Confessions of a Contract Processor: Happy Vs. Crappy Dollars
Mary’s True Confessions:
There’s a game we play each week at my Rotary Club meeting called “Happy Dollar, Crappy Dollar”. The point of the game is to donate a dollar for each Happy or Crappy thing that happened to you over the past week. I have to tell you, week after week, our club collects way more money for the good things that have happened than bad. And when someone DOES donate toward the crappy, it is something not that serious and sometimes even comical. For instance, one of our members donated a Crappy dollar for missing the easiest putt at his local putt putt tournament!
What if we had to donate Happy or Crappy dollars for everything that happened to us during our work week in the mortgage industry? Sure, there is a lot of turmoil and change going on right now that makes it difficult to see the pot o’ gold at the end of the rainbow. Are you one who looks on the bright side or do you participate and wallow in the fear? One of my favorite books is Norman Vincent Peale’s “The Power of Positive Thinking”. Peale believes that if you think positively, you set in motion positive forces which bring positive results to pass. Positive thoughts create an atmosphere for the development of positive outcomes.
Now don’t get me wrong. I’m not a goody- two- shoes, sticking my head in the sand to ignore the set backs that the new rules and regulations have posed on our industry. But in the end, isn’t our jar better filled with dollars of appreciation for the hard earned, positive accomplishments made during our work week? The “crappy” things that happen don’t deserve credit or our attention. They are in the past and should remain so as we move closer to our next step towards success.
So, throw those happy dollars in a jar and expect the best…
This weeks Topic: HVCC
Industry Grapevine: (contributor: Jennifer Williams, Processor, Quick Close Processing)
Rumor has it….An 18 month moratorium is coming for the HVCC regulation. Well, this is partially true and partially false. On June 25th of this year, a Democrat from Mississippi introduced legislation to halt the HVCC mandates for a period of 18 months. It was co-sponsored by a Republican from California and has been referred to the House Committee on Financial Services where it will be further dissected before it can even be brought to a vote. It could also die in committee, never to see the light of a vote!
So, what does that mean for you-processing and originating as a broker or banker? I think we all know the negative impact this legislation is having on our industry-disconnect between the market area and the appraiser due to proximity which is causing major cuts in value, appraisers we have worked so hard to build relationships with are now either forced out of business completely or must merge with a larger company and take a pay cut to continue to earn a living.
The consumer is not aware of the negative impact until they start the loan process. First it takes longer just to get the appraisal ordered because of the multiple people it must go through before it is even assigned to the appraiser. The fee is 20-30% higher in most cases. Then it takes longer to get the report completed and back to the loan officer only to find out the value has come in so low it potentially ruins your deal.
Can a moratorium really fix these problems? Only if the legislators work with the industry leaders to get it right on the second try. There needs to be accountability by the AMC’s to make sure they are using appraisers who are “in tune” with a subject property and it’s market area. There needs to be an acceptable alternative to an AMC in area’s that an AMC appraiser is not available. What happens after the 18 months is up? What if no workable solution has been determined? Did we simply delay the inevitable? And, are any lenders willing to buy the loans that were done without an HVCC appraisal?
Stay tuned for more updates to this blog so we can all stay as informed as possible on what is happening!
Processor Clue of the Week: Dealing with HVCC has its internal headaches. Now the borrowers are always billed up front; the customer is given no priority for scheduling; loan officers get lousy feedback on scheduling; poor service when appraisal conditions need to be met. Lately, we’ve now noticed that the consumer (your customer) is becoming as frustrated as we’ve become. Our processors found that when the customer is prepped on the front end about the potential appraisal delays and the potential for the value coming in conservative (conservative is the new vocabulary word for ”low” in 2009) they are happier during the refinance process. In contrast, we notice that when the Loan Officer doesn’t discuss the HVCC changes with his or her customer it causes anger and mistrust which results in a less than happy customer during the refinance process. Honesty is the best policy!
A.E. Lowdown: My friend Sue Hamilton is an Account Executive with Advanced Lending Network. She has a tip for making sure appraisal conditions are worked in a timely basis. “It has become apparant that if conditions come back on an appraisal, some lenders are going after those conditions themselves, while others expect the loan officer/processor to obtain. BE SURE to clarify with your lender the procedure they require.” Otherwise, you potentially waste valuable time two ways: chasing conditions that the lender is already taking care of OR assuming a lender is handling when really the ball was in your court all along.
Coming UP Next Blog:
Weekly Attitude Adjustment: (Send us your success stories and keep the positive momentum going!)
Penny For Your Thoughts: (Send us your questions and we’ll give you our two cents!):