I was sitting in the Ontario, Canada airport studying a book and a gentleman sat next to me, glanced at the book and asked, "Are you a statistician or mathematician." I said, "neither, I'm a magician." A good loan officer must be competent at math. I am not a mathematician but I do an entire mathematical magic show and the audience is baffled with how I get to a mathematical surprise endings. Once I did a show for scientists and there was a Notre Dame Math Professor sitting at my table. I told him that during the show I would do a math trick. I finished my show and actually forgot to incorporate the trick. As I was leaving I stopped and told the audience that promised to do a math trick for the math professor and asked if it was OK to do another trick. Everyone said yes and I did the trick. Then, I walked by the math professors table and he was explaining how I did the trick to another math professor. I heard him clearly and to this day can not interpret in English what he was saying.....I am good enough in math to be a good mortgage lender and magician but I am not a mathematician !
I am also not a CPA or Tax Preparer but I did take the H&R Block Tax Course Years ago (I wanted to say I stayed at Motel 6) and my father in law was a Tax Preparer and he always guided me. I am good enough in taxes to be a good mortgage lender. A lady called me and is purchasing a home in southern California. After more than 4 weeks in the escrow process the loan agent told her he could not do the loan because her debt ratio was 48% and he needed 43%. The lady is a self employed professional and structures her taxes to flow from a Partnership to an LLP then to her personal taxes. The loan officer did not understand her tax structure and showed income to the Partnership and to the LLP as stand alones; in other words, he doubled her income.
Problem Solving. Again I am not Sherlock Holmes and cannot solve a rubic cube but I can solve loan problems if there is a solution. Customers came to me after being turned down by their bank because they want a large cash out Jumbo loan. The bank turned the loan down because a loan requirement for this loan at the bank is 12 months cash reserves and the customers did not have that money. I suggested a refiance cash out to $679,650 which is a Fannie loan and does not have the reserve requirements and then an equity line to get them the remaining cash they need. The bank that turned them down could have done the same thing.
To me a professional loan officer needs to know how to decipher Federal Taxes, compute the math, and have good problem solving skills.
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