Month: January 2007 (page 2 of 9)

by Brian Brady

Commercial Real Estate Finance Expert
Structured Debt and Equity
Licensed Real Estate Broker in AL, CA, and FL

Author website

Mortgage origination is a contact sport. It’s retailing. It’s selling. Too many of us can get caught up in the irrelevant tasks that top producing originators simply refuse to do. Why do we fall into the task trap rather than be focused on dollar productive activities? We do it because it makes us FEEL productive and we want to appear to have value to our Realtor partners.

Let’s pretend that Russell Shaw was the National Sales Manager of the mythical Bloodhound Blog Mortgage. I listened to the three podcasts of Mr. Shaw’s interview and he didn’t say a damn thing (that you haven’t already heard). That is what was so inspiring about the interview. There is no magic pill that you need to swallow to become the next mega-producer in mortgage originations. You already know what you have to do; take lots of loan applications that have a high probability of funding. Listen to the podcasts and you’ll be as stoked as I am right now.

The first notable piece of advice I heard from Russell Shaw was to write down all the stuff you hate about the business…then…don’t do it. Pay someone else to do it. I laughed so hard at my utter stupidity. I was a superstar rookie originator because I refused to do the “paperwork”. I took good applications, gathered up documentation,, locked the rate, and said…NEXT. I let processors process, underwriters underwrite, and funders fund while I sold and looked for ways to sell more than the other guy.

How easy it is to forget all of the basics. Don’t like placing loans? Lay off this work on your wholesale lending reps. If they’re incompetent, don’t use them. I remember the day when they came to your office and actually competed for the business. You don’t like taking applications? Invest in a website with an online 1003 (about $50/month) and give away a free appraisal to applicants who use that function. Don’t like following the market daily? Read more

by Doug Quance

Associate Broker

Author website

I submit to you – the time has come. In fact… it’s long overdue.

As someone who has received more referral money than I have paid out – it has been good for me on a personal level.

But I fear that is has become disastrous on an industry level. Relocation companies, REO Asset Management companies, and online entities like Yahoo! and HomeGain are draining a ton of money out of the system without adding much value to it.

In an era of transparency, perhaps we need to shed some light on this subject.

Is it not odd that no other business operates in such a fashion? Do you think other licensed professionals seek to refer their clients out to the highest bidder?

I think not.

Do you think our clients would appreciate knowing how we’ve “pimped them out”?

I think not.

Do you think a buyer or seller would think twice if – IN BIG PRINT – they were told that the agent that they were being referred to has agreed to pay 35% of his commission to the referring party… especially if it was some online entity like Yahoo! or HomeGain?

I bet some might.

And with the Yahoo! and their relationship with Prudential, the plot thickens. Prudential has a franchise fee of 8% on top of that referral fee… and with the split between broker and agent… you can see how the agent is getting squeezed here.
Some believe that it’s just an issue of disclosure. Disclose and everything is okay.

NONSENSE! Have you read some of these disclosures? They seem so innocent and innocuous… while obscuring the real meaning of what is going on.

Here’s a disclosure in our Georgia Purchase and Sale Agreement:

“Broker hereby discloses that Broker may receive a commission, rebate, or direct profit for procuring a mortgage loan, insurance, or other services on behalf of Buyer or Seller.”

That’s no disclosure! That’s a C-Y-A!

A disclosure would spell out what compensation the Broker received from what service provider – and would require that disclosure prior to the Broker referring the client to said provider… not at the last minute when they sign an offer.

I don’t accept fees such as Read more