I am trying to decide: Is there is a shortage of loan officers or an over abundance of lender-orphaned Realtors?

If loan officers used to be a dime a dozen, then today there are only four of the dozen still left.  Maybe you could still buy one with a dime, but that guy will probably be gone by the end of this year, anyway.

There is a coming shortage of loan officers and they will not be nearly as tolerant of REALTORS BEHAVING BADLY.

Go ahead and laugh.  But there is another BIG CHANGE coming down the pike this year regarding loan officer compensation that will cause many more loan officers to run screaming in the other direction leave the business. (more about this in a future post)

 Here is why you don't want to be a REALTOR BEHAVING BADLY:  it is time to make sure you are affiliated with not just ONE, but several top notch lenders who can:

  1. Spin out rock solid preapprovals.
  2. Get loans approved and closed in a timely manner
  3. Communicate effectively
  4. Identify approvable buyers by sorting out complicated situations
  5. Market listings with brilliant financing options

As the mortgage business continues to shrink, your ability to have a few great lenders who will place your priorities on the top of their "to do" list that day might not be as easy as you think.

More importantly, REALTORS BEHAVING BADLY will not be tolerated by the best loan officers. You DO want the best, don't you?

Are you guilty of bad behavior? You are if you:

  1. Look at an FHA approval letter and say this to the buyer: "Why would you do an FHA loan? Mortgage insurance is SO expensive!" 
  2. Go behind the back of the loan officer to the manager of her company to "check on the loan". 
  3. Say this to the loan officer: "That is just not acceptable. You need to go back and "get in the underwriter's face".
  4. Change the closing date with an addendum to the contract and "forget" to tell the loan officer
  5. Have your broker (who knows nothing about the loan) call the loan officer to scold or to make demands
  6. Create hysteria and doubt in the mind of the buyer with unnecessary drama
  7. Second guess the interest rate charged to the buyer or bring up the loan officer's compensation in any way
  8. Tell a brand new buyer who shows up with a preapproval letter to abandon his loan officer because you feel "more comfortable" with your own lender.
  9. Are so demanding of the loan officer's time that she feels the need to inform you about her bathroom breaks
  10. Say this: "Aren't you glad you're in the mortgage business? My job as a Realtor is SO MUCH harder!"

Takeaway: Get a good one while you still can. Seriously.

 

 
Post is included in group: Mortgages
Post is included in group: Realtors®
Post is included in group: The Ninety-ninth Percentile

68 Comments on The Coming Shortage of Loan Officers and Realtors Behaving Badly

20 Most Recent Comments Displayed Show All

JAN
16
2011
175,749 Points 1 Featured Post Outside Blog

Ssome of the behaviors you highlighed are a bit comical, but so true. Good loan officers really are becoming harder to find. I almost lost a deal because the original one left in the middle of the transaction and didn't fully appraise the new one about the situation. It took some quick thinking and action on our part to pull the deal off. They can really help or hurt a deal.
3:13am • #49
269,485 Points 3 Featured Posts Outside Blog Hit Router Attended Rain Camp

Kate: What you have stated is so true. I would say the pool is draining when it comes to loan officers.
8:29am • #50
874,820 Points 154 Featured Posts Localism Sponsor Outside Blog Hit Router Attended Rain Camp Called Shot Master

I look forward to your post on loan offers being a shortage. When I read this I kinda read it again with the Realtors shortage too.

I think it could be interpreted both ways.

Realtors and lenders need to work together in a synergy.
8:53am • #51

Janet,

A loan officer selected by my buyers left me a voicemail on Wednesday that he needs a copy of the contract. Did NOT leave an email address, fax number or snail mail address. I promptly returned his call and have yet to hear back from him.  Wanna bet he'll call me screaming that he is on a tight deadline and I haven't gotten him what he requested?

Good loan officers are gems - I'm with you!
9:07am • #52
942,353 Points 95 Featured Posts Outside Blog Attended Rain Camp

I'm sorry to say that while agents behaving badly may not be tolerated by many loan officers, they are still out there continuing to behave badly. I think the market brings out an interesting side to people.
10:06am • #53
731,093 Points 15 Featured Posts Outside Blog Called Shot Master

Janet, although what you say is true there are good agents and good loan officers. We both have a vested interest in making a deal work. Thanks.
10:20am • #54
569,544 Points 1 Featured Post Localism Sponsor Outside Blog

Hi Janet,  Very interesting post.  As agents we tend to focus in on just our own immediate needs and sometimes forget the other players needed to make the deal happen.  I think I'll go hug my mortgage gal !
10:22am • #55
220,680 Points 2 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Janet, I have a favorite lender here because he is one of the few who provides to buyers exactly what they can expect at closing, and his figures just aren't off, ever. He is a goldmine for us, because we've seen too many buyers, with their own choices, hit with extra unexpected $ at closing. I would never think- EVER- of circumventing him to go above or around him, were there an issue- losing him would be a huge loss to our buyers, and us. We did have to call a supervisor once because the loan officer was MIA- turns out he left the company, and didn't tell our buyers..,
10:25am • #56
330,988 Points 16 Featured Posts Called Shot Master

The only time I have EVER had to employ some of these items was with a bad LO...and in no way was I behaving badly.

A good LO is a key player on a good agent's team. My reputation is on the line when I recommend someone.
10:38am • #57

We can only hope that the bad loan officers have died off.  There have been a few that I was ready to reach through the phone and strangle over the last few years.  Obviously not ones I recommended.
10:49am • #58
1 Featured Post Outside Blog

Gary, I have to respectfully disagree with you. Your assumption that a shortage of loan officers will leave mostly those that are not the cream of the crop is just not logical. In my opinion, most of those remaining will be the cream of the crop because they are already successful with a large referral source and will be more likely to remain in the business despite reduced compensation.

Also, it is not fair to assume that someone who will not be able to weather the storm financially would be a less than desirable loan officer. Haven't a lot of Good-Honest-Knowledgeble Realtors left the business due to the economic down turn too? 
11:51am • #59

Complicated subject. I try not to be a pain to the lender. Have had to do it once or twice with a "brother-in-law" lender who was dangerously inexperienced. I like to give my buyers a short list of lenders I trust and that my buyers have had good experience with.
12:01pm • #60

I know what you mean about Realtors behaving badly.  The same ones behave badly to other Realtors as well as the Lenders.  Makes our lives miserable also.
2:06pm • #61
1,126,396 Points 90 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Realtors overstep their bounds all the time -- and not just with lenders. I watched my appraiser this week field a dozen angry calls from ONE AGENT who was worried her deal would not appraise. It didn't! But this agent called during the appraisal, several times to rush the appraiser and urge her to hit the number. Then when the appraisal was submitted she called repeatedly to complain about the number. It's not right.
2:52pm • #62
179,907 Points 108 Featured Posts Outside Blog

Erica: The behavior you mentioned used to be associated with mortgage people. That was why HVCC was hatched....they felt like those of us with a vested interest in the transaction should not be allowed to influence the appraiser. All along I asked, "Why can the Realtor talk to the appraiser then?"

Rox: I guess I can see how Realtors could come to blows among themselves because one is representing the interests of the seller, and one represents the buyer. In the case of a lender-Realtor relationship, we SHOULD all be on the same team.

Jan: Gotta think the "brother in law" lender thing is pretty funny. Never heard that expression until I read these comments.
8:15pm • #63
179,907 Points 108 Featured Posts Outside Blog

 

JM from Sarasota you wrote this:

vast and widespread corruption within the mortgage industry has turned me off to lenders in general and I consider them a necessary evil to be dealt with, with suspicion. --JM

Please do not expect to hook up with a good lender as long as you have this mentality. Stick to cash buyers.
8:27pm • #64

Erica #62: You are so correct. I've been a lender before, and have heard of loan officers pushing appraisers. I had a relationship with this one appraiser, and everytime I spoke to him, I asked him if we can have the value. He knows, that I understand what he has to do, so he knows what I'm asking. He will not give a value that he cannot back up, and that is perfectly fine. I don't push him any further than that.

Its like a buyer pressuring their agent to get the deal at a lower price, and the seller won't take less. Its not the agent's decision, so harrasing them does no good!!
9:03pm • #65
JAN
17
2011
1 Featured Post Outside Blog

This certainly spells it out.  Good insight and something to think about.  Thanks for sharin
7:43pm • #66
JAN
23
2011
315,307 Points 2 Featured Posts Attended Rain Camp Called Shot Master

Very well said.  There are definitely fewer loan officer today than ever before.  Of course, even still, some aren't always the most competent. 

#3 remains an issue.  The issue is that some agents still refuse to accept that the year is not 2007.  Unless they are building a time machine, they need to learn to accept that and move on.  They will be much more successful when they do.
4:52pm • #67
FEB
11
2011

Great post Janet!  I used to see more of issues 1, 2, and 3 back in the "old days", but agents now seem to have a better understanding of many of the challenges we face when putting a mortgage together. 

I also think one of the biggest things we as LO's can do to improve relationships with Realtors is communicate.  With smart-phones and e-mail, there is no excuse for notstaying in contact, yet many of the comments above refer to LO's who don't return calls.  And never "duck" calls!  If there is a challenge, face it head on.  Don't bury your head in the sand and hope it goes away.  That's the worst thing you can do!
1:47pm • #68

20 Most Recent Comments Displayed Show All


What does the graphic say?
Leave a response…

(optional)
Spam Prevention: