Yes I know we all do stupid things at one time or another, but I am going to tell you a story of how to be a stupid loan officer. This is about explaining things to your client. Do you explain things as they benefit the client or how they benefit your company?
I got a call from my loan officer who I trust and respect and have used for several years. Over the last month I noticed some changes in his companies procedures. He called me about my nieces loan. Now this loan had a pre-approval from another company and I had asked him if he could do it. He took it to an underwriter or his boss (the CEO) of the company to have them check it out. He said they could do the loan so my niece's husband to the loan to him. I went to him because he was trustworthy.
Well yesterday on this call he starts off saying that "I know the business, meaning me....I had been a successful loan officer years ago. My friend continued on. My company recently got a eagle rating which is a high rating for the low number of loans bought back (from what I am told). So now they are becoming more conservative. You niece's husband has a high debt ratio and the appraisal is no good so there may be a higher chance of buyback. My boss doesn't like the look of the loan and he is denying the loan.....
Unfortunately this loan officer has become the dumbest loan officer I know!!!! Sure I understand that lenders want good loans. But DO NOT TELL me that because your company just got a new rating that our loan is no longer good. Just because it has a higher probability of a buyback. Don't tell me that you don't want the borderline FHA loans and you really only want the creampuff easy to close $200,000 loans!!!
Breaking bad news is tough is any circumstancce but tell us a valid reason not how it may affect you and your company. As a Realtor our goal is to help get our clients homes closed. Our client interest is our interest. I hate to tell you I really do not care about your new "Eagle"rating. I care about that you looked at the income docs with higher ups and you said you can do the loan.
As Realtors we depend on our loan officers to be trustworthy all the time. Not part of the time. We can not afford to send our clients to mortgage lenders that can't do what they say. It affects our reputation in the industry. When I tell a listing agent that this is a solid mortgage lender that does what they say and gets it done in the time periond, it's MY REPUTATION too.
We work together as a team, I care about my client more than an Eagle rating. So if you want to be stupid explain to me how it protects your company and hurts my client.
This is going to be a multi-part story as there is much to explain. I couldn't explain it all in one blog. So leave your comments and questions below because I want to answer them in the next installments of this saga. It gets mighty intereting!