First there was the refinance boom--historic super low rates where every loan was a vanilla slam dunk. Quick and easy cash and the loans sailed through unscathed.Then came the regular ARMs--because rates were rising and people still wanted those low "bragging rights" rates. They simply had to have a rate below 5% so they could one-up the Joneses at the next BBQ and prove how smart they were.Next were the 4-payment plan loans and option...more
Words are fun. But how you use them can be extremely powerful. They can immediately change your image from a rookie loan officer into a top producer instantly. Here's how; the words you use when dealing with a mortgage prospect affect the conversation, and can even be the deciding factor in whether or not you get the loan. Yes, what you choose to say and how you say it, will decide how much money you earn this year.Here are some key phrases I...more
Owners of mortgage companies, please forgive me. I'm about to let your employees in on a little secretthey have to option to leave you at any moment. And, many of them will. New career opportunities are abundant in the mortgage industry. And unless you start treating your top producer's differently, they may look elsewhere. The loan officer not satisfied at your company todaymay be the loan officer working down the block at your competitor's firm tomorrow. It's the sad truth that the mortgage industry can be cut-throateven inside the office!!!! But then again that's business. ;-)Company owners, should really re-evaluate the way they treat their employees. Make a goal this year to grow your mortgage business, instead of just trying to replace the people who have left for greener pastures. During my consulting practice, working with company owners, I've seen this happen time and time again. Loan officer retention is always a problem, and keeping your top producer's happy is an ongoing process.Think about it. How much are your top producers REALLY worth to you? How much do they produce for you per month? How much of your bottom-line is attributed to the top 20% of...more
One of the most profitable low-cost investments you can make in your business is to have a mortgage website that not only creates your company's online presence, but also up-sells the customer on your products and services. But finding a website provider that does the job effectively is not always easy.To create a mortgage website you have three...more
With the present downturn in the market and home prices dropping faster than a lead balloon, I thought it best to share with you what I've learned regarding property appraisals.Here is the cold, hard truth on valuations and what appraisers will NEVER tell you. Keep these points in mind on every loan you do.1. Cosmetic stuff such as paint, new...more
The news isn't good. Over 30 subprime lenders closed their doors this year so far, with many more to come in the next few months. And, one of the biggest subprime lenders, New Century is ready to bite the dust. With all this and more, I would consider the subprime market effectively "dead" until this shakeout is finally finished.Many of you have asked what can be done to stop the mortgage hemoraging and how you'll be able to survive the new realities of the marketplace. In response, I've put together some of the best feedback and tips from fellow warriors like you.FOR YOUR CURRENT SUBPRIME BORROWERS, HERE ARE A FEW IDEAS: 1. Try to restructure their financing arrangements. If it's a purchase, will seller carry some of the closing costs or reduce the price? If you can rework the DTI and LTV on the loan you might have a chance.2. Can you consolidate any debt on the loan? Can you get rid of seconds and HELOCS paid off at the table? How about paying off any other debt too? This will help your debt ratios.3. Put borrowers on hold until their credit score increases. Can they wait a few months while they sort themselves out? A better score would greaten their chances of getting...more
In my last article, I covered some of the reasons why loan officers join net branches and what their motivations are. I also covered some of the personal questions one should ask themselves before they decide to make the jump and join a net branch. ...more
Good as gold. That's what I call a processor that knows how to get the job done, and quickly. I'm met many loan processors in my career, and I can honestly say that many of them were not very good. It's not that they didn't "work hard". They did....more
One of the most common objections a loan officer hears is "Your fees are too high!". All too often, customers become fixated on price and closing costs alone, as the determining factor in making their decision. But price is just one small thing to...more
Every year around this time, my business increases. Loan officers, mortgage brokers, and branch managers--in a flurry to set goals and make resolutions for the New Year-- look for training services to improve their skills. They have high...more
With every year, come new opportunities. And astute loan officers are quick to capitalize on what the new year brings, raising their commission levels and catapulting to top producer status in no time. I ask you one simple question, "Are you doing...more
With interest rates rising rapidly, it is more important than ever to make the most of every loan. As refinances begin to dry up and you begin to deal more with purchases, you will undoubtedly encounter new roadblocks and hurdles on the way to the...more