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Using Those "Nasty Little Tricks" to "Test" a Potential Mortgage Person

This comment, which appeared over the weekend on a featured post made me extremely uncomfortable:

"One of my nasty little tricks is to coach Realtors to ask my competition to explain APR as a knowledge test."

Okay, everyone, let's not use hidden agendas when we connect. Why not? Because "nasty little tricks" are not the foundation for great relationships.

Trust is.

We owe it to our mutual clients to bring trust to the table when we handle the most important transaction of their lives.

If you are a Realtor who would like to connect with a great mortgage person, just say what is important to you and and ask for some feedback.

Be open. Be honest. Be transparent.

If that isn't enough, ask for referrals or testimonials. From other Realtors. From past clients.

Read their blog. Have coffee together. Ask their advice on transactions. Ask if they publish a newsletter.

Take your time, there's a lot on the line. Being proactive when you select a mortgage person is one of the best things you can do for your real estate practice.

But please, don't administer "tests".

Don't give a mortgage person your worst file, the one turned down by 5 other lenders, to "test" how hard she will work on a difficult file. (This would be like the mortgage person "testing" you by referring a client she knows will not qualify for a loan).

Don't leave a message at 9:30 on Saturday night to "test" how responsive she will be with calling you back.

And please don't give a "knowledge test" on any mortgage subject. Chances are, you are not qualified to administer such a test (acknowledging there are exceptions to this.....).

You need to evaluate any potential referral partner. I respect that.

I want to respect you, TOO.

But how can I when you're not being straight up?

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

Posted by Janet Guilbault California Mortgage Banker/Broker on 09/14/2009 12:56 PM

Comments (17)

Referal Partnerships in the Mortgage / Finance Channel

referral partnerships, realtor success strategies, mortgage broker, monday musings

Post is included in group: The Ninety-ninth Percentile
Post is included in group: Realtors®
Post is included in group: Northern California Real Estate Professionals
Post is included in group: Mortgages

17 Comments on Using Those "Nasty Little Tricks" to "Test" a Potential Mortgage Person

SEP

How right you are-we need to be upfront and honest with someone. Checking out referrals are the best way to find out how others work.

Just makes you wanna say, "CHILDREN, if you can't play nice together, we'll ask you to get out of the sandbox."

Tests? How crazy is that! I don't test anyone. You ask me, I answer, or tell you I will get the answer. If it involves your mortgage, I'll ask you to speak to your lender (whether they are one I suggested or one of your own choosing!)

Some days!

Thom: Actually this is not the first time I have read about "tests". Once a Realtor wrote a whole blog about how to go through this whole process to test a mortgage person.

It included all kinds time wasting assignments just to see if it was possible to "flunk" the mortgage person.

Talk about lack of respect! I blew my stack over that one.

I'm with you. Just talk to me straight up.

I agree: everyone should have testimonials. This is not reality TV where you tricking people gets you more veiwers. This is real life.

Hey there Janet! This quote caught my eye too - "One of my nasty little tricks is to coach Realtors to ask my competition to explain APR as a knowledge test." Note the 'my competition' portion of that statement. This thing came from an LO!!!! Hope that the folks that are getting this advise realize how foolish it actually is. Run RUn, RUN from this person. Too much trying to make the competition look bad vs. making themselves look good. How sad :(

Selecting an solid business partneris so, sooo much more than any knowledge, diligence or responsiveness tests can show. You put it very well in your blog. Open, honest, transparent. That's the ticket! If anyone put me through the ringers you described here. it would happen just once. I'm always looking for business partners. Folks interested in games will get no interest from me!

I have enormous respect for the person who made this comment, and thought his post was informative.

But I don't want a Realtor to come to me with a hidden agenda of tests.

That would only make me believe that the way they choose to do all of their business is with hidden agendas.

And that's not for me.

"And please don't give a "knowledge test" on any mortgage subject. Chances are, you are not qualified to administer such a test (acknowledging there are exceptions to this.....)."

HA! That is exactly what I was thinking.

IMO, the best way to gain the confidence of a prospect is to talk about their needs and how you can help them.

Let the other folks take care of themselves.

SEP

My test is simply -- COMMUNICATE... with me, the client.. the process and the underwriter... if you don't know... just let me know that... and take some action... You are absolutely right that honesty is the best policy and relationships are key. I had a mortgage originator lie to my client and that was the last time I am referring that person.

Janet: Those are great tips. I appreciate them. I will always be helpful, even if I get a bad file, etc. as a referral. But it doesn't mean that will necessarily turn into a good relationship. We all test each other but the key is always going to be building a relationship over time. Thanks!

SEP

Janet - Silly games...who has time for them?

SEP

Janet - In response to Scott (#5), I saw that comment and thought to myself that is an LO basher of the worst kind. Anyway, I agree that giving each other tests (I've heard of LO's who do that to Realtors too) is disrespectful and a waste of time.

It's one thing to comment on someone's post about how you work or feel about the post topic; this can actually be seen as simply offering a different perspective on the subject matter. But to go on to inform the audience on how to discredit someone else they don't know and have never worked with by issuing unreliable "tests", that is quite another thing all together and it's not good either.

Once again, some people just simply have WAY too much time on their hands. Just the whole thought of being so devious and deceitful as to design a way to make yourself look good by making others look bad is just kind of creepy.

SEP

I agree Janet. I'll take a great leap here and think that a consumer would rather get 4.875% on a loan from a mortgage broker who knows how to deliver a great rate because of hard work, technology, and truly caring about the client, versus another mortgage broker who may score higher on a "test" but can only find 5.125% - with everything being equal.

SEP

Hi Janet, Play it straight, I'm not interested in playing games with people in the real estate industry in any way, shape or form. Great post! I completely agree with you!

OCT

Given that every situation is unique these days, I would advise the person to not test me. As I have a referral only model, this behavior would absolutely drive me nuts. At some point, the relationship, if there was one, would be politely terminated.

Life is too short to make things tougher than they need to be.

OCT

Janet: As pointed out, this little "test" was developed by another loan officer. It's only my opinion, but if they have enough time to be thinking about and developing a test of this kind ... they cannot be busy with real work, real customers, and developing their own business and beneficial business partnerships.

My point is ... I take care of all those things to the best of my ability (as I'm sure you do) ... then let the beneficiaries of my efforts make their own determination about the quality of my services and the programs that I offer. I figure if I'm doing all that and minding my own business, I'm too busy to be worrying about concocting little "tests" for my (so-called) competition. I think this applies for anyone ...

Gene

NOV

i also read it to mean that a lender was trying to discredit his or her competition. I guess it doesn't matter as long as you understand APR, but I agree that there are much better ways to determine who you should work with. Great post!

NOV

Janet, I couldn't agree more with you. I am also a mortgage broker and I am always amazed at the "test" that my local realtors attempt to give me. I reblogged this one. Thank you!

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