Why Recommending A DIRECT LENDER Could Make You Choke on Your Coffee

Janet - Quite a few of the clients that I'm currently working with were referred to me because they were tired of getting screwed around by some big box bank and in a couple of cases, these were the big box bank that their Realtors referred them to and in one case, insisted they use.  So much for going to the Realtors trusted bank.

Anyway, like you, I get irritated and annoyed with Realtors who don't know me and have never worked with me and who tell my clients that I have been working with for months that they (the Realtors) don't want my clients to work with me and that they want them (my clients) to work only with their banks.

I have never nor would I ever tell a client who came to me with their own Realtor, a Realtor that I don't know and have never worked with, that they (the client) can't work with their own Realtor and can only work with the Realtors I want them to work with.  Just because I don't know a particular Realtor or have never worked with them doesn't mean they aren't a good Realtor.

Furthermore, when my clients complain about the Realtors that they themselves chose, I will often advise them to talk to the Realtor and try and work out any differences and/or issues they may be having with their Realtor.  Only and I do mean only, if my clients tell me that they do not want to work with their chosen Realtor anymore and ask me for a Realtor referral will I provide them with a few.

I am always willing to give unknown and/or unaquainted Realtors the professional courtesy of doing thier jobs and earning my respect and appreciation.  Unfortunately, so many Realtors are simply too arrogant and self righteous to grant me the same professional courtesy. 

Furthermore, those particular Realtors will have etched their pompous and sanctimonious attitudes into my brain and anytime anyone ever asks me if I know anything about that particular Realtor they will certainly get the one and only impression that they (the Realtor) had left me with.

Sorry for yet another long comment (and bordering on my own self-righteous rant) that should have been my own blog but, once again, you have touched on a subject that is near and dear to my heart: buyers being allowed to choose me as their preferred lender regardless of what Realtors who don't know me and have never worked with me think.

Janet - I'm going to have to agree with Dan (#31), sort of.  From a little different perspective,

"it sickens me to work with a Realtor who doesn't answer any of their phones (cell, office, direct, etc...), return any calls (to me, our clients or anyone else in the transaction), provide guidance and/or status updates, yadda, yadda, yadda.  Neither I, my clients nor anyone else in the transaction has time for that absolute nonsense."

Janet, In our market there are two or three community banks who do a good job.  We know the loan officers in in all three.  We have never had a problem with them. We recommend them equally. 

The big name banks are unreliable.  They come up with any number of obstacles and delays.  They are so big they don't give a damn whether they ever see your business again or not.  We have had clients who thought they would get the best service from the bank they used for other financial needs.  In each case they were unpleasantly surprised.

In my opinion, Realtors in my area of practice became disenchanted with mortgage brokers due to incompetency and outrageous fees.  There are a couple of mortgage brokers in our area who have very bad reputations. Not unlike Lending Tree except no one is competing for the business.

Realtors have to overcome the stigma of unprofessional Realtors the general public may encounter.  Mortgage brokers need to overcome the same stigmas Realtors have experienced caused by the unscrupulous who are practicing.  We face similar obstacles.

Janet - As you and I both know, stories like Erica's happen every single day.  Erica, that is one of the many differences between retail lending and correspondent lending.

On another note, regarding Bonnie's comment - BRAVO!  AMEN BONNIE!  It's nice to read comments like Bonnie's; a Realtor who admits that the mortgage industry is not the only industry with unscrupulous, sleaze bags still working in it and that there are just as many unscrupulous, sleaze bag Realtors still working in the industry too.

Bonnie recognizes that both Realtors and LO's have the same stigmas to overcome, which is a lot more than many Realtors will admit.  As you stated earlier, many Realtors seem to think that they are regarded in a higher standing than we (LO's) are.

Here's a thought, in an effort to overcome the many stigmas that we (Realtors & LO's) have to overcome, let's start by granting each other the professional courtesy that we may be really good at our chosen profession and that is why our clients have chosen us as their preferred choice of either their Realtor or LO regardless of whether or not we know each other or anything about each other or have never worked together.

If you grant me the professional courtesy that I may be a really good LO who's great at my job and that is why our mutual client has chosen me as their LO, then I PROMISE, I will grant you the same professional courtesy that you are a great Realtor and that is why our client chose you to represent them.

If we can just start doing that one thing (as opposed to trashing each other), I strongly suspect that we will not only get along much better during our clients transaction, but we might even become professional partners who refer business to each other and who knows, in time, we might even become friends.  I speak from personal experience when I say this.

Loved your metaphor! It is so important to connect with LOCAL industry experts. It facilitates the home buying process for not only the client, but for the agent as well. Knowing who is involved in the lending aspect of the transaction - and who is available, regardless of the hour - is vital in the hectic and tumultuous real estate world!

I work with a Mortgage Lender who has the ability to place the loan with one of probably 100 investors.  I am not a fan of how our local Brokers work and if I never have to deal with Bank of America or Suntrust again I will only be too happy.  Great post.

Janet...  I didn't read many of the comments, but I think what you are stating here is those that thought this at one time... or those inexperienced realtors that make these referrals to the big banks now. Yes, I hate those realtors that think the bigger banks are better...  but I am not finding this coming from realtors that much anymore.  I am getting this from consumers that are saying this or thinking this.

I will say this... I do think your title is very misleading, because just like yourself, I am a banker, a direct lender, that can broker.  But why would I broker a deal?  I have full control by keeping it in-house.  But again, I am a direct lender.  This is my opinion, but I think you should have defined the certain types of lenders out there.  Because the title would be used against me also then.  Just my opinion, the no fluff opinion.

I personally send them to whomever is getting the job done. Brokering is a former occupation of mine and I prefer broker.

I do not recommend "big banks", I do have a list of brokers that I have had good service from in the past.  Just like Realtors, mortgage brokers can be good or not so good depending on the person.  If you are using a good one, they are an invaluable part of the process.  If you get a bad one, they may roll you under the bus if they screw up and then you obviously wouldn't use them ever again. Only had that happen once though, but I've had brokers treat me as if I were not a client, which is a big mistake.  If they do not communicate with me and take care of things promptly, I also will not use them again.  Love the description though and agree with you!

A good broker or banker can do much better than a Big Box Bank 99/100 times. I began my career as a broker but recently switched to a banker because the wholesale broker model is slowing being suffocated. As a banker, I have the best of both worlds. Given the choice, I prefer to stay in control of the transaction by funding it myself. I recently had a VA deal that almost went belly up because the BBB never requested the Cert. of Elig and the LO went on vacation a week before closing! It so happens my fiance works for that BBB and I hear daily horror stories from the inside. I avoid them at all costs. I find it ironic that the four largest banking receipients of TARP money funded the most loans in Q2. Where's the incentive to do any better?