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ATTN: ATTN: Mortgage Brokers / Loan Officers Turn Cannibalistic

As the Mortgage Industry continues to make changes and tighter underwriting guidelines more and more websites have popped up to "Help" place loans for the Mortgage Broker as well as the Loan Officer. Recently, I was on one of these sites to place a loan scenario for a hard to place loan. (yes believe it or not I don't know everything)

Now I have been in sales for over 20 years so this isn't my first rodeo. Now keep in mind the responses to these posts are supposed to only be by the Wholesale Lenders Account Executive. Below is two e-mails that I received from these "Account Executives"

Hi Matt,

This is xxxxxxxx from __________, CA. Here is the Pre-Qual for NA deal. Click the following links to access more information regarding the Pre-Qual. You can find any attached loan documents through the link below.

(now this looks good so far right?!)

This is only RETAIL program, we just launched. We charge only .500. We have over 650 programs on the best innovative engine. We have 40+ yrs experience in the business. Looking forward to working with you. Thank you.______

Now after a little bit of research on my end ok Googles end I was able to find the company and find out they are nothing more than a pass through company. Which means they would close under their names and then sell the paper to the other lender. However, in this case they have no plans of closing under their names just either to steal the client or after everything is done offer a co-broker deal to you.

Here is the second e-mail

I can get it done! I will need a 1003 and credit first. HOWEVER, for now... there is No YSP! So, you will have to make it all on the front. If that's doable, then, shoot me over 1003 & credit. THANKS, .........

(notice this person did not even use my name)

my response back:

_______,Are you the End Lender? I am not looking to co-broker this deal or watch it get stolen from someone else. If you are the end lender please send me your information.

His Response:

I can get it done! I will need a 1003 and credit first. HOWEVER, for now... there is No YSP! So, you will have to make it all on the front. If that's doable, then, shoot me over 1003 & credit. (look familiar)

My Response:

__________, You did not answer the question so I can assume your a broker as well. (funny I did not get an e-mail back)

Now please don't get me wrong, we all need help sometimes and I have used these type of sites for awhile and have found them for the most part pretty good. However, recently with all the changes it seems more and more Mortgage Brokers / Loan Officers are abusing the system and claiming to be the end Lender just to get your clients information.

In closing, please remember before you rush off to send these people your clients information, including their Social Security numbers and all their personal information make sure you really know who you are talking to first.

Don't be:

Posted by Matthew J Blum - MyFavoriteMortgage.net on 03/11/2008 07:25 AM

Comments (13)

mortgage fraud, mortgage industry

13 Comments on ATTN: ATTN: Mortgage Brokers / Loan Officers Turn Cannibalistic

MAR

2008

Matt - I've been perusing those sites since almost the beginning of my career in Real Estate. So, I hear you loud & clear....

Jason, I have been using Grapevine for awhile but recently my company has been using a loan scenario blaster. These people are such pieces of Sh@T when they prey on the newbies.

Very true, Matthew. That is scary if lenders are randomly sending out clients SS numbers, your trophy says it all.

Missy, The Lenders are not sending the info out it is the new Loan Officers or Mortgage Brokers who don't know where to go with the file. This is more a behind the scenes type of thing. You are right it is scary.

Hi Matt, I recently got into a stink with another mortgage broker here at activerain. He is a newbie (nothing wrong with that, me too) but he got creative in his cannibalism. He has set up a web site that basically looks like he is a consumer advocate and then says that mortgage brokers are scumball scavengers and then charges them $3000 for disclosing ysp. I can tell you more if you are interested, but I don't want to say too much and advertise for the fool!!

I did send his blog up to the NAMB administrator, because they should know about these tactics. Report fools whenever you get a chance, we are all busy and may get cannibalized unintentionally because we didn't pay attention. I could have easily fallen for that guys trick, however, I wouldn't want to send an AE a 1003 and credit unless they had my broker package pending.

Thanks for the tip!!!

Matt, Just a lovely bunch of coconuts! But I also get some of these emails. We all get different kinds in our industries & you know so many get taken by it. You have to do what you did and that is your homework.

Matt,

that's pretty interesting. just yesterday i had a new jersey applicant who told me his unlicensed friend (in florida) who owned a mortgage company (in new jersey) wanted to know his middle score so he could help with the package and program selection.

my response: he cannot be paid a fee and i don't need that type of help, thank you.

jay

Julie, Great comment and I could not agree with you more about having your broker package either in or being processed

Marc, Ao true so many get taken.. whats the expression? through enough on the wall and some sticks..lol

Jay, I have no problem co-brokering a deal as long as it is all above board and everyone is licensed..:-) otherwise bye-bye..lol

This is really troubling. Seriously, if people would put as much effort into generating their own legitimate business, they would do fine!

It always amazes me how some folks sleep at night. Taking desperate folks money. Have not been on the grapevine for a while (no need to due to the amount of investors that are left). Sometimes we just need to go back to the basics

Tony

Rich, You said it!

Tony, True but in Florida it keeps changing today they can do it tomorrow they can't. Then the Lenders who said they can't now can..lol It is crazy..

MAR

2008

Matt.... this is sick and sad.... lol I have been on these sites in the past and have even received a few deals,.. even though I would be considered a co-broker, because nobody would know how to get the deal done... but you were looking for a wholesale rep.... to help you with a deal.... and the last one that gave you the same answer over and over... LOL what a tool.. and that's all I'll say, in being nice.

PS>.. Tony hit the nail on the head... not too many investors left... you basically deal with your top ten subprime lenders.... other than that, those other guys will be selling to them anyhow, but making promises that they can't keep....

Jeff, At least he was easy to figure out it was a scam. Some of these lower than dirt people are very good at this and can easily take a green pea to the cleaners. As far as your other statement. I agree to a point however, things are constantly changing companies that stopped funding are back in business and vice a versa. I ended up finding a new lender/investors last night for NOO Stated deals. I will go into details on the phone as to what type later)

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