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   ARTICLE   |   From Scotsman Guide Residential Edition   |   August 2011

Choose Wisely: Your Lender Will Determine Your Fate

It’s all about efficiency, and who you work with means everything

In the new mortgage climate, it’s all about efficiency. The more you can accomplish quickly, the more time you’ll have to continue to accomplish even more. Considering loan-originator compensation rules, efficiency has never been more important.

Before we look at ways to improve your efficiency, consider the following questions:

  • Why work with lenders that cause you trouble and move slowly?
  • Why work with lenders that don’t let you speak with an underwriter?
  • Why work with account executives who don’t call you back or refuse to accept technological innovations?

There is no why.

Closing loans quickly — and in compliance with the new regulatory landscape — is the only way to survive. Working with an efficient lender or lenders could be the difference between closing 10 or two loans a month. And if you’re only closing two, chances are you’re on the brink of failure.

Loan originators who find a way to keep moving forward, however, will have an opportunity to increase their market share. Choosing a premier lender or lenders will get you off on the right foot. Here are some tips for doing just that.

  1. Make sure they love technology. If you want to conduct business with borrowers electronically, you need a lender that offers a paperless system. Seek one with top-notch software that lets you take applications on the Web, in a café or in your prospect’s home. The best systems will allow your prospects to consent to their entire application package electronically.
    Your lender should also let you order everything online: case numbers, appraisals, title work, etc.
  2. Demand immediate answers. Your lenders should provide near-instant answers about loan scenarios and conditions. They also should provide a strong support staff to help you with all your needs, no matter how small.
    In addition, they should assign you a personal underwriting team, and your underwriters should be available when you need them. The better the service you receive, the better the service you can provide your clients.
  3. Keep your options open. Align yourself with four to six lenders that complement your skill sets. Each should have established turn times. If you wait two weeks for an appraisal-management company to complete an appraisal, one week for a Federal Housing Administration case number to be ordered, a couple of days for an underwriting decision and then a few more days to hear back about loan conditions, you are inefficient.
    When you have more than one option to turn to, you can weed out those that begin to falter.
  4. Find out about compensation. If you don’t know how you’ll be paid, you might be sorely disappointed. Think twice if a lender pays you based solely on a percentage of each closed loan.
    Can you survive with just a percentage? Chances are you can’t. In response, pick a lender that offers multiple payment options.

Today’s market is all about efficiency. Choosing the right lender or team of lenders can make all the difference.


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