Yes, REALTORS are missing the boat with Lenders too.

Recently, Jonathan Osman wrote a well pointed piece about how mortgage professionals are missing the boat when it comes to working with Realtors. I agree 100% with what he said, but wanted to bring another perspective to this topic.

Realtors are missing the boat with Lenders as well. Sure, there are 100's of lenders to call on that can write a mortgage loan for your buyers. And we all know that spam effect of the lenders emailing you constantly about sending business their way. But there are a couple things Realtors and real estate professionals should be aware of too.

I work damn hard for the agents I work with. As a matter of fact, I truly do my hardest to work WITH the agents I have relationships with as I know this is a partnership. Yet there are times when Real Estate professionals can show that they really don't get it.

For example, I recently began working with a buyer. When I first began working with that buyer, they had no agent and really no clue. I took time to work with them, get them in the position to get them approved and once they were able to qualify, I asked them if I could refer them to an agent to help them find a home. Of course, they had a friend of a friend's brother that was going to show them a couple homes.

I spoke to the agent and introduced myself. Right off the bat I knew we would have trouble as he didn't care to know anything about the qualifications or what these folks and I had been through. Almost immediately he began pushing them towards the "in house" lender which unsettled the buyers.

I now find myelf in a tough spot... Do I fight to keep the clients and let the buyers get pulled in 30 directions, or do I let them go knowing they will get crappy service (I know who the "in house" guy is and holy cow... enough said.) I am not one to just give up, but I also don't want the most exciting experience in these people's lives to become something they dread. So I gave it a good shot to keep the loan without creating a negative feeling. However, the other agent wasn't so kind and really tried to slam me (remember, he has never worked with me before.) Not too long, the buyers tell me they are torn but feel compelled to work with the agent's loan officer (as if he owns the LO) so that the agent won't drop them on the home of their dreams.

A couple weeks later, the deal falls apart. The "in house" guy doesn't take the time to really get to know the buyer's needs and eventually drops the ball. With such a negative outcome, they have decided to hold off on buying for the next year or so!

Now, if this agent had realized that the buyers were happy and comfortable with me, and taken the time to get to know me, he would have seen that I would have delivered to him happy, satisfied and CLOSED buyers and who knows what would result of that in the future. But because the real estate "professional" decided he knew mortgages better than the professionals, things go screwed up and he lost the deal and I will never work with him again.

So please understand that lenders are not a dime a dozen anymore. Too many lenders have dropped out because they could not do the right thing. Those that are fed the in house leads can cherry pick. But those of us out there working hard that understand the value in relationships will be your best ally in getting things done. Quit comparing lenders by a worthless good faith estimate or by empty promises. Evaluate a lender by their knowledge, their experience and most importantly the way they can make YOUR clients feel!

Ed Nailor, Charlotte Mortgage Lender (Charlotte FHA mortgage approved!)


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Wayne L. Brown
Franklin Advantage Inc. - Alpine, CA


Boy, i could write on here for hours about this. Yet, I still would like to think that anyone being handed a client Without expecting anything in return should be happy and grateful.  There is lack of class and ethics in all facets of business, unfortunately.  One of my best Realtors had to write a letter to her corporate broker each time I handed her a buyer as to why she did not use the inhouse lender.  After the 14th referral in six months from my advertising dollars, I called him direct and asked him how many of his inhouse LO's brought business in............he was speechless especially when I told him that I ask for nothing in return except an opportunity to compete for her loans as well.

Note to Barb Overman:  I am an ex banker, and mortgage banker ( 32 yrs, and now a broker for 6 ).  I sincerely mean no disrespect, but can't believe the some of the things people believe out there.  Ex.  Are you aware that if you are a Bank or mortgage banker, you are Not required to disclose all back end fees since you fund the loan?  As a Broker, we Must disclose all fees.

Time spent as a banker and mortgage banker opened my me they are making a ton on the back end, yet HUD nor the banking regulators seem to want to listen about open disclosure for all.

That's a complete blog on it's own.

Jun 03, 2008 04:06 PM #38

Thanks for sharing "our" perspective as well. Too often I deal with RE agents who don't know and don't care about the finance end -- like "it's your job don't bug me about it." In reality, truly supporting clients means being up to speed on ALL aspects of the deal. It's a 2-ways street and I only look to work with RE Agents who truly understand that. Thanks for the post!

Ben in Chicago

More at

Jun 04, 2008 05:13 AM #39

Great post.  I have had the exact same experience a few times and several variations of your story, as i'm sure you and many others have.  We are currently working with a few agents that see the value in our service and the fact that we make them look good with their clients but there probably always will be folks on both sides of the fence that make the relationship amongst us as professionals a mess.  we are working to find agents that want to do business the ways we do and to build their trust so that we can avoid many of these types of problems.   As long as we keep our side of the deal up to par we seem to be making progress.  There are a lot of agents we want to work with and lot we don't.  We can't always cherry pick for the good ones but we are building business together with the good ones we've been able to find. If they don't want us and our service, it's OK.  There are a lot of them that do and we are both benefiting from the relationship.

Jun 04, 2008 05:28 AM #40
Realtors sell homes, lenders lend

As a lender, the story is something I've seen so many times over. An over zealious Real Estate Company pounds on the head of the agent to get them to use the in-house lender so the real estate company makes money...

But what does the actual agent get in return? Nothing. Agents that work with me get a lot - including hot pre-approved customers FROM me. When was the last time an in-house loan officer gave you a lead?

Real Estate Agents Sell Homes. Lenders Lend. We are an extremely legitimate company working on extremely thin margins. As there are thousand of ways to structure a deal, the average agent looking at a GFE is a completely worthless way of determining if the lender is legitimate or not, overcharging or not. 

I don't ask the customer what the agent is charging for a listing fee, I don't explain to buyers that they really are paying your commission in a round about way, and I don't tell them the "Real Estate Broker Administration Fee" is a junk fee.

My 15-year experienced sentiment. A good realtor tells customers they are not the lender, and financing questions should be addressed to the lender.

Jun 04, 2008 05:30 AM #41
James Hammer

Good post! I firmly believe that in this market Realtors and Lenders must work together to find solutions to help buyers get into the homes they dream of.  I have several excellent Realtors that work very closely with myself and the buyer from the time I have them Pre-Approved.  If I have a buyer that already has a Realtor I will make every effort to build a relationship with that Realtor.  If I feel that person is not looking out for the best interest of my client I have no problem suggesting one of the other Top of the line Realtors that I work with.  My intentions are to always build more top notch referral relationships so when I have a chance to work with a new Realtor I feel it is a great opportunity.  But it all comes down to making sure the client is working with professionals that will give them the best service and information available.

Jun 04, 2008 05:39 AM #42
Darcy Rockwell
eMortgage LLC - Latham, NY
Mortgage Consultant

Great post.  Couldnt have said better if I wrote it myself.

Jun 04, 2008 06:36 AM #43
A&M Mortgage Group: Larry Penilla
A&M Mortgage Group - Merrillville, IN
Northwest Indiana Mortgages - Home Loans

Hi Ed,

Great post! Most good lenders that have been around for a while and get a lot of client referrals have had similar experiences. Some turn out good and some bad. Many Realtors are so jaded by past experiences with bad lenders, that they want to control the transaction. Same thing with many lenders with bad Realtor experiences. Rather than get to know one another and work together short sighted decisions are made. Cat Vs Dog


Isn't ActiveRain a GREAT forum for Realtors and Lenders to see both sides?

Cat & Dog 

Jun 04, 2008 07:01 AM #44
Narma Delores Mayfield
Mortgage Magic - Bogan & Associates - Oakland, CA

Hi Ed,

I empathize with you.  I, myself, work both sides of the coin.  I believe in the law of reciprocity and strive to develop good working relations with both realtors and lenders.  Whichever side of the coin I am working, I stay in my lane.  I see the realtor or lender with whom I am working as a client, as well, and want repeat business from him or her.  Unfortunately, not all people are honorable, however, no matter what their business or what path they choose.  I have also worked with realtors who contacted me for loan information and led me to believe I was going to do the loan.  Once they got the information, however, they played the classic disappearing act.  For a newbie, this is very painful, but I have determined to continue to be true to myself and to continue to do the best I can for all of my "clients."  I know what you said, but if you have any referrals in the California Bay Area, please consider me.  As the song says, "I won't let you down."

Narma Mayfield

Jun 04, 2008 07:09 AM #45
Jaye Maxx Alexander II

Ed I have worked the Charlotte market and most of central NC since 1995 and if more realtors and real estate agents would heed this post we could all get to the promised land together. Our # 1 goal is to get our clients in a home and a mortgage they can live with and afford.  I will stay in the mortgage profession until I retire ... Keep posting and blogging..

Jaye Maxx Alexander II


Jun 04, 2008 07:47 AM #46
Ricardo Cobos
SunTrust Mortgage - Raleigh, NC

Amen Brother! I couldnt agree with you more. With more than 50% of the LO's and Realtor's expected to be gone from the market bey years end, and with the same number of First TIme Home BUyers (FTHB) entering into the marketplace, you better have a strong realtionship with your lender to make sure they are working just as hard as you are.


Home sellers cant unload their homes like they had in the past, that means you better be sensetive to the needs of the FTHB because those of who remain in the market will be working with more and more of them.

Jun 04, 2008 08:09 AM #47
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg Real Estate

Excellent job! I wish all loan officers I knew took the time to care & try to do what's right for the buyers. Keep your chin up, things will come back around to you. You are interested in helping & building a committed relationship between both the buyers & the realtors you work with every day.


Jun 04, 2008 08:59 AM #49
Nathan Gaier
Hallmark Home Mortgage - Fort Wayne, IN
Northeast Indiananulls Mortgage Team

Ed, I am equally disgusted whenever a bad Realtor gets in the way of a good Loan Originator or when a bad Loan Originator gets in the way of a good Realtor.  Too many times it is for either an in house person or a relative.  I'm sorry that you lost a closing out of the deal but I'm happy that the Realtor lost out!  He deserves it!  I hope the buyer chooses not to work with him again in another year.

Jun 04, 2008 09:42 AM #50
Debe Maxwell, CRS | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

GREAT post ED!  I concur--we need to remember that our Buyers are who we're in this business to serve--we are NOT to be self-serving!  When we remember that one simple rule, thing generally go smoothly!  Remember me next year when these guys finally decide to buy--I'll work with you again & again...  :)

Debe in Charlotte

Jun 04, 2008 10:50 AM #51
Ed Bobby(Northeast Financial)


  Great post.  I can't tell you how many times something similar has happened to me.  I get calls from realtors on buyers I have preapproved and worked with all the time and they try to put me on the defensive.  I find that discussing options with the buyer has helped to soothe the process.  Many times a borrower will call me saying "The realtors mortgage company has given me a lower rate, why are you giving me a higher one"  My questions "Has their company pulled your credit"  Ahh, no.  "Do they know your asset and income situation"  Ahh, no.  Then what has this "in house" company really done other than do make my job more difficult and completely confuse the buyer.  Then the calls continue from the realtor constantly questioning or trying to throw me under the bus with my borrower.  Unfortunately, 80 percent of the realtors out there don't have a clue with regards to the mortgage process but they all pretend they do.  Its unfortunate but I have sworn off courting realtors for additional business since the hassle isn't worth the benefit.  I have had more borrowers refer friends to me saying that they were going to use some other realtor in an effort to smooth things out.  I am glad someone wrote this post and possibly some realtors will read this and start to understand the damage they do to the process.

Jun 04, 2008 01:40 PM #52
Jimmy McCall - Cunningham, TN
The Ex-Mortgage Consultant

Ed,  It is an unfortunate casuality of our industry that every mortgage profession has dozens of stories like this in which a Realtor tries to flip a buyer. 

Jun 04, 2008 02:45 PM #53
Charlotte Home Loans Your Charlotte Mortgage Lender
Charlotte, NC

OMG! 52 Comments so far? WOW!

I am completely overwhelmed by the comments. I apologize that I have been unable to answer everyone directly. I am just shocked at the response!

Either this struck a nerve or it just rung true. Either way it seems to have provided an opportunity for both sides to kind of express themselves.

Thanks for all the kind words and excellent dialog!

Ed Nailor

Jun 05, 2008 01:07 AM #54
Brian M. Schoedel

That was a great story Ed. Thank you forsharing it. I can definitely relate. I have come accross this situation many times. I hope that this will widen the perspective for many sales professionals and realize that we all work for a common purpose.   

Jun 05, 2008 02:42 PM #55

Excellent commentary Ed!  I'm gong to point some of my Realtors to your comments here and hope to help enlighten then about the way things work now that we are down to the majority of us being true lending professionals!

Jun 07, 2008 03:11 AM #56
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Ed....  very well written. I always fear this and I am sometimes defensive when I get a buyer first and they then find their own realtor... or have one sitting on the wings. I have had only one that I know of that was steered away from me during the middle of the application, but I got them back. Rates dropped and I asked them if their loan officer called them up.  They said no... I discredited the loan officer with my knowledge.

Overall, I see this go both ways sometimes. And you hit the nail on the head on two issues. Good loan officers are a dime a dozen now and in-house loan officers can cherry pick.  Great job with this one..

jeff belonger


Jun 08, 2008 03:56 PM #57


This was a great post. I'm planning on buying a house within a year. It'll be my first house purchase, so I'm getting on line to get a feel for what goes on.

Good information in here.


Marty B.

Jun 16, 2008 02:36 PM #58
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