How To Deal With Pushy Mortgage Wholesalers And Lender Representatives
Rob Lawrence, Chief Mortgage Warrior Of
Battlecall.com
As a mortgage broker, one of your main advantages is that you have access to
many different lenders and hundreds of loan programs, which you can offer your
customers. Having too many lenders to deal with--however--can become one of your
biggest problems.
As the person between the borrower and the bank, you're
responsible for dealing with the myriad of third parties involved in the
transaction. You're dealing with appraisers, title companies, attorneys,
underwriting, wholesalers, etc. You've already got a lot on your plate, so
adding more "things" or "people" for you to deal with in your office, isn't
going to help you get any more loans closed. You want to simply your business
and your life.
How many times have you been bombarded with rate sheets,
special pricing offers, free donuts, luncheons, etc. from wholesalers? How much
time did these people cost you? Did they help you close any of your "difficult"
loans? Did anything come of it? Are they bringing anything of value to the
relationship? These are questions to consider before letting another lender's
rep into your office. They can suck-up all your time, and leave you with nothing
to show for it. Don't go down a road to nowhere and let this happen to
you.
Here are some of my top tips for dealing with pushy wholesale
account representatives:
* Realize that there are some stellar
wholesalers out there. They aren't all bad. Some will go the extra mile for
you and fight your case to the underwriter on difficult loans. Unfortunately,
you won't find this out until you are deep into the loan process, and after your
relationship has progressed to a respectable working level. Until it gets to
that point, it is impossible to differentiate one wholesaler from
another.
* Never deal with an account representative that is new to
the lender, or has only been in the mortgage business a short time. You'll
end-up having to "train" them, and they won't have much value to bring to the
table. They also tend to be the ones who call all the time begging for a loan,
because they don't have many clients to service. To get the best rates, and
highest level of service, demand someone with at least 2 years of experience,
preferably more, with a particular lender.
* Don't allow yourself to
be stuffed onto the wholesalers marketing lists. Your fax machine and email
with be overflowing with gimmicky sales pitches and mortgage hyperbole.
*
Never allow a wholesaler into the office, without first speaking to them
IN-DEPTH over the phone about their loan programs. They will try to schedule
an appointment to come see you, but why spend an hour or two in a meeting, if
their programs and rates aren't competitive?
* Ask for a sample rate
sheet upfront, so you can see what their rates are. Better yet, get their
program and underwriting guidelines so you can judge how "strict" the
underwriters will be. Even if their rates are low, can you still get the deal
closed?
* If you are a new broker, and don't have many lenders, try
not to go overboard and sign-up with everyone. Believe me, you'll be
overwhelmed with phone calls, and only have so many loans to go around. Not
every wholesaler you sign-up with get a loan from you. They should know this
upfront.
* Wholesalers can be a valuable resource into the rest of the
industry. They all know each other and are great for getting the inside
scoop on the other local mortgage companies as they make their rounds. They also
have a lot of connections with lenders and should know how their programs stack
up to others.
* When a wholesaler calls and starts in on his sales
pitch... Say, "Why should I do business with you?" "What will you offer me,
other than low rates?". A low interest rate is not enough, these days you also
need a high degree of service to get the deal closed. I've seen many deals fall
through not because the rate wasn't low enough, but because the account
representative sat on his hands. Is this guy going to go to bat for you? Ask
him.
* Focus on working with a handful of lenders, and send them the
majority of your business. You should have 5 to 10 A-Credit lenders, and
know their programs inside and out. B-Credit is more complicated, so you'll need
between 10 to 15 for shopping purposes. By narrowing your field of lenders,
you'll get to know the account reps better and can deepen relationship. They
will become more like a partner and an extension of your mortgage office. But,
remember to choose wisely because your loan rests in their hands.
These
are some of the policies I follow in my office and teach my students. The
mortgage business is full of people who are all acting in their own business
interests. Remember, the wholesaler's job is to bring in loans from mortgage
brokers. They are selling to you, as much as you are selling the loan to the
end-borrower. Use them as a valuable and trusted resource, but don't fall into
the trap of being distracted by an endless array of programs and
rates.
Follow these tips, and your business will be much more focused and
on track.
Got an opinion? We want to hear from you. Post your thoughts or comments here in our Mortgage Warrior Forum. Come join the conversation and say hello...onward mortgage warrior!
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