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Mortgage fraud regulation change with teeth

Aug 20, 2008

Procrastination means higher pricingJeff Barrprocrastination, refinance, poor credit, bankruptcy I have been a loan officer for many years. Currently, I have a desk drawer full of prospects with poor credit, no money and little motivation to refinance or purchase a home. They do not realize that procrastination is their worst nightmare. As the prospect continues to mull over the idea of a new home or refinance, the bills stack up and his credit deteriorates. More importantly, the rates continue to go up. Here are some suggestions to get the prospect to stop procrastinating: •Every sales manager or owner should reinforce the urgency of making the sale. Look for the buying signals and go for some kind of close. •Advise the client that he must help himself, but that you are there to assist him. •Stress to him that you are his partner in the deal and that you will deliver him a decent and fair product. •He must strongly accept your advice and stay loyal to you and your efforts. •If it is a credit matter, you will advise him and direct him to the necessary resources to rectify the matter. •The customer must expect a reasonable time to correct the problem, such as in the case of a credit report. The pressure is on him to supply the credit agencies with the data needed. Credit agencies generally work at their own speed. •Bankruptcy papers, divorce decrees and collection letters are the responsibilities of the customer. It is easier for the clients to ascertain these items. •Verifying the accuracy of information must be completed by the applicant, with assistance of the loan officer, in a timely fashion. They are racing against the clock to beat further rate increases. •The salespeople need to continue to watch the market conditions. Their commission could be riding on it. •Take a pulse of the prospect or client. Sometimes you have to fold him instead of hold him. Miracles do not always happen. As the Board of Governors of the Federal Reserve System continues to raise interest rates and the economy remains very volatile, the consumer must plan ahead for short- and medium-term changes to the financial posture of this global economy. It is a goal to put almost everyone in a home. Some borrowers cannot help themselves. We are working for the same goal. Emphasize that this is a partnership to help the client, if he helps himself. But still, procrastination does mean higher prices. Jeff Barr is a competent toastmaster and speaker in Louisville, Ky., an adjunct professor of communications at the University of Louisville and a mortgage loan officer. He can be reached at (502) 777-9555 or e-mail at [email protected].
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Aug 20, 2008
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