New L.O. Flabbergasted -

anthonycaruso · Joined: 03 Sep 2007 Posts: 2 Location: Saint Louis, MO

Hello all.

I'm new to the mortgage business; been in for 2 months, and have 3 loans closing this month, one more potential for September, plus one so far in October. Been hitting the pavement diligently all over the eastern half of the state, whether it's scouring public records at the county courthouses, or canvassing new subdivisions, or even old ones. The work I do is 100% self-generated leads.

I used to do some insurance adjusting on the side with a cat team in the aftermath of the 2005 hurricane season, just doing the claims writing end of it, and magosh...I'm having a flashback.

Correct me if I'm wrong, when the subprime market was booming and everyone with a mid FICO above 200 was qualifying for a loan, LO's were making money hand over fist - phones ringing off the hook, more business than anyone could handle...that's the story I'm told. Now, everyone has to actually (*gasp*) find their own business! :shock:

In 2005, if you could mail the State of Alabama $40, you could get a non-resident insurance adjuster's license. I know - I have one still. During a catastrophe, Florida and the surrounding states would issue temporary licenses to work because of the amount of work available, and people who had absolutely no clue what they were doing were pulling in $40K a month - even to the point of splitting their commissions 50/50 with a writer who knew how to fix their errors.

In 2005, life was excellent. Money rained down from the sky.

In 2007, we're on our second year of no landfalling hurricanes in the US, and a mortgage market implosion (to exaggerate, but not by much.)

Like I read on here before - Tough times don't last, tough people do.

Still, I feel a little like the accountant who opens his office the same day they implement a flat tax.

I'm seeing people get desperate - lying on GFE's - I have a customer who was out and out LIED to by another brokerage, and fortunately caught them in time to show them the reality of their situation. He promised them 7 7/8% on a Fannie Mae Timely Rewards refi, but with a mid of 550, I am told they won't touch it. He didn't properly disclose his yield spread, and failed to include such fees like the county recording fee, and quoted title insurance on a 250K loan as $200.00.

I understand the whole premise of a reasonable markup of fees. We all have bills to pay, but isn't it better for us to rely more on referrals rather than stripping equity from people's homes? With the economy the way it is, screwing already-strapped borrowers seems like a good way to end up being found in a dumpster. Just a thought.

I guess I'm flabbergasted because I'm seeing a lot of people who are alleged "stars" of the business desperately trying to prosper, who probably don't belong in the business. I know one L.O. who proudly proclaims he has been in the business for 10 years, but he can't fill out a 1003 properly.

Conversely, if there's no landfalling hurricanes this year, too, the herd of adjusters will be culled back to the old timers who have the interests of the insured at heart, while still protecting the company's bottom line.

I heard someone in the office throw out the other day that there have been something like 40,000 L.O. jobs eliminated in the US this year - could it be a blessing in disguise for those who are good salespeople?

I do mobile notary on the side to supplement my income. A couple hundred bucks is a couple hundred I didn't have before. Way better than acting unethical as an L.O., in my opinion.

Sorry for the rant; I look forward to participating in the forum.

David · Joined: 19 May 2004 Posts: 754 Location: Atlanta, GA

First, just wanted to welcome you here, and thank you for taking the time to write. I hope some of the other members will also read and respond. It is about my bedtime. :)

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

Not much really to add, other than people have been providing incorrect GFEs for years. Many LO's I know that have been in the business for > 10 years couldn't fill out an accurate 1003 if their life depended on it. Let us not even talk about trying to figure out income.

But then again, there's no job requirement for salespeople to actually be intelligent...

chow · Posted: Mon Sep 03, 2007 6:30 pm Post subject:

So I can pride myself on my less than $10.00 variance from Initial Confirmation of property/Loan Application, to close?

I never had a hard time redisclosing if the property changed or the loan program changed. In the state of Indiana, you don't have to redisclose, until closing. I never felt that was a good business rule, because people really want to know what it's going to cost to change lenders-or properties. They need to see the difference from loan to loan and have someone explain that in terms they can understand.

anthonycaruso · Joined: 03 Sep 2007 Posts: 2 Location: Saint Louis, MO

chow wrote: So I can pride myself on my less than $10.00 variance from Initial Confirmation of property/Loan Application, to close?

I never had a hard time redisclosing if the property changed or the loan program changed. In the state of Indiana, you don't have to redisclose, until closing. I never felt that was a good business rule, because people really want to know what it's going to cost to change lenders-or properties. They need to see the difference from loan to loan and have someone explain that in terms they can understand.

Exactly. I'll even provide my customers with a letter that states that the closing costs will not vary more than 10% from the GFE. Just seems like good business to me. I've seen a couple of people get a nasty surprise at the closing table as a mobile notary. Not pretty, and it's probably a good thing that the broker isn't sitting there.

TimtheMortgageGuy · Joined: 16 Jan 2008 Posts: 96 Location: Rosemount, MN

chow wrote: So I can pride myself on my less than $10.00 variance from Initial Confirmation of property/Loan Application, to close?

I never had a hard time redisclosing if the property changed or the loan program changed. In the state of Indiana, you don't have to redisclose, until closing. I never felt that was a good business rule, because people really want to know what it's going to cost to change lenders-or properties. They need to see the difference from loan to loan and have someone explain that in terms they can understand.

$10???? :shock: :shock:

That is a bit hard to beleive!

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

Why? If you know the day you're closing, where you're closing, and what the taxes and fees are for your are, why should you be off even a little bit?

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