Loan Officers – 5 signs you are originating for the wrong company

5-1Loan Officers and Managers –

 

 

Here are five signs that you may be originating for the wrong mortgage company.

 

 

 

  1. Your pricing is way off the mark.
  2.  Your compensation is too low.
  3. Your UW turn time and / or service is bad and you see no change.
  4. Your company is adding overlays that others are not.
  5. There are no leaders in your company that you look up to.

If you are experiencing one of these warning signs in your current situation you should be exploring new options.

If you are suffering through more than one you should have an exit strategy in the works.

Which warning sign is the worst is a matter of opinion.

Many loan officers can overcome price with good service.  So timely service from underwriting and funding  is important.

Low compensation is not always a bad thing if you are learning or it was your decision to price “thin” expecting to make it up in volume.

A ship without a good captain will have problems, A team without a leader is just a group of people. So having leaders in your company that you look up to and learn from is also highly important.

If you recognize any of these issues in your current position please call me to discuss your possible future with SecurityNational Mortgage.

At SecurityNational Mortgage our pricing is competitive, our compensation package is very good, Our turn times are always fast, Our overlays are non-existent or minimal, and we have a company of leaders that will help you get to the next level.
Lee Walsh
SecurityNational Mortgage Company
407-459-4119
Lee.Walsh@snmc.com

Are Mortgage MSA’s on the way to extinction?

Wells Fargo and Prospect have announced that they are exiting all MSA agreements.  The CFPB has levied major fines to mortgage companies for MSA activity with little guidance to go with the financial fines.

Mortgage companies have to see this as a strong indicator that the risk is getting to high to continue participating in these type of agreements.

For more information see the recent article at HouseWire.com

USDA corrects handbook re: property and appraisal requirements

From USDA 5/14/2015 clarification – Property and Appraisal Requirements

USDA

May 14, 2015

Property and Appraisal Requirements

This message provides three technical clarifications to Chapter 12 of the 3555 Guaranteed Loan Technical Handbook (HB-1-3555) concerning property and appraisal requirements. The 3555 Handbook will be updated in the near future to reflect these clarifications which are effective immediately.

• HB-1-3555 makes reference to appraisers using the cost approach when appraising residential property. The regulation, found at 7 CFR 3555, requires a fair market value approach and not a cost approach. The cost approach is not required for the Guaranteed Loan Program.

• Similarly, the regulation does not require that the Agency be listed by the lender’s appraiser as an “intended user.” Whether the Agency is listed as an intended user or not has no effect whatsoever on the fair market value. While the Agency may guarantee these loans, they are the lender’s loan, and the intended user is the lender.

• The Department of Housing and Urban Development (HUD) will soon replace two of its handbooks for property standards, HUD Handbooks 4105.2 and 4905.1. The successor replacing the two handbooks will be HUD Handbook 4000.1. Chapter 12 of HB-1-3555 refers to the two handbooks which will be replaced. When HUD Handbook 4000.1 becomes effective, it will also become effective for purposes of HB-1-3555.

Questions regarding this implementation may be directed to the Single Family Housing Guaranteed Loan Division at (202) 720-1452 or your State Guaranteed Coordinator. See “Contact Us” at the following website, and then click on “Guaranteed” to select a state representative: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

*this site is in no way affiliated with USDA and is only passing this notice along as a public service

FHA 2015 big changes to HUD guidelines

This is a great video to get us all off of our butts and read the new FHA guidelines.

FHA Income Documentation

FHA Rental Income

2nd FHA Loan

Just a few of the areas of change coming.

Here is a link to the new HUD handbook in PDF

Questions or comments are always welcome!

 

Loan Officer Compensation – All about the BPS (Part 2)

In part one of this article I outlined the importance of breaking out all revenue and costs into BPS.  Why is it important to view your mortgage branch business this way?

Because it give you an additional perspective besides using dollar amounts. Because you pay your loan officers using basis points it makes sense to use the same comparison for all income and expenses. You may net $500 on one loan and $1000 on another, looking at revenue and expenses in BPS is – at least to me – a better way to understand your costs and profit.

To understand and project targeted goals for profitability using BPS to set goals for loan officers, overhead, and revenue allows you to identify strengths and weakness and make adjustments.

How can you use this information to determine the right compensation for your loan officers?

For existing loan officers you can review their previous production and compensation to determine if they are carrying their weight.
Using a BPS cost breakdown on a loan officers previous production can reveal a lot.

For potential LO’s doing a cost / benefit analysis using BPS can be very helpful comparing companies.

What is the gross, costs ( processing, third party costs, operating expenses), and commission, in BPS historically for the LO?

I hope this information gives you some ideas that you can use evaluating your employees an your personal production.

Comments and questions are always welcome.