Tag Archives: Mortgage Brokers

Thursday’s Trick – LE Fee’s and Tolerance trick

Great time to remind everyone what has a 10% tolerance, what has zero tolerance and what has no tolerance.  Fee’s are important, very important!  And I am fan of over-disclosure.  I encourage you to make sure you are over estimating fee’s, especially the one’s that “change” the most.  No offense to title and escrow companies, but I’m calling you all out.  lol.  Across the Nation I do loans for Broker’s that send them to my awesome underwriting team to be completed.  And the biggest thing I see in fee variance is the title/escrow fees changing from what is said (in writing) to be charged for those services on a mortgage loan.

Trust me I get it.  Loan amounts can change, and yeah I realize the cost of the title/escrow fee’s are ultimately associated with that.  However, I’m not talking about 5 dollar differences.  I’m talking about a couple hundred or in some cases over 1k difference in fee’s on mortgage loans that are disclosed upfront, and then in the end the costs go up.

Here’s a guide today on a way to combat that problem, as sometimes a LO may not know “all the fee’s” that particular company is going to charge on that “specific file” until later in the transaction.  Well, 1st off, as an LO, you should be over disclosing those fee’s as a whole.  If you know in your area, that what is usual and customary on a loan (say 200k), that should be rounded up on your LE and SSPL.  For those Broker’s/Lenders thinking of expanding in ownership/affiliation with a title company, you should know that those title fee’s then become a ZERO tolerance item.  (actually spells out = not a good business idea)!  For those of you that place the exact company on the SSPL and LE to match (in section C) and the borrower “chooses” them, then those fees have a 10% tolerance.  So what you disclose in the beginning can vary only 10% all the way to the end.  Whereas, if the specific company said on the LE & SSPL for title fee’s is actually NOT chosen by the borrower…Well those new fee’s from a different title/escrow company can be completely different than what was disclosed.  With no reproccussion (tolerance cure) by the LO.  #ThursdaysTrick

Check out the video and the chart below.  I didn’t make it, I just use things like this as “bible” to getting transactions done.  🙂  #knowledgeispower #disclosecorrectly #SellWell

Here’s the cheat sheet that spells it all out.  One fee can be in either of the 3 categories, depends on your business and how you disclose.  (And what the “borrower” chooses) 🙂

FeeTolerance

As always, Share, Interact, Like, Repeat! #SellWell

-The Mortgage JUICEman (Join Us In Creating Excitement)

 

Weekend Call to Action – Just do it!

#WeekendCalltoAction – Just do it!  There’s no telling what stopping by an open house will do.  Maybe you network with the RE Agent, maybe you help a client get an idea of what payments would be.   All I know is if you’re an LO, you need to always be expanding your network with pillar partners.  This is a great weekend to do it.  #RealtorSurvivalKit #SellWell

 

Whacked OUT Wednesday! – 6 Month Rule

Two instances where the FHA casenumber must be pulled after 6 months.  Great guidelines to know.  – Whacked Out Deal Killers if you don’t know’em.  #DeadLoans #Knowthisrule

 

Monday’s Motivation – Add some JUICE to your pipe. – Referrals given.

I give out referrals all the time.  I also help LO’s looking to jump ship and hang their hat at the best Brokerage near them.  This happens all the time to me, as I build relationships and help LO’s close more loans.  With product offerings and marketing tips to help gain more leads.  With Banks and Credit Unions I help them alleviate risk to their FHA neighborhood watch percentage.  And can help any mortgage company outsource underwriting.  I help close loans in bulk with many types of mortgage relationships across the US.  If you know someone that works at a bank doing mortgages pass on my info to them.  Help me network.  Like I say at the end of my videos’, Share, interact, like, repeat!! #SellWell

#TGIM

#SELLWELL

Whacked Out Wednesday – It’s back!

Yep it’s back full force.  With the end of the month of July in the midst of purchase season, you can bet I have some stories to tell.  WOW, some #WhackedOUT things happen when people rush stuff.  They don’t read things before handing them, they go on to get all of operations to rush to do something to close on time to count for the month,………and then the client doesn’t sign the CD.  Really!?!  I will say this, it’s awesome being supported by an ops team that can make stuff happen at the end of the month.  I do love ♥♥ rushes.  But have a #checklist or something that helps the LO, and your internal processors “double check everything”.  Then request Docs.  🙂

Weekend Call to Action – All the way to the end.

Best Practice week wraps up with an ARTICLE on best practices summarizing the week.  This week my intent was to give out best practices for every stage of originating a mortgage loan.  Today I summarize and leave the week with the call to action on what to do all the way to the end.  #Closing

On Monday, I did a video on prospecting, and if anything remember SW3.  SW to the 3rd power as I know it.  Some Will, Some Won’t, So What, NEXT!  Always be prospecting and always know it’s a numbers game.

On Tuesday, I did a video on best practices taking a 1003.  Now I encourage you to go deep.  Find out the “Why”!  What’s funny is LO’s don’t know the why when I ask them.  I wonder how they sold the loan.  Or it is actually sold.  DIG DEEP, on every 1003 question, there should be another question you ask to dig deep, get to know the prospect and find out more about them.  (or why they doing the transaction)

On Wednesday, I did a video about submitting the loans to underwriting.  Half the battle with mortgage loans begins with the information that is on the 1003 that is being sent in to verify it.   And in the beginning, I suggest that you follow your AUS findings and only submit what it is calling for.  One of the biggest mistakes rookie’s make is turning in too much info in the beginning.

On Thursday, I did a video about obtaining conditions and reading them prior to sending in conditions to the underwriter.  Most loans do in fact change along the way, this is common.  The best practice is as an originator to know how any changes you do will affect the loan.  My suggestion is to always have access to “another file” to run AUS with any changes along the way.

Here we are on Friday, and besides asking for information from the clients you have, you need to do “follow up” through-out the process of the loan.  Even if you do not need something.  And FRIDAY’S are a great day to call everyone in your pipeline.  Say, HI! Touch base, let the client know where their file is or foreshadow the processes next.  One of the biggest things LO’s miss out on is the ask for referrals through the process.  If you’re doing a good job, regardless of closing the loan or not, you have a right to ask for referrals during the process of a loan.  (this works well around the 2nd Friday you follow up with them in the process)  I suggest that open communication is the key to a successful transaction, and that applies to all contacts in the transaction.  Lender, Realtor, AE, LO, Client for example.  If you feel lost on where your files are in a process something is not right.

In just about all relationships communication is key.  Why not set that standard on your business transactions.  Just my two cents.

TGIF – The Grind Includes Friday

#SellWell

#WeekendCalltoAction – Call your clients, ask for referrals

Thrive on Thursday – Best Practice Tips

#ThriveonThursday – Best Practice Tips, to help you actually close these loans.  The biggest pains I see can sometimes be avoided.  100% of the time these pains of mortgages are related to structure and approval.  Which is based on information provided or missing 🙂  lol

Here’s the best practice, my best advice, if you have a loan in process and your changing something, make sure you validate that change PRIOR to sending in the request.  Now this also pertains to information.  Especially if you see (by reading the info the client gave you) that the income is different than what you initially placed on the application.  Or less assets for example.

Have a way to re-run the file on DU first.  LP/DO something.  Make sure you input the information along the way into your LOS.  The reality is, you should be inputting in the information into the 1003 just like the underwriter does.  #Inadvance #SellWell

 

Two for Tuesday – Application taking tips

#TwoforTuesday – Application Taking tips from the top.  I used to do these while taking an application along the way.  I would stop and ask questions validating the info the client gave me on the 1003.  For one, I am hard of hearing, so I double verified everything.  And while I did this, it was always amazing how the first answer changed.  LOL>

Second, by doing this, I was able to paint a picture about a process or foreshadow what was next for example.  In doing this, I got good at creating urgency at the same time.  That became part of my painted “picture”.  The need for information in a timely manner, the need for payment on the appraisal, the need for arrangement of time to close.  The need to be responsive to requests along the way.  The need for communication both ways to ensure a successful transaction.  I planted every seed I could.  From the need of having someone over 18 to let an appraiser in, to foreshadowing an inspection need, to taking time off work potentially to close.

All processes in a mortgage are foreshadow-able if you will.  The more I looked to educate my clients, the more referrals I got.  Regardless of how long any one mortgage transaction took.  Because I communicated what was going on, helped the client understand “why” and painted a great picture of what to expect next.

#FactsTellStoriesSell