THE THREE WORDS EVERY LOAN OFFICER MUST KNOW !
April 6, 2011 
7 Comments
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Love your statement Brian. Even though I have always thought of myself as experienced with 7 years of bragging rights. I never really told anyone but my seniors who I sat down in front of.They really were the ones who needed to feel comfortable with me
This all falls into branding yourself with out it necessarily sounding like your bragging.Becoming the expert will not only help with networking and referrals, but you will also help you to be recognized as the go to person in your community.
Thanks for sharing, I always enjoy listening to you and Sue.
JoAnna
Thanks Joanna
It’s not bragging at all… it’s simply letting people know you ARE the expert
People appreciate it actually!
Brian sacks
Brian,
I agree, and a’m trying to become the expect in my company there is no one doing them and I see the huge potentional. i’ve been apping or trying to apply your ideas and have seen some success and I would like to be seen as the expect, ready to learn infact. I just closed my fisrt one. kind of a crazy deal the guy was 80 years and still paying a mortgage, he had to work because of it. oh my… talk about need.
Brian: You are so right! I remember you saying this. So, very recently, I made the move to a mortgage banker in a branch office after being with a mortgage broker. I have “specialized” in the reverse martket for the last couple of years, couldn’t fully move over to reverses exclusively. My agreement with my new branch manager includes the capability of referring loans to other LO’s in the office for a referral fee, which now under the new rules is even higher. So my strategy is to refer out all the forwards(they cause me a whole lot of stress anyway and are much harder to close)and concentrate on the reverse segment which I love. I am a senior so I love serving this market. So I have the best of all worlds: I make almost as much on forwards without the stress and now have more time to work with seniors and develope relationships in the various ancillary financial industries. So far, it’s working great! Thanks so much for reminding us all the we can’t be experts in ALL the products out there, especially now when the rules change almost every day, it seems….
Brian,
What part of the compensation rules allows you to get paid more for being a specialist?
Jeff
I am not an attorney so I hesitate to give legal advice or interpretations of the new compensation rules– But there is clearly
a potion that deals with loan officers who specialize and only offer a particular product like 203k or Reverse
Please check with your company as to their interpretations …
Brian
This law is simply unconstitutional, period. It is price fixing and should not be allowed. Whenever the government says that the basis for a law or policy is for someone or another countries safety it is a lie. That usually translates to someone is going to get rich and it definitely isn’t a little guy. My biggest problem with this law is that i can no longer offer a different rate to different clients based on circumstance and in this age of bad credit, deflated home values, high unemployment, lost savings and depleted reserves everyone’s circumstance and loan is just like the people who have or want the loan….they are all like snowflakes, everyone is different. Yes, i must now set how much i will make on a loan that i have not even seen yet and will not see for months.. this means that no matter if the loan amount is $100,000 or $1,000,000 I will have to charge the same YSP and no matter if the loan is for me, my mother or a stranger. I can no longer offer someone with not a lot of equity an option to reduce closing costs with a higher interest rate or discount point, or raise or lower my commission based on loan amount. To be competitive i can no longer lower my YSP for a $1,000,000 loan to compete with other banks because i have to set YSP at certain levels for the $100,000-$200k loans so that i can be sure to cover my costs. also, anyone who is not a branch owner that does not work for the big 4, is at a substantial disadvantage to anyone who does own a branch because of the splits we have to pay. Consumers these days are smarter and do shop around. For me to make ONE POINT on a deal i have to set my YSP at 2 to pay my office their share. But the owners of the branches can charge 1.5-2 and give a lower rate than i can and still make more than me. How is that fair. Basically, this law is set up to do one thing and one thing only… to put as much money into the banks pockets and keep them fat as possible without compensating the LO’s who bring in the loans. Bottom line… 55% of all loans in this country are originated by a LO who does not work for one of the big banks. This law allows them to pay us less (and to stay competitive in this market no one will be making more than one point per deal unless your client is stupid… and the banks will keep the rest… they now pay their employees less, pay the branches and LO’s less and keep what i believe should NOT be theirs to begin with. If the government wants to really help the consumers and the American people, they should put a fully licensed federal Loan officer in every post office in the country and lend to the people directly. The banks are getting our pooled tax dollars for nothing and then selling it (lending) back to us at 5% and up. the government could lend directly to us for 2-3% and we would all have half of the mortgage payments we have now. Also, that would generate a ton of new revenue for the government that could be used for medicade, SS benefits, insfrastructure repairs, and anything else we needed ie. healthcare… why do the banks get this sweethart deal? if my business fails i do not get a bailout… i dont get laws made to benefit my business directly… If they cant pay their bills we give them a bailout, so they have no risk and all of the rewards… so why not us lend to ourselves and keep the profits for social programs that are being cut lower every year since taxpayers are basically taking the banks business risk for them? ie TARP… and with half a mortgage payment that equals more disposable income for every household and maybe… hmmmm that might help this poor economy too!!!!!!! sounds simple enough to me. But i only have a masters degree in business from Penn State so i guess i have no clue what im talking about. Bottom line… if nothing else the government has no business price fixing anything nevermind the compensation for LO’s. why can a realtor still make 6%? why can a car salesman make 3X what another car salesman makes down the street on the same car? and not that i think making sure that people dont get ripped off, because with all the problems this country has no one should make more than 2-3k per loan because honestly its not that hard of a job.. what ever happened to CAVEAT EMPTOR? i believe that was a law and still applies to everything except the mortgage business. Can we please STOP giving the banks all of our money and letting them get away with whatever they want. If the government wants to help the consumer tell them to make a law that structured and predetermined what the banks could do with all of the TARP money and not just wright a check and hope they dont give billion dollar bonuses to CEO’s and rent yachts for parties.. that might be a good start