No matter how you look at it, most loan officers I know would tell you that getting loans done hasn’t gotten any easier recently and they generally don’t see easy street anywhere in the near future.
A few recent comments I have heard from loan officers:
“You think your turn times are bad — try explaining to someone that you should be able to get their loan done in 90-120 days! (He wasn’t kidding)“
“You aren’t going to believe this – today, my company decided that they were going to change the seasoning requirements on USDA and VA loans regarding loan flipping and didn’t give anyone any warning. I had four of those deals in the pipe!“
And a few comments that I have had from some local Realtors:
“There’s a ton of stupid walking around <insert company name>… But I’m not sure if it’s different anywhere else.”
“What are the chances that my deal can fund on Tuesday? No, wait – don’t tell me — I know what you are going to say… 50/50.”
“The underwriter is asking for things that make zero sense. It makes me question their general ability to function.”
And if my brain hadn’t went semi-numb to these kinds of conversations recently, I am sure I could probably fill up another page or two with similar comments.
I think I have at least a decent idea of what it must have been like to be a Firestone tire dealer in 2000.
These recent comments have been weighing pretty heavily on my mind and I probably brought them with me into our weekly sales meeting this week. One of the agenda items in the meeting was each loan officer was going to share their homework from the previous week where we were each supposed to come up with our unique “angle” on how we were going to give our elevator speech to prospective clients.
Honestly, everyone’s ideas seemed tired to me. You have heard them all before.
“We have the lowest rates…”
“No one can do a loan cheaper than I can…”
“I can get a loan done in 15 days and no one can do them faster than me…”
All I could think to myself during the homework-sharing session was… Bleh.
I wasn’t even going to say anything, but then my manager kind of forced me to speak by directly asking what I thought would be a good angle.
I tried to play it off and said “guys, I don’t know – those all sound pretty good to me”.
“No, really Justin, what do you think a good angle would be when telling a customer why they should use us and not the loan officers down the street…“
“How about… We Suck Less?“
The room immediately went silent and no one said a word. They just all looked at me with eyes as big as baseballs.
I shrugged, but didn’t say anything. What, did they think I was kidding?
For about 10 seconds, I was sure I was going to get a(nother) trip directly to the principals office for being what I thought to be authentically honest.
And then it happened.
My 62 year old friend and fellow loan officer broke the deafening silence in the room with an exhale and a low mumble:
“Hell, I think that just might work“.
About the Author: Justin McHood is a mortgage broker with VanDyk Mortgage Corporation. You can find him at Arizona Mortgage Team, on the Zillow’s Mortgages Unzipped Blog, and at most East Valley Friday Nights gatherings. He’s the one in the blue shirt.
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It's a tough time in the mortgage business for everyone. What you said above is true, coming up with an elevator pitch or value proposition is tough.
With rates, fees, and guidelines the same for everyone it appears the value proposition has become “You'll like me better than anyone else!”
here nice and important info about loans and awareness about bank loans.
thanks
This cracked me up. Reminds me of the old Avis ads “We Try Harder.” Fortunately we're not that far out on loan processing here in the Northwest, FHA/VA is still 45-50 days out, but if we order the appraisal early enough we can get it through sooner but we don't hold our breath.
Great post.
Hi Justin,
I still do not understand why the banks need seasoning requirements for properties that are to be flipped. At least in my area “Northern New Jersey” The people who would purchase these renovated properties are likely to be the most qualified home buyers, as these are likely to be the most expencive homes in their size/price range.
House flipping is good for the neighborhoods they are in, the towns, and the local /national economy. Why do the banks seek to make life difficult for the people who are trying to make things better?
@Matthew,
I found that saying it with a big grin and putting a “panic pause” at the end of it helps… I have been using it as an icebreaker.
Most people start their response with something similar to “well at least you are honest…” and I just kind of shrug as they tell me their horror-story-of-the-day as to why lenders are doing/requiring crazy things.
I just nod, promise them that that we will do the same crazy things, but at least we will try to be up front about rather than tell them how easy it will be and then surprise them with pain.
That, and I just can't help myself but try to put a funny spin on a tough situation.
@SpokaneHomeGuy
Thanks. Those tears in my eyes? They are from laughing at my battle scars recently. Crisis+time=humor.
@jtboyer,
I am asked this question quite a bit here in AZ – where there are plenty of houses to go around that have recently been foreclosed on.
Is it okay to admit that I have no idea what a possible plausible answer would be to your question?
I hope so.
Justin
Yes Justin it is ok to admit that you don't know. I am guessing that a bunch of egg heads at the top think that home flippers caused most of this mess. Well I flipped 6 homes in 2005 – 2006 and happen to know that all have the same owner that I sold them too. I think that people who buy these homes are some of the more solid buyers, but then I am just a Realtor working with the actual people, what do I know.
Justin, this is fantastic! First of all, I heartily applaud your ability to keep your sense of humor during a time when your business isn't terribly easy (in many people's minds, it would seem that mortgage officers are just a few steps above being a defense attorney for Roman Polanski.) The quotes from both sides of the fence are incredibly eye-opening (and have me hoping against hope that, when I was one, I never said anything like the Realtors you've quoted).
This was a wonderful post. Well-written, funny, great. If Twitter ever rises like a Phoenix (or a Scottsdale) from the ashes, I'll be a'tweetin' it out.
Loan officers dont generally have much choice in the matter. Even if they are the very best, they still have to work with the underwriters and banks and can only go as fast as they go. Unfortunately that means long waits and stupid red tape.
-Tyler
Refreshing honest!
If people in every profession would just be honest instead of being politically correct or trying to save their own hide, they would be tremendously successful. Honesty will go a long way in developing lasting relationships with colleagues and clients.
@startabuzz:
Thanks! Looking forward to meeting you in Vegas next week… I will be the chubby kid in a blue shirt standing next to Elvis.
Justin
@Tyler,
Very astute observation. Just let me know when you can come down to Phoenix and hold a seminar for 3/4's of the Realtors here. They have started ignoring me when I ramble about this stuff I think.
Justin
Thing seems to be improving here (Denmark), but still very many people are still very uneasy.
While reading your post I was thinking of all the issues we have had with loans over the past 12 months in the Baltimore Metro area. From crazy stipulations after a 3 week underwriting wait, where the AE insisted that their review process was the “fastest in the industry”. To the subcontracted out of state appraiser who calls me and says “I really do not know where this property is, since I have never been to Baltimore City”. Then finally, the Johns Hopkins Physicist who made over 250k per year with a 700 credit score that could not buy 300k condo with 30% down in Baltimore Cities Harbor East because the “new construction complex was not over 40% owner occupied. Try telling the underwriter that it is new construction and only 30% of the units are sold.
The mortgage business has the same problem the real estate business has, it is way too easy it get in. If we had better training in either industry, we all would be better off today.
Funny, Justin. I've been using the “sucks less” analogy in my market reports here in Augusta – nice to know I'm not the only one out there who uses the analogy.
I've whittled it down to two local lenders I refer almost exclusively. Mainly for the simple reasons – in-house underwriting, liberal interpretations of policies and procedures (if you can interpret it two ways, they interpret it the way that's shortest/easiest). It's also much easier to begin disclosure time restraints if the buyer and lender are physically at the same location. It (sorry for this) sucks less….
that busyness policies to make ford with silly peoples .
Love it! I am going to try that out on some agents just to see their reaction. Something to be said for candid, real world truth. We should interview you for our Originator Hot Seat Webinar.
Talk soon,
Geoff