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sav298
25 Posts |
 Posted - 08/06/2008 : 7:51:01 PM
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I received a GFE from a prospect that showed the following. This broker is giving her an absolutely unrealistic rate and when you start to compare my GFE with his, his numbers are obviously better. I went through the whole thing with line-by-line and disclosed everything the broker was missing, but she “can’t pass up the chance that this might be the best deal”. We all know that this guy is going to get her committed and upsell her later. By then she will be so close to the finish line that she will probably sign with him regardless. What more would you recommend I say to her?
- no points
- no YSP
- No Underwriting fee
- no days of interest
- really low balled recording and title fee
The only thing that looks legitimate is the appraisal fee. Really ridiculous.
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RANDY P
2828 Posts |
Posted - 08/06/2008 : 7:54:03 PM
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side with the borrower now. Then teach them how to hold the other LO to that disclosed rate, fee etc. Make them get a Lock Agreement out of the LO, check everything over then stay in contact.
now is the time to be a friend, not a competitor. |
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ML
3019 Posts |
Posted - 08/06/2008 : 7:55:46 PM
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quote:
Originally posted by sav298
I received a GFE from a prospect that showed the following. This broker is giving her an absolutely unrealistic rate and when you start to compare my GFE with his, his numbers are obviously better. I went through the whole thing with line-by-line and disclosed everything the broker was missing, but she “can’t pass up the chance that this might be the best deal”. We all know that this guy is going to get her committed and upsell her later. By then she will be so close to the finish line that she will probably sign with him regardless. What more would you recommend I say to her?
- no points
- no YSP
- No Underwriting fee
- no days of interest
- really low balled recording and title fee
The only thing that looks legitimate is the appraisal fee. Really ridiculous.
If this is the honeymoon, what's the marriage gonna be like? |
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RANDY P
2828 Posts |
Posted - 08/06/2008 : 7:56:35 PM
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oh, that's true as well!quote:
Originally posted by ML
quote:
Originally posted by sav298
I received a GFE from a prospect that showed the following. This broker is giving her an absolutely unrealistic rate and when you start to compare my GFE with his, his numbers are obviously better. I went through the whole thing with line-by-line and disclosed everything the broker was missing, but she “can’t pass up the chance that this might be the best deal”. We all know that this guy is going to get her committed and upsell her later. By then she will be so close to the finish line that she will probably sign with him regardless. What more would you recommend I say to her?
- no points
- no YSP
- No Underwriting fee
- no days of interest
- really low balled recording and title fee
The only thing that looks legitimate is the appraisal fee. Really ridiculous.
If this is the honeymoon, what's the marriage gonna be like?
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HMDApproved
694 Posts |
Posted - 08/06/2008 : 8:00:40 PM
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You will never be able to satisfy that woman. It does not matter what you do or tell her. Even if you do the loan, she will always think she could have gotten a better deal.
Tell her good luck and take care. tell her to call you from the closing and you'll send her a jar of KY |
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VVance
2489 Posts |
Posted - 08/06/2008 : 8:00:50 PM
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| IDK, if someone is that stupid, tell them if that deal is true, they'd be crazy not to take it. Keep it friendly, then expect a call in the near future. |
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mgr2602
156 Posts |
Posted - 08/06/2008 : 8:00:51 PM
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I'm a Banker/Broker
What rate were they quoting...on what product?
I offer 0 bank fees.
No ysp disclosed if I bank the loan
No origination
No processing
No application
No Lender/commit fee
No credit report
No flood
No discount points
The only fee that is listed in the lender section is the appraisal POC.
Tell her to get a copy of the lock confirmation from him!
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sav298
25 Posts |
Posted - 08/06/2008 : 8:04:20 PM
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quote:
Originally posted by mgr2602
I'm a Banker/Broker
What rate were they quoting...on what product?
I offer 0 bank fees.
No ysp disclosed if I bank the loan
No origination
No processing
No application
No Lender/commit fee
No credit report
No flood
No discount points
The only fee that is listed in the lender section is the appraisal POC.
Tell her to get a copy of the lock confirmation from him!
I offer no fees as well at a higher rate and paying the closing costs with the yield spread. This broker was offering a 30-year fixed vanilla loan at 6.375% this morning of all mornings. |
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mgr2602
156 Posts |
Posted - 08/06/2008 : 8:20:06 PM
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quote:
Originally posted by sav298
quote:
Originally posted by mgr2602
I'm a Banker/Broker
What rate were they quoting...on what product?
I offer 0 bank fees.
No ysp disclosed if I bank the loan
No origination
No processing
No application
No Lender/commit fee
No credit report
No flood
No discount points
The only fee that is listed in the lender section is the appraisal POC.
Tell her to get a copy of the lock confirmation from him!
I offer no fees as well at a higher rate and paying the closing costs with the yield spread. This broker was offering a 30-year fixed vanilla loan at 6.375% this morning of all mornings.
Oh wow! You should pull out a few rate sheets on her, or pull up Bank of America's rate page (clients always trust the big banks ;-) then show her how much better you can do vs. the big credible bank! |
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DRB
176 Posts |
Posted - 08/06/2008 : 8:30:54 PM
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| I would tell her to go sign up and prep her what docs she should receive copies of. Then tell her if the slightest thing changes at closing, to get up and walk out. |
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ownerop
389 Posts |
Posted - 08/06/2008 : 8:36:00 PM
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quote:
Originally posted by sav298
I received a GFE from a prospect that showed the following. This broker is giving her an absolutely unrealistic rate and when you start to compare my GFE with his, his numbers are obviously better. I went through the whole thing with line-by-line and disclosed everything the broker was missing, but she “can’t pass up the chance that this might be the best deal”. We all know that this guy is going to get her committed and upsell her later. By then she will be so close to the finish line that she will probably sign with him regardless. What more would you recommend I say to her?
- no points
- no YSP
- No Underwriting fee
- no days of interest
- really low balled recording and title fee
The only thing that looks legitimate is the appraisal fee. Really ridiculous.
I love GFE's like that, the first thing I do is make a conference call with the client and the loan officer that gave the client the ridiculous GFE and go line item by line item with them over the phone and let them bury themselves in their own bull shiit and by the time the call is over I have a new client that trusts me and won't leave me no matter what. |
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Mandyvilla
3453 Posts |
Posted - 08/06/2008 : 8:41:12 PM
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quote:
Originally posted by ownerop
quote:
Originally posted by sav298
I received a GFE from a prospect that showed the following. This broker is giving her an absolutely unrealistic rate and when you start to compare my GFE with his, his numbers are obviously better. I went through the whole thing with line-by-line and disclosed everything the broker was missing, but she “can’t pass up the chance that this might be the best deal”. We all know that this guy is going to get her committed and upsell her later. By then she will be so close to the finish line that she will probably sign with him regardless. What more would you recommend I say to her?
- no points
- no YSP
- No Underwriting fee
- no days of interest
- really low balled recording and title fee
The only thing that looks legitimate is the appraisal fee. Really ridiculous.
I love GFE's like that, the first thing I do is make a conference call with the client and the loan officer that gave the client the ridiculous GFE and go line item by line item with them over the phone and let them bury themselves in their own bull shiit and by the time the call is over I have a new client that trusts me and won't leave me no matter what.
Do that with care, Bank of America loan officers can cut discount points w/out prior approval up to 1.75 discount points. Up to 2 with managment approval. |
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ownerop
389 Posts |
Posted - 08/06/2008 : 8:46:06 PM
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quote:
Originally posted by Mandyvilla
quote:
Originally posted by ownerop
quote:
Originally posted by sav298
I received a GFE from a prospect that showed the following. This broker is giving her an absolutely unrealistic rate and when you start to compare my GFE with his, his numbers are obviously better. I went through the whole thing with line-by-line and disclosed everything the broker was missing, but she “can’t pass up the chance that this might be the best deal”. We all know that this guy is going to get her committed and upsell her later. By then she will be so close to the finish line that she will probably sign with him regardless. What more would you recommend I say to her?
- no points
- no YSP
- No Underwriting fee
- no days of interest
- really low balled recording and title fee
The only thing that looks legitimate is the appraisal fee. Really ridiculous.
I love GFE's like that, the first thing I do is make a conference call with the client and the loan officer that gave the client the ridiculous GFE and go line item by line item with them over the phone and let them bury themselves in their own bull shiit and by the time the call is over I have a new client that trusts me and won't leave me no matter what.
Do that with care, Bank of America loan officers can cut discount points w/out prior approval up to 1.75 discount points. Up to 2 with managment approval.
I doubt the GFE was from a credible bank like B of A and if it was I would still call to make sure the LO wasn't trying to pull a fast one. I see GFE's from banks all the time and they low ball all the 3rd party fees and the client has no idea that those fees are not controlled by the bank and in many cases the LO has no idea what Title insurance or and Escrow fee really costs. |
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MisterVA
6634 Posts |
Posted - 08/06/2008 : 8:49:55 PM
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| Wish her well and have her send you a HUD so you can see how they might differ at closing. She may be stupid but if she's been had, she may end up referring friends to you so they don't make the same mistake. Be polite but firm. She's fired. |
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ownerop
389 Posts |
Posted - 08/06/2008 : 8:57:42 PM
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I'm really surprised at how easy everyone here gives up on a potential deal. How long will it take you to do a conference call with the client and the other lender to see if this deal is for real? I have gotten deals like this so many times I have lost count. Make the call tomorrow and let us know how it went, the worse that can happen is losing the deal, the best that can happen is you get the deal and possible referrals in the future. If you do nothing you already lost the deal. Turn this Low Balling loan officer into a Low Bawling loan officer.
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SoCalRay
2698 Posts |
Posted - 08/06/2008 : 9:03:43 PM
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my favorite GFE of the last 3 months are the ones I see from E-Loans
FHA loans with no impounds so it looks like you are charging more |
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jasonstoeser
112 Posts |
Posted - 08/06/2008 : 9:09:17 PM
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Depending on the shop, if they are a correspondent shop, they might also get paid a SRP. In which case, if they do get paid the SRP, then that shop can get real competitive with their pricing.
I had a shop where the LO's were earning SRP and YSP. They would steal loans all day long from other broker shops.
This might be what you are not seeing.
quote:
Originally posted by sav298
quote:
Originally posted by mgr2602
I'm a Banker/Broker
What rate were they quoting...on what product?
I offer 0 bank fees.
No ysp disclosed if I bank the loan
No origination
No processing
No application
No Lender/commit fee
No credit report
No flood
No discount points
The only fee that is listed in the lender section is the appraisal POC.
Tell her to get a copy of the lock confirmation from him!
I offer no fees as well at a higher rate and paying the closing costs with the yield spread. This broker was offering a 30-year fixed vanilla loan at 6.375% this morning of all mornings.
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ownerop
389 Posts |
Posted - 08/06/2008 : 9:16:42 PM
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quote:
Originally posted by jasonstoeser
Depending on the shop, if they are a correspondent shop, they might also get paid a SRP. In which case, if they do get paid the SRP, then that shop can get real competitive with their pricing.
I had a shop where the LO's were earning SRP and YSP. They would steal loans all day long from other broker shops.
This might be what you are not seeing.
quote:
Originally posted by sav298
quote:
Originally posted by mgr2602
I'm a Banker/Broker
What rate were they quoting...on what product?
I offer 0 bank fees.
No ysp disclosed if I bank the loan
No origination
No processing
No application
No Lender/commit fee
No credit report
No flood
No discount points
The only fee that is listed in the lender section is the appraisal POC.
Tell her to get a copy of the lock confirmation from him!
I offer no fees as well at a higher rate and paying the closing costs with the yield spread. This broker was offering a 30-year fixed vanilla loan at 6.375% this morning of all mornings.
All FHA loans pay SRP; some are built into the rebate some pay separately, on conventional loans the SRP is minimal. Correspondent rate are not any better than a broker when you factor in the risk and additional cost, in fact its more expensive for a correspondent to close a loan than a broker because of the cost of the loan on the warehouse line, in house underwriters, funders, etc. This is why you will always see a correspondent rates are usually higher, because they are padding their rate sheet to the loan officer. There are some companies out there that pay their LO's crap and give loans away at 1/2 point in total profit and work on a very large volume business model, but those are far and few in between. Some banks like B of A get real aggresive too because they make their money from the servicing of the loan; there is more money in servicing than originating. |
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jasonstoeser
112 Posts |
Posted - 08/06/2008 : 9:23:04 PM
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I understand. But, I am not talking generally. I am speaking about a shop that I serviced when I was at Fremont Investment & Loan. This particular shop did not pad rates and the owner fully disclosed SRP and the bare rates. In this instance, this shop of mine was not more expensive, they were much cheaper.
The owner believed in compensating his LO's handsomely.
quote:
Originally posted by ownerop
quote:
Originally posted by jasonstoeser
Depending on the shop, if they are a correspondent shop, they might also get paid a SRP. In which case, if they do get paid the SRP, then that shop can get real competitive with their pricing.
I had a shop where the LO's were earning SRP and YSP. They would steal loans all day long from other broker shops.
This might be what you are not seeing.
quote:
Originally posted by sav298
quote:
Originally posted by mgr2602
I'm a Banker/Broker
What rate were they quoting...on what product?
I offer 0 bank fees.
No ysp disclosed if I bank the loan
No origination
No processing
No application
No Lender/commit fee
No credit report
No flood
No discount points
The only fee that is listed in the lender section is the appraisal POC.
Tell her to get a copy of the lock confirmation from him!
I offer no fees as well at a higher rate and paying the closing costs with the yield spread. This broker was offering a 30-year fixed vanilla loan at 6.375% this morning of all mornings.
All FHA loans pay SRP; some are built into the rebate some pay separately, on conventional loans the SRP is minimal. Correspondent rate are not any better than a broker when you factor in the risk and additional cost, in fact its more expensive for a correspondent to close a loan than a broker because of the cost of the loan on the warehouse line, in house underwriters, funders, etc. This is why you will always see a correspondent rates are usually higher, because they are padding their rate sheet to the loan officer. There are some companies out there that pay their LO's crap and give loans away at 1/2 point in total profit and work on a very large volume business model, but those are far and few in between. Some banks like B of A get real aggresive too because they make their money from the servicing of the loan; there is more money in servicing than originating.
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ownerop
389 Posts |
Posted - 08/06/2008 : 10:04:33 PM
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quote:
Originally posted by jasonstoeser
I understand. But, I am not talking generally. I am speaking about a shop that I serviced when I was at Fremont Investment & Loan. This particular shop did not pad rates and the owner fully disclosed SRP and the bare rates. In this instance, this shop of mine was not more expensive, they were much cheaper.
The owner believed in compensating his LO's handsomely.
quote:
Originally posted by ownerop
quote:
Originally posted by jasonstoeser
Depending on the shop, if they are a correspondent shop, they might also get paid a SRP. In which case, if they do get paid the SRP, then that shop can get real competitive with their pricing.
I had a shop where the LO's were earning SRP and YSP. They would steal loans all day long from other broker shops.
This might be what you are not seeing.
quote:
Originally posted by sav298
quote:
Originally posted by mgr2602
I'm a Banker/Broker
What rate were they quoting...on what product?
I offer 0 bank fees.
No ysp disclosed if I bank the loan
No origination
No processing
No application
No Lender/commit fee
No credit report
No flood
No discount points
The only fee that is listed in the lender section is the appraisal POC.
Tell her to get a copy of the lock confirmation from him!
I offer no fees as well at a higher rate and paying the closing costs with the yield spread. This broker was offering a 30-year fixed vanilla loan at 6.375% this morning of all mornings.
All FHA loans pay SRP; some are built into the rebate some pay separately, on conventional loans the SRP is minimal. Correspondent rate are not any better than a broker when you factor in the risk and additional cost, in fact its more expensive for a correspondent to close a loan than a broker because of the cost of the loan on the warehouse line, in house underwriters, funders, etc. This is why you will always see a correspondent rates are usually higher, because they are padding their rate sheet to the loan officer. There are some companies out there that pay their LO's crap and give loans away at 1/2 point in total profit and work on a very large volume business model, but those are far and few in between. Some banks like B of A get real aggresive too because they make their money from the servicing of the loan; there is more money in servicing than originating.
Is he still in Business? |
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jasonstoeser
112 Posts |
Posted - 08/06/2008 : 10:06:31 PM
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| yes |
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KHufford
6001 Posts |
Posted - 08/07/2008 : 01:05:43 AM
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Go to borders, pick up some good sales books. Read em. Learn em.
There is more to this biz than trying to undercut a few bucks on something as stupid as days of interest or title fees.
As for the YSP and Points. Tell them this exactly "That deal is not available at any bank, I do this everyday, and its not not out there that I know, however, if this LO can you the deal, jump all over it right now, call the LO ask request they lock this rate ASAP! and ask for a copy of the lock"
Then, just sitback and wait about 30 mins for a call back saying you were right...
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FLProcessor
429 Posts |
Posted - 08/07/2008 : 01:41:35 AM
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Savvas-
I'm just curious, how long have you been in this business?
If it's been awhile, you must either be doing something very well, or possible just the opposite, if you don't run into this sort of thing on a weekly basis and/or have a policy in-place to work around it.
We do a great deal of direct mail, and I can tell you that roughly 40% of our deals sound nearly identical to what you mentioned -- and it comes with the territory of competing with unscrupulous brokers. Now if you're doing primarily relationship-based business, you'll see this sort of thing much less often.
Rather than give up this deal, make an effort to use this as a learning experience for your next situation. Generally, what we do, is advise the client to go with the offer, but that we'd like to find out more about it -- because we can't find a single wholesale bank offering that rate. This way, you're not claiming it's not available (which clients never believe, when you're dealing with non-relationship-based busienss) -- and yet it's still very likely you'll get the deal at the end of the day.
This leads into what Kyle was saying above, albeit somewhat ambiguously.. That you want to emphasize trust over price (in a nutshell, although it's obviously much more than that). Although, to be fair, I don't believe that all of the salesmanship in the world can convert a lot of these people, if you are second-in-line and you come in with a higher quote. Unless there is a reason for them to trust you, it's a true uphill battle -- and you shouldn't get discouraged if you lose this deal.
One more word of warning. One of the posters above mentioned caution about comparing to rates like BofA -- that is so true. It's a very dangerous practice and I wouldn't recommend it, especially not with BofA. Second, in this market, as volatile as it is, it is very difficult to quote/compete on rates when time passes/etc. Be aware of that, before allowing them to go too long :-). |
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bestbet123
1577 Posts |
Posted - 08/07/2008 : 07:09:44 AM
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Bro,
If you can't sell it , I will.Send me her name and contact info. |
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CoolMtgGuy
3710 Posts |
Posted - 08/07/2008 : 07:10:14 AM
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Spot on advice. That is how I have always dealt with similar situations. You will never be able to change that borrowers mind if they believe the number they have been presented by that competing originator. "Don't confuse me with facts as my mind is already made up" is the borrowers current mindset.
Stepping up an being an objective advocate and advisor to the borrower is the best way to fight the unfair, but very common, practice of lowballing the estimates on GFEs.
quote:
Originally posted by RANDY P
side with the borrower now. Then teach them how to hold the other LO to that disclosed rate, fee etc. Make them get a Lock Agreement out of the LO, check everything over then stay in contact.
now is the time to be a friend, not a competitor.
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bestbet123
1577 Posts |
Posted - 08/07/2008 : 07:22:15 AM
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I agree....why would you need to put out a lowballing GFE if you are a good LO?I would crush that guys GFE,fight fire with a bigger fire,and i wouldn't have to lie to get the deal.I deal with these little weasels all the time.SELL,SELL,SELL.
quote:
Originally posted by CoolMtgGuy
Spot on advice. That is how I have always dealt with similar situations. You will never be able to change that borrowers mind if they believe the number they have been presented by that competing originator. "Don't confuse me with facts as my mind is already made up" is the borrowers current mindset.
Stepping up an being an objective advocate and advisor to the borrower is the best way to fight the unfair, but very common, practice of lowballing the estimates on GFEs.
quote:
Originally posted by RANDY P
side with the borrower now. Then teach them how to hold the other LO to that disclosed rate, fee etc. Make them get a Lock Agreement out of the LO, check everything over then stay in contact.
now is the time to be a friend, not a competitor.
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loanryder
244 Posts |
Posted - 08/07/2008 : 07:22:48 AM
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| We are all just cutting each others throats....Should be a % amount ALL brokers charge, no more, no less...Ask a realtor to come off their 6% charge see what happens. |
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darkstar
18308 Posts |
Posted - 08/07/2008 : 07:32:12 AM
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quote:
Originally posted by KHufford
Go to borders, pick up some good sales books. Read em. Learn em.
There is more to this biz than trying to undercut a few bucks on something as stupid as days of interest or title fees.
As for the YSP and Points. Tell them this exactly "That deal is not available at any bank, I do this everyday, and its not not out there that I know, however, if this LO can you the deal, jump all over it right now, call the LO ask request they lock this rate ASAP! and ask for a copy of the lock"
Then, just sitback and wait about 30 mins for a call back saying you were right...
I read ya here, BUT 'sometimes' people's pride will keep them from calling back...Be very gentle and honest...More than likely you won't be able to convince them on that call, dumb people will still want to find out...
I would say:
"Maam, you're not the first one that I've seen this happen to. It upsets me that there are still people in my industry that will do that, but there are and I don't think there is anything I can say to stop you from seeing if it's real. If I were you, I would do the same.
All I would like is the opportunity to help you if, for whatever reasons, the other person can't honor their offer. One thing I know from doing this a long time is that after this type of discussion, many people won't call me back, I think because they fear hearing an "I told you so", is there any reason we can't touch base in a few days to see if I could be of some help? I promise you'll never hear those words from me, I'm just here to help!"
Or something along those lines... |
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clos25
419 Posts |
Posted - 08/07/2008 : 07:39:43 AM
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| The only one here hurting himself will be the low balling LO...obviously he is desperate to get deals and he couldn't sell benefits, and sold the client on low fees. In the end when he will not be able to deliver and try to upsell later on...unless the client is completely desperate whic I doubt. the client will walk away and the lo just wasted 2 weeks of work for nothing. |
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CoolMtgGuy
3710 Posts |
Posted - 08/07/2008 : 07:46:11 AM
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This well know ... but how does one convince an applicant that they are wasting their time? The more things change the more they remain the same ... borrowers remain greedy and stubborn as ever.
quote:
Originally posted by clos25
The only one here hurting himself will be the low balling LO...obviously he is desperate to get deals and he couldn't sell benefits, and sold the client on low fees. In the end when he will not be able to deliver and try to upsell later on...unless the client is completely desperate whic I doubt. the client will walk away and the lo just wasted 2 weeks of work for nothing.
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darkstar
18308 Posts |
Posted - 08/07/2008 : 07:48:15 AM
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>>>This well know ... but how does one convince an applicant that they are wasting their time?
I used to tell people in the car biz if they can get the deal they claimed, bring me a copy of the contract and dinner is on me at the best restaurant in Baltimore...Not sure I'd do that in the mortgage business... |
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Lawrence R.
82 Posts |
Posted - 08/07/2008 : 07:57:26 AM
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Years ago, I used to work in the car business...this was the only thing that I used with any success.
Make the borrower promise that the second the other person raises that estimate by ONE DOLLAR, that you get up and leave the office immediately because he/she has been lying to you all the time.
Most people will have a little bit of loyalty to you because you didn't bash the other guy, and you are understanding about the fact that if the deal is what the GFE claims it to be, well--yes it would be better for you and I wouldn't stand in the way of that.
But, Mr. customer, if he raises that estimate by a dollar, realize that I had my doubts about his honesty to begin with, and when it is all said and done, you may end up worse off than the numbers I am showing you now, and my numbers won't change....so promise me Mr. customer, say it with me--NOT ONE DOLLAR!
But, it is hard to work against a low ball. All that glitters IS gold to the client. |
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CoolMtgGuy
3710 Posts |
Posted - 08/07/2008 : 07:58:19 AM
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I hear ya ... it would be costly. Too many people out there just desperate to believe the "best" news they hear. I also agree with your earlier post that people will hesitate to admit that they've been duped so they are unlikely to call back anyway. It's human nature.
I am finding that it reduces my stress to state openly "I am always looking to learn more and earn more so please enlighten me".
quote:
Originally posted by darkstar
>>>This well know ... but how does one convince an applicant that they are wasting their time?
I used to tell people in the car biz if they can get the deal they claimed, bring me a copy of the contract and dinner is on me at the best restaurant in Baltimore...Not sure I'd do that in the mortgage business...
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busino
53 Posts |
Posted - 08/07/2008 : 07:59:32 AM
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This is the typical bait and switch shop. I bet they will ask for a non refundable application fee and when they get that they will disclose a much higher rate. When I get in this situation, I explain to the client that nobody works for free. They are going to make money off you and I would not trust the GFE. Remind the client that you are giving them your vital information, SS number, bank Statements, ect. Do you really want someone to have this information that is not being truthful to begin with? Then I would have the client call the manager of the LO and ask him to give her a letter in writing that they can do this exact deal. No manager will sign off on this because one deal is not worth loosing job.
Paul |
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darkstar
18308 Posts |
Posted - 08/07/2008 : 08:01:39 AM
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| Can the OP share the name of the company please?!??!...Maybe his boss is reading this... |
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bestbet123
1577 Posts |
Posted - 08/07/2008 : 08:03:47 AM
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| Another classic case of "bait and switch".Let that one go ....if it comes back it was yours to begin with,If it doesn't , hunt down the LO and kill him. |
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CoolMtgGuy
3710 Posts |
Posted - 08/07/2008 : 08:30:22 AM
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Are you kidding? The boss probably advised the originator to use this strategy to gain business. Most "bosses" I have come across in this business will look the other way just as long as that originator is producing deals for that office. These are desperate times so nothing should be surprising to anyone these days.
quote:
Originally posted by darkstar
Can the OP share the name of the company please?!??!...Maybe his boss is reading this...
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hoangad
2931 Posts |
Posted - 08/07/2008 : 08:35:32 AM
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| check the GFE for YSP. it's suppose to be listed yes? |
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CoolMtgGuy
3710 Posts |
Posted - 08/07/2008 : 08:37:31 AM
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Only if the originator is a BROKER or working for one.
quote:
Originally posted by hoangad
check the GFE for YSP. it's suppose to be listed yes?
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bestbet123
1577 Posts |
Posted - 08/07/2008 : 09:08:06 AM
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| I like Darkstar's approach,sell it gently with extreme aggression,never let em see you sweat.one thing i learned selling timeshares is overcome every objection and then take the ten NO's and make the sale.Coffee really is for closers,drink it by the pot. |
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slants
4274 Posts |
Posted - 08/07/2008 : 09:10:31 AM
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quote:
Originally posted by sav298
I received a GFE from a prospect that showed the following. This broker is giving her an absolutely unrealistic rate and when you start to compare my GFE with his, his numbers are obviously better. I went through the whole thing with line-by-line and disclosed everything the broker was missing, but she “can’t pass up the chance that this might be the best deal”. We all know that this guy is going to get her committed and upsell her later. By then she will be so close to the finish line that she will probably sign with him regardless. What more would you recommend I say to her?
- no points
- no YSP
- No Underwriting fee
- no days of interest
- really low balled recording and title fee
The only thing that looks legitimate is the appraisal fee. Really ridiculous.
I would let her know that it is in her best interest to let you process the loan for her simultaneously so that she has a plan B and will not forced to take it if the guy pulls a bait and switch at the closing table because you will deliver as promised. This keeps you in the loop with the other guys loan and even if he does come through, hopefully you can build enough good will to get future business from her or her referrals. |
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prof9000
104 Posts |
Posted - 08/07/2008 : 09:37:06 AM
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| Where did this prospect come from? Was it a referal or a lead source? |
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financeone
1646 Posts |
Posted - 08/07/2008 : 09:41:52 AM
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I agree with the "gentle" walk away. Hard to sell someone elses BS.
Keep in touch and close the deal down the road or pick up a referral.
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Captain Mortgage
1745 Posts |
Posted - 08/07/2008 : 09:49:23 AM
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Just saw BofA close an 90% LTV purchase 6.375% NO closing costs. NO MI. Just paid for an appraisal. This was on the retail end. I confirmed this with my escrow officer and saw the HUD.
There are still a lot of products out there that brokers can't offer. |
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eh6794
697 Posts |
Posted - 08/07/2008 : 10:25:06 AM
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This ones simple... You need to do a few things to get her. Follow everystep to the "T":
1. you need to explain to her days of interest. "Mrs Smith unlike like rent or a lease where you pay at the beginning of the month you pay for interest at the end of the month. That is why you skip a month of payments. Unless the broker is paying for your interest, and if he is it would clearly show on the GFE that hes crediting you the money, hes not giving you an accurate GFE."
2. Now you discredit him. "It seems as though he may be attempting a bait and switch scam with you. Even if hes not charging a origination somebody has to pay for escrow and title insurance... every loan has to have title insurance to protect you. If hes not getting a YSP then how is he paying for the TITLE insurance... is your loan not going to be insured????? NO!!!! It will be insured because hes not being truthful. And after all that, how is he making money to do your loan????"
3. Once you find out hes not licensed give her your license number and tell her shes dealing with someone who isnt even legally doing this with the Dept of Real Estate.
4. Heres the part where you need to decide if you want to risk this, get on a 3 way with her and the other broker... you better be ready and you better know your stuff... he seems really sharp and if youre not ready he'll flip it and you'll never get her to pick up the phone again.
Trust me, this will work if you do it correctly |
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eh6794
697 Posts |
Posted - 08/07/2008 : 10:27:24 AM
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quote:
Originally posted by mgr2602
I'm a Banker/Broker
What rate were they quoting...on what product?
I offer 0 bank fees.
No ysp disclosed if I bank the loan
No origination
No processing
No application
No Lender/commit fee
No credit report
No flood
No discount points
The only fee that is listed in the lender section is the appraisal POC.
Tell her to get a copy of the lock confirmation from him!
FYI I can do no fees also, I find out what Bank of Americas NO FEE loans rate is then I give an 8th percent lower... Usually I will get about 2.2 rebate points which pays for everything and leaves about 1 point for me... Im happy with 1 point |
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eh6794
697 Posts |
Posted - 08/07/2008 : 10:33:47 AM
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quote:
Originally posted by Captain Mortgage
Just saw BofA close an 90% LTV purchase 6.375% NO closing costs. NO MI. Just paid for an appraisal. This was on the retail end. I confirmed this with my escrow officer and saw the HUD.
There are still a lot of products out there that brokers can't offer.
That is true. That same day that person locked that loan the par rate was probably about 5.75. Had I locked that loan that day I would have got about 2.3 to 2.5 points rebate. The only thing B of A has on me as a broker is 80 to 85% LTV loans they wont charge MI and I have to :( |
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Captain Mortgage
1745 Posts |
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Posted - 08/07/2008 : 10:58:50 AM
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