I'm not a young guy. In fact I'm beyond "middle age" unless I plan on living into my 100's. When I was a young boy - I mean 8 years old - I remember being taught by my parents to always speak the truth and not to hide anything from people I deal with. That means friends, family and business people. I was taught that hiding a truth from someone was the same as lying.
When I grew older and entered my college years and started reading books like "The Art of Negotiating" and "The Negotiating Game" and others I almost learned the skills of hiding the truth. Later, when I got into retail business (car stereos and electronics) I was taught we never tell the client how much we paid for our product - our costs are none of their business. In fact, the only things the client should be concerned with are if they are receiving a value equal to or greater than their cost. I did not always keep that rule and occasionally shared my costs in an effort to show how little profit I truly was making.
When I entered the mortgage industry about 9 years ago I already knew a fair bit about it and knew that I would approach it differently than the "competitors". First I knew I would go after a niche instead of just every nut in the tree. Secondly I knew we would make sure we provided better contact and communication than that of our competitors (with whom I had dealt poorly in the past). Finally I knew that we would have the highest integrity possible.
One thing has always bothered me about the mortgage industry and that is the disparity in "transparency" from one corporate structure to the other. The biggest disparity is little known outside of the mortgage industry and even part-timers and has-beeners do not, obviously, fully comprehend the magnitude of this imbalance.
That difference in transparency? Banks and lenders are never required to divulge their full profits. Every mortgage broker in America, by law, must expose their full profits and itemize every little cost to the penny. Banks and lenders can easily hide it where brokers cannot.
Transparency? When you have groups out there beating their chest about transparency be very cautious. Be cautious also about so-called up front, too. The only group I know of that talks about up-front is no more up-front that anyone else I know in the industry - people who have been around longer than the proponents of "transparency".
No my friends, transparency has been around longer than those acting like they coined the phrase or that they have some special understanding of it the masses do not have. Transparency: from my days we call it honesty and integrity. Transparency has been twisted into some kind of gimmick word and instead of being attached to honesty and integrity it has now been relegated to the buzz-word pile.
Shame, really. Transparency was such a good word.
You want real transparency? Tell us when you have a heart-ache or how much you love your children. Tell us how you feel about the condition of America. Tell us something with substance - then you'll be transparent.
I'm transparent. I'm number one. I'm the best and you're the rest. My way is right because I'm transparent and only I can be transparent because you're not doing it my way.
You want transparency? Call me. You will never find one client or associate who says the word transparency does not apply to me or my company or the way I handle my relationships. Am I perfect? Heck no! All this means is if I can be truly transparent so can you. I mean truly transparent - not some hacked-up buzzword definition of transparency.
As a group of good friends, all still very active in and a part of the mortgage industry, would say: My 2 Cents.
THE OPINIONS IN THIS COMMENTARY ARE STRICTLY KEN COOK's PERSONAL OPINION AND NOT REFLECTIVE ON ACTIVE RAIN, NOVATION MORTGAGE, or ANY SPONSOR OF THIS WEBSITE.
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Anyone skilled in negotiation arts knows that transparency is only the ability to allow certain facts be known while appearing to be fully forthcoming - and not in a malicious way, mind you.
I can't say I've truly read a lot of "Transparent" folks, either about themselves or our industry as a whole. Sure, there are snippets here and there but I also believe in the old phrase... "Doth Protest Too Much."
Who says that "transparency" means for anyone to know about my sex life? If I am turning it into an art form----that is not transparency----if it is not integrous and honest it is not transparency. If it becomes a Buzzword----transparency is gone. Just my two and a half cents.
Jeff - you mean I should not be required to disclose the costs of my back-office to my prospects? The grocer should not be required to disclose his cost on a can of peas? Thanks for commenting.
Jason - nope. I don't know what "yes you did" means but I think I do and the answer is, "nunh unh, did not". Seriously. And will not.
Charles - Your doctor! I love your line "if it is not integrous and honest it is not transparency" and you squeeking in that extra 1/2 cent!
Ken, you have the best tag line I have ever seen: Ken "Yes You Can" Cook! I just love it! I'm transparent, my life is an open book, and just for the resord, I plan on living into the 100's! Have a great day!
Ken.. excellent post. Yes, transparency has taken on a new meaning in recent years, by those loan officers that need to brag that they disclose. As you stated, it comes down to how I treat you, that I am an open book, and that you will get good service.. that I won't bait and switch on you. I have been pissed when loan officers use transparency as what you should know in regards to profit, what your lender is making on you.
Imagine that, in one of the definitions, they mention behavior. Gee, would that be integrity & honesty. I wrote about this once, but it never took off the ground. I'll go find that post later...
I do plan on living past 100, so I'm about 10 years past middle age my self. My parents, Grand Parents, and Great Grand Parents taught me to speak the truth. I must have been a quick learner because they started about the time I learned to talk. At times they have told people that I was born talking.
I can't think of ever being taught to hide the truth. But, I can think of many examples of such devant behavior. The problem today is that the weak minded, the stupid and the worst of all the willingly ignorant have seen so much that they no longer believe such behavior to be devant. These same people have been conditioned to replace logic with hate. There is precedent for such things it worked between BC and Ad and again in the 1930's, once conditioned all you have to do is give the masses something to hate.
Transparency is just the catch phrase to encourage consumers to hate the mortgage brokers. In truth what is being done is to cloud the issue. Ideally, transparency would do what truth in lending failed to do, allow the consumer to compare loans! All it really does is to cloud the issue, it's smoke and mirrors. YSP is the smoke!
Transparency in this case is just a distraction so the consumers pocket can be safely picked! Those that support it's stated noble cause are naive at best or stand to profit. Without logic it's easy to hate the evil mortgage brokers.
True transparency would tell all the cost of a loan, True transparency would add the up front cost to the total payments so that the consumer could chose the lest expensive option. I too am in favor of true transparency! But, true transparency is not an option! Unlike your direct lending competitors you are required to wave an irrelevant red flag, YSP to enrage you clients.
Like so much in our daily lives, it is not necessary for something to do good if the title offers the perception of good.
Vic - thanks for posting. General tip and not a smack on the head: protocol here on AR forestates "do not post links to your blog from other bloggers websites - especially 'competition'" - please notice I did not delete yours.
Janna - long before I ever heard of anyone named Barrama I believed this. If you want to and you believe you can and it does not defy rudimentary laws of physics "you can". Then there are people who may just have enough "believe" in them to defy laws of physics. As far as business? YES. YOU. CAN.
Jeff - I think many of our telephone hours have had to do with transparency, honesty and integrity. Anything less is just a lie. I would prefer to not be in this business than to mislead people or give them any false sense of security. That's probably why other lenders and brokers do much more volume than I and my staff. I want to be able to sit down and eat dinner with my clients five months after the closing. So do you and I know that - other people should know that about you as well.
Bill - it is always a supreme pleasure to have you comment on my posts. I have an immense amount of respect for you. One sentence you wrote stands out to me, personally: "Transparency is just the catch phrase to encourage consumers to hate the mortgage brokers." Isn't it amazing how even people who claim to be "friends of the industry" use such sacrosanct language to puff themselves up? Thank you Bill. Happy New Year.
You know... a lens is, by definition, transparent... but it modifies the light as it passes through. But, I also know you... So, I know that you mean exactly what you say.
Ken - right on! I am getting so sick of hearing about transparency (bla, bla, bla...) does that mean we have been hiding stuff all this time? At this point I find it hard to believe some that use the word, that they actually mean it. I hope somebody comes up with a new "super" word soon :) ~Rita
Lane - a lens is clear but bends the light. Is it then truly transparent or is it translative? If only the world knew how intelligent you are they would rush to you for real estate services. Let's make that happen in 09.
Rita - we don't hide things. There are some people who are self-appointed to righteousness who use a diluted version of "transparency" to confuse the innocent. Truth is truth and you either have it or you do not. Childish attacks on real transparency are futile to the informed. Unfortunately it appears some venues are losing truth to profit. You are definitely transparent!
Very interesting about the banks not being transparent. That just doesn't seem fair. I'm like you when it comes to old fashioned "truth". I am probably a little too honest! It seems to me that people are smart enough to digest the same information we get.
Hi Ken, cool blog. You know, this is the first time I've seen your profile. All this time I thought you sold real estate...and I even listen to your show, so not sure how I missed that! I better pay attention!
My opinion: The reason "the word" has become so overused is because there is a pervasive, blatant, well publicized lack of it from the highest levels in our society right down to the lowest. Even playing field? Never has been, never will be . . . that's what makes it all such a challenge to stay competitive - - that's why everyone cheers for the underdog when he/she succeeds! U-RAH-RAH!
Big and fancy words just don't cut it. There has to be a real connection with the client. Thank you for being 'transparent' about this issue. Great post!
Bryant - hey I did not dis you on purpose! Sorry bother! I have been making a LOT of changes in the way and the what we do things. Adding a bus load of loan officers and giving them all the support I can to get out there and bring it in. Had to up their split from what I was paying in the past but times are tough and we need volume!
Marian - why do you think banks want brokers and small lenders gone? They are tired of competing with our aggressive pricing. In fairness to them they are as transparent as the law requires. Unfortunately the law does not provide for a level playing field. They say, "but we don't charge YSP" and they are right! What they do, however, is double or triple their SRP which is not required to be published as is YSP. Too bad Clark Howard doesn't understand this basic, simple fact.
Tamara - haha. That's too funny. Maybe I better do a better job at 'splaining what I do! Thanks for listening - we have some really good shows coming up. (For others reading she is referring to Twitter Tuesday Radio with my guest host Jason Crouch and me. We're on every Tuesday at Noon eastern for 1 hour.)
Terry - those are some excellent words and points. You are right about it dripping down from "the top" - makes us a bit of an inverted society in my eyes. Thank you for your comments.
Elayna - as a marketing expert you must be challenged with this with new clients all the time. Thank you for stopping in.
I agree with you point about mortgage brokers and mortgage bankers. I have been both at various times in my career. A banker certainly has a few advantages.
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Anyone skilled in negotiation arts knows that transparency is only the ability to allow certain facts be known while appearing to be fully forthcoming - and not in a malicious way, mind you.