[caption id="attachment_9654" align="alignleft" width="268"] Hershman: 'You can't pass the buck onto the settlement agent for mistakes made.'[/caption]

By Dave Hershman

 I originated a loan for a previous client. The processing and approval went smoothly. I recommended a settlement company I had never used before because they had low prices. To make a long story short, they did not do a good job. My customer called me and thanked me for my hard work helping fix the problems with their credit, but they were very upset with the closing company. I feel that I may have lost a customer and possibly future referrals from them, and I was wondering if there is anything I should do.

Would appreciate your suggestion...thanks.

—Nicole from Vermont

 First, let's address the past: Don't use vendors unless you check their references thoroughly. We as lenders have to compete with low-price companies on the basis of value and service. I always advise loan officers to actually attend settlement to help deliver extra customer service. In the case of a new vendor, this would be even more imperative. Attending settlements is also a marketing opportunity that we will address in a future segment.

Regarding the future: Now that the closing has taken place, you can't pass the buck onto the settlement agent for mistakes made. You recommended them, and therefore, you must own at least part of the issue because you led the team.

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So, what you do is apologize and see what you can do to make it better. It is said that true relationships are never solidified until things go wrong.

It is how you act after things go wrong that is the issue here.

You start by owning up to your mistake and not placing the blame on others. You continue by listening and empathizing. Finally, apologize and see what you can do to make things better. Perhaps get with the settlement company to see if they would like to participate in a solution. I don't know what that solution should be—you need to talk with the customer and get a feeling from them regarding what pain this caused. Everyone makes mistakes—including us. It is how we handle these mistakes that separates leaders from the masses.

This situation is a true test of leadership.

To me, it is an opportunity to shine and distinguish yourself from the competition. The objective is to take a situation like this, turn it around, and make these disgruntled clients into raving fans.

About the Author: Dave Hershman is senior vice president of sales of Weichert Financial and a top author in the mortgage industry. Dave has published seven books, as well as hundreds of articles and is the founder of the OriginationPro Marketing System and Mortgage School, the online choice for expert mortgage learning and marketing content. His site is www.OriginationPro.com and he can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it.

https://youtu.be/kEx6UPx99Wg

Hi there,  I’m Mat Ishbia, president and CEO of UWM, and this is “Three Points.”

First point, big FHA changes, so on March 18, 2019, FHA made some big changes for all case numbers after that date. Basically they said, ‘listen we're going to approve a lot less loans for higher DTIs and cash-out refinances.’

So all case numbers after that date the total scorecard their automated system is not giving as many approved eligible and a lot more things are being referred eligible.

Now you can still do some these loans with manual underwriting, but those 50, 55 DTI loans with lower credit scores are not getting approved eligible. Now, FHA still approves a lot of loans; there's a lot of great opportunity on FHA program, but they definitely tightened it up as of March 18th.

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Also, Fannie Mae did a similar thing a little bit ago also on their DU 10.30 , so DTIs over 45 percent are less likely toget approved. So the debt to income ratio is tighter in the industry now than it was six ,12, 18-months ago, so we should all be aware of those changes.

Second point, there was a major Fed announcement, so we all know what happened March 20th where the Fed came out and said that basically no rate increase going forward for the rest of 2019. In they were saying it’s a 30 percent chance that they're going to raise rates in

Now, they're saying it's a zero percent chance and actually a third of the people think they might even lower rates this year or the beginning of next year. That's a major swing from what we all would have expected. Now what happened?  The ten-year dropped, the  30-year fixed rate dropped. You guys all know that; you live it every single day. Big opportunity on refinances, big opportunity for purchases incoming.

So, maybe rates won't get moved up again until 2021, which is a big change from what we all just thought three, six, nine months ago. So major change, major opportunity--take advantage of it.

Third point, the CFPB reassures the industry.

The new leader of the CFPB, Kathy Kraninger, came out with a big announcement basically saying, “Hey listen I'm not going to abruptly make any changes to the so-called GSE patch.

The patch, as you guys know, is a big deal because anything over 43 DTI is considered Non-QM, unless it's going to the GSEs. And, so if they made that change, anything over 43 DTI would be Non-QM and have a whole different set of rules, and so it's a big deal to keep the patch in place. It was set to expire in 2021, or if it comes out of conservatorship, the GSEs.

But, right now it looks like Kathy Kraninger understands the details and is going to hold on that and make sure she does not affect the industry in a negative way. That's positive news for all homebuyers and everyone in this industry.

Thanks for joining me. I’m Mat Ishbia, president and CEO of UWM, and that was Three Points.

By Brian Sacks

In honor of April Fools, I decided to dedicate this article to one of the most foolish things we do.

As originators, we all make mistakes. All sales people do. But one of the biggest one’s we make is thinking that having the best rates is the only determining factor.

I constantly hear originators moaning about their rates, or the service they get from their support teams. If I am being totally honest, I do as that as well but rarely.

The truth is that good rates and great service are just basic in this day and age.

If you aren’t able to provide competitive rates and provide outstanding service, you are simply in the wrong business. Stop and think about all the reasons someone should use you, without saying it’s about the rate and service. There are so many other ways you are able to provide value to your partners and clients.

There are two big issues with thinking that service and rates will generate new business for you.

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For service, the buyers only see the service after the transaction closes. In terms of the rates, there will always be someone cheaper than you in the market, so you must find other ways to show your value.

Now, I want you to take out a sheet of paper or pull up a new Google or Word document and start thinking about this mistake.

What else could you do to provide value?

Here are some things I do:

[caption id="attachment_7900" align="alignleft" width="332"] Brian Sacks[/caption]

For Consumers:

• I will actually meet with my clients and go over the entire process and answer questions, so they are educated.
• I will provide them with a book that provides excellent information.
• I offer a vacation to them after closing as a thank you.

For Agents:

• I am available to generate pre -approval letters on Saturdays and Sundays, when banks and credit unions are closed.
• I teach education classes for continuing education credits.
• I do homebuyer seminars with them.
• I provide weekly status updates.
• I have unique programs and qualifications like working with boomerang buyers, renovation loans and buyers going through a divorce.

Did you catch the last sentence? That one truly is the key because when you can provide a unique expertise and program that solves a problem agents and borrowers have than rates, points and even service truly don’t matter, do they?

About the Author: Brian Sacks is an originator with Homebridge Financial in Baltimore, Md., with over 35 years of experience and closings of over $1.5 billion and 5,977 loans. He is the author of “48 Proven Ways to Close More Loans.” To learn more, visit https://48waysbook.com/special . He is also the founder of the “Top Originator Secrets Blog” which is available online at http://toporiginatorsecrets.com