Anyone can be a loan officer. Yep - that's what the ad says. Tired of selling plastic dishware to keep your leftovers safe? Pre-paid legal didn't turn out like you thought? Telecom downline too hard to manage?

Well, shucks, boy! You can own your own mortgage company.

NO EXPERIENCE NECESSARY - that's exactly what the spam I get in my email regularly tells me. And it is one of the most frightening phrases I've ever heard in relationship to the industry of which I am so proud to be part. For most Americans their home is the single most costly and valuable purchase they will ever make. There are literally thousands of loan solutions available which confounds the minds of even the brightest and more experienced Mortgage Professionals.

Of course the reality is that in many states not just anyone can be a loan officer. If you've read any of my blogs anywhere you know that I am pushing for licensing of everyone employed in the mortgage industry for the sole purpose of requiring at least the minimum level of continuing education. To work for me you either need a degree in banking and finance or a minimum of 2 years experience to work as a Loan Originator II or higher. We do have a training program from which you do not graduate unless you have completed a minimum of 6 months and have closed a minimum of 24 loans. Then you can start to work on your own.

So let me honestly ask: Do you really think just anyone should be advising you on your home mortgage? Is it really okay if you went to a home decorating party hosted by this person and while they are doing they added, "I'm also a Loan Officer and we offer a great opportunity there as well. Does anyone want to refinance?" Do you think maybe if they went to a sales rally every month which included 15 minutes of some kind of training or they watched the company authored DVD on the mortgage industry that you can now trust them to lock you into a mortgage on which your entire life and wealth management plan is based?

I mean maybe I'm wrong here because I've never been to a WLG meeting. I've never read any of their training manuals. I have looked at their website and the websites they allow their associates to have and quite frankly it disgusts me and disturbs me. http://wlgweb.com/  

If you are a WLG rep please help me. Help me believe that you deserve to be in the mortgage industry because from what I have seen from the few exposures I've had with WLG reps, they certainly did not.

Here is a way to help me have a modicum of faith in your system. Sure, it's a pop quiz. Anyone who deserves to be in the industry at even the base level should be able to finish this little quiz in less than 5 minutes without needing to reference any source. Seriously, I'm not kidding. If you don't know these answers off the top of your head and you call yourself a mortgage professional you are not. You may be in training but you're not ready to be guiding people's decisions on their mortgage:

1) How do you calculate APR?

2) Would you rather have (as a borrower) a lower INDEX or a lower MARGIN?

3) What is a form 214?

4) What do the initials RESPA stand for and why is this important to you?

5) How do you quickly calculate DTI and what is the maximum allowable DTI under FNMA guidelines?

6) When would you use a 1008 and what is it?

7) Briefly describe the duties of a CLOSER at a TITLE COMPANY.

8) As a general rule if the FEDERAL PRIME RATE goes up or down, what happens to an INTEREST ONLY ARM?

9) What is the KEY TRIGGER to start the clock ticking on RESPA?

10) What do the initials GFE and TIL stand for?

11) How many GFE's are sent to the borrower during the loan process and when are the sent? Is that all that you send or should the borrower expect something else?

12) If I am a secondary marketing auditor what do I look at and when?

13) If a client asks for a 100LTV with no piggy and no PMI on a NOO with no PPP, what do they want?

14) Does RESPA apply to modular homes in Florida where two senior citizens will spend their retirement years IF they plan on leaving the home to their children as an investment opportunity?

15) When does the lender see the HUD-1?

16) What is a HUD-1b?

17) Which party can you disclose the borrower's credit score too: (a) The listing agent (b) The buyer's agent (c) Both.

 

AS AN APPLICANT (borrower) I would recommend you give this little pop-quiz to your loan officer right there in front of them. I mean they are about to ask you 162 questions and you're going to trust them enough to give them your complete identity and financial history. They are going to know what you have in your bank accounts, your 401(k), your IRA. They are going to see how many late payments you've made and if anyone has a judgment against you. They are going to know your most hidden financial secrets. The least they can do is to answer these questions for you. I'd say if they missed 5 or more you may be headed for a problem. If they miss 1 or 0, they at least have an idea of what they are talking about and likely have some experience and/or good training in the mortgage industry. 

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I started writing on Active Rain in 2006 when I was representing the mortgage industry. I am no longer in that industry and many of the older posts contain outdated information. Please do not contact me for LENDING or MORTGAGE questions but rather contact a licensed mortgage professional from your area. I have always been in marketing and branding and that is still what I do. Thanks for reading!

 

23 Comments on Ding Dong: Multi-Level Loan Officer Calling

20 Most Recent Comments Displayed Show All

OCT
27
2006
535,210 Points 38 Featured Posts Outside Blog Attended Rain Camp Called Shot Master
Ken,

Good post.

Bill

William J Archambault Jr

The Real Estate Investment Institute

http://www.reii.org
12:54am • #4
297,808 Points 110 Featured Posts Outside Blog

Ken:

Q: If a client asks for a 100LTV with no piggy and no PMI on a NOO with no PPP, no DOC, non-recourse, what do they want?

 

A:   They want a month-to-month rental in their mother's name.
2:04am • #5
269,128 Points 72 Featured Posts Outside Blog

Too funny! Thanks for starting my work day with a bigger smile than normal. I made another addition:

If a client asks for a 100LTV with no piggy and no PMI on a NOO with no PPP, no DOC, non-recourse, first time homebuyer, with no VOE or VOR and they have no tradelines, what do they want?

8:04am • #6
OCT
28
2006
310,127 Points 19 Featured Posts Outside Blog Called Shot Master

Ken,

As a Realtor who relies on Mortgage Brokers to be honest, intelligent and knowledgeable, I can't help but feel dismay as I read this post.

I am printing this up to give to my buyers before they proceed. Excellent post.
4:25am • #7

Well Ken the proof is in the pudding. They are the number one mortgage company in the country.But the reps dont actually do all the detail paper work that other loan originators do. They simply refer a clients information to over 200 plus lenders such as your company. Then the companies who have the best plan for that customer response. Which then that company takes the customer through the same process you do till the deal is closed. And the rep gets paid 1%-4% of the deal....So with that being said KEN maybe you need to register your company with WLG so we can go through your company where ever your licensed or make more money as a rep with low over head. 
7:17pm • #8
269,128 Points 72 Featured Posts Outside Blog
"They are the number one mortgage company in the country" - are you the same anonymous poster who posted onStarbucks has nothing to do with Mortgages"? Because you are flat out wrong. WLG is not even close to being the number one mortgage company in the country. And they have NEVER referred a loan to MY company - we don't accept referrals from third parties. Never. So with that being said show me some numbers .... and pass the test. Can you? By the way, do you know who really is the number one in the nation? I'll tell you ... it rhymes with Fells Wargo ... I don't even see WLG on the radar. Then there is Countrywide, GMAC, Bank of America ... nope, no WLG on the list. Sorry. 
9:33pm • #9
OCT
30
2006
269,128 Points 72 Featured Posts Outside Blog

Okay - so I did a little research and it appears that WLG is more like a referral network which refers loans to Global Equity Lending or Global Realty Marketing. Global Equity Lending is based two towns over from me and looks like they do about the same volume as my company. I wonder which came first, the chicken (WLG) or the egg (GEL)? It's a little hard to know by the license number but I do know their license was issued sometime between our first license which was issued back in 2000 and our new license which was issued in 2005.

I guess there's always a way around RESPA. If WLG "members" are employees of GEL that would do it. Does anyone know if this is the case? 

Let me add that payment to non-employees for mortgage loan referrals is a violation of RESPA so if WLG reps are, as anonymous says, "They simply refer a clients information to over 200 plus lenders" ... "And the rep gets paid 1%-4% of the deal" how is that not a violation of RESPA?
9:56am • #10
297,808 Points 110 Featured Posts Outside Blog

Ken,

The WLG model can and will fail the RESPA test of performing enough of the required origination duties.  I have been a follower of WLG since it was introduced to me in 2002.   
11:09am • #11

As a member of WLG, I can let you know that we are W2 employees and are not in violation of RESPA.  There a lot of details about the company that cannot be explained through a forum. 

Also, I think the comments above say a lot about the fact that most LOs, MBs and managers would have a hard time answering those questions.  If that is the case, why should WLG employees be put under the microscope this way. 

We are in the business of helping people.  As an employee and recruiter, I would prefer to invite people who are already LOs and MBs.  That way, they already know the real estate industry and how to do loans.  So, it's not accurate to assume that ALL of the LOs are amateurs.  Besides, we are not allowed to do mortgages on our own without first doing several loans with a trainer.

The best way to LEARN how our business works is to attend one of our meetings or speak with one of our top leaders and ask as many questions as you would like.  With that being said, we do not entertain people who are only looking to fulfill their curiousity.  It's one of those things where you are either interested in the opportunity to change your life financially or you are not.  No pressure.  If you feel like this opportunity is not for you then it's not for you.

If the WLG model will fail the RESPA test then I guess time will tell if they are put out of business.

If you would like to attend a meeting or speak with one of our leading employees contact me and I can make that happen.  But only if you are searious about the business.

Angela
5:19pm • #12
535,210 Points 38 Featured Posts Outside Blog Attended Rain Camp Called Shot Master
1 to 4 % for referring them to a real loan source, and then claiming to be in the "business of helping people," this is like going to Dr. Koverian for a head ache.

It’s also interesting that the story can’t be told in print but then it’s hard to sue or prosecute based on unrecorded speaches.

It seems every time the Fed’s develop a better mouse trap, someone breeds a tougher mouse.

Bill

William J Archambault Jr

The Real Estate Investment Institute

http://www.reii.org
6:53pm • #13

Tthe company is in black and white and documented in success magazine and rated as the number one mortgage company in the contry i challenge anyone to actual go to a business meeting or event do research on the company and ask yourself why would a company so documented as of today doing 1.5billion in mortgages a month.See its just like everyone at one time thought deregulation of energy,telephones, and more was a scam times are changing there is no company like it now but soon more to follow.

And do your company teach people why its important not to pay your mortgage off and use it to gain wealth.....hmmmm i guess thats why bill gates never pay his mortgage off cause wealthy people understand what the massive dont. No matter how you try to pick WLG apart they will change the mortgage and real estate industry.
7:58pm • #14
ANd Global Equity Lending (GEL) is the number one in the country less then 3years do your research.Which is part of WLG
8:03pm • #15
269,128 Points 72 Featured Posts Outside Blog

There we go again ... Anonymouse claiming number one when the facts don't state anything similar. Where are you getting this from and IDENTIFY YOURSELF or all anonymous comments will be deleted. Understand? And please, enlighten us on how WLG will "change the mortgage and real estate industry".

 
10:18pm • #16
MAY
15
2007

I don't belong to WLG, but they have to become employees of Global Equity Lending to submit loan.  I do know that.  The advertisement "anyone can own a mortgage company" should be worded differently.  They have an intern program.  They bring new people in and place them under a "Senior Loan Officer" with minimum 2 years solid verified experience.  Once they become a senior loan officer, they do have the ability to apply to have their own branch.  Wow!  That's a lot better program than any piece of crap broker I ever worked for.  They always told me...  "Go bring me a loan boy.  What?  You want to move up?  Then that would mean you'd take me over.  Forget it.  go get me a loan".  As for Wells Fargo, yeah, they're the biggest, but all us pro's know they suck, so who cares.  Did you know on the Wells Fargo 80/20, they purposely screw people.  They say you're getting an 80/20, with the 20 being a heloc.  BUT...  At closing, they only let you initially draw a certain amount, so you have to tell your buyers at the table...  OOOPS!  Wells Fargo F***** us.  You have to come in with 5%.  ASK ANYONE!!  IT'S A FACT!!  IT'S A FACT!!!!

I got somethin' else to say about Wells Fargo.  My son who attends UCLA (a hard school to get into), went to a Wells Fargo Branch and opened a student checking.  He was told the account was free.  He initialy deposited $200.  He made a mistake and went over "ONE TIME" "ONE TIME & IT WAS THE FIRST AND ONLY TIME" on his atm card at a gas station by purchasing a gatorade.  Total:  $2.14.  Wells Fargo charged him $28 dollars twice, and then, charged $5 a day for every day he was over.  My son, busy with his studies, almost fell over when he checked his account online.  That $2.14 cent gatorade cost him $276.  I was so pissed.  I went down and closed both accounts I had with them, and my dad did the same as he was with me.  Why doesn't Al Qaeda target someplace like them, instead of the World Trade Centers.  They might have gotten us to join them. 

I don't know if Global Equity Lending is some type of huge conglomorate or not, but I'd use 'em before I'd use Wells Fargo.  :D 

3:14pm • #17
JUL
05
2007
2 Featured Posts
How about asking the borrower how many loan apps they've already made with other LOs before coming to you?  If they say, "well, only one"...the YOU need to run...the number of borrowers with no ethics is also disturbing.  
8:42pm • #18
JUL
06
2007
269,128 Points 72 Featured Posts Outside Blog
I couldn't agree more with Stephen on that one. I've just sent one to the legal department today. He closed with one from me and two from other lenders last week. Did not disclose any of them to the others. Ask yourself, how did Ken know this? Attention fraudsters: We're not totally blind nor ignorant.
7:40pm • #19
MAR
08
2008
269,128 Points 72 Featured Posts Outside Blog
I was just revisiting some of my old posts and came across this one with the comments from Anonymous who obviously was a part of WLG. You still with them there buddy? How's that working out for you?
11:23am • #20

Ken,

Why are people so ignorant they cant understand simple business??

Multi-level refers to multi-level pay plans.  i.e.  If an MLM person brings 30 people into a company to do loans, they move to a higher level and receive a higher commission split.  Why are some people like you so ignorant and pathetically stupid, that you believe growth from within and reward for growth is a bad thing??  You have a very ignorant mindset.  You believe a company should be 'one boss' and 100 slaves.  I don't like your thinking, ten times more than you don't like MLM.  I love that MLM allows people to build a company within a company.  The reason most people do not make it in MLM, is not because the MLM is bad, it's because they don't truly have what it takes to run a business, or don't have the work effort it actually takes to get a business off the ground (which is a monumental task).  Most people give up in MLM within the first two years.  Everyone knows, it takes 3 to 5 years to get any business off the ground.

Please don't bother arguing or trying to debate the point with me.  You will lose.  You are ignorant of the facts, and should have never started this blog.

 
7:07pm • #21
MAR
09
2008
269,128 Points 72 Featured Posts Outside Blog
Okay Randy, you definitely have some sort of problem with yourself. You have no idea with your judgment who I am, what I know, my background, who my family members are and absolutely nothing on which to base any of your statements. You don't insult me, you insult yourself. You have made several statements on my behalf that have absolutely no basis in fact or relevance to the subject at hand.
10:55am • #22
OCT
11
2009
269,128 Points 72 Featured Posts Outside Blog

I was just revisiting some of my old posts and noticed http://wlgweb.com/ has been a dead link since August 2008. I wonder how much cash HH made from this venture ...
11:14am • #23

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Ken "Yes You Can" Cook

Marietta, GA

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Ken Cook, Brand Strategist

Address: Marietta, GA, 30062

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