This business can be hazardous for your health

A most definite YES it happens here too.

Most anxiously awaiting the answer to Yael's questions.

 

 

A world record for blog commenting!

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Ah! The million dollar question. Why? It's still a mystery to me as well. Get'em closed and move forward is all we can do.

It definitely happens, yes.  The condo questionnaire should have been sent relatively quickly after the loan application was started.  The reason for the delay could be that the mortgage broker dropped the ball (most likely) and/or forgot to send it in and didn't remember until the lender asked for it near the closing date.  It could also be that the lender doesn't normally require it, but asked for one in this case (not vey likely scenario, but has happened to me before). 

The other common reason for the delay is, and this happens a lot (especially in South Florida), that the condo association takes their merry old time to get the questionnaire filled out and returned to the mortgage broker.  I have had times where I have had to call several times a day for 4 or 5 days to ensure they finally got off their butts and completed it.

As far as other issues, it depends on the loan and the borrower.  Commercial loans sometimes get peculiar and things just keep "popping up".  Also, if a loan is "borderline", the underwriter may ask for something and if the borrower fails to deliver it in a timely manner, the u/w may start looking for a reason to deny the loan.

I hope this helps a little bit to clear some of the issues.

Yael.... Robert did mention one key factor...  that the lender dropped the ball. And part of this is that they do wait till the last minute. And yes, the condo association can take their sweet time also.  Last...  the loan officer decided to turn the loan in last minute. I have seen this happen before also.

Me?  I am like you and have spent a lot of time fixing the problems myself. Since I have left my previous company, 2 months ago, my current processor is that much more on the ball also. And this goes for the whole company, because they have raised the bar. Customer Satisfaction is so important with my current company... and not just talked about.

Overall... I sometimes just blame it on the loan officer. Sometimes the loan officer doesn't check off that it's a condo also... so the processor might not find out until the appraisal comes in also... this can be big. 

In regards to the HUD>...  Yael... in my case... I do such a good job in regards to not only disclosing all fees, but that I estimate a tad higher.... that my clients don't have to worry. Most of the fees are from the title company anyhow... but we can get fees to them quickly enough so they can put this together. And the HUD should come from the title company or lawyer...not the lender. 

Yael, you ask the million dollar question, and NO I don't have all the answers.  I do know the following, because I like to nail down as many details before I hand a loan off to the processor as possible.  But in reality the fubar's can take place and your not the one responsible, but your client's don't want to hear it, they don't want to really know about it, and they expect you to close. 

My biggest pet peeve is Account Rep's at wholesale companies that either don't understand their own products, or make promises on exceptions that they don't deliver upon.  I've been dealing with one of these situations at the moment.  Sometimes you want to rip your hair out, because I'm an impatient guy at times, but then you realize that some prespective needs to be arrived at to keep your sanity.

Bottom line, there is always something or someone who screws up when a loan goes fubar.  But my approach at that time is #1) Solve the problem   #2) Communicate   #3) Communicate  #4 ) Repeat #2 and #3.

I've found that clients hate hearing bad news, but they will actually hate you more if you don't give them bad news until the last minute.  If you wait to give them the bad news at closing or at title and you actually embarrass them, then good luck ever getting another referral.

The owner of my company and myself recently attended a conference of business owners.  They were not mortgage professionals, and as we talked about our respective businesses around the table, one of the things we were supposed to ask was the opinion of the other business owners about our industry.  Without one exception they all rated "LACK OF COMMUNICATION" as the number one reason they hated the mortgage process.

Look, there are to many people envolved in each transaction to never have a problem in a transaction.  Longevity in this business is dependent on being able to deal with problems, but more importantly you need to develop communication skills, and also learn to set expectations low and over deliver at the end of the process.  One example is my blog on turbulence.  Robert Ashby also gives some good examples in his blog about turbulence as well.

Karl... I agree with half of what you said. Over time, I have learned 5 of the top companies programs in and out...those on the sub prime market. I know who can do what.... and those that promise exceptions, they come through because they know me and if they don't...it won't only be me that will stop using them, but I will make it hard on them and others will follow me. Because they know I know most of my programs. 

The other thing to this....... if I know it's an extremely difficult deal, I have a back up with another company that I explain this to the client. Hence the reason why I have only had a handful of deals that have not closed in 14 years. And the main reasons would be the appraisal on a refinance. Out of the 5 or so that didn't close, only 1 of them was a purchase.

Yael... not trying to hijack your post. And Karl does bring up some good posts. But I guess I take it to the next level so I don't have to blame the other lender. And this just made me realize a few things on my behalf and how others handle this.  Thanks..  meaning, I can use this part when speaking to clients, that tell me they got this great deal with another lender. Anyhow...   I can't believe I woke up before 8 am on a Saturday. I was so tired...   ;o( 

Jeff,

I agree that you should have your go to guys.  Even then there are times where the go to guy makes a mistake and tells you that "we've just changed our program guidelines last week"...UGGHH...that's happened once to me.  I also have a backup plan, but frankly I hate telling the back up guy about the deal until we're ready to roll. 

Karl... I have been lucky... I have had a program drop just once... about 4 months ago...... sure, it's tough... I even tell my people if they are my back-up plan. They appreciate the honesty and being straight forward with them...

Yael....   I'll talk about your question to Karl first. I ALWAYS tell the realtor that has the buyer that the seller or their realtor can call me anytime. There are many reasons why, but even if delayed, I can usually make everyone feel at ease. 

In regards to clients getting me papers late?  I rarely have a problem with this. When I first pre-qual a client, I give them a list to work on. By the time they have my application, they have 90% of what I need, which are usually the most important papers. Usually, the papers that I do need at the end, might be something new, because the underwriter is requesting it. But for the most part, because of my experience, I know what to look for and I ask that up front.

Now... to your questions of discussion. The reason why it's not an issue for myself, in regards to the client having the numbers, is because I am pretty close. And if they need to get that check, they can get the money a day before closing and add $100 to my good faith estimate. I then tell them that if they paid more, they will get a check cut back to them at settlement. If it's few dollars more, they can by check. Most title companies that I have dealt with, will allow up to $500 in a form of a check. Hence the reason why having exact numbers have never really been an issue for me and as long as I explain this to them, as I just did, nobody has an issue with this.

In regards to waiting for numbers from the lender. My  numbers don't change unless I add or subtract points because of the rate or if the program changed. ANd when a change is made, the client is made aware of this as soon as it happens.... and not at the end. And I can always e-mail the title company these costs a few days before settlement, if everyone needed numbers that quickly. Then the only costs are coming from the title company and sometimes the realtor, if they helped with homeowners and such. Hence the reason why waiting for the lender to get back to everyone should not be an issue. Even if I am selling the loan to another company.

Getting to my very last sentence. This is another great thing. We do about 85% of our deals in-house, that I underwrite A paper, Alt-A, FHA, and sub prime deals all in-house. So I already know the charges. The only time I really go out of house to do a deal is when it's a sub prime loan that we won't do. And I have my other lenders that will do these, hence the reason I can basically do anything anyone else can do.

Hope this explains everything a little better. You could always call me on phone, in regards to these also.  ;o) 

Yael,

Great 1031 insight.  I just launched a 1031 calculator and I'd love your feedback on it:  www.1031summary.com

Regards,

DROdio

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Daniel Rubén Odio-Páez
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It is the age old question.  How to solve this dilema.  And, it gets worse each year thanks to technology.  Quicker, Faster, Sooner.  You have email right?  Blackberry, right?  Why can't you get it to me now?  The clients demand it, and we all try to deliver.