Stips from Hell and Other Things to Make You Cringe
I bectcha have never heard this one before is probably the most common saying among loan officers today.At this point though, nothing should really surprise us. Watch this…
There is really no way you can out guess, out manuver, or lock long enough to avoid the crisis…or can you?
Today’s market is not about rate or fee shopping. Today’s client should really be asking, can you fund my loan before Jesus returns? But they don’t know that, so it is our job to educate them. We have to become experts in the art of managing expectations. Fail in this area and suffer the consequences- which are brutal.
Today’s originator MUST master the art of properly setting expectations at the time of application. I have often said that the point in time when deals start to run south is when the loan officer says, “great let me take your app!” So if we know we must manage expectations, what does that look like and how do we execute?
To properly manage expectations here are some rules you need to live by…
1. Know the business and what I mean is know why that underwriters are stiping the heck out of your files. It would be a great idea to take time to talk with an underwriter, closer, or warehouse manager to see what is really going on behind the scenes. For example, did you know that Fannie and Freddie are going back 8 years and asking lenders to repurchase files? Let you clients know what is really going on and they will respect you for your knowledge and expertise.
2. Communicate and get the buy in from your client and agent. You need to tell them on a 3rd grade level what to expect. Better yet, after you have told them, prepare a worksheet outlining all of the steps from app to closing. We all know that the stips can be outrageous so prepare them at application for potential request for more information. Use stories to sell your point and by all means make them agree with you about the process. If they refuse, you have to let them go.
3. Call them more than they call you. Even if you do not have new information, simply placing a pro-active phone call will save you a larger headache down the road.
Today’s world is no place for the faint of heart. You have to get in, get dirty, and slug it out until the last round. People may not always like the news you have to deliver, but they will respect you for being honest.
And on a side note, deliver a heaping dose of humor. Laughter truly is the best medicine and something we all need to be doing more of these days!