Posted on 02/24/2008 5:28:16 AM PST by 2ndDivisionVet
he hunt continues! A couple of weeks ago we discussed the various types of Realtors one is likely to come across. Now it is time for the loan officers to be exposed. Once again, this post is littered with stereotypes and generalizations, but we all know we have run across these folks at some point in our lending careers so don't get all politically correct on me. It would be wise for consumers to figure out which one they are dealing with.
The Gangster: Maybe you haven't heard, gangs and street thugs have figured out that mortgage fraud is a lot more profitable than dealing drugs and damn sure less dangerous. Seriously, if your loan officer has a tattoo on his neck or a dollar sign tattooed on the palm of his hand, you may want to keep shopping for a mortgage loan.
The Newbie: Everyone starts off as a newbie. Newbie loan officers are very similar to newbie Realtors. In fact, they usually have the same birth mother. I think the temperature of the womb determines who winds up as a Realtor and who winds up as a loan officer. In the finance world, newbies are dangerous. Nothing like being young and dumb. Every established loan officer remembers their dumbest newbie mistake. Mortgage lending is a game of experience, so consumers would do best to focus on your loan officer's experience rather than that low rate quote. Sooner or later the newbie morphs into other species of loan officers. What they become is based on where they started off.
Jack of All Trades: Nothing like juggling several different careers. Most part-time loan officers got in the game during the refi boom. Be forwarned, Part Timers are Part Timers because they aren't good enough to be full time. You wouldn't use a part time lawyer. Or better yet, let's use a part time surgeon. Dumb right? So why do consumers use part time loan officers for the largest financial transaction of their lives? Part Timers also have a knack of being able to hook you up with a ton of ancillary products that they also sell on the side. Need life insurance? I got ya! Need homeowners insurance? I got ya. Need a notary? No problem. I can even list your home for sale. I also have my Realtor license. Note: As I was writing this post, a FedEx delivery man dropped off a package and mentioned he was a loan officer on the side. God help us all.
The Super Producers: There are loan officers who close in excess of $100 million in loans per year and can make seven figures (yes, you read that right). Every loan officer aspires to be that guy or gal. Like Super Producer Realtors, Super Producer Loan officers have figured out how to make the world revolve around them. Car of choice is ususally a Range Rover of if they are really bold, a Porsche. Super Producers are either really good or really bad loan officers. Like Super Producer Realtors, you are bound to run into an army of assistants. Super Producers are all about volume. Phone calls may only last about 2 minutes with them. You are a fortunate client if they remember your name.
The In House Guy: This loan officer usually works inside a real estate office as part of an affiliated business arrangement. They usually are into S&M because there is no way any normal loan officer would ever want to be stuck in a office full catty Realtors all day on purpose. Hint to consumers: They weren't referred to you by the Realtor because they are good or have low rates... it might be that year end cruise to Aruba for in house referrals that is really motivating the referral.
The Graphic Artist: Trained by Ameriquest, these Loan Officers are experts at Adobe Acrobat and Photoshop. Need tax returns? No problem. Your employer forgot to include that $50k bonus on your w-2? Wink, wink. We can fix that. These loan officers are masters at making those deals that every other loan officer told you was impossible possible. The FBI will come a knocking.
The Refi Monkey: Believe it or not, there are loan officers who have no clue how to handle a purchase transaction. These loan officers got in the business during the refi boom and there was plenty of money to be made just churning loans and selling low interest rates to refi customers. Of course, as rates started going up, the refi monkeys quickly found out that you can't live off refis forever. Now they are running around driving Realtors crazy dropping off rate sheets and donuts. Can often be heard saying things like "Why can't we just push the closing back a few days?"
The Fisherman: This loan officer doesn't have very many clients. Of course, you only need one or two closings per month if you make $20k in fees off every deal. Like his name says, he is in constant search of the whale of a client. I haven't figured out if he just targets borrowers who are short on brain cells or if he is just that good of a salesman. Fisherman are easily spotted because they never work more than 15 hours per week.
Sub-Prime Sam: Nearly extinct after the sub-prime implosion, this loan officer only focused on subprime loans because "people will always have bad credit" and he was "tired of dealing with A paper rate shoppers." Sub-prime Sam wasn't aware that there is such a thing as a full documentation loan and just because the borrower lost their last paystub doesn't mean it automatically needs to go stated.
The Professional: Like Professional Realtors, the professional loan officer is a rare breed. They actually care about their client's financial well being. They have made a career in residential finance. Most of their clients are through referrals. Clients can expect to be treated with respect and educated on all aspects of their largest financial transaction. Professionals usually put together the best overall package of rate, fees, and service for their clients. The rate is always delivered as promised. The fees never change. The loan closes on time. They also may actually attend their closings in person!
The Call Center Monkey: These loan officers usually work for big mortgage banks or internet lenders. They usually go by names of Mortgage Specialist or Loan Coordinator. If you are lucky, they have been on the job longer than two months and may even be located in the US. If you called a 1-800# for a big bank, the odds are you are dealing with the Call Center Monkey. Good Call Center Monkeys strive to learn the ropes so they can leave the hell of their Dilbert-esque call center and start making real money in the outside world as a self-sufficient mortgage broker. Depending on the company, some may turn into the JT Marlin though, so be careful!
JT Marlin: An evil relative of the less intimidating Call Center Monkey, the JT Marlin works at a boiler room mortgage hack shop. These loan officers love repeating lines from movies such as Boiler Room and Glen Gary Glenross. (Warning: Dirty Language). Success is measured in fees collected. Be careful, because they are always closing. I captured some rare footage of the JT Marlin broker at work. Almost always will be under 30 and can usually be seen driving a leased Hummer H2.
I am sure there are other classifications of LOs, so I would love to hear about them. Fire away!
At the original article, IIRC....
So how does one find a “Professional?”
I consider myself one, even though I’m just getting back in after being wiped out from Katrina.
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