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If Closing a Real Estate Transaction is Like "The Bachelor" Who Gets the ROSE?

While aimlessly cruising through the blogosphere the other day, I came across a post written on an outside blog discussing ActiveRain mortgage people.

Naturally, I was more than a little interested.

It was this comment that got me thinking about the uneasy relationship that exists between Realtors and Mortgage people:

"I have found AR increasingly mortgage officer “un-friendly” over the last few months."

"The AR website (in my view) greatly favors the views and cause of the Realtors vs mortgage industry. I have found it to be more and more biased and weighted on the realtor’s behalf."

(I am not linking to this post because I want to keep my own post on course).

Why do mortgage people and Realtors believe they are opponents instead of teammates? I have never understood this, and I have played on both sides. Do we each have our own "views and causes" that conflict?

What are they?

Because I don't get it.

WINNING is not who gets to the closing table first (Like the Kentucky Derby)

WINNING is not who gets to keep the client (like The Bachelor).

WINNING is not who does it best (like Dancing With the Stars).

WINNING is not about who gets the money (like Who Wants to Be a Millionaire)

WINNING is not about one side getting the glory, and a chance to go to the Superbowl (like an NFL game)

Isn't our mutual cause (or goal) to close the transaction on time with a happy client?

Don't we BOTH win when this happens?

And aren't we on the same team?

If there is a single rose lying on the closing table, it isn't there waiting for the Realtor to hand to the mortgage person.

Let's just let the client take it home.

You and I can just shake hands.

That way, we can both go home, smelling like a rose.

And knowing we won.

Written by Janet Guilbault, Mortgage Banker/Broker Based Out of the San Francisco Bay Area

Posted by Janet Guilbault California Mortgage Banker/Broker on 08/04/2009 01:10 PM

Comments (82)

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82 Comments on If Closing a Real Estate Transaction is Like "The Bachelor" Who Gets the ROSE?

AUG

great post! As an industry we all need to work towards smelling like a rose for the client and potential referrals. We should never be afraid to say "no" to a client or refer someone away if they don't match our specialty.

Hi Matt:

But if we do find ourselves in a situation that is not ideal, we should still act like the football player who is being interviewed at half time:

"We gotta play better"

Never once does that football player blame someone else on his team.

We should take a lesson from that football player. He isn't ranting. He is all about winning and supporting the teammates who are going to help him win.

I read that post you are referencing. I think that there is more antagonism between mortgage brokers and real estate agents due to stress. What I notice is that many of the featured posts are about a failure: a failure for another agent to do something correctly, a failure of a lender to negotiate a short sale, and the failure of a mortgage broker to close on time. You can pretty much go on the feature board daily and read about a failure of some sort or another.

I think this just sets the tone for being antagonistic towards each other. Me...I have 98% positive experiences from mortgage brokers. They may not always be the most friendly, but they answer my questions in a timely manner and get the job done. That's all I care about. They don't have to be my best friend...I already have some. :)

Melina: Wow! You are right and I never thought about the features that way. Anyone who knows me knows I don't do the "bad karma" thing very well. And constantly reading about failures is bad karma in my mind. I agree we are all dealing with stress as we continue to transition into a whole different lending world.

I love being around real estate agents. Some I love more than others. But professional courtesey and not losing sight of the real goal is something I will always extend to any Realtor.

It is a kinder gentler transaction, and oh yeah, the clients have a much better experience.

Ranting is counter productive IMO

Janet,

My take on Active Rain is that the Mortgage people's blogs give information that I am not an expert on and can share with my clients and blog readers. I have rebloged a couple of those onto my blog for just such a reson. In my view and experience the mortgage brokers, the title cos and anyone involved in the transaction have been teamplayers and shared information to get the job done!

Janet, Thanks for your post. This is why I wrote a series on The Dream Team, the Realtor, the mortgage professional, the home inspector, the appraiser, title, escrow and the insurance agent.

Every home buyer, every seller, every homeowner deserves a dream team. It is up to us to put aside our differences, nip them in the bud before they persist (ew that's a pun considering your rose) and be that Dream Team they deserve.

After all, it's our job! Kate Ford

Janet, it's funny, because I notice more tension among the various lenders here on Active Rain than between the lenders and agents.

I guess that I want a lender who -

Consistently gets me to the settlement table on time
Reflects well on me for referring her so I keep the client
Does it best
Helps to earn both of us some money
Getting glory in the form of more referrals from the happy clients so I make it to the top agent dinner

And now that you mention it, there might be a little bit of stress between agents and some lenders. There are a few bad agents out there, and there are some bad loan officers, too. Luckily, I usually manage to keep them away from my clients!

And good post! Congrats on the little gold star!

janet- we went down this road, you and I, just a few short months ago:) AR bloggers are mostly agents from what I see. That leaves other professions such as lenders outnumbered by far. That so much is written (and featured) about 'experiences' shows the state of our market and our mindset when many more of those 'experiences' are not good.

Frustration is high on all sides, rules change in a blink of an eye, buyers change their minds just as fast. It takes more from everyone just to get to the settlement table. With that said, and from past experiences, I have learned to ask up front 'what is your communication style?' and to let them know mine. Lets make it work for the both of us but most of all lets make it work for the Buyer and Seller.

I agree that we all win when we successfully get buyers closed on a house they want, and I always try to keep professionalism in mind during the transaction. BUT - it does drive me a little crazy if the lender doesn't seem to realize that communication with the buyers' agent is not just me being a pest - I really need to know what is going on in order to keep things moving smoothly - especially if there are going to be delays, please tell me sooner not later! That being said, almost all the lenders I can think of are a pleasure to work with - and help get us to that success of a closing!

Kate: Love the way you think, and love the concept of a DREAM TEAM. I am going to go find that and read it...you can come back and link if you like.

When a client gets caught between a mortgage person and a Realtor who are not on the same team, we are not doing our job as professionals to guide the transaction to a smooth close.

I have had Realtors "mad" at me the entire transaction just because the client chose me instead of their preferred lender. And there is definately a line of thinking that floats around AR that you do not trust a mortgage person that the client picked themselves. I disagree with this.

Having to win that trust from a Realtor is another whole job. I wish I could just get the benefit of the doubt, or the Realtor would take the time to check me out.

Maybe some Realtors NEVER trust their mortgage partner?

Janet - a beautiful analogy, and one that I happen to agree with. If I can't see myself as being on the "same team" as my lender, then I know that I am on the WRONG team and search for someone to partner myself with. I do feel as though I'm pretty dang close to achieving my dream team - lender included. There's no other way to do this job!

I think the problem lies in the fact that WE the Realtors are the persons who have established the long running relationship with the clients. By the time the lender comes into the picture emotions are high, the buyers want the house. Then something happens, the lender needs this, the underwriter needs that. And who do the clients complain to? The Realtor of course. They've know us longer therefore they feel compelled to ask us "what's going on with the loan?". I personally have not found lenders to be the most communicative bunch either. Almost every transaction, regardless of which lender I use, I get comments from my clients such as, "so and so said he was going to call us yesterday but we never heard from him." So then of course I have to call him to get him to call the client. It's this type of lack of service on the lender's end that causes the rifts between lenders and agents. Good post and best of luck.

I have aligned myself with one of the best mortgage dudes in Nevada (and there are others.) UNFORTUNATELY I cannot say the same for people who bring their own mortgage person in. I always feel like I am not getting the 100% truth (because there is no bond) when I ask for an update. Like there is a problem and they are trying to hide it or fix it before anyone knows.

I am always sweet and let a new mortgage person know "hey we are in this together, let me do my job and I will let you do yours but let's keep each other updated on all fronts so we can close in a timely manner." My goal is to open the door and let them know that I am willing to work out a problem with them on my end when it happens.

Last week I had a lender call my client (who was on an Alaskan cruise with no cell access) and told her about her low appraisal over a voicemail. I WAS LIVID that I wasn't included in that little tidbit of knowledge that is pretty important to the transaction UNTIL my client got her voicemails days after the fact.

My client called me first and said "now what" and I (after sounding like a DIMWIT because I didn't know this was even going on) outlined my strategy (cuz this happens all the time now) and voiced my displeasure that the lender couldn't call me and tell me about this. SOOOOOOO my client calls the lender (last, doncha love that?) The lender proceeds to tell my client this is "none of the agent's business" and told her how to negotiate (which was pretty much what I told her already.)

None of my business? HELLO! I need to renegotiate a contract now, with very little time.

While I am not harping on lenders - AT ALL - the moral to the above story is that I REALLY wanted to write about that on my blog on Active Rain - but I didn't.

WHY? Because every single transaction sucks now. If you don't have a crappy title person you will have a crappy list agent or lender on the other end. Hey, I even had a transaction with a crappy title/lender and list agent that lasted 75 days from April to June of this year. I could have the biggest negative real estate blog with some UN FREAK ING BELIEV ABLE stories. (that's just one story, above.) And seriously, I am one of those people that thinks if everyone is doing something wrong, maybe it is time to look in the mirror - I look in the mirror a lot these days!

I don't like to write about my negative experiences for a couple of reasons:

There is three sides of the story: His, Hers and THE TRUTH

It is so negative now that sometimes you feel like you are just in this vortex of negativity and it is sucking you in. I like to stay positive.

THe main reason is because I HAVE FIDUCIARY DUTY to protect my clients and if I am writing about them (in a non-general way) then I am spilling the beans to the world and telling their secrets to the world.

I let my buyer clients completely understand the pitfalls of a transaction from the previewing of the first house to the day they get their keys.

If someone drops the ball - they know EXACTLY who to go crying to - and more than likely it ain't gonna be the guy (or gal) who sits in the front (me).

My clients are the coolest cats in the world because they are trained by me. I love their patience and understanding and how they are extremely knowledgable about transactions.

They deserve confidentiality because they are just so awesome!

That being said (and sorry this response is so long) I really do like it when people complain and moan about other lenders - title and escrow - and agents. Odds are I worked with the people (the way they run biz is all the same) they are complaining about. I think it is therapeutic to write about it and I do have to resist temptation - all of the time - because I have personal standards in regards to client confidentiality!

Martha: your post this morning inspired this one. I did not mention it because I was mortified to read that you almost stopped posting on AR because of the post where we disagreed. Please do not do that! You are a valuable contributor.

Sometimes (and it has happened to me) your writing simply stikes a nerve and you are completely blindsided by what comes next. You are right that this is a very stressful year for all of us.

BTW: I am switching a transaction to an FHA today. Yes, it is 2 weeks till closing. I am being forced to do this because I could not obtain private mortgage insurance for a 90% LTV transaction.

I am going to be very, very honest. I said a little prayer of thanks because this is a FSBO transaction. Why? Because I remember how much this upset you in your own transaction.

Patricia: I do not notice tension among our mortgage writers. I do notice a nasty little habit some of the writers have of telling Realtors to "watch out for bad loan officers".

Yes, I said NASTY. As in, I do not agree with this and believe it is negative and self serving.

And thank you for sharing what it is you believe makes a successful partnership. That is vauable for all of us in the lending world.

Linda: That is a great point of view to take, and one that I share. I try to provide information that will help Realtors and their clients. That is what ActiveRain is about.

Jerry: Your candid comment is appreciated.

And here's something you should know: As a mortgage person I get PLENTY of complaints about Realtors from clients. And I always, (yep, 100% of the time) defend the Realtor. It is my policy. In fact, I call the Realtor and tell them right away so they can fix the problem, whatever it may be...even if it client only needs a little hand holding.

I have come to realize that there is absolutely no such thing as communicating TOO MUCH when you are involved in a purchase transaction, and feel badly your lenders have let you down. It is probably the # 1 complaint against lenders, and all lenders should sit up and take notice of this fact.

PS: Please do not underestimate the intimacy and depth of the relationship that exists between the mortgage person and the client. That, and the fact clients love to revert to 6 year olds ( I will play mommy against daddy because I sense they are not on the same team)

Okay, Renee, thank you so much for sharing that painful truth.

I also walk that line every single day...the one where I need to remind myself not to be sucked into the negativity that surrounds me. ME!!!! The one everyone calls PollyAnna.

Little prayer: Please, just one EASY loan!!!!

I am going to flip things a little now because I want every Realtor who reads this stuff to have the ability to see the view point of the lender.

Seriously, there have been dozens of times that Realtors have changed a contract and NOT INFORMED ME, the person doing the loan. They claim a little something like an extra "seller credit" should not matter to the loan. Or the fact "personal property" is being given to the buyer. Or, they changed their mind and will not be doing a termite inspection. Or the Realtor is giving the buyer a commisssion rebate. And the list goes on.

Has this screwed up loans at the last minute? What do you think?

Are the Realtors then mad at ME because of a delayed closing? What do you think?

Do I feel like an idiot when the client knows this and I don't? Well, of course.

Could I rant about this and complain about Realtors to the world? Yes, but I have my standards and it is not about client confidentiality. I can change stories slightly and identities completely and still get my point across.

I think any kind of RANT reflects far worse on the individual doing the RANTING, and harms an industry that is already defending itself to the public)

janet- interesting. How did that happen? My post was about blogging manners or at least I thought it was. Oh no...wrong again am I!!! LOL.

Yes the thought did cross my mind. My life was/is already stressful enough without being attacked and becoming the scapegoat for others bad posts. hey, I can handle disagreements till the sun don't shine so that was not the reason for my thoughts. And you were not the reason for them either. :)

Hope all goes well with the FHA switch. I am sure you have everything under control as you sound like you do more in a day to keep all on track then the person in my post. As a matter of fact just from reading your posts I am sure you would never make the comment to your agent partner 'I don't have time to babysit each loan' :) Yes that is what I heard.

But enough said already. No more adversary thought process or talk from this end. Today's market requires working together more than ever and I, for one, am making sure we do. And I do enjoy your posts.

BTW- What is your communication style? Mine is....well I think you already know that answer LOL

I have seen the hostility increase. Maybe some people aren't handling the stress to well?!?!?!?!

I always like the "Realtor has the relationship" crap argument. Heck, by the time the transaction is over.... many of my clients are ready to throw darts at their realtors(me too). LOL

Lenders aren't service providors. Lenders are valuable transaction partners.... The good realtors already know this though!!

Janet: We all have our challenges these days and I can see the lender viewpoint COMPLETELY and am VERY respectful of it. Your story about turning it around and Realtors slipping in addendums that affect the dynamics of loans and say "oops I forgot to share" is a perfect perfect point!

Your presence on Active Rain is enlightening Realtors about transactions and you play a very positive role. The reason why I love my lending partner (notice I said partner :wink wink:) is because he keeps me informed of every underwriting guideline change possible.

I know way more about lending than I want to know. Also about appraising. And title. And everything else. You probably know more about the agent end than you want to know.

We are all praying for that "simple" transaction but in the mean time we need to educate our clients. I do damage control for lenders, title and appraisers BEFORE a buyer sets one foot in a single property to view. I want to make your job easy so that when you ask for a couple of papers for documentation in the beginning, middle or end there is NO FIGHT from the buyer, seller or this Realtor! They know they just need to get it done ASAP when it is asked for!

Hope you have a beautiful week and we will be rewarded for our patience in the form of simple transactions - because of the hell and back we have been through - some day.

Oh and FYI, my biggest rant if I must generalize professions is agents right now. They are the worst communicators. We are lucky to get a phone call that they are in receipt of an offer, or if we need more information or even that an offer was accepted.

It is what it is, folks and if I blew a gasket telling the stories everytime someone pissed me off I would have the most negative real estate blog in the country.

Hey Tom: You are funny. I have had all levels of partnership in my transactions.

Sometimes I am called a partner but am really the wicked stepchild (bad for asking for so much paperwork and making the client jump through hoops to get the loan)

Sometimes I am called a partner, but I am the whipping boy for everything that goes wrong.

Sometimes I am called a partner, but my other partner is so silent that I must be the Realtor, too.

I hope no one EVER wants to throw darts at me, or the Realtor. But if they did, It wouldn't hurt. To be in the mortgage business you need skin like leather.

Should I get a dart board with my picture on it for their closing gift? LOL

Renee: I feel for all of you agents that have to work on short sales and foreclosures. What a pain in the asset.

Another prayer to the real estate gods: Please, just a regular old seller.

How is it in this age of communication that we have such a LACK of communication?

Does anyone else find this a little wack-o?

Martha: Yes you DO have to babysit every loan.

Lord knows I would rather be out talking to Realtors and clients, secure in the knowledge that I could "trust" my loans are under control.

But I can't, so babysitting loans is part of my job.

Muy wacko Janet! I think we are being bombarded by too much communication: emails, faxes, tethered to our phones in bed and on vacation.

Such is life and if one has too much business they should consider referring it out to someone who may take better care of it!

I think one of the reasons that the relationship between Realtors and Loan Officers is becoming more and more adversarial is exactly what Renee said - we are seeing more and more the loan officer is advising the client how to negotiate - or renegotiate - a transaction. We had one where it was a bank owned listing and were the listing agents. There were multiple offers. AFTER the buyer scored the deal, the lender told the buyer's agent - and buyer might I add - that they should ask the bank (our clients) for a 6% seller credit. Well, that would've changed the picture a bit, don'tcha think? As if! If they'd written the offer like that, they wouldn't have gotten the house. There were better offers netting more to the seller.

So if lenders would just DO THE LOAN, and let the AGENTS do the negotiating, then we'd all be in better shape. I bet if we read our rules, we'd find that the loan officers are overstepping their bounds, just like if we try to write our own clauses we are demonstrating the unauthorized practice of law. That's why our contracts are written for us...

Janet- Well well well, Dammit...You beat me to the punch today...but my blog was specfic..and yours was just full of FLUFF! Fluffometer...8.6...

For those of you who think I am serious...sorry, but I am not! LOL

The only thing I dont like about your blog is that cheesy ass bachelor! HE is a loser...!!! L L L I have a stomach ache now justlooking at him...can you please change the picture...here's a suggestion.. Im sending Optimus Prime after anyone who messes with me anymore! -

As far as your blog goes, I obviously liked it! I linked to to you 6 times today! Wowser..I am catching crap for that I know!

I think you have an interesting perspective coming from the industry you used to be in, as well as having been a Realtor at one time. It is WAY more fair for you to say ALL of these things, because you have been in EVERYONE's shoes! We need to consider that!

kudos! - Darin

Your right. We are a team. Its a good reminder. I think it comes up when someone uses someone on "another team."

Janet, Thanks for asking. I'm re-doing my mortgage site this fall to aid navigation.

Thanks for asking me to post this link. The Dream Team Series The Realtor, lender, home inspector, appraiser, title, escrow, insurance agent. You'll find the links to pass down the line of Dream Team members.

Kate Ford

Janet - It's definitely a stressful market and I'm sure this increases the amount of bad transactions out there. Whether it's between an agent and an agent, an agent and a lender, an agent and the title company, etc.

As long as my client and myself are kept in the loop by the Mortgage & Title Company that's all I care about.

I've only had great experiences with my preferred lenders lately, which is why I refer business to them. One lender in particular gets the mortgage package to the Title company THREE days before closing, it so refreshing for everyone.

However I do hear and read about horror stories and I think it boils down to lack of communication between people.

Some of my best friends are . . . . .

I have wonderful relationships with mortgage loan officers and respect what they do. We have a symbiotic relationship and it works very well.

I refer ready, willing and able home buyers to them for loan approval and they do a fabulous job for my buyers.

What more could an agent want?

Hi Janet,

Will you be my friend? :)

I love my lenders, they are extremely knowledgable, and are the go to people for my business. I make it a point to go out to lunch with them at least once every two months. Why? Because I consider them great friends, co-workers, and the key to my own business. When my lenders, mortgage brokers, and anyone else in the lending industry talks, I listen. Where would we be without them, and where would they be without us? We are keys to each others success, and that isn't going to change anytime soon.

-Lisa

Janet, I have never felt that the mortgage broker and I are on opposing teams. I have always tried to work together to get to the closing table. Can't imagine it any other way. Great post.

Oh, Lenn. I was expecting a very different comment from you. Something like this:

Why shouldn't we agents be able to complain and expose mortgage people who do not do their job well?

It is true. It is like combatants some times but there are agents out there that are like combatants too

Darin:

Fluff-o-meter 8.6 rating

Headline that mentions stupid reality show = 5 points

Picture of bachelor who couldn't even pick the right girl, and who makes real men want to barf = 3 points

Mentioning Dancing With the Stars in the same post as The Bachelor = .6

Christianne: I am going to come right out and say this: It is far more common for real estate agents to try to do the mortgage thing than for mortgage people to try to do the Realtor thing.

I agree with you that no mortgage person should advise the client about writing the contract and making the offer. Not our job. It is a misconception that mortgage people encourage borrowers to ask for closing cost credits.

They think of it themselves and often ask us to calculate the loan with and without a seller credit.

I can't think of any reason why the mortgage person would suggest a buyer go back after the fact and ask for closing costs. It shows a complete lack of understanding and makes me wonder if there was not some miscommunication in your situation.

Thanks for the link, Kate.

You are welcome, Janet, Kate

Janet I read you post early this morning and then got busy. I thought about this on and off today. Here's my take.

I've been in the business for 23+ years. In all these years (except this past year) I have felt the our lenders are part of our team. They have been honest, smart, and on time - almost always. Some of them have become our close friends. My clients knew that if we recommended a lender they would be treated with the same excellence that they recieve from us.

This past year, try as they might, not one transaction has gone smoothly - not one for myself and all my agents. And that is a dramatic 180 degree turn of events. We all needed to 'shift' to the new 'now reality'. Things are not as any of us would prefer - including the title agents. It's always yet one more document, one more 'rant' from an upset client because the lender wants more stuff. And honestly - they do take it out on the lenders because that' their part of the transaction. Not that I think it lies with you guys and gals - your hands are tied with the new reality. When it gets real bad the client thinks we somehow can/should put 'pressure' on the lender - again - we know that isn't going help. Explaining the process to upset 'first time' homebuyers - isn't fun but it's our job to keep everyone as calm and REALISTIC as possible. There in lies the key - it's not the same anymore - maybe someday we'll get back to a smoother transaction (hope hope).

Until then we need to work together to find solutions and win -win- win- win- win for all. Most of the professionals I know and work with are doing this already. We will be the ones around when thing get back to 'normal'. And we'll still be friends and associates.

Anna, I am going to lift one more quote from the comments I read in the outside post because I think it relates well to what you are saying in your comment"

Think about who the true professionals surviving in the mortgage industry are today:

We're scared, bruised, beaten, broken, slightly overwhelmed with the new rules and regulations being forced on us every day, and mainly just tired of being rejected by agents, clients, the media, Washington, underwriters, appraisers...

But, as survivors, we're also a tough as nails, hard to please, in your face, clever, skeptical, street smart, pissed off rough and rowdy crowd. And we're proud of it. Well, most of us.

Great post, I like to think of my lenders as part of my team.

Great post! We are a team no doubt. My goal is to make the person who referred me to the buyer look great. As that is beneficial to me and the referring party who wants to look GREAT.

Lisa in Utah: I am already your friend and your fan. Thank you for taking such good care of your lender partners.

I like the way you think, Janet, and would agree whole-heartedly with you that we should be a team and professionalism should be the rule. Great post. BTW, I love roses, especially red roses.

Very nice post Janet! I have to be honest with you - I was looking forward to the Janet vs. Lenn smackdown on this one. LOL only kidding. Sales Synergy - working toward a common goal.

You rock Janet - wish you lived here in Phoenix!

David K: If that smackdown ever happened we could use this headline:

PollyAnna Meets the Professor and the FLUFF FLEW.

Hi Janet: I heart my lenders. I just don't heart them if they try to practice real estate and offer advice on offers, counters, anything to do with the contract, etc.

Red roses for Teral!!!!

I only grow white roses in my garden. They make a pretty dreamy sight covered with dew on a foggy morning with the redwood trees as a backdrop.

Maybe I will "wordless wednesday" that sometime.

Carla: Agree that I will only offer advice if you ask for advice. I have to gag myself sometimes. Only because I used to be a real estate agent and can so easily fall into that role.

It is not because I am trying to "advise" the Realtor. It is because the client asks me questions that are supposed to be answered by the Realtor.

But they are asking me.

There has to be cooperation between the lender and realtor in order to get to closing. I view it as a team effort.

As far as AR leaning towards real estate brokers look at how many mortgage brokers on on board and how many real estate brokers. more RE brokers commenting

as a real estate broker we are the one's who put the deals together in the first place and can not let a mortgage brokers lack of interest kill what we worked so hard for

michelangelo: Since there are many more Realtors, it is more important than ever to maintain balance.

A mortgage broker might disappoint you, but I will guarantee it will not be because he is not interested in seeing the loan go through.

And you can work hard to put deals together all day long, but with few exceptions you are not going to close one of those without a loan.

I would tell you it is important to find a mortgage partner who can close your loans and work well with you and your client. If you fail to do this, then the blame for killing a deal will lie with you, not some disinterested mortgage broker.

Janet- As always, my friend, a well written and thought provoking post that makes for an interesting read. As a fellow mortgage professional who just really wants everyone to be able to get along, it's disheartening when it doesn't happen - time after time after time after time.......

For so long, I used to let Realtors walk all over me and blame me for crap and I would just suck it up and not say or do anything when they would crucify me for anything and everything that went wrong during the transaction. So much happier now that those days are long gone and behind me. For every mortgage bashing featured post that I read from AR Realtors, I could post two horror stories of Realtors who did everything they could to hijack the loan transaction. You'll never see any of those posts get featured though.

If Realtors would just stick to negotiating the purchase contract and let us LO's do the loan, we would probably see less animosity and smoother transactions. As for doing the deals, unless you're an all cash buyer, without a competent and hard working mortgage professional, there will be no deal.

While many here think I am just some Realtor bashing LO, I assure you, that is not my nature. I actually abhor confrontations but I also refuse to be any Realtors doormat or scapegoat. I actually like Realtors and really enjoy spending time with my Realtor friends.

Once a month, we all get together with the spouses and significant others for game night. Lots of eating, drinking and gads and gads of fun. It's a small and rather wacky circle of characters but I respect and appreciate every one of them for not only the incredible human beings they are but also for the true professionals that make them a pleasure to work with.

What really bothers me though is when Realtors inflict their own personal bad experiences with a few bad LO's to every other LO they meet, don't know and have never worked with. When they do that, they are no better than the masses who inflict their own one or two bad Realtor experiences on every Realtor in the business.

Anyways, sorry for the long comment but like you, I just wanted to offer the mortgage professionals perspective.

Wow, such a lot of emotions flying on this post! As a relative newbie in the business, I have to say that 90% of the mortgage lenders I've dealt with have been awesome, and have gone out of their way to help my clients.

I've made a special point of referring my favorite SunTrust lender to any of my buyers in need of a competent, thorough, enthusiastic AND personable lender. We are true partners, and have even started discussions on how we can promote each other's business - like holding first-time home buyer workshops where the buyers can learn from me the home-buying process, and then can easily get pre-qualified on the spot. Win-win for everyone!

I know a couple of EXCEPTIONAL lenders and it makes all the difference in the world to my clients who don't know rock star lenders and loan officers. It makes the tide rise and well all benefit. A chain is only as strong as it's weakest link.

I must be living under a rock because I haven't noticed any bias from either side. And I certainly don't have any personal issues about it.

It seems to me that we should be on the same side and working for our client to get them their new home.

AUG

Mortgage brokers are part of my team. Your title intrigued me. However I hated seeing the picture of Jason Mesnick. This was the guy who changed his mind. Great post, you got me to read it.

Carol: Poor Jason. Girls don't like him and guys don't like him. Maybe I chose him because he couldn't make up his mind. Sort of like the love hate realtionship that exists between real estate agents and mortgage people.

Lisa: There has definately been horror stories floating around the rain about drama surrounding loan closings. Be very glad you have been under that rock.

Chris: Great attitude. It can make all the difference in the world to have a referral partner you can count on and trust.

Melissa: We are happy to have you here on ActiveRain. Thanks for your input. Gotta love those win-wins.

Oh, Donne. I know one day when I meet you we will laugh and talk for hours. Really, your comments always make my day. You are always a breath of fresh air to me.

You are not a Realtor basher any more than any LO. You just dare to speak up while others hide. I love that about you.

I sense a change in the air. Those of us left in this not so fun business are really tired of getting kicked in the stomach. And we no longer need to be afraid to stick up for ourselves.

Our ranks have thinned and they will thin even more with all the regs coming down the pipeline.

Good loan officers are only going to become more and more essential to the real estate world.

Let it be said, let it be done. I am ready for it.

everyone gets the rose. . .

great post Janet. I've been on both sides of the fence for a little while now, and while I do have many more years under my belt doing loans versus being a realtor, I can say there's a general lack of understanding from both sides about the challenges we're all having to deal with in this tough market. All of us, regardless of whether we are lenders, realtors, appraisers, title company employees or what have you, are dealing with a combination of four factors that have led to frustration - 1)loss of control, 2) change 3) unprecedented delays at every step of the process and 4) a general lack of understanding as to the processes required at each level in order to successfully get from point A to point B.

We've all lost control of many aspects of the transaction. Lenders and realtors have lost control over appraisals with HVCC, which have resulted in longer turntimes and lost transactions due to many values coming in under market. Realtors have given up control of the execution of contracts to banks and asset managers versus dealing directly with buyers and sellers.

We've all had to deal with change. Lenders must deal with guidelines that are changing quicker than they can all learn and absorb them, much less relay the changes to realtors and clients. Realtors have to deal with the longer times it takes to negotiate short sales and foreclosures, not to mention how long it's taking to sell the listings of clients who mostly think their homes are worth more than they really are. In many cases, they have to invest 2-3 times as much work and time getting a transaction closed, and in many cases they are showing 2-3 times as many homes to find a transaction that's workable.

We've all had to deal with unprecedented delays at every step of the process. Short sales and foreclosures, not to mention the huge inventory of homes on the market cause delays. Throw longer underwriting turn times into the mix and it gets painful for everyone. Loan officers are having to wait longer and longer to get approvals, appraisals and that's about to get worse with the new TILA changes. Not to mention, lenders will wait sometimes weeks or months to obtain a final executed contract on a short sale and then the bank expects everyone to close in a week.

And last but not least, we both suffer from a lack of understanding of how these changes and loss of control has affected all of us. Lenders don't always stop to think about the grueling hours that realtors spend showing homes, not to mention negotiating offers. And often times, a quircky underwriting condition that changed at the last minute with no notice and that makes no common sense will kill the whole deal. And realtors don't see the many, many dozens of steps that lenders have to take to get from point A to point B, especially with all the nit picking that's happening with loan underwriting. A mortgage file is usually about 100 pages thick by the time a buyer completes application. By the time it gets to closing, it could easily be 200-300 pages, and if ONE NUMBER on ONE PIECE OF PAPER is incorrect or outside of guildelines, then it can take a multitude of people to correct the problem. Often times, the mistake is made by a third party and it takes cooperation from them to correct the issue and those third parties don't always share the same sense of urgency that we do.

But let's not overlook the fact that OUR CLIENTS have to deal with ALL OF THESE ISSUES and they are the ones that have SUFFERED THE MOST in all of this. These days, it's a miracle if things happen as planned, so we all have to work together to communicate even more than we did in the past and we all have to make sure our clients' expectations are in line with reality. Simply being there for them at every step of the process and communicating effectively can make a sour transaction smell pretty sweet at the end of the day. I think those of us that are left standing at this point can all recognize this fact and work together to help each other help our clients. It's tempting to rant sometimes, but in the end, it's pointless IMO to blow off steam about an incident where someone dropped the ball because we've all done it at some point and people will always make mistakes. Yes, there will always be some bad apples that exist, but that's true in any industry. Not to mention, I can only imagine how it looks to a client when they get caught in the middle of an issue where professionals are at each other's throats. Many of the changes we've had to deal with certainly defy logic, especially on the lending side, but it's the system we are all stuck with, so we have to learn to work together because if we don't, our clients are the ones that stand to lose the most. At the end of the day, I think most of us evaluate our success not by how much money we make or how many transactions we close, but the quality of service that we bring to the table and the experience and level of satisfaction that we can deliver to our clients. If it's not a good one, we may as well hang it up and go do something else because it woudln't be worth it anymore IMO.

Let's all do a better job of trying to walk a mile in each other's shoes, myself included. It will go a long way to helping us prepare for problems and also delivering a better level of service to our clients. At the end of the day, that's what matters the most.

Your post reminds me of a time long ago, when I was still a real estate agent...

When we walked out of the attorney's office after the closing, the buyer turned to his mortgage broker and me and said "Wait here for just a minute." Then he went to his car and came back - with a bouquet of roses for each of us.

He appreciated us both equally, because we did indeed work together to help him buy his first home.

I also do not understand the antagonistic path. We all win when a successful transaction closes. Every bump in the road that occurs is a learning experience and a chance to hone our skills and be a more valuable asset and counselor to our clients. The best results for our clients occur when all of the professionals that they are employing work together as professionals to help them cross the finish line and get into their home. Communication is almost always the key. We cannot assume anything about the process, especially in todays increasingly challenging market. We as REALTORSmust understand and communicate our clients goals, challenges and expectations to the lenders. We are all in this together so let's be professional and get it done right for the client.

The bottom line is we are in sales...we aren't going to make money unless we successfully close our deals. I think, being a Realtor, calls for us to establish strong relationships with multiple industries, not just Lenders but Inspectors, Attorneys, Appraisers and of' course our peers. Communication is the key, knowledge is necessary and experience goes a long way. There're bad apples in every bunch, every rose has its thorn, knowing how to pick and hold onto our counterparts ultimately creates the perfect environment to successfully close our deals with satisfied clients and our peers wanting to do business with us again. If we treat people as we would like to be treated, associate ourselves with professionals that know what they are doing... we are typically dealing with ones greatest investment, we most likely we will have repeat business that becomes smoother with each transaction. I personally think the "rose" goes to the closing processor; in my opinion, they desire it?

I always LOVE reading your posts, Janet! And I agree with you - people seem so much against each other in this business. It's really sad. Although, I have to say I can see how it happens. With so much fraud and lying and deceit in this industry, it's not a wonder that people who SHOULD be working together don't.

Janet - Gotta love Patrick's last statement "I personally think the "rose" goes to the closing processor; in my opinion, they desire it?" I don't know about you but my processor is an absolute PROCESSING GODDESS! LOVE & ADORE HER! I literally couldn't do what I do without her and I tell/show her that all the time. Next to hubby, she's my favorite partner to work with.

Yes, we are supposed to be teammates. The problem lies within the fact that newer agents might not know how to treat mortgage officers, don't know this market enough to understand what's going on in all it's gory details, might not understand how a loan works, might just be a plain ol' not plays well with others....Also, when you don't get truthful answers or all answers out of your mortgage person, maybe you should switch! Or if you have a buyer that used their own that you don' thavea relationship with, it's hardto know how they work and to even get communication from them.

Janet -

Thanks for a great and timely post. We are ALL IN THIS TOGETHER whether we like it not and it's simply up to both sides to "make it work."

Michael

Hi,

I'm new to the biz....first day June 11th. I have 4 listings 3 buyers. I LOVE MY JOB! (should have done it years ago..) Previously I spent 15 yrs in Sales/Marketing. I must say, I have been underwhelmed by the sense of urgency displayed by some of my peers. Typically a home is our clients' largest asset. I can't believe that some Agents don't even call back!! I'm new with fresh eyes and I've already promised myself that if I do nothing else in my career I will call clients, mortgage bankers, brokers, agents, and everyone else back in a responsive, prompt manner.

I have blasted some lenders, but overall I appreciate them. There are several things that happen:

When something goes wrong people like/need to point fingers.
An Agent/Lener cannot afford to have a customer who has other needs/referrals to be upset with them, so point the finger at the other guy.
Poor communication on one side or the other.
Lack of understanding for what the other side is going through.

There is one more think I am speculating about. There may be a referral power shift going to the lenders. Many buyers are taking care of the lending issues before ever contacting an agent. Agents need to suck up to lenders more than lenders need to suck up to agents.

AUG

We are on the same cause and should work together to go over the finish line! But if I might suggest, you step over the line in many posts from wearing your mortgage hat to the realtor hat. Just keep wearing that fashion forward fedora you're supposed too. I sell real estate, you do the mortgages remember?

Janet,

Love your analogies! Very creative! And... I love my local LENDERS....ALWAYS pleasant, helpful and knowledgable!

Kathy Opatka

Okay Lyn, I will try to control my tendency to put on my Realtor hat!

OMG!!! OMG!!!! OMG!!!!!

Did I just read this in the comment above?

There may be a referral power shift going to the lenders. Many buyers are taking care of the lending issues before ever contacting an agent. Agents need to suck up to lenders more than lenders need to suck up to agents.

Sorry, I am on the floor. I fainted from shock.

Oh, cmon girlfriend, you and I and every other hard-working, dedicated and conscientious LO have already known that for eons. It's because of this that we don't base our entire business around Realtor referrals (never have, never will).

The shocker is that a Realtor actually stated it in print for the whole world to see but then again, I discovered recently that as Realtors go, Gene seems like one of the good guys. However, it'll be a cold day in %#!! before you'll ever see a consensus among the Realtor community here on AR that experienced and competent LO's have more to offer Realtors than vice versa.

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Janet Guilbault California Mortgage Banker/Broker

Walnut Creek, CA

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Address: 3201 Danville Blvd, Suite 195, Alamo, CA, 94507

Office Phone: (925) 552-3867

Cell Phone: (925) 212-6347

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