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REALTOR AND LOAN OFFICER STEREOTYPES

By
Mortgage and Lending with Homestreet Bank NMLS #404052

Even now, in today's real estate world, I hear these stereotype, ignorant comments: 

"Police officers spend most of their time in the doughnut shop."."

"Firemen spend most of their time playing poker in their firehouse"

 

" Realtors and mortgage professionals made EASY money up until 4 years ago"

 

 

In all honesty, I am ready to ask for Charlie Sheen's help in settling the score with these people.

Why do people continue to think that realtors and mortgage professionals are such bad people who don't work? People outside our industry need to understand the following:

(1) We are commission-based. You close nothing that month, your family has nothing that month. One transaction can make a difference between having your bills paid and dining out once in a while or sharing a can of Chicken Noodle Soup between a family of four that month.

(2) The driving around, flexible hours, playing around during the day, and thinking we only work 25 hours a week is B.S. The professionals in our industries that are working 25 hours a week either are set financially for the rest of their life, have a spouse that makes great money or are working only 25 hours per week because they are probably the ones you will see at your door when you pick up your Domino's pizza delivery. In other words, they are working a second job. So we may take a day off on a Wednesday. What about Christmas Eve when a buyer wants to make an offer on a home and client needs a preapproval letter from the mortgage professional? How about Super Bowl Sunday back in 1999 when our realtor sold our first house. He had to come over and have us sign the paperwork. That was before the DVR so we missed most of the game.

(3) It is very very difficult to not only prospect for business, but to qualify them, keep client from going to a competing realtor or mortgage professional, and hope to God the loan doesn't get declined or the house fails an inspection.

 

Very very disturbing that we still hear these comments 4 years after 2007's meltdown, as if we single handedly caused this. We have to continue to reinforce that realtors and mortgage professionals are honorable professions.

Here is something for people to think about:

The percentage of mortgage professionals and realtors in Oregon and Washington that have left their respective industries since the heyday of 2006 is nearly 60%.

That means the ones that were dishonest, in it only for the money, were unethical, etc. are GONE. That is a lot of people that have left the industries.

If you go to a website called www.ripoffreport.com , it will show you complaints of "rip offs" claimed by consumers, The number of complaints is categorized by industry. Of all the industries, realtors were one of the LOWEST in terms of number of complaints. Great to hear.

For mortgage professionals , there were 109 complaints in the state of Oregon, ONE of them in Portland( if you don't count the subprime lenders no longer in business). THERE HAVE BEEN NONE SINCE 2009.

For mortgage professionals in Washington state, there were 78 complaints, and ONE in Vancouver, WA against mortgage professionals.   That is not very many.

If you look up the Better Business Bureau, of the 4,370 different categories, realtors are ranked near the top in terms of LEAST complaints.

What does that tell you for the consumer? The respective industries of realtors and mortgage professionals are not only left with survivors, but with people who have integrity, ethics, and competence.

Don't get me wrong. There will always be differences in level of service from one individual mortgage professional and realtor to another, but NOBODY should be disrespecting our professions.

DEAL: I won't talk about the doughnuts and the poker games to those of you who are policemen or firemen as long as you stop thinking that realtors and mortgage people make $200,000 a year while playing golf four times a week and vacationing in Cabo every other month.

Let's put these stereotypes aside and respect each other's businesses.

Thank you again for your business.

Posted by

Paul W. Thompson

Home Mortgage Consultant

Comments(32)

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Paul McFadden
Responsive Pest Control - Seattle, WA
Pest Control, Seattle, WA.

Paul: Thanks for the post. You are for the most part correct. I know LO's who made it through the storm and it's still about about the bp's for them. Thanks again!

Oct 30, 2011 03:58 AM
Rodney Mason - Sr Loan Officer
CrossCountry Mortgage NMLS# 3029 - Atlanta, GA
AL,AR,AZ,CA,CO,FL,GA,IN,MI,MS,NC,NV,SC,TN,TX,VA,WA

The stereotypes are there.  Like you said, the majority of those in the industry before 2007 have now moved on.  The public seems to forget that fact.

Oct 30, 2011 04:08 AM
Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Hi paul,  Interesting review on our industry.  In one sense we are like politicians when it comes to public support.  Nationally, consumer support is in the single digits but when asked about their own representatives people say they really like them.  So they hate all politicians but like their politician.

Oct 30, 2011 04:53 AM
Bryan Robertson
Los Altos, CA

These reputations are built during the boom years (and we've had 2 of them in the last 12 years) and they don't die.  The only way we'll lose these is if we focus on the level of professionalism in the industry, focus on retaining qualified people, and make it harder for just anyone without a job to get their license.

Oct 30, 2011 05:13 AM
Justin Dibbs
Fairway Independent Mortgage - Ashburn, VA
Mortgage Advisor

Very well said.  I wish I were only working 25 hours a week and playing golf, lol.

Oct 30, 2011 05:39 AM
Carl Pruitt
FHA Loan Advice - Buford, GA
http://FHALoanAdvice.com

I too am going to have to disagree that all the unethical and dishonest players are gone, but I do agree that stereotypes are generally wrong. People are individuals and every one is different.

Oct 30, 2011 07:09 AM
Ed Gillespie
WealthWise Mortgage Planning, a Division of American Pacific Mortgage Corporation NMLS #1850 - Folsom, CA

I'll "third" the comments that there are bad apples still in the mortgage business.  I'm still hearing horror stories.  

Unfortunately, this market has forced some of the excellent mortgage professionals out of the business.

Oct 30, 2011 07:51 AM
Edward moloney
Edward Moloney Loan Officer GMH Mortgage Services - Holliston, MA
Loan Officer Providing 5 STAR SERVICE

Interesting post how long have you been in the industry and how does the changes of met life impact you

Oct 30, 2011 08:22 AM
Paul W. Thompson
Homestreet Bank - Vancouver, WA
Going Above and Beyond...

I have been in the industry, Edward, for 15 years.  As with all of us, it has been tough.   And, I do get that not all bad loan officers and realtors left the business.  There are still some bad apples.  And, yes, there are some good ones that left. 

That being said, as far as the Met Life news, it has not really affected me so far.  Yes, we will have to get our state licensing now and there is some uncertainty out there.  However, I cannot spend my time worrying about it.  I cannot control it and just do the best I can day to day.  That is all I can ask of myself.   I can say this:  I have been at MetLife since June 1st.   For privacy and potential backlash, I will not disclose my prior employer.  However, I will tell you that I was there for 3 years and it was a large bank.  It was a horrendous 3 years.   So my frame of reference is where I am now and where I came from.

So, how you are doing at GMAC and how long have you been in the business?

 

 

Oct 30, 2011 08:41 AM
Gail Nyman
Re/Max United Real Estate - Dunkirk, MD
Every House Has A Story
Great post but 25 hours a week and a day off would certainly be a vacation!
Oct 30, 2011 11:17 AM
Jeff&Grace Safrin
F.C.Tucker 1st Team Real Estate - Valparaiso, IN
SpousesSellingHousesTM

Hasty and sweeping generalizations by definition are illogical. There are good an bad in every profession including medicine and law, government and clergy - people who generalize never took a logic class :)

Oct 30, 2011 11:29 AM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

Sorry Paul.  I didn't realize you're not a "Rainmaker" (with a paid subscription).  Sorry.  Members Only it will be, but still a dang good post!!

Oct 30, 2011 12:11 PM
J. Philip Faranda
Howard Hanna Rand Realty - Yorktown Heights, NY
Associate Broker / Office Manager

Good stuff Paul. When people think I have it on easy street in this job, I ask them if they think housewives watch TV all day and lounge around. Nothing is as easy as it looks. Especially our industry. 

Oct 30, 2011 12:42 PM
Bruce Kunz
C21 Solid Gold Realty, Brick, NJ, 732-920-2100 - Howell, NJ
REALTOR®, Brick & Howell NJ Homes for Sale

Hi Paul. Stereotypes happen because of a PERCEPTION that a situation is true. Fortunately most stereotypes are based on the stupid actions of only a few, but unfortunately those actions become fodder for a negative perception over and over again.

I also disagree that all bad apples are gone, but do absolutely they are the minority in our profession. Good & professional REALTORS® do make it look easy by doing a fantastic job for their clients!
Bruce

 

Oct 30, 2011 01:07 PM
Randy Elgin
Option One Real Estate - San Antonio, TX
Sells Affordable Homes for sale in the San Antonio

Hey when I got into the business (from Engineering by the way) I was told that I wouldn't starve... My family might but I wouldn't  : )

 

Great post - thank you -

Fyi the link doesn't work to the ripoffreport

Oct 30, 2011 01:43 PM
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

The general public does not really know what a real estate professional does for a living. It is easier to believe in a stereotype when you are unfamiliar with reality.

Oct 30, 2011 02:50 PM
Bob Thompson 562.344.5626 Shop for a Mortgage
RT Capital Advisors, Inc. CEO - Newport Beach, CA
RT Capital Advisors, Inc.- Commercial/Residential

Great points Paul.

Good for you sticking up for us !

As I am writing this at 7 on a Sunday night and have been at it since 7 this morning !

Oh yeah... and we DO lend in WA !

 

Bob Thompson

Mortgage Loan Officer

Pacific Mercantile Bank

Oct 30, 2011 02:59 PM
Steve Warrene
Your Town Realty - Lower Burrell, PA
Pittsburgh Realtor North and East Pgh.

Paul, I play dek hockey in a few leagues on the weekends and here that stereotype here and there about being able to make my own schedule and having money.  They don't see that after games I have to leave to go home and shower and go show houses or work to get a listing or make calls to set up an appointment for acquiring a new client for a buyer or seller.

Oct 30, 2011 09:59 PM
Glenn Freezman
Nucazza LLP & Home Buying Evolution, & Family Abstract, Inc - Fort Washington, PA

Paul, Perception is reality in the consumers mind. They can do the math.  1 million realtors to sell 5 million homes, they have to figure most peeps are not working!

Oct 31, 2011 03:22 AM
Glenn Freezman
Nucazza LLP & Home Buying Evolution, & Family Abstract, Inc - Fort Washington, PA

Paul, I look at it as, we were given a gift for a number of years, the money was easier for our collective industries than it was for many others.  We were the chosen ones to succeed for some years while others were failing.  Sterotypes have been around since the caveman, look at the Geice commercials, they are still going on.  They are always based on a monochum of truth.  When its perception, a few bad apples do spoil the whole bunch.

Oct 31, 2011 03:32 AM