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Yes, REALTORS are missing the boat with Lenders too.

Recently, Jonathan Osman wrote a well pointed piece about how mortgage professionals are missing the boat when it comes to working with Realtors. I agree 100% with what he said, but wanted to bring another perspective to this topic.

Realtors are missing the boat with Lenders as well. Sure, there are 100's of lenders to call on that can write a mortgage loan for your buyers. And we all know that spam effect of the lenders emailing you constantly about sending business their way. But there are a couple things Realtors and real estate professionals should be aware of too.

I work damn hard for the agents I work with. As a matter of fact, I truly do my hardest to work WITH the agents I have relationships with as I know this is a partnership. Yet there are times when Real Estate professionals can show that they really don't get it.

For example, I recently began working with a buyer. When I first began working with that buyer, they had no agent and really no clue. I took time to work with them, get them in the position to get them approved and once they were able to qualify, I asked them if I could refer them to an agent to help them find a home. Of course, they had a friend of a friend's brother that was going to show them a couple homes.

I spoke to the agent and introduced myself. Right off the bat I knew we would have trouble as he didn't care to know anything about the qualifications or what these folks and I had been through. Almost immediately he began pushing them towards the "in house" lender which unsettled the buyers.

I now find myelf in a tough spot... Do I fight to keep the clients and let the buyers get pulled in 30 directions, or do I let them go knowing they will get crappy service (I know who the "in house" guy is and holy cow... enough said.) I am not one to just give up, but I also don't want the most exciting experience in these people's lives to become something they dread. So I gave it a good shot to keep the loan without creating a negative feeling. However, the other agent wasn't so kind and really tried to slam me (remember, he has never worked with me before.) Not too long, the buyers tell me they are torn but feel compelled to work with the agent's loan officer (as if he owns the LO) so that the agent won't drop them on the home of their dreams.

A couple weeks later, the deal falls apart. The "in house" guy doesn't take the time to really get to know the buyer's needs and eventually drops the ball. With such a negative outcome, they have decided to hold off on buying for the next year or so!

Now, if this agent had realized that the buyers were happy and comfortable with me, and taken the time to get to know me, he would have seen that I would have delivered to him happy, satisfied and CLOSED buyers and who knows what would result of that in the future. But because the real estate "professional" decided he knew mortgages better than the professionals, things go screwed up and he lost the deal and I will never work with him again.

So please understand that lenders are not a dime a dozen anymore. Too many lenders have dropped out because they could not do the right thing. Those that are fed the in house leads can cherry pick. But those of us out there working hard that understand the value in relationships will be your best ally in getting things done. Quit comparing lenders by a worthless good faith estimate or by empty promises. Evaluate a lender by their knowledge, their experience and most importantly the way they can make YOUR clients feel!

Ed Nailor, Charlotte Mortgage Lender (Charlotte FHA mortgage approved!)

Mortgage information for Carolina residents. Check out CarolinaMortgageConnection.com for more information, suggestions, advice and tips on getting the best mortgage in the Carolinas.

Posted by Charlotte Home Loans - Your Charlotte Mortgage Lender on 06/02/2008 02:50 PM

Comments (57)

realtors, buyers, lenders

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57 Comments on Yes, REALTORS are missing the boat with Lenders too.

JUN

2008

Excellent post. As a realtor I always try and work with a one a few trusted lenders if I can but I would never pull the rug out from under one that has already been working with a buyer. I actually met one of my favorite lenders through a pre-approved buyer.

As a Realtor, I always work with the buyer's lender, after all they have the right to choose who they want to work with, but never working againts the for BEST interest of the CONSUMER. If for some reazon things do not work well with the mortgage lender there should be a back up plan. Most of my experiance good things come by working you do not know. Good point.

Ed - it's a rough way to make a living my friend... takes patience. Glad you're one of the good guys!

Ed you hit the nail on the head here! Couldnt have said it better myself...

Been down this road a number of times & I know I will encounter it again, I've recently gone from being more localized to developing business on a regional and eventually a national level. To agents outside my local area I cannot guarantee as definite amount of reciprocal referral business but you're absolutely correct that experience, product knowledge and service to the client is key here.

Thanks for a great post

Unfortunately there are ill equipped people all along the transaction path that derail things.

My favorite lender and I work well together; in fact she's the only one in town that's been able to earn a place on my website.

Great post Ed. It completely shocks me that any professional, that gets work by referrals, would ever in a million years act this way. Like you said if he would have worked with you he would have a paycheck from it. Besides that if he would have worked with you his In House guy wouldn't have dropped him, like you have, he would have made a friend instead. I'm a "newer" Realtor so I have to ask is this attitude new or has it been like this for awhile?

Believe in having close relationships with lenders, title and service people that I trust and "like." If I lived in your neck of the woods you sound like you would be in that circle.

Steve: I met one of my fav Realtors that way too!

Jorge: A back up plan is one thing and I have no problem with that!

Eleanor: I am glad to be in such great company as yourself!

Kevin: Above all, how the client feels should be the most important thing!

Jim: LOL. Wanna add me to your website as your favorite NC lender?

Jeff: When I first got into the mortgage business, most of the loan officers I worked around HATED Realtors. They always seemed to have nothing but bad to say. Personally, I have seen this a few times, but most of the Realtors I work with are top notch. But then again, I do not choose to associate with those that have short sight of vision.

Phil and Terry: I am honored to even be mentioned by you.

Ed: I feel it is very important that lender and realtor work close together to achieve their goal

Ed super post and yes it is a partnership. I value the business relationships I have and a good lender is hard to find.... most important is how can we both best serve the client.

The buyers unfortunately got stuck with an agent who didn't know what they were doing and wanted the "comfort" of the in-house lender. Inexperienced agents or agents who respond to company pressure to do the in-house thing, will try to get buyers to switch. It shows the agent incompetence more than anything.

I had an agent some years back that, immediately upon meeting a buyer with a particular mortgage company relationship would try to get the buyer to switch lenders. Not because the lenders she knew were any better for the buyer, but because the agent was more comfortable with lenders she knew. She finally stopped that when I explained to her that it created an impression that we had something to gain from switching lenders when, in fact, we did not.

As an experienced real estate broker, I can work with any lender as long at they give me a GFE that isn't committing highway robbery. In fact, some of the best loan officers I've ever known came with a buyer. I don't care who does the loan. I do, however, review the loan approval letter and GFE to protect my buyer.

In fact, in order to avoid even the appearance of conflict, I don't accept buyer referrals from mortgage folks.

These things are going to happen. The consumer doesn't know what they're doing.

Ed,

A very good post and perspective! It's a shame and unprofessional that the agent did not respect and support the relationship already established!

Hi Ed,
What a terrible experience for these Buyers. Lenn hit the nail on the head (as she usually does), the agent's incompetence and inexperiece are evident.

Ed,

I've been through that too. When I was new to the business, I did a sales meeting at a realtor's office. A realtor approached me and wanted me to pull credit for a client that I thought I was going to get. I pulled the credit and the borrower's credit was pretty good. The realtor never used me for the deal. He probably just used me to qualify the borrower and then took the borrower to the lender he regularly uses.

Keep the faith.

Ed,

As a lender who values the partnership/relationship of realtors, thanks for the post.

Hi Ed - if buyers come to me and they're already connected to a legitimate lender, I never try to force my way into that. If they're comfortable and trust that person, then I work with that lender to help get the transaction successfully closed. I also look at it as an opportunity to find someone I've never worked with that I might enjoy working with in the future.

Agents who do, or try to do, what that agent did are clearly not doing a service to their clients/customers.

What a shame....
Ann

Darn! I write a post and get a few comments and you comment on my comments and get featured. Blast!!!

I became a realtor after I got tired of realtors stealing my clients or giving them bad service. Best thing I ever did

Hi Ed,

Your post is well written and your point in well taken imho. For me as an experienced REALTOR of many years I look at my relationship with lenders as a partnership. We work together to deliver a world class experience for home buyers. I value the long-term relationships I've established with fellow professionals.

And congrats on the well deserved feature.

Well thank God someone has finally come out of the closet and called Realtors out for this very unprofessional disrepectful behavior.

I have had this happen to me more times than I care to remember. I get client first, their "aunt" is a real estate agent, and the first thing auntie does is start trying to sell my client on using her favorite lender, in total disregard of the fact I have pre-approved them and have time and energy invested.

I think Realtors should always RESPECT the fact that their clients are working with the LENDER OF THEIR CHOICE and not try to change their minds. It is professional courtesy to do this, pure and simple.

No mortgage professional would ever dream of suggesting to a borrower that they switch Realtors....why shouldn't we expect the same professional courtesey????

This is so true----A good loan officer is part of a Realtor's portfolio of tools. Enjoyed your post!

Realtors are missing the boat with lenders....that's kinda of a broad brush statement and anyone who has been in this business thru ups and downs and who has consistently done well is NOT out of turn and has NOT missed the boat with lending programs and new products! Give brokers as a whole more credit for delving into and understanding programs backwards and forwards to put together financing options to make sales happen for buyers and sellers.

Hey Ed,

Every lender is different and so are the Mortgage Specialists. Its all about the individuals I say, good post.

Great story Ed. As you are most certanly aware, we realtors experience the same thing with some mortgage brokers. Unfortunately for both professions, we have to deal with many, who are not "real people", just on the take. Continue to provide the kind of service you mention in the article, word will eventually get out that you "are the man". My fellow practitioners will begin to drop your name when they are asked with whom to speak regarding financing. Most all my business now comes from referrals. It may take a while, but ultimately, many others will be promoting you and your capabilites.

I truly appreciate those lenders who I have developed relationships with. We work together for the best interests of the client and those deals are the best ever! I truly think it is important for the lender and the agent to understand the goals of the buyers and then develop a plan together to help the buyer meet the buyer's goals.

Good post Ed,

Just a quick question for the mortgage pro's out there. I was wondering, along with the excellent service that you provide, do you educate your clients on what to look for when in a situation like this? I mean make sure that they understand that they have a choice as to whom they want to do their loan and maybe give them some interview type questions that they can ask the other lender to help them make the right choice. I feel that giving the clients the knowledge to use to make a good sound decision is not in anyway pulling them in any direction. In establishing and maintaining that good working relationship you could possibly get a referral from that client once they see that you have given them great service up to the point they decided to switched . Also, for me I would feel better knowing that I have given them some tools to use to help them make a good solid decision and feel comfortable about it.

Loyalty is something I respect. So when a buyer comes to me with a vendor they are loyal too, I do not disturb that relationship. Most of the time everything works out ok.

Absolutely! If a buyer has a relationship with a lender, I will never steer them away. I do have an inner conflict if they are working with a broker, but I know they could get approved with a lender. I hate to see them waste that extra money. Any words on that one?

You are right Ed. Now with all the changes in the mortage industry the fly by nighters are gone.

JUN

2008

sounds like a realllyy frustrating experience with a realtor. Your right, having a lender you trust is extremely important. Great Post!

great discussion. . a great lender / realtor relationship should be like a wrestling match. . .a tag team effort, taking turns to bring the value of their services

Good lenders are worth their weight in gold and we have sometimes found one from working with one that a buyer had when we met them. Conversely, the reverse is also true of course. Just yesterday I got an e-mail from a processor who without calling or e-mailing us, arranged a closing at A COMPETITOR'S REAL ESTATE OFFICE ! This is blog fodder and I will probably blog on it later...it still makes me angry....I can't believe anyone would be that lacking in common sense...duh ! Your buyers will come to realize you are the real deal...and we thank you for being that !

WOW!!! Amazing post. As much as it pains me, I have been in your situation where in the interest of making sure the client does not become a rope in a tug-o-war between myself and someone who is more interested in slamming me than explaining how he/she will help them, I have backed away from a client. I knew it was a mistake and I knew they where in for trouble, which of course they got a year later in the form of a foreclosure due to their option ARM resetting.

Only then do I get a call, asking for help. Very frustrating, but at least most of my competition is now employed at the grocery store, car lot, or some call center selling who knows what. I now do my best to fight back when some Joker Broker starts to try and take my client down the path to ruin. I try to be tactful about it and I have several information pieces included in my client welcome package that create enough separation that usually show whois the professional and who is the commission monger.

HI Ed:

Just want to share: one of the most valuable things I have learned this year is to ask my clients- out loud- for what I want. Be direct, demand your needs are met. For example: "In order to continue working with you at this point, I need to know; are you committed to working with me as your agent? Will you sign an agreement with me that I can represent you when we find that home?" OR "I really value our business relationship. Please refer me to your friends so that I can followup with them and take great care of them for you." I make my clients pledge their loyalty and willingness to refer to me. Once they say it, it will stick in their head.

Unfortunately this story is all to common. There is a fine line between advising a client to be cautious of the charletans out there handling their financing, while not offending their agent who in too many cases is as you said someones friends brothers cousin. As a real estate professional I have been on the other side of this situation. Both of our professions have lost credibility due to the influx of inexperienced people trying to make a quick buck in an up market. However as we know, quality professionals like yourself will ultimately be recognized for their professionalism and in the end be around for the long haul. keep up the good work.

I am so sorry that this happened to you. Some Realtors do not have a clue. Needless to say I wouldn't give him another referral!

Boy, i could write on here for hours about this. Yet, I still would like to think that anyone being handed a client Without expecting anything in return should be happy and grateful. There is lack of class and ethics in all facets of business, unfortunately. One of my best Realtors had to write a letter to her corporate broker each time I handed her a buyer as to why she did not use the inhouse lender. After the 14th referral in six months from my advertising dollars, I called him direct and asked him how many of his inhouse LO's brought business in............he was speechless especially when I told him that I ask for nothing in return except an opportunity to compete for her loans as well.

Note to Barb Overman: I am an ex banker, and mortgage banker ( 32 yrs, and now a broker for 6 ). I sincerely mean no disrespect, but can't believe the some of the things people believe out there. Ex. Are you aware that if you are a Bank or mortgage banker, you are Not required to disclose all back end fees since you fund the loan? As a Broker, we Must disclose all fees.

Time spent as a banker and mortgage banker opened my eyes..........trust me they are making a ton on the back end, yet HUD nor the banking regulators seem to want to listen about open disclosure for all.

That's a complete blog on it's own.

JUN

2008

Thanks for sharing "our" perspective as well. Too often I deal with RE agents who don't know and don't care about the finance end -- like "it's your job don't bug me about it." In reality, truly supporting clients means being up to speed on ALL aspects of the deal. It's a 2-ways street and I only look to work with RE Agents who truly understand that. Thanks for the post!

Ben in Chicago

More at www.getmortgagewise.net

Great post. I have had the exact same experience a few times and several variations of your story, as i'm sure you and many others have. We are currently working with a few agents that see the value in our service and the fact that we make them look good with their clients but there probably always will be folks on both sides of the fence that make the relationship amongst us as professionals a mess. we are working to find agents that want to do business the ways we do and to build their trust so that we can avoid many of these types of problems. As long as we keep our side of the deal up to par we seem to be making progress. There are a lot of agents we want to work with and lot we don't. We can't always cherry pick for the good ones but we are building business together with the good ones we've been able to find. If they don't want us and our service, it's OK. There are a lot of them that do and we are both benefiting from the relationship.

As a lender, the story is something I've seen so many times over. An over zealious Real Estate Company pounds on the head of the agent to get them to use the in-house lender so the real estate company makes money...

But what does the actual agent get in return? Nothing. Agents that work with me get a lot - including hot pre-approved customers FROM me. When was the last time an in-house loan officer gave you a lead?

Real Estate Agents Sell Homes. Lenders Lend. We are an extremely legitimate company working on extremely thin margins. As there are thousand of ways to structure a deal, the average agent looking at a GFE is a completely worthless way of determining if the lender is legitimate or not, overcharging or not.

I don't ask the customer what the agent is charging for a listing fee, I don't explain to buyers that they really are paying your commission in a round about way, and I don't tell them the "Real Estate Broker Administration Fee" is a junk fee.

My 15-year experienced sentiment. A good realtor tells customers they are not the lender, and financing questions should be addressed to the lender.

Good post! I firmly believe that in this market Realtors and Lenders must work together to find solutions to help buyers get into the homes they dream of. I have several excellent Realtors that work very closely with myself and the buyer from the time I have them Pre-Approved. If I have a buyer that already has a Realtor I will make every effort to build a relationship with that Realtor. If I feel that person is not looking out for the best interest of my client I have no problem suggesting one of the other Top of the line Realtors that I work with. My intentions are to always build more top notch referral relationships so when I have a chance to work with a new Realtor I feel it is a great opportunity. But it all comes down to making sure the client is working with professionals that will give them the best service and information available.

Great post. Couldnt have said better if I wrote it myself.

Hi Ed,

Great post! Most good lenders that have been around for a while and get a lot of client referrals have had similar experiences. Some turn out good and some bad. Many Realtors are so jaded by past experiences with bad lenders, that they want to control the transaction. Same thing with many lenders with bad Realtor experiences. Rather than get to know one another and work together short sighted decisions are made. Cat Vs Dog

Isn't ActiveRain a GREAT forum for Realtors and Lenders to see both sides?

Cat & Dog

Hi Ed,

I empathize with you. I, myself, work both sides of the coin. I believe in the law of reciprocity and strive to develop good working relations with both realtors and lenders. Whichever side of the coin I am working, I stay in my lane. I see the realtor or lender with whom I am working as a client, as well, and want repeat business from him or her. Unfortunately, not all people are honorable, however, no matter what their business or what path they choose. I have also worked with realtors who contacted me for loan information and led me to believe I was going to do the loan. Once they got the information, however, they played the classic disappearing act. For a newbie, this is very painful, but I have determined to continue to be true to myself and to continue to do the best I can for all of my "clients." I know what you said, but if you have any referrals in the California Bay Area, please consider me. As the song says, "I won't let you down."

Narma Mayfield

Ed I have worked the Charlotte market and most of central NC since 1995 and if more realtors and real estate agents would heed this post we could all get to the promised land together. Our # 1 goal is to get our clients in a home and a mortgage they can live with and afford. I will stay in the mortgage profession until I retire ... Keep posting and blogging..

Jaye Maxx Alexander II

NCMORTGAGEKING@HOTMAIL.COM

Amen Brother! I couldnt agree with you more. With more than 50% of the LO's and Realtor's expected to be gone from the market bey years end, and with the same number of First TIme Home BUyers (FTHB) entering into the marketplace, you better have a strong realtionship with your lender to make sure they are working just as hard as you are.

Home sellers cant unload their homes like they had in the past, that means you better be sensetive to the needs of the FTHB because those of who remain in the market will be working with more and more of them.

Great comments! Nice job verbalizing things from the lender's perspective!

Excellent job! I wish all loan officers I knew took the time to care & try to do what's right for the buyers. Keep your chin up, things will come back around to you. You are interested in helping & building a committed relationship between both the buyers & the realtors you work with every day.

Ed, I am equally disgusted whenever a bad Realtor gets in the way of a good Loan Originator or when a bad Loan Originator gets in the way of a good Realtor. Too many times it is for either an in house person or a relative. I'm sorry that you lost a closing out of the deal but I'm happy that the Realtor lost out! He deserves it! I hope the buyer chooses not to work with him again in another year.

GREAT post ED! I concur--we need to remember that our Buyers are who we're in this business to serve--we are NOT to be self-serving! When we remember that one simple rule, thing generally go smoothly! Remember me next year when these guys finally decide to buy--I'll work with you again & again... :)

Debe in Charlotte

Ed,

Great post. I can't tell you how many times something similar has happened to me. I get calls from realtors on buyers I have preapproved and worked with all the time and they try to put me on the defensive. I find that discussing options with the buyer has helped to soothe the process. Many times a borrower will call me saying "The realtors mortgage company has given me a lower rate, why are you giving me a higher one" My questions "Has their company pulled your credit" Ahh, no. "Do they know your asset and income situation" Ahh, no. Then what has this "in house" company really done other than do make my job more difficult and completely confuse the buyer. Then the calls continue from the realtor constantly questioning or trying to throw me under the bus with my borrower. Unfortunately, 80 percent of the realtors out there don't have a clue with regards to the mortgage process but they all pretend they do. Its unfortunate but I have sworn off courting realtors for additional business since the hassle isn't worth the benefit. I have had more borrowers refer friends to me saying that they were going to use some other realtor in an effort to smooth things out. I am glad someone wrote this post and possibly some realtors will read this and start to understand the damage they do to the process.

Ed, It is an unfortunate casuality of our industry that every mortgage profession has dozens of stories like this in which a Realtor tries to flip a buyer.

JUN

2008

OMG! 52 Comments so far? WOW!

I am completely overwhelmed by the comments. I apologize that I have been unable to answer everyone directly. I am just shocked at the response!

Either this struck a nerve or it just rung true. Either way it seems to have provided an opportunity for both sides to kind of express themselves.

Thanks for all the kind words and excellent dialog!

Ed Nailor

That was a great story Ed. Thank you forsharing it. I can definitely relate. I have come accross this situation many times. I hope that this will widen the perspective for many sales professionals and realize that we all work for a common purpose.

JUN

2008

Excellent commentary Ed! I'm gong to point some of my Realtors to your comments here and hope to help enlighten then about the way things work now that we are down to the majority of us being true lending professionals!

JUN

2008

Ed.... very well written. I always fear this and I am sometimes defensive when I get a buyer first and they then find their own realtor... or have one sitting on the wings. I have had only one that I know of that was steered away from me during the middle of the application, but I got them back. Rates dropped and I asked them if their loan officer called them up. They said no... I discredited the loan officer with my knowledge.

Overall, I see this go both ways sometimes. And you hit the nail on the head on two issues. Good loan officers are a dime a dozen now and in-house loan officers can cherry pick. Great job with this one..

jeff belonger

JUN

2008

Hello,

This was a great post. I'm planning on buying a house within a year. It'll be my first house purchase, so I'm getting on line to get a feel for what goes on.

Good information in here.

Thanks!,

Marty B.

http://www.musicianshowtoseries.com

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