Tag Archives: Mortgage loans

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

 

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.  🙂

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

 

Monday’s Motivation – Rate shoppers objection response!

Rate Rate Rate…”What’s your rate?”  Rise and GRIND as the saying goes.  Doing the duty of dealing with rate shoppers over and over to hit a goal!  Today, I address the most common objection in the mortgage industry and how I would deal with it.  #Checkitout #PaintthePicture #FactsTellStoriesSell #SellWell

2 – 4- TUESDAY! – Common Mistakes all LO’s do.

Ok, normally I do #TwoforTuesday, did you read it the same way?  Second, this is the biggest aspect of lending that is missed.  It’s how we train our brains to skim over stuff.  Our eyes go over it and can read things without us really reading them.

This applies to ALL information placed on the 1003.  Yep, that’s how loans work.  You put info on the 1003 it needs to be “verified” in proof.  So do you as an LO actively R34D the informati0n s3n7?

Common mistakes, #TwoforTuesday #1 is read the information sent to check to verify it would have the needed checks on it.  Not only is the CPL verbiage spelled right.  But for example if on the 1003 you place 30k in assets, verify that the bank statement/asset statement has at least 30,000 as a balance.  As you gather information as “proof” the best thing a LO can do is change their own point file.  YES as you go on a loan, do you actually input the real values you get from the client into Calyx or Encompass?  (not many do this).  The LOS you use should be updated and when certain changes happen you should RE-RUN DU on your loan.  Make sure it stays eligible throughout the course of a loan.  Especially if you are doing a formal Change of Circumstance request (CofC) and including when you “lock” the loan assuming that rate is different than what was proposed at time of application.  Re-Running DU on the “broker side” is a good idea.  Don’t just ask for the change and not update your information or verify that the change requested will be ok.  And once you do gain eligibility, then READ your own findings and gather what that is calling for.  Especially upfront.  Don’t overkill and send in too much information, just read DU and give the initial underwriter as much of those findings as you can upfront.  So as I pointed out, there are multiple items to READ over in regards to what to gain from the client and AFTER that info is received from the client. #CHECKIT

Common mistakes, #TwoforTuesday #2 is to fill in the 1003.  Completely.  From start to finish.  Look I work with processors quite a bit in my day’s routine.  Or Broker’s that process their own loans.  The number 1 thing I see is that an underwriter or myself will ask a question and that 1003 shows one thing or a declaration question not checked correctly or something.  Even vesting request or source of down payment doesn’t match the information provided.  Or the story that’s being presented.  Small “conditions” can be avoided if the 1003 is thoroughly gone through on each and every loan.  That is technically the job, the role, the fact you have a license to discuss terms on.  However this “part” is whipped through over and over by Loan Officers all the time.  When I did a 1003 #backintheday there were several of us in the office that would play games to see how much information we could get.  We would ask what color is the blinds, to having a prospective buyer describe their dream kitchen.  Just various things to really go deep and bring out EMOTION during the 1003 taking phase.  When I did that task of 1003 taking, I would always aim at taking a 1003 through a guided conversation that engages the client and helps them open up to me.  On all levels of finance to personal life, goals, dreams and aspirations.

If you need something you can use as an application “flow” sheet, feel free to head over to Sales Talk with Mortgage Pro’s .  In the files tab I have kept a copy of what I used to use all the time, one is for “power buyers” and one is for “refi’s”.  Just a copy of a “application flow sheet” that could help you along the way.  A winner is a dreamer that never gives up!

Happy Tuesday #SellWell

#24T