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 for it. Not to mention, the good deals suffer and you're out your commission!Knowing when to "give-up" on a loan is just as important as knowing how to get the loan to the closing table. Here are...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 comes in too low. A value can never be high enough (given the local market conditions), provided that there is comparable value to support it.I've seen too many loan officers work so hard on a loan,...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 and decide to hanker down and weather the rough seas ahead by changing their approach.Here are some things to keep in mind when you feel defeated and are ready to give up.* With all things being equal, realize that what you are doing now isn't working. And in order to survive you will need to modify your tactics. Keep doing what you're doing and you'll keep getting what you're getting. Take a cold, hard look at your marketing efforts and decide now to change your approach. Consider new lead sources.* Go after the customers that need you and stop chasing the customers that don't. Refinance loans are done. Trying to save someone an 1/8 of a point on their interest rate isn't worth the closing costs on the loan. The re-coup period of their upfront cash investment in the process can be 7 to 10 years or longer. Not to mention the volatility of the interest rates and their "savings" could go poof in an instant.* Change your viewpoint. Know...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 necessity—it's an absolute must! You do not want to risk a career you have worked so hard for!Here are some of the best mortgage publications every...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 prudent to be prepared to capture these leads.Of course, you will always have the occasional debt...more
One of the most frequent questions I get asked from loan officers is, "How can I go out on my own and start my own mortgage company?" Often times, the person is sick and tired of low-commissions, office politics, too restrictive a time-schedule, etc. There are hundreds of reasons why they want to get out.They see the money other loan officers are making, and wonder why they aren't making that kind of money too? After all, they are doing the SAME work. The difference, very often, is just in the commission payout. Branching out on your own, is an instant pay-raise and can often double or triple the amount of commission you are currently earning.There are two ways to start your own mortgage business.1. Get your own broker license from the State.2. Join an existing regional or national company as a "net branch".There are advantages and disadvantages of each. First off, getting your own license from the State isn't easy. There are certain financial and experience thresholds that regulators look for before granting a broker's license. Also, the capital requirements and start-up costs make this option extremely cost prohibitive. And, you'd be responsible not just for bringing in...more
When I was a branch manager, there were always certain traits and skills I looked for before deciding to hire someone. After years of experience, and learning things the hard way, I know what it takes to be successful. Not everyone is cut out to be...more
What sets one loan officer apart from another? And how do some people become "top producers" in their office, while others slowly squeak by? Surely, we all have the same amount of time, resources, and intelligence (debatable?!) available to us. So...more
Converting accounts receivable into cash is a critical process in the development of a healthy cash flow. While booking a receivable is accomplished by a simple accounting transaction, the process of maintaining and collecting payments from your...more
To survive - to hang in there - to keep your head while all around you others are losing theirs - to stay in play - is a critical skill of leaders. Let's face it - even the most astute, successful person will suffer setbacks, and surviving and...more
Many supervisors, managers and team leaders bemoan the fact that their team is not totally engaged with what he or she is trying to achieve. Is it poor communication on the boss's part? Lack of direction? Lack or little motivation from the team...more
Author: Esa Jemis Are you in the market to purchase satellite TV for your PC? Whether you have just heard about this great service that many people are becoming attached to and leaving there present cable service I have listed some valuable tips on...more