Archive for the 'A Crusade for Transparency' Category
For The Banks: Lots Of Fraud Prevention Tools
Underwriters have great tools available these days. I just spoke with one of our favorite mortgage bank underwriters on the subject. They can order information on you, your property, its renter, seller, etc. All in all 145 alerts can be provided. These may raise red flags on your income, employement, legal residency, likelyhood of occupying, if you are a flipper, illegal alien, on the federal terrorists watchlist, really self employed to name a few.
In last wednesdays article “Troubled” Corey Lerner wrote this comment:
Name: Cory Lerner | E-mail: cory@profinancenow.com | URI: http://www.theequityladies.blogspot.com | IP: 66.236.122.94
Hi -as a mortgage consultant, I am constantly hearing stories of what a poor job one of our ilk did - lying about a rate, not disclosing this or that. It really bugs me but there is nothing I can do about others in our business.
However, I can say that I have not yet had the experience you have had with outright lying on the part of the borrower. Your reputation, my reputation are really hit hard by this thing. Besides making it clear in the first interview about how I do business and that fraud will not be tolerated, I’m curious to know how others handle that issue. Cory Lerner
I think the answer to Cory’s question is at the bank level. With the tools available they use the red flags to require documentation that will help clarify against fraud.
The amazing thing is, that if one gets away with it at the loan approval level they have to live with the pressure that they have committed a crime and are on their way to free room and board and special bracelets.
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Look Me In The Eye. You Are Not Really A Loan Officer
I know, you made a lot of money over the last few years. You drive a BMW now. But if you haven’t got a real estate agent to vouch for you, you are not a loan officer. You are a refi salesman.
There is such an important difference that it is very difficult for a loan officer to get the business of a real estate agent? Why should be obvious. Serius fallout can be the result if a loan officer fails.
I remember listening to a John L Scott manager complaining about loan officers. His story went something like: “my typical experience with loan officers that are not really experienced in handling purchase transaction is - I need a prequalfication letter, do they qualify? (L0) sure they qualify. The offer is signed, are you sure they qualify? (LO) Sure they qualify. I speak with the LO a few times before closing and just before closing… oops they dont qualify.”
I have seen terrible fallout from shoddy work. So therefore I say it again: if you haven’t got a real estate agent to vouch for you. Then you are not a loan officer. You are a salesman.
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Future Consumer Mortgage Articles Will Appear On RealEstateUndressed.com
After one year plus a few days, 561 articles, and 501 comments we have decided to combine the consumer content on one blog. LJ said to do that a year ago. But family traits include stubborness. Please go to RealEstateUndressed.com. and make sure you save it as a favorite. At a later date we will announce how we will use Mortgagesundressed.com. Thanks for your steady visits. We will certainley be offering hard hitting, mixed with fun and sarcasm mortgage articles on our other blog. Larry and LJ.
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I Think I have Ticked Jim Off A Bit - A Lot? Read The Comments
I bring this comment from Nathaniel (no link sorry Nathaniel) to a post status. Why? Not because I liked it, I almost didn’t let it go live as I thought it self serving. But Hey, he challenged me, and this is a transparent website.
The comment: Hey Larry, How much weight does saying brokers need to have a realtor on their side have these days, given that so much business is created online? I just feel like so many companies generate their business from the internet, and thus will usually have clients from all over the country. The days of loan officers being the guy up the block all the time are gone, realtors may still be more confined by geography but lenders are not.
TO THE CONSUMER: If there is a trend as Nathaniel implies, don’t be a sucker. Maybe I can make what I preach make sense with this point: Loan Officers can be too busy, even greedy. There are things they can do for the sake of an extra $1000 or so. Would they mess around or give second rate service to a client that is found on the internet, one they have no other business or personal relationship with? They might. Would they do that to client tied to a realtor that is the source of repeated business? Probably not.
So avoid the internet lenders. Disregard Nathaniels comment for your own financial good will. Larry Cragun
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