When Smart Fails - Don't Be the 1 Out of 1000

Real Estate Services with Digital Content Creator

I remember my parents telling me, "they need you more than you need them" about a particular episode in my younger life. Here is a little insight to my personality, business method and ideals based on that same factor. I love my loyal clients and they love me. Even my new clients are always referring business to me. My desire is to be the best provider of mortgage services with the highest possible integrity there is available. Sometimes something just doesn't fit - like a Tinker ToysTinker Toy and a Lincoln Log: they just are not made for each other.

This is transparency - not that fakey crud you hear people calling transparency. This may also be somewhat of a constructive vent ... a rant if you must. You may also file this under the topic of a lesson in "Intelligent Negotitating" or "Foolish Follies of the Free Mouthed Morons". Sure, some will say, "Ken, do you really want your prospective customers reading this in a public blog?"

A.B.S.O.L.U.T.E.L.Y. - in fact it may save some a lot of time and embarassment down the road. It will also tell them I am extremely confident that my pricing is better than the market. Then it will tell them not to be a jerk. But that's only 1 out of 1000.

Rates are very low right now. I mean very VERY low. There is an old customer of ours who has always been talked about around the office. He has done two or three loans with us and every one is like pulling teeth. Oddly the loan officer who used to handle his loans is no longer with us and between you and I he did pretty well in commissions on the guy. Let's call it "PITA costs".

So this particular person calls last week and asks for the LO. I explain he has left to go back to school but I will be happy to help him. I recognized his name as a repeat client and priced his loan extremely low. I mean much MUCH lower than he can get from any other lender without a lot of begging, pleading and maybe some lying. In fact I sent him a Good Faith Estimate with fees less than 1/2 of what they would normally be. Not only that but I quoted him a PAR interest rate at 4.375% on a fixed 15 loan. No discount points. Nothing rolled into the refi - just a straight up 4.375% rate.

I didn't hear from him for a few days and the rate went back up to 4.49% so I emailed him to let him know. His response? "Your fees are very high."

So I'm not worth 1/2 of my normal pay?

Negotiating is one thing. Being insulting is another. There are certain points in the negotiation when I stop communicating, withdraw any former offers and really don't care if the other party just goes away. This is one of those instances. Now what I am not telling you is something you really need to read - all 3 of you who actually do so. I also recently received a buy-back letter where this guy cost me $1460.57 for paying off a loan early. In Georgia we are not allowed to charge a prepayment penalty so we generally have other ways to work around it. The hiccup comes when the borrower either refinances or otherwise pays off a loan early either through selling or just paying off the loan with cash. Most people, 999 out of 1000, do not know brokers have to do this - we have to "buy back" the loan fees from the funding lender.

Needless to say I can only do business like that about once every ten years!

And now the point: The things we say have an impact and an effect. I have worked with real estate investors for years and years and years and ... you get the point. The old seasoned veterans are generally as cool as a cucumber and have realistic expectations as well. The new ones are generally maleable and interested in learning - it's the wise brains who have done 3 to 15 deals who are the most arrogant, stubborn and foolish of the lot. I love it when people say, "I've done 10 deals - I know what to expect!!!"

Really? I passed 3000 a few months back :)

In the end this guy missed his chance at a 4.375% no discount loan with closing costs about 1/2 of what they would normally be. No, I will not still honor this deal - instead I will refer him to someone else. Maybe you. I offered, he insulted, I am no longer offering. In fact, there is now a note in our system in the event another LO picks up a call or email from him to refer him back to me - although I know my staff. He lost his chance. Maybe I lost mine, too. Then again who needs disrespect and arrogance even in times like these?

Another BLAH BLAH BLAH from Ken Cook

TWITTER TUESDAY RADIO Don't forget to listen in to Jason Crouch and me on Tuesday's at NOON EASTERN at http://blogtalkradio.com/jckc for one of BTR's consistently most popular radio talk shows on Social Networking on the network!

Posted by

Writer For Hire - I write. Whether you need blog content, research intense reports, data reports (and accompanying charts and graphics), ebooks, presentation content, speeches, advertising scripts, or similar, let me show you what you can have.

I started writing on Active Rain in 2006 when I was representing the mortgage industry. I am no longer in that industry and many of the older posts contain outdated information. Please do not contact me for LENDING or MORTGAGE questions but rather contact a licensed mortgage professional from your area. I have always been in marketing and branding and that is still what I do. Thanks for reading!


This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the umbrella to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Mortgage / Finance

Comments 25 New Comment

Brian Opperud
Hot Realty Leads

I've found that the people you try to help the most (give the biggest discounts or extra service) tend to demand more, offer less, and treat you the worst.  I don't understand it, but the farther you go to help a customer the more likely they won't respect you for it.  Some people just aren't worth doing biz with.  Just my $ .02

February 13, 2009 11:12 AM
Paul McFadden
Mortgage Loan Officer, Bellevue Washington Home Lo
Alaska USA Federal Credit Union

Ken: The haredest part for anyone to do is to define their business and stick to it. We all want to help everyone within reason. The sooner we define our business and stick to our guns, the more successful we will all be. I wish you well!



February 13, 2009 02:41 PM
Ken Cook
Writer For Hire
Digital Content Creator

Oops! I didn't expect this to be read - much less featured ...

Gina - he didn't actually say we are friends did he? lol

Lenn - exactly. That's why I am secretly hoping he calls me again.

Elizabeth - you can push me pretty far and I'll still work with you. I mean, not you personally. You know what I mean :)

Donna - agreed. I also don't like it when I hear a loan officer talking about how stupid an agent is or when I hear a agent talking about how "my lender" would do it. If we all just do out jobs and do them with high ethics it is seen even by the people outside. We have to stick together even if we don't know each other. Our clients talk whether we are agents or loan officers and they tell us what the other said about us. I know, I've owned a mortgage company and a real estate company. Yee haw! Did you get any of that huge hail up there?

Kelly - well thank you. My character has improved with time - and practice.

Jeff - I know, right? So much for that idea! I guess he wanted me to do the loan for free and pay his mortgage payments for him. Stupid me.

Chris - the funny thing is mortgage brokers are forced by federal law to be transparent ... banks and direct lenders not so. And yes, no matter what industry we are in the good are always pulled down by the evil. Look at Ronald Reagan and Rod Blagojevich both were politicians. Police officers, military commanders, movie stars and bar tenders. We all have to carry the weight of the foolish.

Sardi - I'm just a sophisticated rednerd. Stop it.

Crouch - you mean you're not plugging the second most popular (at least at one time) Social Networking show on BlogTalkRadio?

Jennifer - ditto. Exactly.

James - I don't think you are digressing. In fact this guy is a multi-property client and I'm pretty sure has attended at least one of my seminars. Education beats legislation every time.

Barbara - who lost? :) I'm still busy helping clients who have a clue! Him? Not so much.

Bruce & Mary - Hmmm, I wonder :)

Tere - thanks!

Karen - maybe. Too bad for them.

Robin - let me look back. Yep. Glad!

James - now that is the truth. Well put.

Brian - if the guy was not a repeat client I would have played the negotiation game.

Paul - thanks, back at you!

February 13, 2009 03:58 PM
Jason Crouch
Broker - Austin Texas Real Estate (512-796-7653)
Austin Texas Homes, LLC

Dude - That might be the best profile picture I've seen.  I wouldn't exactly say I haven't been plugging the show.  :-)

February 13, 2009 05:25 PM
Lane Bailey
Realtor & Car Guy
Century 21 Results Realty

I don't work with people I don't like.  Just a little rule I have... applies to clients, vendors... everyone. 

February 13, 2009 11:17 PM

Ken Cook

Writer For Hire
Ask me a question
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the robot to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase: