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Ethical Lending

Friday, November 16, 2007 - Article by: Lender411 Member


I have closed quite a bit this month. Fee for a Mortgage Professional is a relative term. My fee this month is pretty high because of the number of loans that I have closed but for many other companies I'm sure that my numbers are low. It really has to do with the split, I can afford to keep my costs very low.

I always give good honest quotes. So honest in fact that some people decide not to do business with me because they are getting a better quote from another lender. My fees are so low and my quotes are so accurate that when someone tells me the dimensions of another loan being offered to them I know whether or not it is a real deal or smoke and mirrors.

I never bad mouth other lenders; I wouldn't want it done to me. I do try to educate my clients as to what is truly available on the market. My rate and fee will not always be the lowest (though most often they are) but when a borrower gets a quote from me, they know what they are getting. There will not be any surprises at the closing table. If I am unable to get through to a person and I know that they are not going to get what is promised to them from another lender I tell them almost verbatim "Well I hope everything works out for you, just remember if xyz (lender) is not able to follow through with this loan for you that I'll be here for you."

This week I had two people whom had told me that they were getting a better deal from another lender come back to me. The first person who came back to me I had first spoken to a month ago. He was upset about the way that the other lender had conducted himself and he told me that he should've never left me to go with another lender in the first place. The lender had lied about the rate and the closing costs were substantially higher than he was originally quoted. We are closing on the 26th of this month (we could do it sooner if the seller's side was ready).

The other person who came back to me told me that the lender that she left me to work with cannot do anything with the file. She said that she was told that she was fully approved and then something came up that killed the deal. I know what it is that killed the deal for the other lender. This person owns several rental properties already which makes the DTI appear to be out of whack. When the REO section of DU is properly filled out and the PITI washes are done correctly her DTI is well within guidelines.

The lenders whom I was up against lied and as a result I got the loans. Its always been true that honesty will always win but especially in todays market. We are dealing with a more educated consumer than the days of the past and as such honesty, knowledge, and professionalism is what will bring the business in.

So remember if you are a Mortgage Professional never lie to get business, it will just backfire in your face and you'll lose business as a result!

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