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One of my new mantras -or- One more thing some borrowers need to hear

As I read Bryant's Blog entry this evening one of my New Year's Mantras came to me; "It's their money, so it's their rules".

I find myself saying this to some borrowers that seem, well, that seem to think the market isn't treating them fairly.

They seem to think that based on their position at work, or their political affiliation, or even their religious beliefs (I've all of those and more) that somehow their loan should be better.

That "prime" is more of a guideline. It's what we use to determine the quality of beef or eggs. Prime is for "other" people.

sigh

My two most recent examples of this couldn't be more diverse.

One is for a church and the other is well... (I'm posting this late at night on purpose) is not for a church. But suffice to say they both entertain in their own special way.

Both are paid on the generosity of others.

The church's income is tax deductible - the other gets a 1099.

I could go on here but I think you get the point, one is a church and the other isn't.

But here is where the two really become different.

My church (I have two going actually but the one I speak of is further along) seems to not want to cooperate. They have had this loan out for over a year and a half - nothing. I get little help from them with anything, yet they demand everything. (My buddy tells me it's because they're from Chicago. Another buddy that is from Chicago agrees. :)

Low credit? But we're a church!

You haven't paid your mortgage in how long? But we're a church!

You're bankrupt? But we're a church!

I'm gonna need to see some financials... you guessed it - But we're a church!

And they complain about the rate. They want to know why we can't close last month. Why does the lender need to talk to _____? Why can't they just loan us the money on faith? What does DSR mean? What do you mean they need pictures? We never thought it could cost so much....

Before anyone jumps to any conclusions, I do a lot of pro bono work. Most of it in foreclosures and rental disputes. I have a real soft spot for foreclosures and I have two freebies on my desk now. So, I'm not all bad. I even do work for the congregation of the churches as lower rates. So there! :)

My other loan, the person that is not the church, the one that many people might not work for - they have no problem with anything I've said.

Bank statement? Two days.

Can you invest a little to get your credit score up? Just tell me what I need to do.

Employment history? I'll get a letter from my boss tomorrow.

Tax returns, rental history? Got that, what's your fax number?

Done. A $400,000.00 dollar house, their first, 100% financing with re-cert on their credit score and we close in a week.

BAM!

That easy. No complaints about the rate, no issue with the lender's requirements, nothing. The only real problem I had was getting them on the phone, different schedules and all that.

The old phrase "money rules, and he who has the money makes the rules" are words to live by in lending.

Enjoy,

Posted by Christopher Farrell on 01/03/2007 11:41 PM

Comments (9)

lending, church, prime

9 Comments on One of my new mantras -or- One more thing some borrowers need to hear

JAN

2007

Any of us dealing with the public face differences in cooperation level. The multiple owners I'm currently trying to get to contract are a good example. Some transactions are easy, and some are, well, less than easy.

Christopher,

Thanks for the post. Alas, I find that getting people to do what they are suppose to do is where most of my time is absorbed, throughout the transaction.

Christopher,

First let me say that this church should be ashamed of itself, really. God calls us to be good stewards of our money. Secondly, it is sooo true about clients thinking they can call the shots.

My son processes loans and what I have found to be helpful is telling the clients that this is what the underwriter is requesting and until we give this to him, he is the man sitting behing the desk that will say yeah or nay to your loan. Until we give him this info there is no loan....OH REALLY, I usually get it.

People just don't understand that you are really trying to help them, there are no excuses!

Phyllis Pafumi

Christopher, I feel your frustration. It is a pretty safe bet that the people who run the church, have their personal credit in a quagmire. It is unfortunate that the church will be seen as a reflection of the individuals in charge of the church. The good news? Change the people and you change the reflection. Credit Criminals (too harsh?) who are in charge of businesses and non-profits, handle business as poorly as they handle their personal affairs. And your congregation suffers for it.

Chris, I hope that the church deal is worth it. Over a year and half and still not closed. At that point, I don't care whose money it is; it is my time and that costs me money. If the church really wanted to get this done, they would have been like your second example. A committed borrower will jump through the hoops to get the loan closed. Just my observations.

And yes, a church is a church, but it is also a business. That is how the banks are going to look at them, as a business. You may want to remind them of that.

I agree that this church should be ashamed, they are being a bad testimonry to whatever their beliefs are. I talked to a friend yesterday that said: "The only thing harder to manage than a church is a government."

It highlights the fact that it is relatively easy to form a church - and in fact one can become an ordained minister over the internet. As with any category there are well established churches and fedgling churches.

CHRISTOPHER -

Thanks for sharing your experiences...

I can certainly identify with the addage "Those that have the gold make the rules".

Mortgage professionals are limited to the qualifications/cooperation of the borrowers.

A great challenge that many people face is managing a prospect's expections.
Set the parameters early: Produce X in order to obtain Y - it's that simple.

Good luck...

All of these comments we're very helpful.

And Steve's comment about the church vs. government was hysterical.

Business is business and it is what it is.

I like that...

Ooh, Elderberry!

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