Rating your designation as a loan officer or realtor - Do you manipulate such designations as advertising to get more business?

Designations tell the world that you are willing to go the extra mile to make yourself better in your field. They are meaningless, however, if you don't apply what you learn. You have to keep learning - the business I do today in quite different from that in 1991, when I began.

I hear a lot of comments regarding how "it doesn't matter what you have" as far as designations. I think it does matter. Experience is really #1 in the RE biz, so we should all first and foremost have IEY designation (I'm Experienced, Yo). Touching back on the CMPS designation for loan officers, I am 10x more financially literate based off of that training (in addition to some other stuff) and I would (and may) continue my education that way. Having said that, the training had ABSOLUTELY NOTHING to do with closing loans. So really someone could strum up for themself 100 leads and referral partners and not close any of the deals. Its really tough to run a business that way. On the flip side, I've seen some LO's that are "dumb as rocks" but can really close some loans. The fact is that most loan officers do not possess both of these qualities strongly. One exception of course would be Jason Sardi, who has virtually reached the Zen of mortgage lending.

when i started, many years ago a loan officer was an officer. it came with a great deal of responsibility.

now we have individuals who belong to the alphabet soup group and i'm not sure what all the letters mean.

i hope that they stand for ethics, integrity, trustworthiness, education, knowledge.

in many cases yes, in some no. 

I think the designations DO tell your fellow realtors / loan officers that you value your profession and have pursued some ongoing education in your chosen field.  I DON'T think it conveys the same indication to the general public, however.

Anymore designations convey longevity.  Some many real estate and mortgage people come and go.  It's almost like a revolving door, especially during these economic times.  Personally I advertise my designations more with my colleagues than I do with my customers.  The customers don't understand what they mean, but my colleagues do. 

If the NAR didn't promote it that way it wouldn't be used as a "marketing" tool. But, the truth is - there is more money is selling designations than there is in selling real estate. If anyone asks me about designation courses, I tell them to go sign up for a course at the local college. At least they will have something tangible in the end.

I think the designations are nice and show a commitment to education.  However, there is no substitute for practical knowledge, experience and the ability to communicate.  If you do not have the best interest of the borrower at heart and be able to effectively communicate the best options, you are nowhere.  You also must have a bit of humility because no one has all the answers and you must have an open mind.

I remember a few years ago I sat down with an estate planner.  He had a long list of letters after his name.  He gave me a bewildering presentation of numbers, graphs and charts that made my head explode.  I consider myself I fairly intelligent person, but after his presentation I was more confused.  As a loan officer, if I can remove the confusion from a confusing process, deliver on my promises and keep the best interest of my borrower as my main goal, I have done my job.

There's a whole littany of 3 and 4 letter designations out there. But if you ask a consumer - any consumer - what any of them means, and I'm sure you'll get nothing but shrugs and blank stares. Designations mean nothing to them. What they want is someone to help them solve a problem.

Jeff-what is interesting is how people use their designations and lord them over other agents as if they make them a "better" agent for having them.  For example I have a CRS which means I have had to take a series of courses AND have a significant # of transactions under my belt.  I don't have a ABR. 

The CRS designation contains a coursework specific to buyer agency and certainly by the # of transactions I've exceed those required for the ABR.  Does that mean I am not as qualified to assist a buyer as someone with the ABR designation?  Don't think so.  Instead of getting what I see as a redundant designation I've taken additional CE courses on contracts or another subject that makes sure I am up to date on what is happening in my market. 

@ Steve Kappre - Thanks for the philosophical mention and after this year, I just may go David Carradine on my own ass;)

Belonger -  I think in some part that these designations represent additional education in ones field.  And of course a lot of folks will use that as a marketing edge.  The same way they'd use 30 years of experience in the industry as such.  The same way they'd use the big name company they work for as such.  The same as they'd use the amount of closed transactions as such.  The same as their time spent waxing Grace Kelly's eyebrows before entering the Industry in the first place.

While I have mixed feelings about using such educational credentials in a marketing platform, I don't abhor it.  Anything to better equip one at doing their job and understanding their industry is rarely a bad thing ... especially for the clients they will be working for/with.

Do consumers care?  For the most part, I don't think so.  They are still stuck on the interest rate alone, and that's largely our fault.

The great thing about a desgination is that you probably earned it.  I think that's worthy of sharing with the consumer.  I'm an attorney and it helps me get more business for sure.  However, my beef is with people taking designations as "Senior Loan officer" and they've only been in the business 2 years.  Or....Sales manager and they're not managing anyone.  Good post.

Jeff - consumers have no clue about our designations, so we have to educate them about the value that they bring from the additional education (and in some cases production) needed to acquire them. Some may not even care.

Sadly having a particular designation does not always guarantee that the person is ethical and will do the best job. Many are and do, but there are unscrupulous folks outside our industry too - PhDs, JDs, MDs and more.

Jeff

Good Article, I just have never had the time or desire to have the letters. Maybe I can be a JBBRwhich would really carry some status. Jeff Belonger Blog Reader. I know I learn a lot from your blogs.

I had to re-read this post because I thought I was going crazy. You did post this previously. Thought I was 'seeing the future' or something. Still enjoyed it, even the second time.

I with the camp that the customers don't have clue what all those different letters mean.   Gaining education to help our client is always a good thing.

Thank you for the great read.

Designations, schmignations.  It's all the same.  If you are dedicated, trustworthy, respectful and knowledgeable, it will all work for you.  The main thing is to keep your eye on the client's best interest, know what you know, and know what you don't know....and find the people who do.  Make sure all the details get taken care of, and you and the client will all come through this in the best possible of places...a successful  closing. 

Thanks for all your hard work keeping us updated on FHA loans.

Jeff, It's funny you should write about this. I remember when I first got into the business and learned about these designations from another lender. He didn't know much more than I did, but certainly was proud of those letters. Needless to say, 18 years later, he's no longer in the business because of his reputation for screwing up loans. I still don't have a designation behind my name, but I'm still here closing loans.

Here are the Mortgage Designations I am aware of.  Can anyone tell me which ones I am missing?

MBA

·         Certified Mortgage Banker

·         Certified Loan Originator

·         Accredited Mortgage Professional

NAMB         

·         Certified Mortgage Consultant

·         Certified Residential Mortgage Specialist

·         General Mortgage Associate

·         Lending Integrity

NAMPW

·         Certified in Mortgage Ethics

·         Certified Mortgage Instructor

·         Graduate of Mortgage Lending

·         Master of Mortgage Lending

Others

·         Certified Mortgage Planning Specialist

·         Trusted Mortgage Professional

Oops...I forgot the newest one that all mortgage loan originators (except those that work for a depository instituion) will have to have.

NMLS  -  Nationwide Mortgage Licensing System