DON'T LOOK! DON'T LOOK! DON'T LOOK! That is what my mom would say to me when I was supposed to not open my eyes on my birthday as I was walking towards the kitchen. But in todays world if someone tells you to close your eyes what do you do? you say what for, why, NO. I don't know how we came to this but it is pretty funny how most people will just not do it. But when you think about this when it in tells the mortgage world that is when you get the bad loan officers that try to get you not to look at somethings but other things. Such as the 4 points up front on a loan or the interest rate with 3 points ysp. (YSP is where the lender pays you a % to sell that rate to a customer) If you ever get a loan to the closing table and there is a POC (Paid Out Of Closing) with an amount next to it to the mortgage company they made yield spread. Well there are more sneaky ways of doing it now these days because they hide it on the HUD. Just wrong in my opinion. I am out here trying to make a good living but I also want what is best for my clients. Yes I tell each and everyone of my clients that you can pay it up front or I can make it in the back. Either way I explain to them so they understand.
What would be your take on this? Do you believe I am doing the right thing or should I just shut up and make the most on every deal?
Ben
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Ben, I work prety much the same way. If it is conforming or subprime I look at the deal determine how much work it will be and how much I want to make on it. Then I tell the customer I need to work on a total of X points on your loan, here are your options. Then I basically show them the rate sheet and let them pick the number. I get very few customers who want to go crazy negotiating. I tell them that the points being made are based on their scenario then I go over all the factors with them.
I think that you should continue to be up-front and honest with your clients. It will pay off in the end with increased referrals and repear business. Good luck.
I tell my clients about all there options. That is how I get my referrals.
Ben
Honesty is always the best policy remeber the golden rule do un to others as you would have them do un to you.
Be careful, a snake in the grass is soon foundout and killed in his tracks.
Ben- you have to do what you know is right! I think that repeat and referral business from a client base that trusts me worth far more than a few points on 1 or 2 loans
Ben-
You have the right idea - always be upfront with your Clients!
The repeat business and referrals you get will prove that you ARE right.
Do what you feel is right. Follow your heart.
sounds like a bank or retail lender!
Give your customers a choice. If they choose to pay more to get the rate down, that should be their choice.
Give them the facts and they will appreciate the professionalism and refer their freinds.
Honesty is the best policy! Yes, it irks me too hearing about other loan officers making 3 ysp on the back and just selling an aweful loan to their customer. I often wonder how the are staying in business? How are they getting repeat business? The customer must realize after reading their final paperwork what has happened?
But with the turmoil that the industry has been going through over the past 6 months or so I have seen a lot of those unethical shops closing their doors. And I know that because we do have integrity at my office we will be around for a very long time!
Keep holding on to your integrity Ben!
You are doing the right thing. YOu screw someone, it will come back to bite you. It is about repeat customers and referals. Keep up the good work. Earl
Keep it honest, it will pay much more in the long run. As those individuals who aren't honest disappear, there will be more good business for everyone else. It just takes discipline to do the right thing. Borrowers love options, and love to be in control, let them be!