[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.