Can u please explain what are duties of LO?

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Aloha

302 Posts

Posted - 05/02/2008 : 10:13:38 AM

I've been seen posts on this site and seems like there are a lot of professional LO's and Brokers here. Currently, I work for small mortgage company and my LO's don't even know how build loans correctly. They get clients and the rest I have to take care (originate loan, find lender, contact u/w, take care of loan signing) So, my question is could somebody tell me what are exact responsibilities of LO??

reliable

61 Posts

Posted - 05/02/2008 : 10:15:21 AM

If they are bringing clients and fill out the 1003 and get the correct docs be happy.

msancheznj

2243 Posts

Posted - 05/02/2008 : 10:16:03 AM

Are you putting together a checklist to hand it to your LOs?

Aloha

302 Posts

Posted - 05/02/2008 : 10:17:03 AM

now, i am :)

Aloha

302 Posts

Posted - 05/02/2008 : 10:19:10 AM

yes, I always do that..but they usualy ignore it. Sometimes i got a file without income info and Lo tels me that is full doc (99% from 100% is not)

jcanepa

800 Posts

Posted - 05/02/2008 : 10:19:11 AM

email me and i can send you what I used to help LO's. I was a processor and a Sales Manager when I was in Retail.

Aloha

302 Posts

Posted - 05/02/2008 : 10:19:58 AM

Thank you Jason..will do :)

pablo@skylinecit

61 Posts

Posted - 05/02/2008 : 10:22:49 AM

good one reliable, their responsibilties depends on how much commission you are giving them. The higher commission the more responsibilties. its not hard pricing stuff out and doing the basics, its just lazyness. Teach them the 1st couple of times and then have them do it... or cut their commission.

RANDY P

2975 Posts

Posted - 05/02/2008 : 10:26:19 AM

Fire them all- that's how you help them.

How the hell can anyone sell a loan without actually knowing what the borrowers qualify for? You can at least have an educated guess as an LO, and to get to that point you need to do some work on your own. Those aren't LO's in that office it's a group of sign-holders on the sidewalk. The LO is the architect of the loan, they ask the questions, make the prognosis, quote the loan terms based on the borrowers wishes and then collects the paperwork from the borrower. Blows me away that some think you can be a "loan officer" without being able to actually have any clue what qualification guidelines are, and how you think you can sell a loan without actually having an idea what the borrower qualifies for.

The processor organizes paperwork and submits to bank - processor talks to bank, LO talks to borrower.

to the OP - not a lot gets closed in that office I would venture to guess..

quote:
Originally posted by jcanepa

email me and i can send you what I used to help LO's. I was a processor and a Sales Manager when I was in Retail.

Aloha

302 Posts

Posted - 05/02/2008 : 10:27:11 AM

are you kidding me? ***how much commission your giving them*** I got straight fee, no commissions. Commissions are privilege of LO..or am I wrong?

Aloha

302 Posts

Posted - 05/02/2008 : 10:31:45 AM

Thank you Randy..That's exactly i was taught in Real Estate School. When i came to this office, i was shocked. Yesterday, I explained LO how neg.am loans work. LOL..but that's Ok..it's good experience for me:)

RANDY P

2975 Posts

Posted - 05/02/2008 : 10:32:29 AM

Tell them be prepared for 90 day closings unless they get their act together.

Nothing worse than a commissioned salesperson who values convienence (rather have their processor stumbling around in the dark trying to make heads or tails of a poorly set up file that doesn't make sense) over making money and increased productivity. It's weird, some will take a 45 day closing instead of just getting everything right the 1st time and have a 15 day close.

I would push for firing the LO's or quitting going to an organized shop where they have LO's who actually know something.

Do you have any idea how much time everyone would save if the LO just got everything needed the 1st time around, and actually tried to write a loan that actually fit written guidelines instead of shortcutting and getting things later?

rjp

quote:
Originally posted by Aloha

are you kidding me? ***how much commission your giving them*** I got straight fee, no commissions. Commissions are privilege of LO..or am I wrong?

RANDY P

2975 Posts

Posted - 05/02/2008 : 10:33:09 AM

quit, that's what I say. Those guys like that don't make any money since they are lazy. It will affect your income too.

rjp

quote:
Originally posted by Aloha

Thank you Randy..That's exactly i was taught in Real Estate School. When i came to this office, i was shocked. Yesterday, I explained LO how neg.am loans work. LOL..but that's Ok..it's good experience for me:)

Aloha

302 Posts

Posted - 05/02/2008 : 10:43:03 AM

Ohhh...Randy, are you hiring? just kidding :)
re. 90 days of closing, yes..that's exactly what's going on in this office :) Cause, i need time for finding Lender, reading guidelines, catching a client to get needed docs..ok, i'll do everything with pleasure but IT TAKES TIME

RANDY P

2975 Posts

Posted - 05/02/2008 : 10:51:46 AM

I was until I closed my branch 1/08- :) If I go to HI (My Mom's family stays Honolulu side) I'll open up there.

PS- it's impractical to think that you can shop all these deals for these LO's- you don't have enough time in the day. They need to understand everyone gets paid faster if they just gave the processor complete files that have been prequaled by the AE or someone who knows. Bring the AE's in to help the LO's just keep them away from your desk until they have complete files. One bad file drags the whole office down- only work on complete files you know that will go and where.

It's just good business sense to run it that way.

rjp

quote:
Originally posted by Aloha

Ohhh...Randy, are you hiring? just kidding :)
re. 90 days of closing, yes..that's exactly what's going on in this office :) Cause, i need time for finding Lender, reading guidelines, catching a client to get needed docs..ok, i'll do everything with pleasure but IT TAKES TIME

Aloha

302 Posts

Posted - 05/02/2008 : 11:01:40 AM

Randy,

.. can u refer me good commercial lender which can help me to close commercial deal? never done commercial, i'm residential processor. LTV is low but there is not enough income for full doc (again, i know that commercial's DTI calculated differently than residential but that's about it what i know..need help to close it) thank you :)

RANDY P

2975 Posts

Posted - 05/02/2008 : 11:06:14 AM

there are a few guys here

dkendall1979 comes to mind- or post the scenario here, someone wil get it.

Is it in HI?

quote:
Originally posted by Aloha

Randy,

.. can u refer me good commercial lender which can help me to close commercial deal? never done commercial, i'm residential processor. LTV is low but there is not enough income for full doc (again, i know that commercial's DTI calculated differently than residential but that's about it what i know..need help to close it) thank you :)

Douggie

1369 Posts

Posted - 05/02/2008 : 11:12:56 AM

Wait for the phone to ring.

Aloha

302 Posts

Posted - 05/02/2008 : 11:18:05 AM

Thanks Randy for advices. now i know, borrowers could be in good hand too :)

CoolMtgGuy

4088 Posts

Posted - 05/02/2008 : 12:11:14 PM

I echo Randy's comment below. Nobody should call themselves an LO if they can't/won't do what is stated below. I like the "financing solution architect" perspective that Randy uses.

Also, I would consider taking a different approach. List the tasks that the pocessor would handle for a specific fee and then list optional services with corresponding fees to the LO. That way, the lazy/incompetent LOs pay more for the processor's services.

I can't tell you how often I have heard this story from processors in the past month. My response is always to charge for the services being delivered. The LO does that to the borrower so the processor should do that to the LO.

Thanks to the OP for posting this valid topic!

quote:
Originally posted by RANDY P

Fire them all- that's how you help them.

How the hell can anyone sell a loan without actually knowing what the borrowers qualify for? You can at least have an educated guess as an LO, and to get to that point you need to do some work on your own. Those aren't LO's in that office it's a group of sign-holders on the sidewalk. The LO is the architect of the loan, they ask the questions, make the prognosis, quote the loan terms based on the borrowers wishes and then collects the paperwork from the borrower. Blows me away that some think you can be a "loan officer" without being able to actually have any clue what qualification guidelines are, and how you think you can sell a loan without actually having an idea what the borrower qualifies for.

The processor organizes paperwork and submits to bank - processor talks to bank, LO talks to borrower.

to the OP - not a lot gets closed in that office I would venture to guess..
quote:
Originally posted by jcanepa

email me and i can send you what I used to help LO's. I was a processor and a Sales Manager when I was in Retail.

Janlynn

91 Posts

Posted - 05/02/2008 : 12:14:07 PM

Sounds like YOU should become an LO- you do more and know more than they do, and should be compensated for it, if you are not being compensated fairly now for all that you do.

Or, go to a new company that knows that value of a good processor and has enough expectations for the LO's to hand in a file properly, and make the process smoother and faster.

CoolMtgGuy

4088 Posts

Posted - 05/02/2008 : 12:14:45 PM

Can you, as a processor, legally structure loans for a client? Not in CT or FL to my knowledge.

quote:
Originally posted by Aloha

Ohhh...Randy, are you hiring? just kidding :)
re. 90 days of closing, yes..that's exactly what's going on in this office :) Cause, i need time for finding Lender, reading guidelines, catching a client to get needed docs..ok, i'll do everything with pleasure but IT TAKES TIME

clarenceworley

4358 Posts

Posted - 05/02/2008 : 12:15:57 PM

1. Get social and inflated value of home
2. Post scenario on BO-include "scores" and Value only as if the holy grail
3. State "most close asap"

CoolMtgGuy

4088 Posts

Posted - 05/02/2008 : 12:18:27 PM

quote:
Originally posted by clarenceworley

1. Get social and inflated value of home
2. Post scenario on BO-include "scores" and Value only as if the holy grail
3. State "most close asap"

Great list ... and add to it "Complete file ready to go".

RANDY P

2975 Posts

Posted - 05/02/2008 : 12:23:12 PM

CoolMtgGuy

4088 Posts

Posted - 05/02/2008 : 12:25:49 PM

Don't hold back Randy .. tell us how you really feel ... will ya? I so totally agree with your comments. My feeling is that, if I have to spend my time vetting an LO's file, that LO is gone.

quote:
Originally posted by RANDY P

my favorite: The LO screaming at the processor "BUT THEY REALLY WANT THE LOAN!!!"

We all have worked with one, the idiot who insists on thinkiing the processor is a paid indentured servant, f's up the whole office for everyone else. I used to tell them I want to see their files before I even let them TALK to the processor. THen, I'd rip it apart.

Who cares if someone like that quits? they can't close anything anyways and you'll probably wind up in court someday over something they did since they are so ignorant.

rjp

Janlynn

91 Posts

Posted - 05/02/2008 : 12:28:06 PM

quote:
Originally posted by clarenceworley

1. Get social and inflated value of home
2. Post scenario on BO-include "scores" and Value only as if the holy grail
3. State "most close asap"

Soooooooooooo true - I am still rolling over that one!

RANDY P

2975 Posts

Posted - 05/02/2008 : 12:29:23 PM

I'm permanently scarred - Just mentioning the name "James A" makes me stutter - he was that guy in our office.

rjp

quote:
Originally posted by CoolMtgGuy

Don't hold back Randy .. tell us how you really feel ... will ya? I so totally agree with your comments. My feeling is that, if I have to spend my time vetting an LO's file, that LO is gone.

quote:
Originally posted by RANDY P

my favorite: The LO screaming at the processor "BUT THEY REALLY WANT THE LOAN!!!"

We all have worked with one, the idiot who insists on thinkiing the processor is a paid indentured servant, f's up the whole office for everyone else. I used to tell them I want to see their files before I even let them TALK to the processor. THen, I'd rip it apart.

Who cares if someone like that quits? they can't close anything anyways and you'll probably wind up in court someday over something they did since they are so ignorant.

rjp

RANDY P

2975 Posts

Posted - 05/02/2008 : 12:30:43 PM

anyone know where I can get 80% SIVA on Man home, 2x30 1x90 x12?

The borrowers really want a deal!

Aloha

302 Posts

Posted - 05/02/2008 : 12:32:20 PM

quote:
Originally posted by CoolMtgGuy

Can you, as a processor, legally structure loans for a client? Not in CT or FL to my knowledge.

Of course, I CANNOT..but if i wouldn't, i couldn't get paid..I needd at least cover my bills :) my main issue is i cannot convince people with rate..that's why i'm still a processor :)

quote:
Originally posted by Aloha

Ohhh...Randy, are you hiring? just kidding :)
re. 90 days of closing, yes..that's exactly what's going on in this office :) Cause, i need time for finding Lender, reading guidelines, catching a client to get needed docs..ok, i'll do everything with pleasure but IT TAKES TIME

MisterVA

6767 Posts

Posted - 05/02/2008 : 12:39:36 PM

One way of getting your point across is that complete files will get first look by processors. Processors should be given the authority to say to the LO. "This file is not complete. Please get me __________, so that I can work on it." That isn't to say that processors shouldn't process, but if the 1003 is incomplete and some of the basics just are not there, make it the responsibility to turn in complete apps. If they want to get paid in a timely manner, they will learn fast.

Aloha

302 Posts

Posted - 05/02/2008 : 12:40:31 PM

quote:
Originally posted by CoolMtgGuy

Don't hold back Randy .. tell us how you really feel ... will ya? I so totally agree with your comments. My feeling is that, if I have to spend my time vetting an LO's file, that LO is gone.

tell u...sick and tired of stupidity ..they don't want to accept that the time of paradise is gone and now, it's time for professionals. I want to scream " Go take some courses to learn how loans work and what is going on in mortgage market nowadays”

quote:
Originally posted by RANDY P

my favorite: The LO screaming at the processor "BUT THEY REALLY WANT THE LOAN!!!"

We all have worked with one, the idiot who insists on thinkiing the processor is a paid indentured servant, f's up the whole office for everyone else. I used to tell them I want to see their files before I even let them TALK to the processor. THen, I'd rip it apart.

Who cares if someone like that quits? they can't close anything anyways and you'll probably wind up in court someday over something they did since they are so ignorant.

rjp

clos25

425 Posts

Posted - 05/02/2008 : 12:43:29 PM

Once file is sold, signed up and complete. goes to the processor and after it goes into the processing, the only thing LO's responsibilities should be:
-Handling any rate issues with client
-Handling any additional questions about the program
-closing cost breakdown
-uncooperative clients

The rest is processing...

Aloha

302 Posts

Posted - 05/02/2008 : 12:47:23 PM

my favorite: The LO screaming at the processor "BUT THEY REALLY WANT THE LOAN!!!"

We all have worked with one, the idiot who insists on thinkiing the processor is a paid indentured servant, f's up the whole office for everyone else. I used to tell them I want to see their files before I even let them TALK to the processor. THen, I'd rip it apart.

Who cares if someone like that quits? they can't close anything anyways and you'll probably wind up in court someday over something they did since they are so ignorant.
My favorite is "Why we cannot do 5.875%, I promised a client" (i want to mentioned..that originally, LO told that it's full doc file with FICO 900 and LTV 20%..after, checking info the files looks like sh...: SIVA, FICO 620 and LTV 95%)

NO COMMENTS..I almost cry ƒº

MisterVA

6767 Posts

Posted - 05/02/2008 : 12:51:39 PM

quote:
Originally posted by clos25

Once file is sold, signed up and complete. goes to the processor and after it goes into the processing, the only thing LO's responsibilities should be:
-Handling any rate issues with client
-Handling any additional questions about the program
-closing cost breakdown
-uncooperative clients

The rest is processing...

Sounds like 'complete' is where the problem lies.

Aloha

302 Posts

Posted - 05/02/2008 : 12:56:32 PM

What is called 'complete" for my LO? Spoke with client, sold rate 5.5% and relied on borrower's word - i'm sorry " i wouldn't call this file is complete" I'm not complaining i'm try to understand what is a role of my LOs and i cannot see any :( Hmmm, i need to learn how to sell

clos25

425 Posts

Posted - 05/02/2008 : 12:57:00 PM

quote:
Originally posted by MisterVA

quote:
Originally posted by clos25

Once file is sold, signed up and complete. goes to the processor and after it goes into the processing, the only thing LO's responsibilities should be:
-Handling any rate issues with client
-Handling any additional questions about the program
-closing cost breakdown
-uncooperative clients

The rest is processing...

Sounds like 'complete' is where the problem lies.

sorry, when I say complete, meaning collect income docs, assets docs, insurance info and account info for payoff, LOX if necessary, ID copy, social copy, etc...the rest the processor will get for me. the processor will review file to make sure all of the above are in file, if not file goes back to LO.

sb8080

24 Posts

Posted - 05/02/2008 : 1:08:35 PM

I have worked two different scenarios... One was paying me 60% of commissionable fees, and I was doing everything except for title, payoffs, setting up the closing times, etc. The structuring of the deal and obtaining all the conditions was 100% me. Now, I get 80% of commissionable fees, but I do everything. A processor doesn't even touch my loans. I actually prefer it this way... I have control over everything, and if I want something done right now I can do it - not wait for 10 other files to be taken care of first before mine is gotten to. It's also much more efficient as well... Most of my files come out of underwriting clear to close. The little bit of extra work is well worth the 80% split.

Aloha

302 Posts

Posted - 05/02/2008 : 1:13:08 PM

my respect to you :)Because you're one of the kind who know what you're doing :)

clos25

425 Posts

Posted - 05/02/2008 : 1:20:57 PM

quote:
Originally posted by Aloha

What is called 'complete" for my LO? Spoke with client, sold rate 5.5% and relied on borrower's word - i'm sorry " i wouldn't call this file is complete" I'm not complaining i'm try to understand what is a role of my LOs and i cannot see any :( Hmmm, i need to learn how to sell

those are spoiled LOs.
complete means collecting all conditions upfront and getting a customers commitment, obviously by signing disclosures, giving you all the docs necessary and paying for an appraisal.
if nothing gets disclosed properly at the beginning, then you'll have problems at closing, and get them committed right away. and the rest is processing work; no need to continue tied up on a file that is in processing and slowing you down from selling another deal.

MisterVA

6767 Posts

Posted - 05/02/2008 : 1:36:19 PM

Having a processor want to receive a certain LO's files over another's should be a real clue. Haave a meeting with processors and LO's and outline the responsibilities of LO's with respect to submitting files as outlined by clos25 above. You have an office to run. You have bills to pay. Loans closing more quickly means you can do that more easily. You don't care whose loans close, but those that are ready sooner and need less babysitting will close sooner. Set the priorities. If they don't like it they can make someone else's life miserable.

jlmandl

142 Posts

Posted - 05/02/2008 : 2:24:16 PM

Ok I am sickened that there are still people in this business that by a few discriptions cannot even price a loan much less do anything but promise crap and deliver same.

Let the LO chase down the clients and the docs. Dont waste time working an incomplete file and tell them that. If they dont like it what are they going to do other than moan about it and then go get the docs. Hell its one thing if its a few post submission conditions but if you cant even submit a loan that awful.

I still occassionaly process my deals but usually just the simplest so I appriciate my processor. My processors have always gone the extra mile for me because I never tried to make their job any harder than it already was and generally give them more than they need. When I needed the extra help they have always been willing and got things done. Nothing is worse than a pi$$ed of processor when you have a rush job that is not all there.

LO's should not be LO's unless they have proper training and the training is consistent and it doesnt matter if they work for a bank or a broker.

assassin17

4237 Posts

Posted - 05/02/2008 : 3:28:24 PM

quote:
Originally posted by Aloha

What is called 'complete" for my LO? Spoke with client, sold rate 5.5% and relied on borrower's word - i'm sorry " i wouldn't call this file is complete" I'm not complaining i'm try to understand what is a role of my LOs and i cannot see any :( Hmmm, i need to learn how to sell

For me, it'c clear-cut;

LO - Find clients, complete 1003, select program, pre-qualify client, submit for pre-approval. Once conditions come back, turn over the file to the processor.

Processor - Obtain all pre-approval conditions, update file as necessary, track dates on all conditions. Once CTC comes back, notify LO and set up closing.

LO - Attend closing.

During the Processing phase, all client contact or documentation should be notified to the LO. I do not want a processor talking to the client, because the LO has built the rapport and needs to do the hand-holding along the entire way. So, if it has to come from the client, the LO gets it. Anything else is the processor's duty.

However, I guess Processing is whatever the Boss tells you it is, but I don't see why you should be handling any selection of loan parameters without a license. I just know how I want it done. If my LO ever made a Processor do one of their duties, the commission would go to the Processor. I don't put up with slackers that place my license in jeopardy against my will.

cspatmon

2445 Posts

Posted - 05/02/2008 : 4:21:48 PM

I've always been miffed about managers that will not take the time out to evaluate each hire. LO's as you mentioned are quite diverse. Some may need extensive training while others may be more knowledgeable than their employer. However, all should follow the rules that you set.

NRU2

85 Posts

Posted - 05/02/2008 : 6:30:03 PM

As little as possible. I like the ones that establish referral sources take apps pick program sell client collect the right paperwork and signatures. Turn over to processer and start over again.

NRU2

85 Posts

Posted - 05/02/2008 : 6:33:23 PM

As little as possible. I like the ones that establish referral sources take apps pick program sell client collect the right paperwork and signatures. Turn over to processer and start over again.

cspatmon

2445 Posts

Posted - 05/03/2008 : 08:04:40 AM

That's my profile and I'm commissioned @ 90%.

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