn't order the appraisal until the week of closing, and of course it delayed the process! He found out the day before and they had to reschedule the closing multiple times. Why couldn't the loan officer pick up the phone and let them know about the issue?

Robert,

Thanks for commenting. I agree with you that the game has changed and changed dramaticaly. Yes communication is the key. That is all we ever ask for. Problems arise, disclose them so that we may work together and find a solution.

Integrity Mortgage,

My question exactly.

It seems no one wants to do their job properly these days, whether it be lenders, title reps, or even other agents. For those of us trying to do our best everyday, and those of us who truly care about our clients, this market is making it extremely difficult to in which to function.

Rich! Finally, someone who understands my pain! LOL! I have burned through more lenders than I can count! I sometimes feel as if I am dating the loan officer! First, everything is great! Phone calls get returned, closings are on time or early, open communication. I fall for them hook, line and sinker and then it seems like slowly, last minute problems start popping up, closings get postponed, they get too busy to answer the phone or return calls. Then the break up begins. It's sad really! I am still searching for my true loan officer!! LOL!

That's where you need to find the right mortgage broker. I've always been upfront with everyone from the buyers to the realtors to the title company. My work has always been referral based and it's because they all know what to expect with me. The only suprise is the quality and speed.

Rich, Respectfully, your blog title and blog really dont have anything to do with each other!

it is interesting to me that this short paragraph and question has caused the "stir" and differences of opinion that they did! GOOD JOB! THIS IS WHAT WE NEED AND WANT! I liked your blog btw! so..here is how this 20 year VET lender responds:

We as LENDERS have to do a BETTER job of explaining the PROCESS involved, not what happens or is happening! For example, remember the old days or Realtors bringing the buyer TO the lenders office and all meeting together?? Is it possible those days MIGHT come back?? With everyone blaming everyone else, and not taking any accountability, I have decided to put people on 3 way calls now! First of all, if the REALTOR doesnt believe me when I tell them something, I fire them! JUST LIKE I WOULD EXPECT to be fired by a Realtor in reverse! Second, often times, if people had a better understanding of the process, they would understand that the problem YOU HAD was with the FUNDER and their u/w, maybe not the actual loan person. That said, empathy or no, a class isn't going to help! Training or certification isnt going to help! CHARACTER is something built over time! TRUST is built over time! These both describe a working relationship!

Many of us ON Active Rain get critisized for being too blunt! I AM TOTALLY OKAY with that! Transparency doenst have to do with your blog! HONESTY does! PEOPLE RELATE to honest people and understand when honest people have issues!

I loved your blog because it is NOT attacking, and merely opens up the forum for discussion!

Many others that post SIMILAR blogs are VERY attacking of lender, and that is why people like Joshua, Brad, and Robert respond the way they do! Some blogs AUTOMATICALLY put lenders on the defensive! I have seen SEVERAL blogs written by Realtors in ANGER,FRUSTRATION, and spite! What do youthink their responses included?

I would LOVE to analyze each Realtors problem closing that leaves comments on here...because, I DO AGREE that often times, the LENDER should have caught something, or should have "known"something...and I AM A LENDER!

I view Realtors and Lenders today, like Iraq & Iran...They KNOW they need each other, but there is such anymosity between the two...until everyone can get over themselves, this "boil" will continue to fester!

Honesty, not transparency!! We as Mortgage Lenders cannot BE more tansparent, especially after July 6th, 2009!!! Thanks! Darin

Rich,

The answer to your question, why can't the mortgage process be transparent is simple. Confidentiality! We cannot by law disclose certain things and that is for the protection of all parties.

Pointing fingers won't solve the problem and blaming the borrowers or anyone else in the process won't either. By the nature of the lending industry today closing mortgage loans is very difficult right now. I just heard this morning that only 40% of prime buyers of cars can get an auto loan! The amount of loans closing now are about 50%.

Yes the last condition the day before closing to show cleared EMD may contain a large deposit ( these days as little as a few hundred dollars depending on the pay structure of the client) and that will trigger a request for more documentation and a missed closing date. If you think Loan Officers ever want to disappoint anyone in the transaction that is crazy. We all live and DIE by our reputation. The key to success is a great partnership with your lender(s). Sit down once per month if not more and review you pending transactions and pre quals and work together.

Mike

No, I don't have any bad stories to tell, because I stay on top of this, from beginning to end. I am in constant communication with the loans/mortgage person. I don't stop until they tell me everything is in order. I can confirm/verify this, by calling the lawyer who will be doing the closing (here, the buyer and seller must each use a lawyer) ... and when the lawyer confirms that they have all the bank instructions in order, then I know I've done my job. And even then, I stay in touch with the lawyer on closing day... until they tell me "it's closed".

I think it's our responsibility to stay on top of this. The home buying/selling process isn't over until my client either moves out of the house or moves into the house ... so it's my responsibility to ensure everyone involved does what they're supposed to do - on time.

As far as the confidentiality goes (above comment), I don't need to be given confidential details.... I just need to make sure things are happening, and nothing has fallen through the cracks, so that there are no issues on closing day.

(I am talking strictly about clients who are pre-approved, and have met all their conditions. I'm not talking about REALTORS or clients who 'assume' that everything will be fine, when they haven't done everything that is their responsibility to do, to start with ... everyone must do their part.)

Its just all part of business...

I've been a mortgage broker in the past...and I do believe..that honesty..communication is the best way to be. Nothing worse than a big bomb thrown at you on the day of closing and buyers have no where to go except in their U Haul truck!

Why can't the mortgage process be transparent? This is sad that you even have to make this post and from some of the comments who have similar stories to share this is also sad. I think a big item that needs to be addressed is an easy one, simply having the lo pick up the phone and pass on updates to everyone involved. I make it part of what I do to call the listing agent as soon I get a copy of the PNS simply to introduce myself and make sure we've exchanged contact info. I think another part of the problem, on the loan officer's side, is that too few actually get away from their desks and meet with their clients at their homes as well as getting involved with being at the subject property for some of the inspections or appraisal. I think this lack of involvement puts too great a distance from the paperwork of the process and the fact that this is a major event in a person's life.

I'm sure there is a bit of unprofessionalism here and I've heard stories about how some lo's who just simply dump theirs clients or the estate agent into voice mail rather than communicate a status of where the file is at in the approval process. Communication is important. Jason

Wow...some great stuff here. All I have to say is "things do go wrong". When you're trying to close who cares whose fault it is....really...the bigger picture is how are we going to solve it. The true professional is measured on results and also on problem resolution...the biggest complaint I see here is a lack of communication.

Quite a few of the "last minute hitches" is due to the underwriters review of the transaction files. And trust me, they have a lot of them (re-fi's, new purchase, etc.)

UNDERWRITERS will review the file at the last minute, and sometimes they're will be a document, a W-2 stub, a letter from the employer that is not in the file. Caught at the last minute, and then becomes an "underwriter's condition" and must be in file before they issue final approval of the loan.

I've known loan officers who have run around at the last minute to the buyers office, home . . . child's soccer game . . . to obtain a signature, or paperwork to get it back to the underwriters ASAP!

And, lenders can be a bane to my existence, but sometimes it really isn't them!

Why can't the mortgage process by transparent? The requirements appear to change daily but with a LOCAL lender who's reputation is on the line may help. Everything can happen as scheduled if your schedule is reasonable. The title and appraisal need to be ordered the day you take the loan application or nlt the day of the accepted purchase agreement. Hopefully they were prequalified prior to writing an offer. Underwriting has gotton much tighter with letters of explanation and then potentially a field review of the appraisal - a good lender will know which investor is more likely to call for this and can potentially avoid it. Unfortunately, this is at the expense of the buyer. Having to do a verbal verification of employment within 48 hours of closing to ascertain that the buyer is still gainfully employed is another lay of uncontrollable requirements. The government thinks these additional layers are going to help with mortgage default and valuation stabilizing.

Rather than adding layers to the loan underwriting, I wish someone was creating jobs and ways and means to keep jobs.

We all feel the pain and frustration with the direction the industry has taken. More bureacracy, time and money - but still no guarantee of foreclosure or short sale due to circumstances beyond anyones control.

Work is a professional that has many "investor" options so that as each creates their criteria you can better place the loan with the one where you can get the purchase done in a timely manner.

A true professional doesn't send buyers to lenders who do this repeatedly. You have to know who your mortgage broker is dealing with out there in money land.

It's not your loan officer that's important. It's the underwriting company s/he is dealing with.

After one recent deal, I'm convinced it makes sense to ask enough questions so that YOU know who that ultimate lender is. Those folks are not all created equal.

I think that the problem in a lot of cases is that we are all trying to hit a moving target. The industry is changing, and not in a straight line or in a logical way.

For example, I had a lender tell me four weeks after an appraisal was SUBMITTED (not ordered) that they needed photos of all four sides of the subject property for an FHA transaction. I had to explain that FHA guidelines simply require that the front and rear photos be taken from opposite angles to show all four sides of the building - which they did. In the meantime, at least a day or two was lost in the loan process. Multiply this one incident by a half dozen or dozen other issues which arise, and you can see how the process is breaking down.

Jerry,

I agree. It is very hard to the the best we know we can be. We just need to prepare our clients for the storm ahead.

Bekah,

Dating!!! You are married!!! Only kidding. I know the feeling. If only people could stay connected through the process.

Crystal,

I wish we could work together.

Darin,

Well said! I like the way you think. No, I know it is not only the LO or the Realtor or the client that shoulders all the blame. We are all in this together,....sink or swim. What is needed is the understanding between all parties as to what the process is, who is responsible for what and what may throw a monkey wrench in the process. With that said I do not dislike LO...I always try for a respectful yet cordial relationship...............until the communication stops. There is no need for the dialouge to break down.

I love AR because we CAN have this discussion and keep it professional. Thanks again for your time and comments.

As a Mortgage Professional, I do understand the frustration that comes with lack of communication.

What's unfortunate is that the majority of loan officers spent all of their time focusing on refinances. Now that the refi boom is gone, they want to do purchases. Problem is, they think they work the same way.

"As long as i give a good excuse, they will understand."

"Sorry, not me - it's my underwriter.

There are a million excuses. Folks need to step up and take responsibility!

Why is it that whenever I work a new purchase, the seller's agent is always so surprised when I send them update emails or give them a phone call as well as the buyer's aget? ANYTHING to do with the loan is our responsibilty and NO ONE gets paid until we close this loan. Let's work together towards a common goal.

I don't understand why that is such a hard idea for most "loan officers" to comprehend.

I think that it is a sad thing that so many mortgage brokers have ruined the perception of a great industry.

Take care of people and they will take care of you. Not a hard lesson to learn.

Jesse Skolkin - I was the first to run into that issue in the last month. Argued it. Got it done out of frustration. A couple days later another top producer had the same U/W findings. He called and vehemently argued it. Guess what, he got it done too. There is no reason and it meets the FHA guidelines so why does the U/W call for it? It is a moving target.

Mike,

As Bill so astutely stated the title is really not what the post is about. It is about honesty, integrity and communication. Sorry if I misled anyone.

Sylvie,

I understand your process and agree with it. That is what I teach my agents to do and they do it. My problem again those last minute hurdles that create the stress and anxiety>. That is when the lines of communication must remain open and used as frequently as necessary to keep all the players informed.

Midori,

Amen to that!

Jason,

You really seem to be on top of it. Thanks for the comment.

Nicholas,

100% on board with you!

Joyce,

Maybe we can't stop the target from moving but we should all know where it is going!

Rich - I am a control freak, so in most cases I don't have these problems. I do understand that underwriting requirements are constantly changing.

What I do not understand is why loan processors do not give the borrowers a clear guidance on typical requirements? Why should I remind my clients AND loan officers to contact the insurance agent at least one week prior to closing? Why don't they create a clear and simple algorythm for typical situations? All deviations can be predictable, too. It's not a rocket science!

I am very glad that you wrote about this. It's all about human beings (including Real Estate agents BTW:)! Why don't all professional parties of Real Estate transaction be more respectable?

Svetlana,

Your question is one of great importance, Anyone care to answer?

I totally agree with you Rich. We are subject to all kinds of ethics rules, state regulations, etc and one little glitch by the mortgage people and there can be no closing. It is very upsetting that we can be held to task for missing a closing but not mortgage people. I even had one guy that didn't have the guts( i would rather another word) to call me and instead called my broker in charge to tell her why the mortgage didn't fund and we couldn't close. He went off for the weekend. What a jerk...Will never use that idiot again...

Simple answer. They dont have to face those people, we do. If they had to face the people that are effected by what they are doing, things would be different.

I've only worked with a few mortgage brokers who communicated openly and frequently with me throughout the process. I want to know the details, starting with the pre-approval - did they see the clients financial statement and run them thru DU for this transaction right on through knowing what the clear to close conditions are. Even so the process is not as transparent as it should be and even the mortgage brokers sometimes have difficulty knowing what is going on when it gets to underwriting. FHA mortgages have the highest failure rate in my experience and failure to close on time. It is heartbreaking to see the impact on the buyers and sellers.

Rich, this topic touches a nerve with me.

Having purchased more than one piece of property, one part that I dislike greatly is the [IMHO]industry-wide cavalier attitude that I sense with regard to getting everything in line for the closing. Everyone seems to be running around at the last minute.

Compounding that is the expectation that I have everything completed yesterday.

Hurry up an wait!

BTW, it hasn't stopped me from investing.

JUN

Kathy,

There does seem to be a very strong air of detachment among soem LO. It infuriates me to no end.

Aaron,

For the most part this is true. I did have the LO involved in yesterdays fiasco in the office face to face with the buyers....whole different attitude!

Gail,

Consider yourself lucky that you have a few that say what they do and do what they say. As I said earlier the blame does not solely rest on the LO shoulders but the responsibility for communication does.

Andrew,

Thanks for helping us out buying some property. I know, hurry up and wait. Almost like back in the Service again!

Wow-this was an excellent post. I love reading your posts. Keep up the great job on blogging.

Wow you really hit a nerve with this post! My view on this is that in today's environment of volume driven, expense cutting, computerization, the average big bank has forgotten who they work for and what individual service means. It's not necessarily the local Mortgage Officer, but the centralized processing that these companies do now , to the point that the Mtg Officer has no relationship with the individual underwriters! Until there is a breakup of these huge banks/mortgage companies to a more local driven business model, this lack of customer service will continue. Add to this the present Refi load on these businesses is it any wonder we are taking a back seat! Unfortunately for us, the small local Mtg Broker has also become a victim of the economy and has little consistent access to mortgage outlets. These local run businesses are dependent on Local Customer Service, not multi Billion $ Advertising Campaigns! I guess its like anything else in this business, we have to do a better job of educating our buyers and sellers of the potential pitfalls in this aspect of the transaction, and keep hoping for change....

JUN

I totally agree with you. How come they can have a mortgage application 45-60 days before closing, but they always need something the last day.

JUN

Rich,

I've read half of the comments in detail, and I'd like to compliment you on your responses. One can learn a lot about someone else by reading not only what they write, but by seeing how they respond to criticism. If I were looking for a home in your neck of the woods, I'd choose you as my REALTOR because of what I see in you through this post and commentary.

Mike in Tucson

Hey Mike,

Thanks for that encouragement. Active Rain is something that NO Realtor should be without. I am beiginning to feel more at homw here and will start to post more. Again, thanks for the comment.

JUN

I am of the opinion that when a loan approval is late, the buyer's loan officer should take them home. Or, pay for lodging and storage for their belongings if necessary.

I'm happy to bring folks home. That's my bottom line, but the loan offer should.

NOV

Rich,

Unfortunately it seems all too prevalent...and it upsets me that it does...I like Lenn's suggestion...maybe if it was on the lender's dime this wouldn't happen so often...

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