BAD EGGS!!!

By
Mortgage and Lending with Republic State Mortgage Company

BANK OR MORTGAGE COMPANY...WHEN YOU SEE THESE TWO TYPES OF LENDING INSTITUTIONS DO YOU SEE ONE BETTER THAN THE OTHER? IF SO WHY? I AM WITH THE CENTURY MORTGAGE COMPANY AND WE HAVE A DIVISION THAT IS CENTURY LENDING WHERE WE UNDERWRITE OUR LOANS IN HOUSE. WHEN I THINK OF A BANK I THINK OF CHECKING AND SAVINGS, WHEN I THINK OF A HOME LOAN I THINK OF A MORTGAGE HENCE MORTGAGE COMPANY. 

A LOT OF CONSUMERS HAVE EITHER BEEN INVOLVED IN OR HEARD HORROR STORIES ABOUT MORTGAGE BROKERS...EXAMPLE

A REALTOR CALLED ME RECENTLY NEEDING HELP WITH A CLIENTS LOAN THAT HAD BEEN ON HOLD FOR ALMOST 60 DAYS GETTING PROMISE AFTER PROMISE THEY WERE GOING TO CLOSE SOON. I RAN THE LOAN THROUGH MY BANK AND SINCE APPRAISAL WAS ALREADY DONE IT TOOK US 3 BUSINESS DAYS TO UNDERWRITE AND CLOSE ON THIS FHA LOAN. THE OTHER LOAN OFFICER HAD ALMOST TAKEN ALL THE HOPE OUT OF THESE CLIENTS AND SELLERS. HE ALSO TOOK CASH FROM THE BUYER FOR THE APPRAISAL IN EXCESS OF $100 FROM WHAT IT WAS ON INVOICE ONCE I HAD IT TRANSFERRED. IT TOOK OUR ATTORNEY SENDING A RUNNER OVER TO THIS COMPANIES OFFICE TO PICK UP THE $100 CHECK TO FINALLY GET IT IN THE BORROWERS HANDS AGAIN.

WHEN WILL THOSE WHOM DON'T KNOW WHAT THEY ARE DOING CHECK OUT OF THE BUSINESS? BEFORE OR AFTER THEY RUIN IT FOR THE REST OF US?

 I SEEM TO GET THESE CALLS A LOT ANYMORE WHERE THE SITUATION IS LAST MINUTE AND EVERYONE IS DESPARATE TO CLOSE ASAP...HOW DO THE BAD EGGS KEEP HATCHING?

Comments (11)

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Naoma Doriguzzi - Virginia Beach, VA

not to worry...sounds like you are helping get those bad eggs out if the bankers keep taking the loans that the brokers can't close :) 

 

Aug 16, 2007 05:22 AM
Jennifer Castle
Republic State Mortgage Company - Lexington, KY
Yes I hope so. Lately it seems to be more and more need help because of these situations...I only wish I could work with them before they get a bad taste in their mouth.
Aug 16, 2007 05:56 AM
Jay Beckingham
Christensen Financial Mortgage - Port St Lucie, FL
Seniors ROCK!

well most of the whining that you are hearing today, that's them.

many are leaving the industry now.

when it gets easy again they will return with their friends and relatives.

it's a vicious cycle 

Aug 16, 2007 06:17 AM
Bruce Bourgault, Vice President, Mpro
Central Pacific Homeloans - Honolulu, HI
Hi Jennifer -- jay is exactly right.  These Bozo's jump in and out of the market chasing the easy money.  They typically surface during a refi boom.  This current market crunch will run them off.  Aloha
Aug 16, 2007 07:04 AM
Randy Bolton
None - Diamond Bar, CA

QUICK RESPONSE:  Banks have great benefits!!  Unfortunately they 'TEND' to pay their loan officers well below what they're actually worth.  i.e.  A woman I know at Bank of America closed 15 loans one month and one of them was 1.1 million dollars.  She got a whopping $14,000 pay check.  That's basically a joke in the mortgage world.  A broker payout would have been closer to $40,000 or more.  BUT...  At a brokerage, you have to work hard and make a lot of calls to get business.  Loan Officers at banks can just be lazy.  lay around the water cooler all day, and wait for the phone to ring from some 'checking & savings' customer that needs a mortgage.

Some people like the stability of bank employment.  Stability and benefits are good things.  Others like the income potential of brokerages and feel what banks pay their Loan Officers is a slap in the face.  I used to work at a bank.  They paid me an average $950 a loan.  I know work for a nationwide lender on a 78% of the gross commission payout.  My income is now about $6,500 a loan to $9,000 a loan.  That's a big difference!!  BUT...  I have to network a lot.  I no longer can enjoy the days of just laying around a water cooler. 

Summary:   TO EACH HIS OWN.

 

Aug 16, 2007 07:27 AM
Tom Burris
NMLS# 335055 - Baton Rouge, LA
Texas/Louisiana Mortgage Pro - 13 YRS Experience

While there are good broker shops, they still lack some of the control of a bank.

Bankers have great control. Sometimes they are 1/8th% higher in rate, but there shouldn't be any drama with a banker.

I have worked both places.

I made more per loan at the broker, but I can do more deals at the bank.

prefer banking

Aug 16, 2007 09:41 AM
Spokane Home Loans Spokane Mortgage
Spokane Mortgage - Spokane, WA

Most of the bad eggs will be forced out of the industry over the next year. Not all mortgage brokers are bad :) by the way is your CAPS LOCK STUCK?

Aug 16, 2007 10:17 AM
Robert Spaight
Homestar Mortgage - Barrington, RI
This market should weed out most of the fly by night originators.  As for brokers or bankers there is no question in my mind where to be.  As someone who has worked for both I have to say that it is much better on the broker side.  I spent several years at Fleet Bank (now B of A) and Wells Fargo and am much happier as a broker.  I got tired of calling my friend who was a broker and finding out that he could offer a substancially lower rate from the bank that I worked for than I could and made twice as much in commission on that loan.  Having access to the product menus of many lenders instead of just one is also a huge benefit.
Aug 16, 2007 10:40 AM
Jennifer Castle
Republic State Mortgage Company - Lexington, KY

The feedback on BAD EGGS was great. It seems that most people who have worked in a bank and then with a mortgage broker prefer a mortgage broker due to money and more loan products. My take on it is that being a mortgage broker and being able to shop around as to what the market is doing widens my client base, but having now a bank in house as far as underwriting and our corporate team shoping investors for the best rates to stay competitive also is an added perk. I call it the best of both worlds. As for Scott Parsons question on my caps key being locked...I just felt bold.

Aug 17, 2007 01:50 AM
Lizette Fitzpatrick
Lizette Realty - Richmond KY - Lexington, KY
Lizette Realty, Lexington KY MLS - Kentucky Homes
They just don't know you very well. Your CAPS ARE ALWAYS in the lock and load position! lol Your pic keeps changing. Is this the evil twin?
Aug 19, 2007 03:17 PM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

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