May 6, 2024 • 20 mins
In this compelling episode of "Loan Officer Sales Training," we tackle one of the most common challenges faced by mortgage professionals: competing with lower interest rates offered by competitors. Join our host, a seasoned loan officer with a knack for staying ahead of the game, as they dissect strategies to effectively address this issue head-on.
Discover innovative approaches to differentiate yourself beyond just rates, including emphasizing the value of personalized service, highlighting your expertise, and showcasing the unique benefits of your lending products. Our guest experts, industry leaders who have successfully navigated competitive landscapes, share their invaluable insights on how to position yourself as the superior choice for prospective borrowers.
From leveraging creative financing options to emphasizing the long-term benefits of working with your institution, this episode provides you with practical tactics to not only match but surpass your competitors' rates. Learn how to effectively communicate your value proposition to potential clients, ensuring that they understand the comprehensive benefits of choosing you as their trusted mortgage partner.
Tune in to "Beating Competitor's Rates" and equip yourself with the tools and strategies needed to win over clients, even in the face of fierce competition.
For more episodes visit:
https://themortgagecalculator.com/Page/Loan-Officer-Sales-Training-Podcast
About The Mortgage Calculator:
The Mortgage Calculator is a licensed Mortgage Lender (NMLS #2377459) that specializes in using technology to enable borrowers to access Conventional, FHA, VA, and USDA Programs, as well as over 5,000 Non-QM mortgage loan programs using alternative income documentation!
Using The Mortgage Calculator proprietary technology, borrowers can instantly price and quote thousands of mortgage loan programs in just a few clicks. The Mortgage Calculator technology also enables borrowers to instantly complete a full loan application and upload documents to our AI powered software to get qualified in just minutes!
Our team of over 350 licensed Mortgage Loan Originators can assist our customers with Conventional, FHA, VA and USDA mortgages as well as access thousands of mortgage programs using Alternative Income Documentation such as Bank Statemen
The Mortgage Calculator is a licensed Mortgage Lender (NMLS #2377459) that specializes in using technology to enable borrowers to access Conventional, FHA, VA, and USDA Programs, as well as thousands of Non-QM mortgage loan program variations using alternative income documentation!
Using The Mortgage Calculator proprietary technology, borrowers can instantly price and quote thousands of mortgage loan programs in just a few clicks. The Mortgage Calculator technology also enables borrowers to instantly complete a full loan application and upload documents to our AI powered software to get qualified in just minutes!
Our team of licensed Mortgage Loan Originators can assist our customers with Conventional, FHA, VA and USDA mortgages as well as access thousands of mortgage programs using Alternative Income Documentation such as B
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Restream recording May 06, 2 (00:00):
So welcome everyone.
My name is Kyle Hiersche.
I'm the COO of the MortgageCalculator, and this is our loan
officer sales training that wedo every weekday at 12 p.
m.
Eastern, where we go through thefront end and the sales end of
mortgages.
Today, we're going to be talkingabout Beating competitors rates.
So how do we beat competitorsrates?
How do we compare thecompetitors rates?
(00:20):
And then specifically, what arethe solutions that we have here
at the mortgage calculator aswell?
So let's go ahead and get intoit here.
Full screen here.
All right.
So the number one issue when itcomes to competing for rates,
right?
Well, first of all, at themortgage calculator, we try not
(00:42):
to get into this game, right?
That's why we love specializingin non QM loans.
We love specializing in, inloans for investors.
And so, you know, we try not toplay the race to the bottom
game, but There's going to betimes where people say they're
getting lower rates, right?
The biggest issue and this isespecially for new loan officers
(01:02):
out there.
The biggest issue is that forone, you have no idea what
they're getting unless they sendyou an LE.
They have no idea the ratethey're getting unless they're
showing you a locked LE, right?
But the, the main thing is justusually not comparing apples to
(01:24):
apples.
Right.
That's the biggest, most commonproblem when trying to beat a
competitor or compare rates.
And especially for a loanofficer, that's not super
experienced because evenexperienced loan officers, this
is an issue with if you're notsuper experienced.
You might not catch all thedifferent things that are
creating you getting beat in thefirst place because at the
(01:47):
mortgage calculator, our marginis always 2.
75, right?
So if we're brokering a deal,we're 2.
75.
If we're the lender, we're 2.
75, which means.
That our pricing is way betterthan everyone else's.
Because as far as my knowledge,we're one of the only
correspondent lenders out therethat's keep their margin at two,
seven, five.
The reason why people spendmillions of dollars to get their
(02:09):
license as a lender like us isso that they can raise their
margins.
However, we do not do that.
We keep our margin the same.
So instead of raising themargins, our margins are even
lower because we get.
Rate decrease because we'refunding the loan ourselves.
So there's, there shouldn't be atime where somebody's beating
you, right?
(02:30):
And in the history of thecompany, we've only had one
price match ever be sent in thatwas an actual price match that
was getting beat by a littlebit.
For the same loan, just becausethe other loan officer like cut
their comp in half, right?
So sometimes you just can'tcompete.
If somebody is going to do aloan for a hundred basis points
total to their whole company, Imean, you know, sometimes you
(02:54):
just can't compete with that,right?
It's just not realistic foranyone to do unless you were to
cut your comp.
To that.
And there's no use in that,right?
We don't play the race to thebottom game.
So my point here is that you'renot going to be getting beat out
there, right?
We have better pricing thanalmost everyone else.
And the reason for that isbecause we fund our own loans,
(03:15):
but we keep our margin the sameas if we weren't funding our own
loans, everyone else who fundstheir own loans is going to
increase their margin.
That's the whole point, right?
But we're kind of a differentmodel here.
So my point is, if you're at themortgage calculator, you're not
going to be getting beat all thetime.
So.
Again, we have the price match,which we'll go over here in a
little bit mechanism for you.
(03:36):
And it's never actually had tohave been used.
And the reason for that ismostly because you're never
going to actually get a lockedLE that's going to beat you.
Right?
So get a locked loan estimate.
That's the first step to beatingthe competitor's rate, right?
(03:56):
Or even comparing theircompetitor's rate.
If your client's saying, Hey,this person is giving me this
rate.
You need to beat it.
Then you say, okay, send me overthe locked loan estimate.
Oh, you don't have a locked loanestimate.
Well, then you have no idea whatrate you're getting, right?
If they send you over just aloan estimate, that's not
locked.
Then that's fine, but you needto make the client understand
(04:19):
that it means nothing.
It means absolutely nothing.
Unless it's locked, right?
Even when it's not locked, whatcan happen is you find out.
That it's not you know, reallywhat doesn't match their
situation because there's somany irresponsible loan officers
(04:39):
out there from companies thatjust let them send out what Jose
calls toilet paper, right?
Like it's only as the, theapprovals and the LEs are only
as good as the paper thatthey're written on.
Right.
And so they're going to get allkinds of stuff.
You know, but at the end of theday, it's your job to know what
is, is reality.
Right.
And that's going to start by notonly getting the loan estimate,
(05:02):
but it's going to start with theinterview with your customer.
So it's going to start with theinterview of the customer, but
it's also going to continue onceyou get the loan estimate.
So if they're telling you thatthey're beating you on price,
now there's another interviewthat you need to conduct to go
further into this, right?
(05:24):
What looking at the elite, whatis the credit score based on?
Okay.
Well, this credit score is basedon this.
But I quoted you based on that.
You told me your credit score is680, but this le that you gave
me is based on 740.
Of course, it's beating us,right?
If you want me to quote you on740, then I'll send you a 740,
but you told me your credit is680.
(05:45):
So what good does it do to havea le for 740 credit, right?
Also the loan program it's basedon.
I mean, we've seen le's forinvestment properties that are
quoted as primaries.
right?
All kinds of stuff like that.
Because again, alone officersout there, some are
inexperienced, some are justshady and scheming.
(06:05):
You know, and so you got toreally pay attention is
something as simple as you wouldthink like, oh, it's an
investment property.
You wouldn't even be looking atthe you know, the actual loan
type or whatever it is.
Right.
And then special requirements.
So here's a big one that peoplemiss out on a lot.
Right.
So let's say they have a lockedLE from a competitor.
(06:27):
And it's, it's beating you by alot and you're going, how the
heck are they, are they beatingme?
Well, if you look at theprograms carefully, you may see
that they may have quoted themon programs that they do not
qualify for, such as ones thathave income restrictions, right?
Yes.
(06:47):
There's a much better programswith better pricing and lower
down payments.
But you have to meet thoseincome restrictions.
So that's another conversationwith the borrower.
Well, they quoted you on a youknow, home possible or whatever
it may be, but you know, there'srestrictions to this program and
then ask them, do you meetthese?
(07:08):
Requirements.
And if they don't, this is whenthis stuff happens, it's not
only an opportunity for you tocorrect the situation.
And, you know, you startcomparing apples to apples and
start down your road of asolution.
It's also an opportunity toprove that you are a
professional loan consultant,that you are honest and that the
(07:30):
other person they're dealingwith is most likely not.
Honest and not being a properloan consultant, because as soon
as you start pointing thesethings out, they're going to go,
well, why is that person tryingto, it, you know, automatically
seems like a scheme, right?
Like, oh, well they should haveknown that, or they didn't even
ask me that they didn't bother.
They're just giving me rates onprograms.
(07:52):
I can't even qualify for.
And so you use that opportunityto not talk bad about people,
but just to establish yourselfas, Hey, Yes, I do the extra
research.
I am a consultant.
I'm only going to quote you onprograms you can qualify for as
to where this person is justtrying to send you the lowest
rate to rope you in to get you.
(08:13):
And then you're going to seethat everything is totally
different.
They're going to go, Oh yeah,you don't qualify for that
program actually.
Well, yeah, I mean, that'ssomething you should figure out
before you start giving them LVswith that program.
Right.
And then of course, occupancyagain.
Yeah.
Touched on it earlier.
You know, you'll literally seeLEs come through with a whole
different occupancy than whatyou were talking to the borrower
(08:34):
about.
And so you've kind of got to go,wait a minute.
Are we talking about aninvestment property or not?
Right.
What are we talking about?
Because this is a quote for aprimary residence.
I can give you a quote for aprimary residence that beats
this too, but you told me it'san investment property, a huge
difference, in pricing.
So occupancy too, and alsoborrowers understanding.
(08:55):
Are there multiple borrowers,right?
Are there things against certainborrowers in the guidelines?
Is this closing in an entity?
Does the entity have multipleowners?
Are there other owners over 25percent, which is usually the
threshold for them wanting themto sign the loan to?
I mean, these are all thingsthat are going to make a
(09:16):
difference in the pricingbecause they're going to make a
difference in the program.
Right.
And so we need to know, andthat's our job as a loan
consultant.
So for the newer loan officersout there, especially see how,
once you dive into this, that'swhat we keep talking about time
and time again, of a loanofficer consultant, you, it's
not just the initial interview.
(09:37):
It's not just talking to them orquote unquote, making a sale.
These are things that you reallyhave to dive into and you're
doing it for the client, right?
For the we always must have theclient's best interest you know,
at, at heart.
That is what we you know, arerequired to do by law.
And so we're going to continueto do that throughout the
(09:57):
process.
And this is much more than justmaking a sale and beating their
rates.
This is also educating theclient so that they're not
getting scammed by other peopleout there because what will
happen is your client, you know,let's say they don't move
forward with you because theydon't quite understand what's
going on.
They move forward with thatother person.
(10:17):
It's going to harm them.
They're going to end up payingmore than they thought they're
going to end up paying more thanthey would with you, right?
So it is going to end up hurtingthem.
And so this is all for the goodof the borrower, right?
So we need to be a loanconsultant that way the borrower
knows, even if they don't workwith us, they know their, their
(10:39):
rights and how things work.
And they know that you were aprofessional that consulted
them.
So that's the first thing.
We got to see the locked loanestimate.
We got to analyze the lockedloan estimate, right?
Well, I guess I should say here,we got to see the locked loan
estimate, and then we need toask the questions about the
(11:01):
locked loan estimate so that wecan analyze it.
Right.
Which is, is this screen here?
So we're going to analyze theactual LE.
So what are we talking abouthere too?
We need to look at the term.
Did they quote them on a 15year, right?
Or a 30 year.
We need to look at theamortization type.
Is this a 40 year amortizationinstead of a 30 year?
(11:24):
These are all things that aregoing to make huge differences.
In the rates, right?
Is the LTV the same?
You would be surprised how manypeople send in an LE saying
they're getting a cheaper ratewhen the person quoted them on
25 percent down instead of 15percent down or whatever the
situation is, right?
And you also have to look at itfor mortgage insurance.
(11:46):
Is it a loan that's going torequire mortgage insurance?
If it is, is that on there?
Is that going to explain to theclient?
Is the, are the actual you know,like the title fees and
everything like that.
A lot of people just leave allthat kind of stuff off the LEDs
and stuff to make it lookbetter, but in reality, you
know, these are costs that aregoing to come up.
And so it looks kind ofdeceivingly.
(12:08):
Good to the client because theydon't see a ton of fees.
Right.
Also the property value.
A lot of the times a loanofficer will just send a crazy
value, right?
They're like, Oh yeah, we, youknow, we could do you know, 80
percent LTV or whatever, andthen they'll just say, yeah, I
quoted it based on it beingworth a million dollars yet
(12:29):
Zillow says it's worth a half amillion dollars.
Right.
So these are things that theycan do too, that you're not even
realizing what's going on, butwhen we're talking about you
know, refining, we don't knowwhat the appraisal is going to
come in at, or what it'sactually worth or what LTV we
can do.
So these are issues as well.
And also the address in thearea, big, big thing.
(12:52):
Is it rural or not?
That's huge because most loanprograms are just going to
disqualify them completely ifit's rural, right?
If the property is marked asrural.
So, you know, you're, they'reeither not going to qualify for
that loan at all possibly, or ifthey do, it's going to be more
(13:13):
expensive.
And so the address and the areais definitely super important.
Now we're not really talkingabout commercial stuff here, but
just a side note on thecommercial side, remember that.
Most commercial places are onlygoing to do certain zip codes.
And they're very strict aboutit.
Cause they talked about this onthe daily rates lab, right?
(13:34):
That they're going toimmediately just say, no, if
it's in let not too littlepopulation density, too high of
crime rate, they have all thesestatistics and they just have a
thing that says, do we lend inthis zip code or not?
So while a competitor may begiving them a quote.
(13:58):
You know, on the commercial sideof things, again, this is more
of a side note.
We're not talking aboutcommercial here necessarily, but
on the commercial side you know,it could be a possibility that
they probably can't actually,you know, they may get a quote,
but the, none of the actualcommercial lenders are going to
actually lend there.
Right.
And so now you're like, okay,well, they quoted you on
(14:19):
something.
That that's probably not goingto, right.
But in, besides in commercial,really the big thing with the
address scenario is, is it ruralor not?
Cause now we're not even on thesame planet if we're comparing
anything, if it's, if we'recomparing non rural to rural,
and then, so the last thinghere.
(14:40):
So what does this mean?
How do we utilize.
our tools here at the mortgagecalculator.
Well, again, you shouldn't begetting beat.
So you should know that don'tgive up on deals thinking, Oh,
our rates aren't as good.
You have to dive in because Ipromise you nobody's has cheaper
rates out there, right?
There's no special magic ratesheet out there that somebody
(15:01):
has this way cheaper, especiallybecause we don't raise our
margins.
So you shouldn't be racing tothe bottom in the first place.
When you are told that somebodyhas a better rate.
You need to ask for the LEobviously you can't even them
and you can't even speculate ifthey have a better rate.
And if they're not providingthat or not you know, kind of,
(15:24):
if they're kind of like, oh,well, you know, just give me a
better rate or whatever.
You can't quote them unless theygive you the LE, right?
You're like, I can't quote, youcan't compare the pricing.
I cannot.
I'm going to give you pricingthe same pricing that they did.
If I don't have the Ellie, soyou're not comparing rates.
You got to let them know thatlike, Hey, unless you give me
(15:46):
that Ellie, you don't know whohas the better rate.
So I need the Ellie so I canquote you.
And then you can compare becauseright now you're not comparing,
right?
You're, you're, you're notcomparing at all.
Unless I see it and we say, yes,a hundred percent.
We're quoting the exact samescenario, exact same term and
more type LTV.
There's mortgage insurance on itor not.
The property value, the address.
(16:07):
The occupancy, the borrowers,the income, all of these things
have to be checked off and say,okay, yes, we were quoted the
exact same thing.
Now here's your quote.
Now compare this quote to theother quote or the other LE.
So make sure if your client'snot really wanting to do this,
and sometimes people are justkind of lazy and never want to
send it and stuff like that, butjust make sure they understand.
(16:30):
You as the client are doingyourself a disservice because
you are not actually comparingrates.
You're not shopping to get thebest rate as the client, right?
If you want to do that, then Ihave to have the LE so that I
can actually give you The ratethat you can compare, right?
(16:50):
So once you do have the LE andif you can't figure out why
you're getting beat, then youjust utilize the price match
desk.
So on the support directory,scroll down to price match,
submit it, attach the LE, give alittle detailed, you know,
breakdown of what's what's goingon with it, and And then our
(17:13):
team will review it.
And the first thing they'regoing to check is did you
properly check if it's, youknow, being compared apples to
apples, then they'll price itand see if you had, you know,
priced it correctly.
Maybe there was a mistake on thepricing and that's why you know,
you were getting beat out alittle, and if not, then we'll
figure out something else to do.
Now, again, you know, If ifsomebody's doing it for 100
(17:37):
basis points, total calm, we'reprobably too far apart to even
consider doing anything right.
But there are things that we cando.
And again, it's only happened 1time, only 1 time in the last,
you know, Three years now hassomebody actually sent in a
locked loan estimate.
That's actually apples toapples.
That was beating them out by atiny bit because the loan
(17:59):
officer was taking a cut ontheir comp and we figured it out
and made it happen.
So I promise it's not somethingyou're going to run into all the
time.
When you do run into it, makesure to ask for that Ellie, make
sure to let them know if it'snot locked, then it means
nothing, make sure to interviewthem, you know, as soon as they
start talking about, Hey, I gota better quota and got better
rates.
(18:19):
This starts now, right?
This interview process ofsaying, Hey, I want to look at
it.
Can I see it?
So I can so I can properlycompare it.
And then you're diving into yourquestions to make sure that you
know that once they send you theL.
E.
You can actually look at it andsay, okay, here, but I, here's
my notes that I talked to theborrower about, you know, this
(18:40):
is their actual scenario.
And then here's the LE doesn'tmatch.
And, you know, then so on and soforth.
So should not really be anissue.
You should be on the front endof this.
You should also be, you know,shooting these down.
As soon as you see them come in,I was like, Oh, they quoted you
on a completely different LTVand credit score.
You know, now I'm going to sendyou a quote with that LTV and
credit score.
(19:00):
Now you can compare those,right?
So it should be pretty easy foryou to do, especially after the
training.
But if there is an issue and youactually think you're getting
beat and you can't find out whatis going on or how they could be
beating you or what's differentfrom the Ellie than your quote
at that point, use the pricematch desk.
So we can figure it.
(19:22):
All right.
I don't see any questions here.
Again, I'm trying to keep thesepretty short here.
Okay.
But definitely don't be afraidto use the price match, but, you
know, make sure to, especiallyafter this training, you know,
go through these steps first,right?
These are always the first stepsbecause the price match desk
can't do anything without theLB.
Right.
So you've got to go throughthese steps and you have to have
this information.
(19:42):
You have to have the LE, then ifyou go through everything and
don't see what's wrong, then youcan submit it to the price match
desk.
So make sure you're goingthrough this regardless, because
either way, you're going to needthe information.
I don't see any questions.
Thank you everybody for tuningin.
Remember we do this 12 PMEastern every weekday where we
go through the front end and thesales end of mortgages.
(20:04):
So.
We will be back tomorrow with anew topic.
Appreciate it.
And we'll see you tomorrow, 12PM Eastern for the next episode
of the loan officer salestraining with the bank.
So welcome everyone.
My name is Kyle Hiersche.
I'm the COO of the MortgageCalculator, and this is our loan
officer sales training that wedo every weekday at 12 p.
m.
Eastern, where we go through thefront end and the sales end of
mortgages.
Today, we're going to be talkingabout Beating competitors rates.
So how do we beat competitorsrates?
How do we compare thecompetitors rates?
(00:20):
And then specifically, what arethe solutions that we have here
at the mortgage calculator aswell?
So let's go ahead and get intoit here.
Full screen here.
All right.
So the number one issue when itcomes to competing for rates,
right?
Well, first of all, at themortgage calculator, we try not
(00:42):
to get into this game, right?
That's why we love specializingin non QM loans.
We love specializing in, inloans for investors.
And so, you know, we try not toplay the race to the bottom
game, but There's going to betimes where people say they're
getting lower rates, right?
The biggest issue and this isespecially for new loan officers
(01:02):
out there.
The biggest issue is that forone, you have no idea what
they're getting unless they sendyou an LE.
They have no idea the ratethey're getting unless they're
showing you a locked LE, right?
But the, the main thing is justusually not comparing apples to
(01:24):
apples.
Right.
That's the biggest, most commonproblem when trying to beat a
competitor or compare rates.
And especially for a loanofficer, that's not super
experienced because evenexperienced loan officers, this
is an issue with if you're notsuper experienced.
You might not catch all thedifferent things that are
creating you getting beat in thefirst place because at the
(01:47):
mortgage calculator, our marginis always 2.
75, right?
So if we're brokering a deal,we're 2.
75.
If we're the lender, we're 2.
75, which means.
That our pricing is way betterthan everyone else's.
Because as far as my knowledge,we're one of the only
correspondent lenders out therethat's keep their margin at two,
seven, five.
The reason why people spendmillions of dollars to get their
(02:09):
license as a lender like us isso that they can raise their
margins.
However, we do not do that.
We keep our margin the same.
So instead of raising themargins, our margins are even
lower because we get.
Rate decrease because we'refunding the loan ourselves.
So there's, there shouldn't be atime where somebody's beating
you, right?
(02:30):
And in the history of thecompany, we've only had one
price match ever be sent in thatwas an actual price match that
was getting beat by a littlebit.
For the same loan, just becausethe other loan officer like cut
their comp in half, right?
So sometimes you just can'tcompete.
If somebody is going to do aloan for a hundred basis points
total to their whole company, Imean, you know, sometimes you
(02:54):
just can't compete with that,right?
It's just not realistic foranyone to do unless you were to
cut your comp.
To that.
And there's no use in that,right?
We don't play the race to thebottom game.
So my point here is that you'renot going to be getting beat out
there, right?
We have better pricing thanalmost everyone else.
And the reason for that isbecause we fund our own loans,
(03:15):
but we keep our margin the sameas if we weren't funding our own
loans, everyone else who fundstheir own loans is going to
increase their margin.
That's the whole point, right?
But we're kind of a differentmodel here.
So my point is, if you're at themortgage calculator, you're not
going to be getting beat all thetime.
So.
Again, we have the price match,which we'll go over here in a
little bit mechanism for you.
(03:36):
And it's never actually had tohave been used.
And the reason for that ismostly because you're never
going to actually get a lockedLE that's going to beat you.
Right?
So get a locked loan estimate.
That's the first step to beatingthe competitor's rate, right?
(03:56):
Or even comparing theircompetitor's rate.
If your client's saying, Hey,this person is giving me this
rate.
You need to beat it.
Then you say, okay, send me overthe locked loan estimate.
Oh, you don't have a locked loanestimate.
Well, then you have no idea whatrate you're getting, right?
If they send you over just aloan estimate, that's not
locked.
Then that's fine, but you needto make the client understand
(04:19):
that it means nothing.
It means absolutely nothing.
Unless it's locked, right?
Even when it's not locked, whatcan happen is you find out.
That it's not you know, reallywhat doesn't match their
situation because there's somany irresponsible loan officers
(04:39):
out there from companies thatjust let them send out what Jose
calls toilet paper, right?
Like it's only as the, theapprovals and the LEs are only
as good as the paper thatthey're written on.
Right.
And so they're going to get allkinds of stuff.
You know, but at the end of theday, it's your job to know what
is, is reality.
Right.
And that's going to start by notonly getting the loan estimate,
(05:02):
but it's going to start with theinterview with your customer.
So it's going to start with theinterview of the customer, but
it's also going to continue onceyou get the loan estimate.
So if they're telling you thatthey're beating you on price,
now there's another interviewthat you need to conduct to go
further into this, right?
(05:24):
What looking at the elite, whatis the credit score based on?
Okay.
Well, this credit score is basedon this.
But I quoted you based on that.
You told me your credit score is680, but this le that you gave
me is based on 740.
Of course, it's beating us,right?
If you want me to quote you on740, then I'll send you a 740,
but you told me your credit is680.
(05:45):
So what good does it do to havea le for 740 credit, right?
Also the loan program it's basedon.
I mean, we've seen le's forinvestment properties that are
quoted as primaries.
right?
All kinds of stuff like that.
Because again, alone officersout there, some are
inexperienced, some are justshady and scheming.
(06:05):
You know, and so you got toreally pay attention is
something as simple as you wouldthink like, oh, it's an
investment property.
You wouldn't even be looking atthe you know, the actual loan
type or whatever it is.
Right.
And then special requirements.
So here's a big one that peoplemiss out on a lot.
Right.
So let's say they have a lockedLE from a competitor.
(06:27):
And it's, it's beating you by alot and you're going, how the
heck are they, are they beatingme?
Well, if you look at theprograms carefully, you may see
that they may have quoted themon programs that they do not
qualify for, such as ones thathave income restrictions, right?
Yes.
(06:47):
There's a much better programswith better pricing and lower
down payments.
But you have to meet thoseincome restrictions.
So that's another conversationwith the borrower.
Well, they quoted you on a youknow, home possible or whatever
it may be, but you know, there'srestrictions to this program and
then ask them, do you meetthese?
(07:08):
Requirements.
And if they don't, this is whenthis stuff happens, it's not
only an opportunity for you tocorrect the situation.
And, you know, you startcomparing apples to apples and
start down your road of asolution.
It's also an opportunity toprove that you are a
professional loan consultant,that you are honest and that the
(07:30):
other person they're dealingwith is most likely not.
Honest and not being a properloan consultant, because as soon
as you start pointing thesethings out, they're going to go,
well, why is that person tryingto, it, you know, automatically
seems like a scheme, right?
Like, oh, well they should haveknown that, or they didn't even
ask me that they didn't bother.
They're just giving me rates onprograms.
(07:52):
I can't even qualify for.
And so you use that opportunityto not talk bad about people,
but just to establish yourselfas, Hey, Yes, I do the extra
research.
I am a consultant.
I'm only going to quote you onprograms you can qualify for as
to where this person is justtrying to send you the lowest
rate to rope you in to get you.
(08:13):
And then you're going to seethat everything is totally
different.
They're going to go, Oh yeah,you don't qualify for that
program actually.
Well, yeah, I mean, that'ssomething you should figure out
before you start giving them LVswith that program.
Right.
And then of course, occupancyagain.
Yeah.
Touched on it earlier.
You know, you'll literally seeLEs come through with a whole
different occupancy than whatyou were talking to the borrower
(08:34):
about.
And so you've kind of got to go,wait a minute.
Are we talking about aninvestment property or not?
Right.
What are we talking about?
Because this is a quote for aprimary residence.
I can give you a quote for aprimary residence that beats
this too, but you told me it'san investment property, a huge
difference, in pricing.
So occupancy too, and alsoborrowers understanding.
(08:55):
Are there multiple borrowers,right?
Are there things against certainborrowers in the guidelines?
Is this closing in an entity?
Does the entity have multipleowners?
Are there other owners over 25percent, which is usually the
threshold for them wanting themto sign the loan to?
I mean, these are all thingsthat are going to make a
(09:16):
difference in the pricingbecause they're going to make a
difference in the program.
Right.
And so we need to know, andthat's our job as a loan
consultant.
So for the newer loan officersout there, especially see how,
once you dive into this, that'swhat we keep talking about time
and time again, of a loanofficer consultant, you, it's
not just the initial interview.
(09:37):
It's not just talking to them orquote unquote, making a sale.
These are things that you reallyhave to dive into and you're
doing it for the client, right?
For the we always must have theclient's best interest you know,
at, at heart.
That is what we you know, arerequired to do by law.
And so we're going to continueto do that throughout the
(09:57):
process.
And this is much more than justmaking a sale and beating their
rates.
This is also educating theclient so that they're not
getting scammed by other peopleout there because what will
happen is your client, you know,let's say they don't move
forward with you because theydon't quite understand what's
going on.
They move forward with thatother person.
(10:17):
It's going to harm them.
They're going to end up payingmore than they thought they're
going to end up paying more thanthey would with you, right?
So it is going to end up hurtingthem.
And so this is all for the goodof the borrower, right?
So we need to be a loanconsultant that way the borrower
knows, even if they don't workwith us, they know their, their
(10:39):
rights and how things work.
And they know that you were aprofessional that consulted
them.
So that's the first thing.
We got to see the locked loanestimate.
We got to analyze the lockedloan estimate, right?
Well, I guess I should say here,we got to see the locked loan
estimate, and then we need toask the questions about the
(11:01):
locked loan estimate so that wecan analyze it.
Right.
Which is, is this screen here?
So we're going to analyze theactual LE.
So what are we talking abouthere too?
We need to look at the term.
Did they quote them on a 15year, right?
Or a 30 year.
We need to look at theamortization type.
Is this a 40 year amortizationinstead of a 30 year?
(11:24):
These are all things that aregoing to make huge differences.
In the rates, right?
Is the LTV the same?
You would be surprised how manypeople send in an LE saying
they're getting a cheaper ratewhen the person quoted them on
25 percent down instead of 15percent down or whatever the
situation is, right?
And you also have to look at itfor mortgage insurance.
(11:46):
Is it a loan that's going torequire mortgage insurance?
If it is, is that on there?
Is that going to explain to theclient?
Is the, are the actual you know,like the title fees and
everything like that.
A lot of people just leave allthat kind of stuff off the LEDs
and stuff to make it lookbetter, but in reality, you
know, these are costs that aregoing to come up.
And so it looks kind ofdeceivingly.
(12:08):
Good to the client because theydon't see a ton of fees.
Right.
Also the property value.
A lot of the times a loanofficer will just send a crazy
value, right?
They're like, Oh yeah, we, youknow, we could do you know, 80
percent LTV or whatever, andthen they'll just say, yeah, I
quoted it based on it beingworth a million dollars yet
(12:29):
Zillow says it's worth a half amillion dollars.
Right.
So these are things that theycan do too, that you're not even
realizing what's going on, butwhen we're talking about you
know, refining, we don't knowwhat the appraisal is going to
come in at, or what it'sactually worth or what LTV we
can do.
So these are issues as well.
And also the address in thearea, big, big thing.
(12:52):
Is it rural or not?
That's huge because most loanprograms are just going to
disqualify them completely ifit's rural, right?
If the property is marked asrural.
So, you know, you're, they'reeither not going to qualify for
that loan at all possibly, or ifthey do, it's going to be more
(13:13):
expensive.
And so the address and the areais definitely super important.
Now we're not really talkingabout commercial stuff here, but
just a side note on thecommercial side, remember that.
Most commercial places are onlygoing to do certain zip codes.
And they're very strict aboutit.
Cause they talked about this onthe daily rates lab, right?
(13:34):
That they're going toimmediately just say, no, if
it's in let not too littlepopulation density, too high of
crime rate, they have all thesestatistics and they just have a
thing that says, do we lend inthis zip code or not?
So while a competitor may begiving them a quote.
(13:58):
You know, on the commercial sideof things, again, this is more
of a side note.
We're not talking aboutcommercial here necessarily, but
on the commercial side you know,it could be a possibility that
they probably can't actually,you know, they may get a quote,
but the, none of the actualcommercial lenders are going to
actually lend there.
Right.
And so now you're like, okay,well, they quoted you on
(14:19):
something.
That that's probably not goingto, right.
But in, besides in commercial,really the big thing with the
address scenario is, is it ruralor not?
Cause now we're not even on thesame planet if we're comparing
anything, if it's, if we'recomparing non rural to rural,
and then, so the last thinghere.
(14:40):
So what does this mean?
How do we utilize.
our tools here at the mortgagecalculator.
Well, again, you shouldn't begetting beat.
So you should know that don'tgive up on deals thinking, Oh,
our rates aren't as good.
You have to dive in because Ipromise you nobody's has cheaper
rates out there, right?
There's no special magic ratesheet out there that somebody
(15:01):
has this way cheaper, especiallybecause we don't raise our
margins.
So you shouldn't be racing tothe bottom in the first place.
When you are told that somebodyhas a better rate.
You need to ask for the LEobviously you can't even them
and you can't even speculate ifthey have a better rate.
And if they're not providingthat or not you know, kind of,
(15:24):
if they're kind of like, oh,well, you know, just give me a
better rate or whatever.
You can't quote them unless theygive you the LE, right?
You're like, I can't quote, youcan't compare the pricing.
I cannot.
I'm going to give you pricingthe same pricing that they did.
If I don't have the Ellie, soyou're not comparing rates.
You got to let them know thatlike, Hey, unless you give me
(15:46):
that Ellie, you don't know whohas the better rate.
So I need the Ellie so I canquote you.
And then you can compare becauseright now you're not comparing,
right?
You're, you're, you're notcomparing at all.
Unless I see it and we say, yes,a hundred percent.
We're quoting the exact samescenario, exact same term and
more type LTV.
There's mortgage insurance on itor not.
The property value, the address.
(16:07):
The occupancy, the borrowers,the income, all of these things
have to be checked off and say,okay, yes, we were quoted the
exact same thing.
Now here's your quote.
Now compare this quote to theother quote or the other LE.
So make sure if your client'snot really wanting to do this,
and sometimes people are justkind of lazy and never want to
send it and stuff like that, butjust make sure they understand.
(16:30):
You as the client are doingyourself a disservice because
you are not actually comparingrates.
You're not shopping to get thebest rate as the client, right?
If you want to do that, then Ihave to have the LE so that I
can actually give you The ratethat you can compare, right?
(16:50):
So once you do have the LE andif you can't figure out why
you're getting beat, then youjust utilize the price match
desk.
So on the support directory,scroll down to price match,
submit it, attach the LE, give alittle detailed, you know,
breakdown of what's what's goingon with it, and And then our
(17:13):
team will review it.
And the first thing they'regoing to check is did you
properly check if it's, youknow, being compared apples to
apples, then they'll price itand see if you had, you know,
priced it correctly.
Maybe there was a mistake on thepricing and that's why you know,
you were getting beat out alittle, and if not, then we'll
figure out something else to do.
Now, again, you know, If ifsomebody's doing it for 100
(17:37):
basis points, total calm, we'reprobably too far apart to even
consider doing anything right.
But there are things that we cando.
And again, it's only happened 1time, only 1 time in the last,
you know, Three years now hassomebody actually sent in a
locked loan estimate.
That's actually apples toapples.
That was beating them out by atiny bit because the loan
(17:59):
officer was taking a cut ontheir comp and we figured it out
and made it happen.
So I promise it's not somethingyou're going to run into all the
time.
When you do run into it, makesure to ask for that Ellie, make
sure to let them know if it'snot locked, then it means
nothing, make sure to interviewthem, you know, as soon as they
start talking about, Hey, I gota better quota and got better
rates.
(18:19):
This starts now, right?
This interview process ofsaying, Hey, I want to look at
it.
Can I see it?
So I can so I can properlycompare it.
And then you're diving into yourquestions to make sure that you
know that once they send you theL.
E.
You can actually look at it andsay, okay, here, but I, here's
my notes that I talked to theborrower about, you know, this
(18:40):
is their actual scenario.
And then here's the LE doesn'tmatch.
And, you know, then so on and soforth.
So should not really be anissue.
You should be on the front endof this.
You should also be, you know,shooting these down.
As soon as you see them come in,I was like, Oh, they quoted you
on a completely different LTVand credit score.
You know, now I'm going to sendyou a quote with that LTV and
credit score.
(19:00):
Now you can compare those,right?
So it should be pretty easy foryou to do, especially after the
training.
But if there is an issue and youactually think you're getting
beat and you can't find out whatis going on or how they could be
beating you or what's differentfrom the Ellie than your quote
at that point, use the pricematch desk.
So we can figure it.
(19:22):
All right.
I don't see any questions here.
Again, I'm trying to keep thesepretty short here.
Okay.
But definitely don't be afraidto use the price match, but, you
know, make sure to, especiallyafter this training, you know,
go through these steps first,right?
These are always the first stepsbecause the price match desk
can't do anything without theLB.
Right.
So you've got to go throughthese steps and you have to have
this information.
(19:42):
You have to have the LE, then ifyou go through everything and
don't see what's wrong, then youcan submit it to the price match
desk.
So make sure you're goingthrough this regardless, because
either way, you're going to needthe information.
I don't see any questions.
Thank you everybody for tuningin.
Remember we do this 12 PMEastern every weekday where we
go through the front end and thesales end of mortgages.
(20:04):
So.
We will be back tomorrow with anew topic.
Appreciate it.
And we'll see you tomorrow, 12PM Eastern for the next episode
of the loan officer salestraining with the bank.
Popular Podcasts
Crime Junkie
Does hearing about a true crime case always leave you scouring the internet for the truth behind the story? Dive into your next mystery with Crime Junkie. Every Monday, join your host Ashley Flowers as she unravels all the details of infamous and underreported true crime cases with her best friend Brit Prawat. From cold cases to missing persons and heroes in our community who seek justice, Crime Junkie is your destination for theories and stories you won’t hear anywhere else. Whether you're a seasoned true crime enthusiast or new to the genre, you'll find yourself on the edge of your seat awaiting a new episode every Monday. If you can never get enough true crime... Congratulations, you’ve found your people. Follow to join a community of Crime Junkies! Crime Junkie is presented by audiochuck Media Company.
24/7 News: The Latest
The latest news in 4 minutes updated every hour, every day.
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.