I get a lot of emails from loan officers who are currently working for a mortgage company, but are looking to advance their career and go out on their own. When they see the kind of money that can be made in this business, it's no wonder they aren't satisfied with their 50% commission spread (or even less!). When I first started in the industry, my commission spread was 20% of the yield spread premium or YSP. And, if that wasn't bad enough, we...more
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 always teach my students, to ask their customers:"Have you seen any other rates that interest you?" This is a great question to ask, in order to gauge how much the prospect has been shopping around. If they have a rate already in mind, you can see if you can beat that rate. If they tell you an interest rate that seems too good to be true, and they are dead set on that rate, you'll want to know this upfront so you don't waste your time. Using this phrase gets the prospect to unknowingly show their cards."How soon would you like to close?"This gives you an idea of the customer's timeframes and motivations. If they are ending a lease/selling a house in the near future, and are buying a property, you'll want to make sure you are aware of...more
Owners of mortgage companies, please forgive me. I'm about to let your employees in on a little secret—they 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...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 carpets, window treatments, etc. do not increase appraised value, they only increase the perceived value of the property from the viewpoint of the buyer. Yes, cosmetics will affect your asking price and what the buyer is willing to pay, but it will NOT increase the intrinsic value of the house on the appraisal report. It also won't get a customer out of PMI if you try to refinance him and all he has done to improve the property is wallpaper and paint. Lenders are much savvier than this and (if the time period has only been a year or two and prices haven't increased) will require "significant" property upgrades to kick off PMI, not just cosmetic effects. Remember this.2. Also, high end appliances such as sub-zero freezers and granite counter top upgrades do nothing to increase value on the actual appraisal report. And even if by chance...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...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