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Even Great Warriors Die In Battle

Mortgage and Lending with Reasy Financial LLC NMLS 2446155

For many, 2010 will undoubtedly prove to be one of the toughest years in the mortgage industry. The underwriting guidelines still continue to change daily, government regulation and intervention is at an all-time high, legislation is being proposed to change compensation models for Loan Originators, more fraud verification policies are being put in place to protect lenders adding confusion, borrowers are forced to jump through ridiculous hoops and great mortgage professionals are exiting our industry in droves. Let me repeat that.... "Great" mortgage professionals are exiting our industry, not "Good", but "Great".

 I'm sure you know how we got where we are at, but do you really know where we are at? Everyday I speak with my friends from markets across the United States that are considering changing careers. The same questions come up, "How is it possible to create a great experience for a borrower with this environment?" I don't pretend to know the answer because, in my opinion, there isn't one.

  • Telling your borrower three months after closing they need to provide proof they've personally paid a credit card on their credit report for 12 months, showing their bank statements for the last 12 months. How and why would they have trust and confidence to refer their friends and family?
  • When you receive a loan approval with 45 prior to doc conditions, then it takes 45 minutes to explain why so much documentation is needed. How are your clients to have the trust and confidence to refer their friends and family?
  • Loan guidelines forcing Mortgage Professionals to order two appraisals on a property, after one has already been received $14,000 above selling price. How are today's clients to have trust and confidence to refer their friends and family when they feel they've been mistreated and forced to pay excessive costs?

When this happens over and over and over on every transaction, why would Real Estate Professionals continue to refer their clients? It's simple... they don't. They move on to the next Loan Officer. Your past clients don't refer you anymore. You soon realize you don't have a passion for this industry anymore and "Even Great Warriors Die In Battle."

For those that make it through this, we are the survivors, we are the fighters and we are the ones who will shape the perception of this industry so many love. Live the Dream - Carpe diem quam minime credula postero!

Posted by

About the Author

My name is David Krushinsky and I am a Phoenix mortgage specialist that is truly passionate about my profession and the result is that nearly 100% of my business is by referral from satisfied clients, trusted financial advisors and the most experienced REALTOR®'s in the Phoenix area.
Questions? Call 480.339.1576 or Visit My Website

Comments (48)

Stephen Kappre
KW Hometown - Mantua, NJ
Helping You Home

David I love your writing here and your candid reality that NO MATTER HOW good a loan officer in this market, there are so many variables that come into play, that loans and the whole buying process can be like a continual pulling of teeth, magnified by EACH LOAN in process. And we can certainly lose relationships in this day and age if Realtors don't also know the intence crap involved in udnerwriting a file. I made this comment below on Lenn's re-blog of this article ...

"I haven't had any train wrecks ... BUT I had one file that had the end investor repulling credit months ... MONTHS ... after closing saying we had to requalify the buyer. This guy BOUGHT A CAR after settlement, had low credit, and high debt ratios. To this day I have NO IDEA how we didn't have to buy back that loan."

Mar 09, 2010 12:45 AM
Jason Crawford, MBA
PartnerFirst Real Estate Network & Millenia Real Estate - Rancho Cucamonga, CA

Great post... It is amazing the swing and change within the industry. The ability to learn and adapt is key. Great post, thank you.

Mar 09, 2010 02:26 AM
Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Hi David,  It has been tough for all connected to this business.  Not just loan reps.  I know of several very talented agents who are gone.

Mar 09, 2010 04:23 AM
Jeremy Drobeck
AmeriFrist Home Mortgage - Kalamazoo, MI

I disagree with this statement:

"Great" mortgage professionals are exiting our industry, not "Good", but "Great"


I have seen some decent LO's leave, but they great ones are still here.  They are the last standing.  Same with the realtors.  Sure we a lost friends to all the change but they were far from being "Great" LO's or Realtors for that matter.  If they were great they would have changed with the market.  For me anyways 2009 was a great year and 2010's going to be even better!

Mar 09, 2010 05:34 AM
Jennifer Allan-Hagedorn
Sell with Soul - Pensacola Beach, FL
Author of Sell with Soul

I Love this post! I've been saying something similar for awhile now - that being a mortgage broker must be one of the most thankless jobs on the planet right now. Yes, our job as real estate agents is tough, but we can (and do, sorry) blame many of our troubles on YOU. A girlfriend of mine recently left the industry because she found herself drowning her tears in a super-size martini every night out of frustration that she simply couldn't do a good job for her clients.

A GREAT mortgage broker can probably find a different career where he or she is far more able to produce a satisfactory outcome for the client... and if I were a mortgage broker, that's probably what I'd be looking for as we speak...

Mar 09, 2010 06:13 AM
David Krushinsky
Reasy Financial LLC - Peoria, AZ
AZ MB-1044208 MLO NMLS #202115

Jeremy - That sentence doesn't mean that everyone leaving the business is great.  I was referring to some great producers I've known throughout the years, which are currently leaving the industry.  That's what inspired me to write the article.  Good to see you're having a terrific year.  Michigan is a tough market.  Keep up the good work.

Mar 09, 2010 06:15 AM
Mirela Monte
Buyers' Choice Realty - North Myrtle Beach, SC
Myrtle Beach Real Estate

Realtors know what is happening.  With 62% of our Oceanfront condos selling for cash in 2009, the topsy turvy World of Real Estate Financing is an unfortunate Reality we all have to contend with.  While I am busier than ever and I can't complain about the financial results, I reflect every day on the fact that I could make my money easier than this.  The quality of my Life has deteriorated in ways that I can not even begin to describe (which most of you know enough about anyway, because we're all going through the same thing...) and I have been giving a lot of thought to other options. 

That being said, pulling away is easier said than done.  I feel I owe it to my Clients to see them through these treacherous waters...  The part that I hate to admit is this: the ever changing rules and obstacles are actually enticing me to stay; it's like an addiction to the drama now inherent in almost every deal...  1001 steps to closing...  I'm on it!  I hate this business!  I love this business!  ?!?!?!?!?!?

Mar 09, 2010 06:28 AM
Kyle Jan
Scottsdale, AZ
Phoenix AZ Homes for Sale


Thanks for saying what is on quite a few of our minds.  Great originators are leaving the business, there is no way this is good for our industry.  These were our mentors, confidants, colleagues, friends and etc.  In all my years in this business, this is the first time that I feel like I don't know what the outcome will be when I submit a file.  Unless you are in the trenches, you don't understand your blog.  Keep it going, we will adapt and overcome, and new great originators will be born!

Mar 09, 2010 07:58 AM
Ted Tyndall
Davidson Realty Inc. - Saint Augustine, FL
I will help You find the Home YOU want to Buy

David, good article. I was at a closing the other day and the loan officer handed the buyer a form to sign that was for approval to re-reun everything through Underwriting after the closing.

Mar 09, 2010 09:57 AM
Vickie McCartney
Maverick Realty - Owensboro, KY
Broker, Real Estate Agent Owensboro KY

Hi David~  The survivors may not be the best of the best, but they are survivors.  I have seen exceptional people exit the business for too many reasons to mention here.  I find it very sad when the exceptional ones leave.... 

Mar 09, 2010 10:06 AM
Gary Miljour
American Financial Network, Inc. NMLS#207208 - Southern Pines, NC
Mortgage Originator NMLS Licensed in AZ and NC



Love the post,


Tomorrow is a new day, Hang in there.


I take each day one at a time in this crazy market. 


Should I trump you with this fun video.  Fight On!

Mar 09, 2010 11:42 AM
Monique Combs
Royal Shell Real Estate - Bonita Springs, FL
Royal Shell Real Estate - Monique Combs

I thought the government trying to help stimulate the economy?

Mar 09, 2010 12:43 PM
Don Wixom
RE/MAX Executives Nampa, ID - Nampa, ID
"Looking out for your next move..."tm

The strong will survive! The video brings new meaning to the term, "Knock 'em dead!"


Mar 09, 2010 01:03 PM
Cameron Wilson
Labrum Real Estate - Murrieta, CA
The Short Guy - Murrieta,Temecula,Menifee Californ

I have clients complain about Loan Officers more recently than ever before and it's time consuming to explain they are working with some really stupid guidelines.

Mar 09, 2010 01:10 PM
Joseph Keech
Blue Atlantic Properties - Leland, NC

Great post! I love the clip from 300 as well. Warriors.

Mar 09, 2010 02:37 PM
Ed Gillespie
WealthWise Mortgage Planning, a Division of American Pacific Mortgage Corporation NMLS #1850 - Folsom, CA

David, you really hit a bullseye on this post and I also echo everything in it.  HVCC, MDIA and stupid underwriting has been like sand in the wheels of progress.  Clients blame us but we press on hoping to survive this mess.  Thanks again for telling it like it is!

Mar 09, 2010 02:47 PM
Rick Phillips
Appraisals Guaranteed - Alexandria, VA
Expert & Customized Valuations

You know that's the most difficult job int his biz?  The Post Closer guy ... man. 


Post Closer: "Umm, I need you to fill out this form and fax it to me." 

Borrower: "What for?  I already have the house!" 



I think it will get worse before it gets better...

Mar 09, 2010 03:58 PM
Lupe Soto-Realtor
Premier Realty Assoc - Los Angeles, CA
Listing, Selling Burbank, San Fernando Valley LA

thank you for all the great info provided. have a productive week.

Mar 09, 2010 05:40 PM
Balboa Real Estate San Diego, CA - San Diego, CA

True professionals don't bail at the slightest sign of trouble. It's a new market, and a paradigm shift. It has its positives and negatives. Everyone is redesigning how they conduct their business and only the strong will survive.

Mar 13, 2010 10:46 AM
Lori Martinez Equal Housing Lender
PEOPLES MORTGAGE CO. AZBK 0904164 NMLS 6274 - Prescott, AZ
Personal Mortgage Professional

The LO's who are still in this business are the true, serious, in it for the long haul professionals. In spite of all the legal requirements, tight guidelines, and making our clients jump through multiple hoops BS we are going through, we are still here and STANDING PROUD!

Jul 11, 2010 11:55 AM