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...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. Questions such as: Are you financially secure? Have you reviewed all your options? Do you have a support network in place? Etc.In this article, I'll cover some of the key questions to ask the net...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. It's just that although they were extremely busy "working hard", it didn't matter. They didn't close the loanmeaning I didn't get paid. Boo hoo! ;-) I learned this lesson very quickly.In the mortgage business, it's only results that count. Not simply "working hard". That's one reason why if you have a good processor, do whatever you can to keep them--because they are extremely rare!Here are some tips on choosing and working with a good processor:* Know how loans in your company are processed and what the procedures are. How far do you, as the loan officer, take a file? Where is the line of separation between origination and processing? What are your duties and responsibilities? What are the processors? Make sure everyone is clear on things.* Make the processor take "ownership" of the file. In order to do volume in this industry, you need to take an assembly-line approach to loan origination (like how my Sink or Swim...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 consider when shopping for a mortgage.Here are some of the best responses/methods I've used 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 expectations for the year ahead, and rightly so. Everyone wants to succeed in their business. But, what...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 everything you can to maximize your income?"Anyone who has been in the mortgage industry for at least a year, knows that as home prices increase, so do the conforming loan limits from both Fannie Mae and Freddie Mac. January is a great time to go through your existing customer base, and drill for hidden opportunities. It's "found" money. And it's waiting for you. Here's a quick and easy way you can start your new year off with a bang.Go through your entire past customer base, and pull-out all the "JUMBO" loans you closed last year and before. As you know, the interest rates on these loans are typically half a percentage point or more above standard conforming loans. With the yearly increase in loan limits, this is a great chance to refinance an existing customer from a JUMBO loan, into a regular conforming loan and cut their interest rate! Even a small percentage decrease can save a customer hundreds of dollar in their monthly...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
Let's face facts. The mortgage business isn't for the faint of heart. It takes guts and relentless determination in order to succeed. You won't become a top producer overnight and your early months of being in this industry will be hell. There is...more
During my public speaking and private coaching sessions, I cover many unconventional strategies that have helped me become a top producer in the mortgage industry. I've always been one to think out of the box, and my mind is always focused on how I...more
When I was a new loan officer, one of the most difficult things I had to learn was that not every loan that walked in the door was a good loan. Some loans were bad. Really bad. And like time bombs waiting to go off, they usually exploded right...more
Generating Good Faith Estimates (GFE's) can be extremely time consuming, especially if done the wrong way. I remember when I was first starting out in the industry, it seemed like all I was doing all day was filling out GFE's, and getting no where. ...more
One of the toughest things as a loan officer to do is to know when to keep or kill a deal. Of course, we all want as much business as we can handle. But, spending time on loans that don't close, wastes more time and leaves you with nothing to show...more