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Regular Contributor
mkm77
Posts: 147
Registered: ‎08-25-2010
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Re: View from a Lender...Rates get lower suit ok to bail?

Just ordering the required certs is several hundered dollars by the way...and certainly takes much longer than 15 minutes to do.

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Sunshine85
Posts: 367
Registered: ‎01-14-2012
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Re: View from a Lender...Rates get lower suit ok to bail?

[ Edited ]

mkm77 wrote:

Just ordering the required certs is several hundered dollars by the way...and certainly takes much longer than 15 minutes to do.


I worked for several lenders, and none of them paid or charged hundreds of dollars for certs. A flood cert takes less than 1 minute to order, and is delivered within minutes barring system issues. Same with CBRs, etc. Payoffs are ordered by phone or online, and also take only a few minutes to order. The lender is not putting out hundreds of dollars, or spending significant amounts of time ordering these docs.

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Sunshine85
Posts: 367
Registered: ‎01-14-2012
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Re: View from a Lender...Rates get lower suit OK to bail?

[ Edited ]

 


 

For me it boils down to performance and integrity.  If I get that shady feeling...   I start asking questions and doing more and more research. If I don't like what I find, then I am not afraid to bail.   If I hire a painter to paint my house with premium exterior latex paint,  I expect him to finish the job quickly enough so that the quote is still relevant.   Think of it as being seasonal work. If I sign a contract in spring for him to paint, that's great! but if he waits until winter to paint, so that he can paint during the "slow season..."  I expect a discount, as contract work done during the "slow season"  is usually priced better than "peak season" 
Don't make me sign a contract and then pick what time is best for you to actually do the work.
 

 

You hit the nail on the head, Webhopper. That's what's motivating these people to look for better rates, and ultimately go with another lender. There is some aspect of the deal they don't feel comfortable with, and that's why they keep looking. When people are satisfied, they typically won't go out looking for something better.
Valued Contributor
beb86
Posts: 1,117
Registered: ‎10-31-2011
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Re: View from a Lender...Rates get lower suit ok to bail?

I do see where you are upset but if you go the extra mile for someone the are more likely going to recommend you to friends, family, and coworkers so its a win-win. I locked in my rate at 3.875 and a week later it dropped to 3.75 I didn't run to the LO demanding him to change it I just left it alone but have I would have asked he would have changed it....I had a great relationship with my LO and in turn have sent him a lot of business.
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Regular Contributor
mkm77
Posts: 147
Registered: ‎08-25-2010
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Re: View from a Lender...Rates get lower suit ok to bail?

Credit report cost about $18..Flood certs $24, IRS Tax Trans $26, Fraud Guard $45, DU Findings $20,Payoffs $15, VOE $15 each burrower. And it takes a couple of hours not 15 minutes to get all of this done on top of the appraisal cost of $400-$450 (No More drive by appraisal allowed by Fannie). In the past we didnt even collect upfront for appraisal but got burned too many times. Maybe you worked in the industry in the past but there is a TON MORE WORK now a days and cost associated with a Mortgage.

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beb86
Posts: 1,117
Registered: ‎10-31-2011
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Re: View from a Lender...Rates get lower suit ok to bail?

It is starting to sound like you are ranting about your job and not happy with your job anymore. I hope I'm wrong. In the customer service industry you have to do what it takes to make them happy. I have been in restaurants for the past 10 years and I know all about everything that goes on behind the scenes that people don't see. The cost, hours, preparation, etc. But at the end of the day its all about the customers since they pay my bills and I love my job.
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Regular Contributor
mkm77
Posts: 147
Registered: ‎08-25-2010
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Re: View from a Lender...Rates get lower suit ok to bail?

Ok...I was afraid this would turn into an attack the poster thread. I was simply giving though for others to consider. In ANY situation I have always looked at it as a mutual partnership where both parties are happy. I tried to respond to others post about what gows on behind the scenes. Thats it. There are always things in any situation that arent perfect but knowledge is the key. Ive got a great job.

Frequent Contributor
seigex
Posts: 425
Registered: ‎05-16-2012
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Re: View from a Lender...Rates get lower suit ok to bail?


mkm77 wrote:

As a loan officer I wanted to get a little input....From time to time after a customer agrees to terms and locks their rate in, rates get slightly better. Rates are volatile currently so a rate on one day has a different rate/fee another. After I have been diligently working on a customers Mortgage for weeks,they demand the new lower rate or will switch lenders. This is often over only a.125% better rate. A lock is a mutual agreement from both parties that the rate is Guaranteed even obviously if rates go higher. They feel no obligation despite the work and expense of ordering credit reports, tax certs, flood certs, payoffs, etc. Im old school where someone's word means something so I don't get the usual wording of "just looking out for my family" line. Not over such a trivial amount. No Bank really negotiates over .125% improvement. If they did I woukd spend all day long chasing rates. When you hear "float down" again it's over a significant move. I think of it like hiring a mechanic to fix your car and then after work has already been done, you go with a new lower estimate leaving them high and dry. Thoughts? I'm sure there are some on here that only look at the numbers and nothing further...


I'm in 100% agreement with you. The lock in is a risk/reward. You have the potential risk by locking of losing a lower rate if you wait, but with the comfort of knowing you're not risking a higher rate. If the interest rate jumps 2 points the next day, the same people would be singing your praises for locking in the lower rate for them. They need to understand that while they might lose a small decrease after the lock-in, they are protected from a potential small to large increase at the same time.

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Frequent Contributor
Sunshine85
Posts: 367
Registered: ‎01-14-2012
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Re: View from a Lender...Rates get lower suit ok to bail?


mkm77 wrote:

Credit report cost about $18..Flood certs $24, IRS Tax Trans $26, Fraud Guard $45, DU Findings $20,Payoffs $15, VOE $15 each burrower. And it takes a couple of hours not 15 minutes to get all of this done on top of the appraisal cost of $400-$450 (No More drive by appraisal allowed by Fannie). In the past we didnt even collect upfront for appraisal but got burned too many times. Maybe you worked in the industry in the past but there is a TON MORE WORK now a days and cost associated with a Mortgage.



mkm77 wrote:

Credit report cost about $18..Flood certs $24, IRS Tax Trans $26, Fraud Guard $45, DU Findings $20,Payoffs $15, VOE $15 each burrower. And it takes a couple of hours not 15 minutes to get all of this done on top of the appraisal cost of $400-$450 (No More drive by appraisal allowed by Fannie). In the past we didnt even collect upfront for appraisal but got burned too many times. Maybe you worked in the industry in the past but there is a TON MORE WORK now a days and cost associated with a Mortgage.


Excluding the appraisal, which is borrower paid, and which you state your employer now collects the fee for upfront, the bank is *charging* $163, which isn't actually the true cost to the lender. The lender is not out hundreds of dollars after ordering these items.

The other tasks are not hours worth of work- sorry, but they're just not. If it takes any processor several hours to order a CBR, flood cert, and payoff, they should be looking for a new job, because they are horribly inept. Even ordering tax transcripts isn't time consuming- it takes a few minutes. Fully verifying income and assets requires more scrutiny now than in the past, so I 1000% agree that's more time consuming, but the most intense scrutiny is coming from the UW, not the LO. If borrowers are bailing before the clear to close, the UW typically hasn't spent a lot of time on the file.

I think you should ask yourself why these borrowers feel compelled to keep looking after they've locked their rate. To me, the bigger issue is why they felt uncomfortable enough to keep looking, and what can be done to secure their trust and loyalty so that they feel no inclination to go out looking for a better deal.


 

 

 

Regular Contributor
mkm77
Posts: 147
Registered: ‎08-25-2010
0

Re: View from a Lender...Rates get lower suit OK to bail?

Unfortunately in today's world they don't understand or worse really don't care. Its like having your cake and eating it too as long as you don't care that your word means nothing. So you are protected from any upside movement and if rates go down even .125%, you can just bail. Sad that now a days that's perfectly fine and somehow I am the one missing the picture??


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