So, how dare I insinuate a loan officer may be even a little bit responsible for putting his/her borrowers in a suicide loan? It was fascinating to get that firsr dose of impassioned hate mail, that.”What am I supposed to do, starve?” we’re asked. “A Realtor is just gonna send their business elsewhere if I can’t close this deal.” Oh, no! There’s not another deal to be had, anywhere! If that particular agent (who should be ashamed of himself for pushing a client into a high payment) doesn’t send you business–you’ll starve? What a load.
That justification is bogus, insulting, and it comes from a scarcity mentality. One deal is trivial, unless we’re gouging our customers. We have a moral responsibility to rise above this crap, and to have some standards about the business that we do. Turn down business from the Realtors that habitually red line their clients. Go through the numbers with the clients, and tell them–honestly–based on experience and spending what you’d recommend. Yes, FNMA is still approving people at 64.99% debt to income ratios. Does that mean we should make the loan? Only in rare exceptions when the borrower really has a means to pay for this loan, and a plan to do it.
Our business is not a zero sum game. If we get that out of our head, two steps ahead of the game. The reason that people mistrust our is because everyone spins stuff for selfish reasons. The NAMB spins (One side of the mouth here, the other here, the NAR spins, and yes, the media spins yarns of doom and gloom to sell papers and ad ad space.
There is still an enormous market of people that want to buy, should buy and need to buy. The terrible ethos of “now” didn’t and doesn’t work. Originators for both brokers and bankers must act as front line underwriters. I know some brokers do. This isn’t and shouldn’t be novel–not for Agents who are–in most states–fiduciaries. Counsel people, ensure that they know what they’re getting and giving up. Let’s them to the best of our ability, so we don’t drive headlong off of a cliff.
Nice words. What’s in it for me?
People have built in BS detectors. If you’re someone who is rock solid, you benefit because it attracts referrals faster than anything else. I’ve done it the wrong way, and I’ve done it the right way. The right way is more lucrative both short and long term. No matter what happens, our jobs as originators will survive in some form or fashion. No matter what happens, we will still stick around. Are we going to continue to accept the lowest common denominator?
If we have pride in what we do–and we find ways to counsel people on what’s right for them–we will be magnetic to the kind of clients, Realtors, CPAs and others that are an absolute joy to work with. Ultimately, we can’t fool people long term. We need to be front line underwriters, protecting both our clients, and the financial institutions that make this possible. It’s an easier, more harmonious path, and the only way that we can survive in a transparent 2.0 world.
Chris Johnson is team leader of the Ten Day Team, where Realtors get their clients low rate loans in ten calendar days.
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