Having been a Loan Officer years ago, I know the struggles of juggling loan apps, stipulations and volumes of paperwork while trying to get loans closed. I’m also familiar with the difficulties in getting loans cleared through underwriting and how turn around times can be brought to a crawl from all of the moving parts within the office processing staff and corporate involvement. It’s a rat race.
If you work for a big box bank, flooded with mortgage loans from savings and checking customers you may very well be making 20bps to 50bps a loan with a loan pipe of 30 to 60 deals that you are managing yourself. I know of people who have worked in that environment who would simply hang up on buyers, never return calls or at the least take weeks to return a call because they knew their customer simply had to call back and they would get to them when they were ready. “When your phone is lighting up with 20 lights and you’re slammed, you dont have much choice sometimes.” He told me. Unreal. Most big lending institutions look at mortgages like a commodity, a note, or piece of paper to be sold and traded. They dont look at the lives and families attached to these valuable little pieces of paper. The lives of the home buyers that are left on the street waiting to move into their new home they were promised they would be cleared for after having already sold their previous home and can’t move into the new one because their loan officer has missed deadline after deadline and hasn’t closed on time. Or what about the real estate agent who depends on his/her reputation among her clients to refer friends and family. What about the realtors who work with a buyer for 6 months to find their perfect home only for you to drop the ball on the financing a week before close because 1 of your 20 underwriters decides they want something different than the previous 3 wanted only to pull the plug on the deal leaving everyone stranded? You and I both know this happens all too often. To many lenders, this is the nature of the beast. It’s just one of 1,000 loans your branch may close that month. Nothing more. I could never work with a lender that I knew operated this way.
As a Loan Officer, you have to figure out the perfect balance between your income potential and workload. Sure, getting deals funneled to you is nice, but working for minor commissions per loan as you pull your hair out on a huge pipeline isn’t healthy for you, your referral partners and certainly not your buyers. Add to this equation the number of loans you have to turn away because of your restrictive guidelines and figure out how much time you waste in a month working up applications for customers you can’t work with anyway. How can you effectively be your best when handcuffed and ultimately blindfolded?
If you work in an environment like this, you are hurting yourself, your clients and your market overall. I’ve learned through my consulting business that there are banks that can get loans closed in 2 weeks or less with no problem. The mortgage industry is so flooded with terrible turn around times, lack of service and bold promises never to be delivered on that real estate agents have simply adopted a “best of the worst” mindset. With the average turn around time of 37 days in 2014, it’s no wonder. They just continue getting worse with things like TRID going into effect that is all but shutting some lenders down.
Ask yourself this: What is better for you, the agents you work with and ultimately your home buyers? Everything I mentioned above, or working for a lender that closes in 2 weeks, pays 150bps to 180bps per loan with systems in place to ensure you make good on your 7 to 10 day clear to close promise to your referral partners not to mention any support you need to grow your team should you need it? If you closed 8 loans per month at 180 bps per loan, how much more would you make than you are now while actually building repeat referral partnerships?
Look, if you are just hanging out at a bank you’ve been with a while because you fear change, or perhaps you feel its worth having your deals funneled to you rather than having to call agents and build your own relationships, that’s fine. Some people are better off being factory workers than they are structural engineers.
If you know you work in an environment that you know doesn’t enable you to provide the best possible service to your real estate agent referral partners or your buyers and you know they deserve better, contact me. I can help you change your life for the better in multiple ways. I’m always available via texting at 513-258-3545 or email at email@example.com
You must be a licensed loan officer in OH, KY or IN for me to be able to help you. If anything I’ve said in this article has resonated with you, don’t hesitate to reach out to me. There is nothing wrong with exploring options and I’m confident that what I can do for you will change your life in 2016 in positive and amazing ways you likely didn’t think were possible.
All correspondence is of course discreet and confidential.
It’s time to change your life for 2016 and before the market flares back up this spring. The time for change is now!