Special offer

Are you begging me to lie to you???

By
Mortgage and Lending with Social Media - Infinity Home Mortgage Company, Inc

 

 

dishonesty

How do you like people to treat you? You search for a professional in any market. You know you find one because you did your research, yet you disagree with some of their answers during the process. You disagree because other people have told you differently. But wait, you trusted this person from the get-go, yet you are listening to others. Why is that?  In my opinion, it's called human nature. Sometimes we are so desperate for help, that we will still believe what we read or hear, which can get us into trouble.

My concern is that it seems to be happening more than ever before. Some people are hurting for business so bad, that they will tell you anything. You need not only do your research effectively, but that you use your gut wisely. If most of the answers that you obtain are the same from different sources, then usually that is the truth. Let's look at this further.....

 

 

integrity

 

 

As a consumer or borrower, you would think that everyone would have integrity, be honest, and be that professional that you seek. It doesn't matter the title of the person, that doesn't give them integrity. After speaking to so many borrowers in my 16 year career, one thing that is said often is that this is one of the biggest transactions in ones lifetime, yet there seems to be more deception during the transaction than one would think or hope. Answer to this?  Some just don't care or take the pride. Some can sleep at night no matter how they might destroy ones life. 

 

 

 

human wrecking ball

 

Overall, this might be viewed as a negative rant. To me, it's reality and something that should be brought up often. Why?  Because I speak to about 10 to 15 different loan officers across the country on a weekly basis and it is happening. So it's just not my thoughts and or opinions. Just that some wreck peoples lies based on false hope.

 

Here are a few great examples that just happened in this week alone.

  --  I just picked up a purchase in Port Saint Lucie, Florida that the borrower chose his own loan officer because she claimed to have this borrowers back. Not only are they on their second extension, which the mortgage process was started over 1 1/2 months ago, but now they are denying this borrower because they can't verify his income. There is a simple solution, but I need an extra 2 weeks to close this deal. I have spoken to the borrower. his real estate agent that referred me, and even the sellers. Everyone is okay with proceeding. The initial problem? Just a very poor interview of the borrower by the loan officer. The ending result, a less than adequate lender that was able to think outside the box, even though they kept on making promises throughout the process.

 

 --  Just yesterday, there was a loan officer that answered a question in a blog of mine about credit scores, under 550. This loan officer tells me 3 different companies that can do under 580. He goes on to tell me that they are closing these daily. I ask him to share some examples of what he has closed this year. He gives me 3 examples, but they were examples prior to July of 2008.  What?  I asked for examples for this year. His response?  Well, I haven't closed anything with these 3 companies yet, but these were loans that I closed with under 580 scores. My problem with this? He didn't read my question correctly. This is why many deals fall apart at the end, because the loan officer doesn't pay attention to detail. This irks the hell out of me. Yes, we are humans and make mistakes, but this is not acceptable.

 

  --  Lastly, I have been dealing with a self-employed borrower for 2 weeks now. The property is an illegal triplex and I brought this to his attention, after I asked the right questions. He also told me that his net income is about $40,000 a year. I asked him for 5 days to get me his tax returns. Finally I get them, but they show $27,500 a year. I told him that I would get back to him late Wednesday, but I failed to, because of the 1st example above, that needed my immediate attention. Well, I get a semi nasty e-mail the next morning telling me that I took my time and he wanted to put an offer on the property. He found another FHA specialist that pre-approved him in less than 2 hours, without verifying his income. He is being told that he needs to put 25% down and his rate is 5.25%. Anyone in the lending industry knows that no matter how much you put down, on stated loan programs, the rates are always higher.  I could be wrong, but from my experience, there are red flags written all over this one. Just because this loan officer claims to be a specialist or expert of any kind, doesn't mean that this is true. Anyone can make that statement themselves. My fear?  This borrower will spend an appraisal fee and possibly some other fees, but never get to closing. There is more to this deal. This gentleman has 750 credit scores, but only 1 tradeline on his credit report. These types of loan programs usually require 4 tradelines or more for more than 12 months.

 

 

Summary :  We all want your business, but at what price. My price is fairly simple. If I tell you that I am able to do your loan, that I will do it with pride, knowledge, and integrity. It will close unless there are title or appraisal issues or if the borrower withheld information. There are many of us that believe this and just won't throw fluff up against the wall and tell you what you want to hear, just to get your deal.The main point, if you badger many loan officers in this business, telling them what others will do, yet that loan officer says no or that it can't be done because of FHA guidelines... then you are just begging the loan officer to lie to you, and some will go to that level.

 

For some of my pet peeves, please read this : 

FHA Credit Scores & All about FHA loans & mortgages !!!!

 

 

 

 

 

follow Jeff Belonger on Twitter

 

 

 

- FHA Loans - USDA Loans - VA Loans -

- Energy Efficient Mortgages - 

- Conventional Loans - 203 k loans -

- Mortgages -

 

Experience & Knowledge at its BEST !!!

 

_________________________________________________________________________________________

For more information on FHA loans, please go to this link. The FHA Expert

For more information about the 2008-2009 Tax Credit for First Time Homebuyers : 2008 Tax Credit

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!


Copyright © 2009 by Jeff Belonger

Posted by

_____________________________________________________________________________________________________________________________

 

 

follow Jeff Belonger on Twitter

 

The FHA Expert's fan page on Facebook     Add Jeff Belonger to your network @ LinkedIN

                                                                            FOLLOW ME ON FACEBOOK

 

 

- FHA Loans - USDA Loans - VA Loans -

- Energy Efficient Mortgages - 

- Conventional Loans - 203 k loans -

- FHA Home Loans - Mortgages -

 

Experience & Knowledge at its BEST !!!

 

 

Follow me on:

Mortgage Myth Busters

 

______________________________________________________________________________________________________________

For more information on FHA loans, please go to this link. The FHA Expert

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!

HUD

 

For information about FHA myths & FHA rumors, please read : FHA Myths & Rumors

 

Copyright © 2011 by Jeff Belonger of Infinity Home Mortgage Company, Inc

Comments (23)

Tony Grego, 317-663-4173 #1 Trade Association for Alternative Inv
REISA - 317-663-4173 - Indianapolis, IN

As always a great post.

So many times I just want to send out the GFE a point under market with no fees listed just to bump the client at closing but never will.

I can't believe how the green the grass always seems to be for folks. I get plenty of business when clients told me that they were going somewhere else. I seem to follow up more than the folks they first chose to do business with

Tony

Feb 28, 2009 02:19 PM
Celeste "SALLY" Cheeseman
Liberty Homes - Mililani, HI
(RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE

Here's a good one ..... LO is fighting another LO over a client. The first LO tells the client that they can ask for 4% credit back from seller to pay off their debts. It's a VA loan.  He's telling the client how the real estate agent needs to write the contract. What's up with that?

Feb 28, 2009 02:36 PM
Colleen Craig
Southern California Mortgage Professional - Santa Clarita, CA
The Mortgage Ninja

Jeff,

I know how aggravating it is to be one of the last standing HONEST loan officers in this industry when someone doesn't believe you when you are telling them the truth.  I have an ongoing joke with one of my realtors that i would like to have a billboard on the 405 saying I TOLD YOU SO....with a list of the names of all the clients that found out i was telling them the truth and not what they wanted to hear - but it was way to too late - It's hard to deal with, but sometimes we just have to let it go and not let those clients suck up any more of your energy - let them go and move on to the next one.  They will find out and it will be too late - but you will be 10 clients along by the time they do find out.

I mean really - a guy getting an FHA approval letter without verifying income will surely be rejected in underwriting once the tax returns are supplied and he will be eating crow........

Stay positive and let the negative clients get what they deserve!

 

Feb 28, 2009 02:56 PM
Gerald ( Jerry ) Santoro
Bayshore Mortgage Funding - Morganville, NJ
Mortgage Broker/Mortgage Banker

Great Post Jeff! I have been an LO since '93 and I am still amazed that there actually exists people in our profession that do not follow the " Golden Rule" How some of these so called professionals can look in a mirror or put their head down at night.....

I just closed a VA purchase loan for clients that were referred to me after being strung along by not one....but 2 previous mortgage companies. I then had to try to expedite their loan application because they already blew through 2 extensions with the irate seller. It actually came down to me having to speak to the seller directly late on a Friday night when the current extension was due to expire and everyone had given up because the seller was so upset and was canceling. I convinced him that the loan would close on Wed and had to explain how this was mishandled from the beginning. I could go on but I think you get the picture.

Sorry for rambling but it does get frustrating at times. I can go on and on with other examples. How about the client who was referred to me for a purchase by her friend. I referred her to a Realtor and an Attorney. As we helped her find a house, etc., she decided to drop me because she realized she had a " friend " in the business. He gave her the business alright. She was baited and switched by her so called " friend" . .... and I bet he did not even give it a second thought......

One more quick one...last night I had a call at the office rather late from another referral. A young woman buying hoping to buy her first house. She apparantly has been offered a 30 year fixed @ 5.25% with NO CLOSING COSTS! The lender is waiving everything! .......I think I might apply for a mortgage there......

Feb 28, 2009 03:09 PM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

 

TONY.... . lol... thanks for the laugh. I have thought about the same, about sending out a good faith estimate a whole point less. And then blame it on the market conditions. I have a few good friends that lost deals to loan officer giving 4.5% rates with no points and low fees. Wait, I guess they were listening to the gov't, that was suppose to lower rates. But does the borrower know this?  Hell know, not until the last minute.

In regards to the follow up... I get that also. Sure, in this one case, I didn't follow up at the appropriate time, but something important came up. But talk about the pot calling the kettle black. Where was he for 5 days when I needed the tax returns. I was only doing my job properly, and not qualify him based on what he told me. Those things take time.  thanks for the polite compliment.

 

SALLY.... .  lol... well, they all come out of the woodwork at times. I have done VA loans in the past, but I would think that is not possible. There was a specific program that allowed for this, the seller paying a seller concession, which you could use to pay off your debt also. But that program is history. Your major programs don't allow for this, just for closing costs and prepaids.  Just proof that loan officers will through crap out there to get a client in the door, and then work through the problems.

 

COLLEEN.... .  this wasn't about me not keeping my head up, or my chin up. I am sure that you, me, and many others go through this so many times a year. This was more of an educational post to borrowers and to realtors, what to watch for or look for. If I wanted to rant about this, I would be writing one of these blogs once a week... lol  Yes, it has gotten bad out there.

In regards to the borrower getting a pre-qual letter, telling me that he didn't have to verify his income. Here is the problem, because he never called me back. I am not sure if he meant that he didn't have to show his tax returns now, just take his word for it... or, that he won't have to show his income period, because he is putting 25% down. To me, it sounds like stated loan.  Here is what this client sent to me in an e-mail today.

"And you may be right, this whole thing may not work out. Maybe he’s full of it or maybe he knows something you don’t, we’ll see."

hhhmmm....  sounds like he wants to take the chance, because he was told this can happen. But hasn't given me a GFE or the lenders name. I guess he doesn't mind wasting time, money, and hope. I don't negate people trying, it's just under the false hope that kills me..

 

JERRY... . thanks for sharing these examples... because I think more people need to see these. There are a few loan officers on Active Rain that doesn't think these things happen. They just blame settlements that don't close on appraisals and title issues... and one has said that she doesn't see that loan officers would lie like this. I seriously wonder what planet they live on. That might sound harsh, but I am tired of loan officers writing fluff, that sounds good, just so people follow them or say how good they write.

Overall, don't apologize for rambling... as I mentioned, people need to read all of the reasons, the xcuses, and to hear the reality of it. If you didn't read this, please do so...

Excuses are like crap that rolls down hill !!!

 

Feb 28, 2009 03:26 PM
James Wexler
wexzilla.com - Scottsdale, AZ

well said, we all really have to do what we can to earn back the trust and confidence of the consumer and joe q public ,

Feb 28, 2009 04:07 PM
Audrey June-Forshey
RE/MAX Realty Services - Darnestown, MD
GRI, Gaithersburg, MD

Jeff, I am always amazed at the "deal" people get from their family members or friends.  When I get to the settlement table, I swear these people seem to charge the most. 

Feb 28, 2009 04:09 PM
Kent Anderson
Coldwell Banker Resort Realty, Sandpoint, Idaho - Sandpoint, ID
from Schweitzer to the Lake
Jeff - In this economy it is hard to trust or believe anyone outside of your "circle of influence". The #1 goal in my business was to develop a great business group I could trust. I suspect if you were lending in my area, you would be someone I would be pursuing.
Feb 28, 2009 05:03 PM
Tami Vroma
West Michigan Real Estate Specialist-Five Star Real Estate - Grand Haven, MI
Realtor, Grand Rapids MI Real Estate

Same thing happens when you sit at the table to list their house.  The first thing I say is,

"Do you want me to tell you what you want to hear or do you want me to tell you the truth"  . . . .

well the truth of course. . .

"well that's good because that is all I deal in, but I am here to tell you if you are interviewing several Realtors, chances are they are going to tell you what you want to hear, your house is going to sit on the market forever and buyers are going to think there is something wrong with your house--its called buying the listing".

People want you to tell them what they want to hear and then they get hurt because of it!

Feb 28, 2009 10:36 PM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

 

JAMES.... . it's not so much earning the trust in my opinion, but truly educating the consumers and the media. When it comes to the economic struggles alone, I see to many happy go-lucky blogs and media press about it. Just because it's negative news doesn't mean we have to run scared for the hills. Overall, if we can stay in front of the public and keep writing about stuff like this, maybe some won't just think it will happen to them, because the person that they are dealing with is really nice. You know how many times when I prove someone wrong, that the borrower or reality comes back with..."well, they are really nice"..  sorry, but just being nice doesn't cut it in this business.  thanks

AUDREY..... . I hate that saying, don't deall with family or friends. I have done my parents and brother-in-law many of times and I make sure I take care of them. Overall, I try to take care of everyone... not the same as family, but everyone does get what I tell them and I don't pull the bait and switch. I did see a good faith estimate from an ex-coworker who did a loan for their uncle.  Oh my god...  $1,000 application fee... a high rate with high points, and a $800 commitment fee.  So, I agree with your statement that even people take advantage of their friends and family. Very sad...so who do you trust?

KENT.... . I would agree and disagree. Sure, I have a certain circle of trust. I do get many clients that read my blogs and trust me, even if they are 5 states away from me. But I will agree with you there... if I wasn't in the mortgage business and had to trust someone, because of what I know, I am not sure I could trust too many.  And thank you very much for that polite compliment...

TAMI.... .  I am sure... I have heard many stories from realtors that lost a listing because the other realtor told them that they could get much more, making promises, knowing damn well, if you pulled comps correctly, that you would never get it...  then they probably make excuses about the market and that they need to lower the purchase price now.

Overall, I agree, many people want to hear what they want to hear. Hence why I lose some clients from time to time. It's just life and we need to except it, because there will always be that realtor or loan officer that must lie to get that deal in the door. Just a shame that they sometimes ruin lives while doing it.  thanks for your input and feedback.

 

Feb 28, 2009 11:06 PM
Thom Abbott
MyMidtownMojo.com |770.713.1505 | Intown Atlanta GA Condo Living - Atlanta, GA
Midtown Atlanta GA Condos For Sale

Jeff:

Great points.....and why I have a close "circle" of loan people I work with. And why I often shudder when a Buyer comes to me and they are working with another loan officer I don't know.

First, I will find that other loan officer to be very evasive when I ask questions about the status of the Buyer's loan. What the.....? Is our goal here not to get the deal closed and get the Buyer the house they want? Duh!

I consider my mortgage contacts part of my team, and we (get ready for THIS bombshell) work together to the best of our abilities for our client!

I've read in many places where REALTORS should be much more versed in the loan process and be able to explain the options available to the Buyer. I think this is so, so, so wrong. To me, it's like asking my auto mechanic to fix my transmission on my car. It's attached to the car, right? Sure, but that does not mean that he's the right person to fix it. He send's me to a transmission specialist.

Great information and examples here!

midtown atlanta real estate

Mar 01, 2009 01:48 AM
Kris Wales
Keller Williams Realty - Lakeside Market Center - Macomb, MI
Real Estate Blog & Homes for Sale search site, Macomb County MI

Wow.   The above scenarios really bothered me Jeff.  (Especially the one about the documentation of income..)

We all want your business, but at what price.

That's the crux of it, isn't it?  At what price?

 

Mar 01, 2009 02:10 AM
Lewis Poretz
Apex Home Loans - Annapolis, MD
Business Development Manager

Jeff -  wow   you are the man!  Heartfelt comments from the master over and over...

Mar 01, 2009 05:25 AM
Loan Survivor Real Estate Financing Expert
Purchases, First Time Buyers, Pre-Approvals, Refinance - Birmingham, MI

Jeff, if we could come up with a way to solve this problem, i'd be a very happy sales person:)

Being honest & ethical doesn't always put money in your pocket.  The cheaters win as they still get paid AFTER springing the surprise on the buyer.

I actually had a program for awhile where I would follow up with buyers after they closed with someone else.  No matter what i tried, i could not get theses buyers to allow me to add them to my marketing list so they would have my info to be able to refer me to their friends and save them from getting screwed like they were.

My rant for the day:)

Mar 01, 2009 08:08 AM
Bill Gassett
RE/MAX Executive Realty - Hopkinton, MA
Metrowest Massachusetts Real Estate

Jeff I think this is an example of a very well written article. There is no way in the world someone is going to be turned off by what you added in the footer. Just my opinion:)

Mar 01, 2009 12:06 PM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

 

THOM & RAY.... .  I don't think a realtor should get nervous when their client comes with a lender they never heard of... more than 85% of my business is done out of state and I have been successful. I have had a few realtors try to steer that borrower to their own loan officer. I disagree with that, even though I get business from realtors also. But I will agree with you about those loan officers that are very evasive when asking questions... I would be nervous or irritated also... and red flags would pop up. But it depends on what questions you ask them also. I have had some get really personal or tell me that my rate or points are high. That stuff ticks me off, because each client is not the same.

In regards to your last comment... I have read that also and I also disagree with that. I think that should be left up to the loan officer. Then again, some realtors might be better than the loan officer though... lol  Thanks for your input and feedback.

 

KRIS.... .  yes, that bothered me also, when the client sent me that e-mail. But then again, that comment could go in two different directions.  And yes, at what price do we want these clients...  I believe in the old way of things, by being upfront and no bait and switching.. or telling the consumer what they want to hear just to get the deal. thanks

LEWIS... . thanks...  that means something... and we need to catch up some, it's been a while.

DREW..... .  it's a well-deserved rant and something that we need to talk about more. Some might think it's negative and could scare borrowers... but we need to talk about this. Because if not, they will just get blinded at the end, and then it's usually to late. I agree, I love competition, and I know some don't play by the rules, just as they don't in sports... but they get paid for doing that and yes, they cheat the public, but they cheat themselves. In regards to what we do, it costs us money though, if we lose clients to those that cheat and or lie.  thanks

BILL.... .  thanks, I wouldn't think so. But you do have to wonder about AR and those that feature posts though. They say they don't, but they have their own loved ones... and thanks for the compliment.

 

Mar 01, 2009 12:22 PM
John Cannata
214-728-0449 http://TexasLoanGuy.com - Frisco, TX
Texas Home Mortgage - Purchase or Refinance

You have to know by now that sometimes they just want to be lied to.  It makes some people feel better about themselves.  Its a shame.  Sometimes I feel bad when I tell them the truth.  Like I did something wrong because they have issues and no one else has told them.  Its just shameful that LOs dont tell the truth ahead of time and leave it to someone to break it to them.

Mar 01, 2009 01:40 PM
Stephen Kappre
KW Hometown - Mantua, NJ
Helping You Home

I actually see less of this from consumers today. A few years ago EVERYONE thought they could get a loan. Most could, but people with 550's wanted 100% loans at low interest rates, etc. Usually after 1 or 2 conversations I will just not pursue them and won't waste my time.

Mar 02, 2009 05:16 AM
T Chumba
Company - Arctic Bay, NU
Your dog

Great post. Hit everything on point.

Jul 21, 2009 01:49 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

It's sad that so many want to take the easy route to success - by lying to people. I could be wrong, but I think what goes around comes around, and their success will be short lived.

Mar 04, 2011 10:58 AM