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...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...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 closing table. It's a fact--purchase loans are far more time consuming and stressful than their refinance counterparts. Borrowers are emotional, erratic, demanding, panicky, unsure, deliriously happy or sad and a whole host of many other emotions. In their minds, they've picked out the carpeting and wallpaper and have mentally already moved in! Geesh! Try dealing with a person who thinks they're the landlord and they don't even have the keys yet!!!Keeping this in mind, here are some tips when dealing with purchase loans. These come from my years of experience and many number of loans (I've lost count.) 1. Don't show your hand too early (meaning the interest rate you can offer). Explain to the borrower that it is up to them when they decide to actually "lock-in" the interest rate. If they press you for an actual rate, tell them what today's rate is you can offer, and that you will watch the interest rates for them. If they...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 so much to learn as a broker not only with the mechanics of the loan process, but also learning how...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 can improve myself as a loan officer and become more successful.Anyone who has been a reader of this...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 before closingtaking my hard-earned commission with it! It doesn't take too many loans falling-out to learn fast that not every loan is worth your time.New loan officers are hopeful. They're excited. They want to sell and--of course--they want to close loans. But because they are new, they lack experience. More importantly, they lack intuition. They don't know the problems and pitfalls to watch out for and they can't accurately judge if a loan is worth pursuing or not. In their eyes, every loan is a possible commission. And they'll do whatever it takes to get it!But please be careful. That loan you are about to price-out could be a long-term headache, especially if you don't know all the facts upfront. Customer love to "hide" things and they won't volunteer information unless you ask. It is important to have a complete picture of the borrowers financial history, future goals, risk patterns, etc. so you can make a...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
On every loan, there are a number of hurdles that must be overcome before the loan is "cleared to close" by the underwriter. One of the most important hurdles is the appraised value on the property. A deal can be dead on arrival, if the property...more
Every day I hear from loan officers across the country who are fed-up with low commissions and dwindling paychecks as the reality of the new mortgage economy sets in. They've had it and many can't hold on much longer. Others take a more balanced view...more
Keeping up-to-date on everything going on in the mortgage industry can be a daunting task. With all of the coming changes from HUD and RESPSA, staying aware of rules and regulations is not only a necessityit's an absolute must! You do not want to...more
With the rise of interest rates and the drying-up of the refinance market, it makes sense to transition your business to the purchase money market. After all, home purchase loans will become the bulk of your broker transactions and it is only...more