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 carpets, window treatments, etc. do not increase appraised value, they only increase the perceived value...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...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 branches. These are things you absolutely must be aware of before you make any major decision. You must have all the facts and know EXACTLY what you are getting into. Don't just guessÂ…use my checklist and be certain. These are questions I've compiled over my career and you are reaping the benefit of years of experience in the industry.Remember, a successful loan officer doesn't leave a company without reason----they leave so that they can BE MORE SUCCESSFUL SOMEWHERE ELSE. Someone who exceeds in sales, won't put up with small commission splits and micro-management for very long. Here are the questions you should be asking when looking for a net branch to join:(You will want to print this out, this list is comprehensive and covers...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...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 happens on January 2nd? How about by February? March? April? Eeeeeek!!! Momentum starts to slow down and we all fall back into our old habits. We get too comfortable and our sales pipelines suffer. Remember, the loans you originate this month, are the ones that will close next month. In the mortgage business, we must not look just at today's "sales" figures, but at tomorrow's loans that are slated to close. How many loans have you had fall-out or die because of a stupid, little reason? Too many. And that is money out of your pocket. If I added-up all the loans I have "lost" over my career, it would be in the many thousands, likely hundreds of thousand of dollars in lost commissions. If the average loan is worth about $3,000 to $6,000 each, you don't have to lose many before you begin to take notice. Not every loan will be a...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
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