NOTE: This is why so many of us consider leaving the mortgage business
And note that "LO", for those of you that are wondering, refers to "Loan Officer"
With everything circulating about unethical business practices in the mortgage industry today, I had to write this because I'm sick of all the bad hype that accompanies our profession. Especially with what I'm personally experiencing right now. This story is an outline of my 45 day experience with, YES, an out of state client and his agent. So if you take offense or have indifferences towards the subject of whether or not LO's/ Mortgage Broker's should be lending out of state, here is one reason why so many of us that ARE HONEST AND HARDWORKING are looking for alternatives at this point in time.
45 days ago, I received a phone call from a client of mines brother: simply put, a great day because referrals as well all know are the best source of business. His brother was so blown away by my service (not to mention a local LO from ____wide that couldn't even come within 1% point of what I was able to offer at 0 points) that he highly recommended me to his brother. We started this process as I would any purchase transaction, locked his interest rate 45 days out with the game plan to watch interest rates for the next 15-30 days to possibly float down or renegotiate with the current Lender.
For those of you that aren't truly familiar with the job of an LO, I encourage you to listen in because honest and hardworking LO's are tied to the bond market and need to not only know whether your client will qualify and close, but also where the bond market will be in 30-45 days so they can truly make their and your clients happy.
So we locked in (if you must know - at 6% on a 30 yr fixed rate - 0 points) and began the process:
**broker package was sent on the 2nd day of this process, overnighted and in my client's hands on day 3 - pppllleeennnttyy of time to gather his income docs, bank stmts, p&s, appraisal ordered - and we're ROLLIN...
Until his agent intervenes:
"John Doe (aka client), do not believe this out of state LO, he's going to bait and switch you, use my recommended LO, who although is offering 6.75%, will ensure that you and I both can sleep at night."
Now this is the abridged version because 30 days was spent trying to convince my client, despite JUST closing his brother's loan, that I was honest, hardworking and that his agent was simply basing all of his premonitions either off of situations he has gone through in the past or personal obligation he's feeling from his recommended LO. Now two things stand out in my mind with this volcano that is beginning to erupt:
1. Why couldn't his agent simply call me and talk about it if he's concerned? Keeping all lines of communication open will ensure that the transaction is handled accordingly, and more importantly, ensure that the client is getting the best deal. 6.75% at 0pts vs. 6% at 0pts just doesn't sound like the best deal for your client.
2. Why is the client even having to think about this? This should not be the topic of conversation for anyone when they are making one of the biggest investments of their lives. Again, keeping all lines of communication open between the agent and the LO will ultimately ensure the transaction is handled accordingly. We're paid to make it happen, so we need to work together, regardless of proximity to make it happen.
So as you can imagine, things went downhill from there. BUT I DO NOT AND COULD NOT GIVE UP. Despite being bashed by his agent, despite having my appraiser bashed by the agent, despite getting the documents with only two weeks before closing (one week being the week of Thanksgiving) and even though I stressed to him that there's due diligence involved the approval process, I put everything off because I was determined to make it happen for him because THAT'S WHAT HARDWORKING AND HONEST LO'S DO.
My phone call to the customer THIS monday morning was primed to be a good one. We got him approved, I even renegotiated his rate .125% lower because I watched the bond market and was able to get him a lower rate with 10 yr yields dipping below 4% for the first time in 2 years! There's nothing better than to know that you are able to make it happen for a client even when there are bumps in the road like the ones described above - we all strive to persevere, we all want to be successful, and let's face it, we all need a paycheck. That is my order of operations.
"Good morning John Doe, I hope you had a great Thanksgiving. Mine was filled with good food, company and rest. Something I rarely get with a one year old son, a new house and wife that keeps me on my toes. We have great news this morning, you've been approved and we are on track to close as scheduled Friday. I even lowered your rate by .125%...
..."I'm sorry, you did what??? What is there to reconsider??? You're approved. You've got less then one week before closing and you're telling me that you were worried and over the holiday (while I was still working my butt off for him by the way) and went to ____wide where you were approved right then and there"...
"John Doe, I've spent a large part of my time the last 45 days working for you in Good Faith much as I do with all my clients. Isn't there something to be said about that. I never ask for anything upfront because I work in Good Faith of our business relationship. You come to me and expect me to be honest and work hard and I cannot get that in return? Please reconsider your decision and let me know by mid-day what your decision is."
It's now Wednesday. He hasn't called back. He hasn't returned my phone calls. I'm looking at another week without a paycheck, another month to try and make it by essentially on one income because I can count at least 12 customers that I have lost in the past 2 months in circumstances not as extreme but similar to this. You begin to wonder how much longer you can persevere, be successful and live on this paltry paycheck if people don't believe that you are truly working in Good Faith.
I love what I do and everyone that I work with loves what I do for them. But if I can't support my family, then there really isn't any other choice. I'm sure this is what a lot of HARDWORKING AND HONEST LO's are experiencing at this point in time. We truly need more individuals that do the right thing in real estate because but it seems like they are getting flushed out as well.
I'm not here for a pity party. I know we all have our stories. But seriously, people need to reconsider the perceptions that they have of the LO presently. Because, if they/me/you can or have made it to this point, that's an accomplishment in itself.
I would greatly appreciate any comments. Stories, feedback, advice. Lay it on me, I don't care if it's negative because I'm sure I've heard considerably worse in the past 6 months.
Oh, and as an aside - I did call John Doe's agent to get some kind of understanding of where John Doe stands and he asked what rate I could give him because he wants to refinance his condo here soon...yep, unbelievable.
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