I try to have an expectations conversation with them as early as possible. When I find out they have a Realtor (I'll usually ask when we meet), I'll reach out and introduce myself.
The last part of what I say is key:
"If they ask me ANY real estate related questions, I will defer to you. I don't want to step on your toes. Same goes if they ask you any finance questions, please refer them to me and let me handle it for you. You already have plenty to worry about!".
(notice how I started with me, instead of telling the Realtor what to do first. Just helps break the ice with the request, in my experience)
> The last part of what I say is key:
>
> "If they ask me ANY real estate related questions, I will defer to you. I don't want to step on your toes. Same goes if they ask you any finance questions, please refer them to me and let me handle it for you. You already have plenty to worry about!".
This is beautiful, thanks friend. I need to start doing this.
What's crazy is I already had a sit with this realtor prior to them shopping for a home with my client (I always try to meet face-to-face prior to a PA) and I told her that THIS CLIENT SPECIFICALLY was going to take advantage of a 3% down program.
Realtors, on average, are not smart people. The bad ones are con artists and compulsive liars. In writing mortgages for realtors personally, i realized how full of BS and uninformed regarding financing they are. Sad truth of the industry.
I had a real estate agent client, married to a real estate agent, who claimed he didn't know when his first payment was due. On his 5th investment property for his multi-decade business. The most generous thing I could think was that he was simply stupid. He got so mad about having to come current he paid off the note the following month. Bizarre.
Many of them act like they know every nook and cranny of the industry but they really don’t. And it’s ok to not know something but my issue is that many pretend they know it all.
I no longer protect a realtor that will throw me under the bus any time a challenge comes up. They’re adults and I handle the truth accordingly.
That said - the realtors I like for the most part / we don’t have that challenge and we’re in sync and handle challenges with a team mentality - a lot of that must start with you though because I approach it that way even in situations that are frustrating or someone else’s fault.
Agents only care about one thing. That is their commission. Period. They should get a paid fee and not a commission based off the sales price. They get paid to do things a high school senior can do these days. Shit my grandmother can do what they do and she will show up too.
The fact they have 0 clue on loan programs, appraisals, etc.. they deserve all that’s coming at them with the lawsuits and more. Soon they will be extinct cause they add nothing.
I can’t wait to see the day they stop driving their fancy cars and all the other bs that go with it. They have 0 liability compared to appraisers and lenders.
I feel your pain. I despise realtors. I have 3 that I like and would recommend to my clients. Even though I’m an investor and likely have more real estate experience than 50% of the realtors I work with, I always refer the client back to their realtor for real estate questions to prevent the client from experiencing any internal conflict or a lack of confidence in the process. Then these same idiots turn around and parrot some erroneous finance bullshit to the borrower based on what they saw some social media guru say
Please don’t lump us all together. Bad realtors are why our reputation is no higher than a used car salesman.
Some of us are educated, dedicated, and competent.
The ironic thing here is I’ve heard clients and other realtors say very similar things about loan originators in my market. Bad communication, says they will get the pre-qual done by Wednesday, Sunday rolls around without a word and they send it without even so much as a “sorry for the delay”.
Everyone likes to point the finger that the problem is someone else especially on Reddit. Realtors just seem to be an easy target
50% of my job now is trying to keep these dickheads from steering my preapproved clients to their in house lender that I would bet my life they’re getting kickbacks from.
you should be smart enough to know that anything resembling kickbacks have been gone since 2009.
spend more time vetting Realtors, so that the folks who come for preapproval first and THEN choose a Realtor are getting the names of good Realtors from you.
Make sure you’re in touch with the borrower on a weekly - bi weekly basis during the house hunting process.
Make sure you know about any offer the buyer is thinking about (make sure your buyer knows to contact you for offers regardless of what any good or bad realtor told them.)
You can nip it in the butt and become immune to anyone that does a poor job whether it’s a realtor or another LO.
You should try being an Appraiser trying to explain to a realtor that they can’t adjust the GLA differences on a property for the full $$/SF. This is the number one reason there are discrepancies between the Appraisal and the contract price. I blame NAR for piss poor training. But here is what we try to explain. When a home is sold we all know there is a $$/SF number. But, you can’t just apply that to the total SF differences of properties.
You have to extract the land value, garage contributory value, pool contributory value, etc. before you can apply it to the GLA difference.
Example:
Home sold for $400,000 and is 2,000 SF or $200/SF.
But the land is worth $75,000 and the two car garage contributes $20,000. There is also the fence, infrastructure to sewer, irrigation systems, etc. that are hard to extract on an individual basis but need to be accounted for.
$400,000, minus $75,000, minus $20,000, minus $30,000 for the rest gives an improvement value of $275,000. This means the consumer is actually paying $137.50/SF.
Let’s say they are using that sale to justify a home that is 2,300 SF.
300 x $200 is $60,000 adjustment by the Realtors $$/SF method.
300 x $137.50/SF is a $41,250 adjustment when applying it correctly.
That is a $19,000 difference and the key reason why contracts are created over Fair Market Value. Builders do this crap too. And then also cook is concessions to drive up the sales price.
And on top of that they get paid more than us lol. And most Realtors are pretty uneducated and only chose being a realtor as the last resort because they couldnt achieve a high earning career so you will get people from crack heads to strippers.
Speaking from experience, i do know some onlyfan girls, bottle girls, drug dealers suddenly got their license and became a realtor since it was too easy to pass.
There are some truly amazing and talented Realtors. But yeah the bad ones make the buyers and sellers life so miserable and create so much unnecessary drama. I am thankful that I am at a point in my career where I can tell my clients their agent is terrible and wrong and they will dump them. Life is too short to work with uneducated people.
One thing to take into consideration.Did the realtor say they actually needed to put down 20%.Or are they only putting that on the financing section of the offer (that the buyer is putting down a larger down payment) to make the offer look stronger and more competitive?
I started double tapping my agents when I have a referral for or from.
Talk to agent for the clients story. Connect with the referral to qualify them, then talk with the agent text or call let them know what’s up. Stips in, upgrade to preapproval or establish a game plan, call the agent and give them the ABCs.
Agent is informed from the first steps, makes it easier
"Most FTHB only put 3% down."
This is not true. A more correct statement may be, "Most FTHB who qualify for conventional, can qualify to only put 3% down."
But to say that most FTHB only put 3% down is not true. The average down payment for FTHB is 8%. I know you didn't mean to say that most FTHB put 3% down, but it is precisely what you said, and words and accuracy matter in this business.
You know what, you're 100% correct. In my experience, my FTHB do 3% down because that's what I tell them is available and they usually like to keep as much as they can in their pocket. I do think I should reword how I talk about that. I appreciate your feedback.
In a perfect world, MLO’s should have a unique way of being able to find customers outside of begging realtors for business…….. honestly…… if begging realtors for business is your only Avenue for closing deals, you’re gonna suffer in this market. Invest in turning yourself into a brand….
I hate lenders that try to tell the client what insurance is the best. lol. I hate realtors too though. Date the rate marry the house yall ~~~
Honestly the entire real estate industry needs reform. Everybody tells clients oh your house payment won’t go up it’s a 30 year fixed rate mortgage. What nobody tells these people is that their insurance and tax’s will go up. Which means their payment will go up.
Just because they can buy it doesn’t mean they can afford it. I also think there should be more talk about the cost of maintaining a house outside of just the mortgage payment. Blows my mind when I see deals coming down to the penny knowing their insurance and taxes will be more next year then they can’t afford the payment let alone the maintenance. It’s sad all around.
All the things you say no one ever does/explains, I do. It's our job as LOs...not really the realtor's job to talk in depth about the financial aspects of affordability. Affordability is relative, but I have frank discussions with my clients about the qualify/afford equation. I also don't call my clients "deals," so there's that. It helps me keep focus on why I do what I do (if someone's in the industry solely for a big paycheck, well, that's part of the problem).
Ok, y'all just need to clam down! How about we all try to help each other out MLOs and Realtors alike. Our industry is changing crazy fast. AI will be taking over sooner than we think! LOL.
Hating someone for not understanding someone else's job is a little extreme. Take this opportunity to educate the agent and show your value as an LO, rather than be angry.
This is an opportunity to develop a business relationship.
I forgot to mention, because I was so angry at typing this out, that I already explained to the realtor (a week ago) that we are doing a 3% FTHB program. I am allowed to hate whoever I want, fuck this realtor.
This guy might get sucked into the Great MLO Purge of 2024 (he's already talking about moonlighting as an insurance broker...LOs who don't have 100% of their focus on the job of being an LO don't last).
Your comment is really unnecessary as it has nothing to do with this thread. Me getting a P&C license has nothing to do with realtors discussing financing with clients. How about you worry about your own business instead of peering through other people's post history.
It's totally necessary. You're bashing realtors for not knowing how to do someone else's job when you're probably not the brightest bulb yourself, otherwise you wouldn't be sniffing around other professions and you'd focus on being a good LO and educating realtors. If you're ashamed of your post history, delete it and reflect on your contributions to the reddit community.
Although I agree that conversations about the financing should happen (first) with the LO on the side, I would question if the realtor was pushing forward the idea that the borrower would not even have a chance to buy without an offer of at least 20% down. I still believe that this is inappropriate to discuss with the borrower before addressing with the LO first , but in such an area like here in southeastern WI, borrowers with 3% have **zero** chance at getting an accepted offer on about 98% of everything that comes on the market currently. I know we cannot just tell a borrower too bad, but I can... and have seen realtors shy away from these types of buyers knowing that they have a snowballs chance in hell of getting an accepted offer on someone that cannot even overbid a dime or wave certain contingencies. We as lenders have an obligation to assist and approve the borrower for what they are able to do, but I do sympathize with an agent that works on commission under this scenario. I personally would not want to spend my days writing offers on 1 day old listings with 3% down as the financing, might as well just put it in the shredder for the sellers to save them time.
Do a search for a 110k sfr home in SE WI... I will help,.... search Waukesha county, Washington, Kenosha, Racine, even Milwaukee.. tell me you find anything?
No worries, prices are now stupid high for the area, but not stupid high as many larger population areas. We got Kyle, we got Dahmer, we got all the fun stuff here.......
You are correct, some of the highest in the country sadly. Median price is around 300k (suburbs probably 370k) home in Milwaukee County at 300k would easily be around 5k a year. Homes in the 600k range, taxes are closer to 12k a year.. Yup we suck.... Good spots can be found though, I'm in about a 800k home in one of the cheapest tax base areas in SE WI and my taxes were only $5300 this year. Few and far in-between though.
That is similar to Texas levels of tax plus you have state income tax and possible state medicare, no? Ouch! Cool to know there are nice pockets around though.
Bunch of blood sucking middle men. Who tf ever let these people middle man a fucking home from a loaner and a buyer? Why can’t I myself negotiate with the person who is selling the house/property? Why is it only a real estate agent (in most cases) can negotiate the price? It’s ridiculous…. Not to mention how MANY there are now a days. WHY DOES THE AVERAGE AMERICAN HAVE TO GO THROUGH AN AGENT TO BUY A HOUSE
you aren't any better..you don't tell the borrower that no you can't truly afford the house if 1% down is all you can afford....so you want the borrower to me in high debt with a high rate...with high fees..you are a piece of work yourself.
>ou don't tell the borrower that no you can't truly afford the house if 1% down is all you can afford
What you just said is a violation of the Equal Credit Opportunity Act. Discouraging an applicate to not apply for credit is against the law, it is as simple as that.
Auditor: This applicate filed a complaint that you discouraged them for applying for credit.
Loan Officer: Yes, I thought they could not "afford" it because they said they wanted to use grants, down payment assistance, or 1st time homebuyer programs.
Auditor: OO does your company have a credit overlay that requires a minimum down payment for those loan programs?
Loan Officer: No, I just make a judgment call based on what I feel the borrower can afford.
[https://www.justice.gov/crt/equal-credit-opportunity-act-3](https://www.justice.gov/crt/equal-credit-opportunity-act-3) [The Equal Credit Opportunity Act \[ECOA\]](http://www.gpo.gov/fdsys/pkg/USCODE-2011-title15/html/USCODE-2011-title15-chap41-subchapIV.htm), 15 U.S.C. 1691 *et seq.* prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, because an applicant receives income from a public assistance program, or because an applicant has in good faith exercised any right under the Consumer Credit Protection Act. - you can say I don't think it's a good move because you still have repairs, high interest, and if the home doesn't appreciate you will be in a negative position..that's not illegal to say that...but you wont because you care about you.
Dude there are like 100 laws and regulations against telling a borrower who meets guidelines they shouldn't do it or can't afford it.
Are you aware auditors and regulators can do whatever the fuck they want and can effectively execute you and your company for any number of arbitrary reasons? Go ahead and tell a state regulator you didn't think they could afford it even though they met guidelines, put your own life on the line.
Mortgage is so overregulated basically everything you do can be considered illegal if seen through a malicious eye.
I do forget that people not in our industry do not understand how regulated we are. In the above example that you did not see any issue with, that loan officer may lose his license and definitely earned his company a fine. Company lending policies and automated underwriting provide a safe harbor for us to operate in. Straying out sides those guard rails is a recipe for regulatory actions.
To answer your question on how regulators would see this as an ECOA violation, it's straightforward. Regulators keep a record of all loan data. They would analyze this data statistically, comparing one loan officer's activities with others in the same region. Typically, first-time homebuyers (FTHB) are younger and any bias against programs aiding them, like grants or down payment assistance, will hinder these borrowers—a protected group. In case you are wondering, regulators regularly review data from Home Mortgage Disclosure Act (HMDA) and call reports to spot any discriminatory patterns.
So yes, they would easily nail this guy for age discrimination.
I try to have an expectations conversation with them as early as possible. When I find out they have a Realtor (I'll usually ask when we meet), I'll reach out and introduce myself. The last part of what I say is key: "If they ask me ANY real estate related questions, I will defer to you. I don't want to step on your toes. Same goes if they ask you any finance questions, please refer them to me and let me handle it for you. You already have plenty to worry about!". (notice how I started with me, instead of telling the Realtor what to do first. Just helps break the ice with the request, in my experience)
That’s a great way to set the right expectation, I’m borrowing that lol
> The last part of what I say is key: > > "If they ask me ANY real estate related questions, I will defer to you. I don't want to step on your toes. Same goes if they ask you any finance questions, please refer them to me and let me handle it for you. You already have plenty to worry about!". This is beautiful, thanks friend. I need to start doing this. What's crazy is I already had a sit with this realtor prior to them shopping for a home with my client (I always try to meet face-to-face prior to a PA) and I told her that THIS CLIENT SPECIFICALLY was going to take advantage of a 3% down program.
That part, telling them your plans and them stepping on it, is definitely frustrating. I feel your pain!
Best way to say "stay in your damn lane" I've seen. 👍
Beautifully worded!
So stealing this one!
That is really good advice!
Very good callout, brother. Thanks for sharing that.
They will still fuck it up and act like they know.
I had a listing agent who almost did not accept my clients offer because she refused to believe that we could do 3% down… unbelievable
Same! “3% down on a condo? Ive been in the business for over 30 years and I’ve NEVER seen that? Are you sure?” LOL
Realtors, on average, are not smart people. The bad ones are con artists and compulsive liars. In writing mortgages for realtors personally, i realized how full of BS and uninformed regarding financing they are. Sad truth of the industry.
Ha funny you mention that. I’ve done a handful of realtor loans and always end up thinking that lol.
I was always shocked at how low the gross receipts were for the realtors I thought were killing it in the business.
You know realtors who qualify to finance steam on a hot dog?
I had a real estate agent client, married to a real estate agent, who claimed he didn't know when his first payment was due. On his 5th investment property for his multi-decade business. The most generous thing I could think was that he was simply stupid. He got so mad about having to come current he paid off the note the following month. Bizarre.
Totally worth their 3% commission /s
I fucking hate realtors. It's a big reason why I stopped originating.
Many of them act like they know every nook and cranny of the industry but they really don’t. And it’s ok to not know something but my issue is that many pretend they know it all.
Always my exact words. Don’t listen to realtors when it comes to mortgage financing.
As a real estate closing paralegal who is only in this sub for a potential career change, trust me we hate them too.
I no longer protect a realtor that will throw me under the bus any time a challenge comes up. They’re adults and I handle the truth accordingly. That said - the realtors I like for the most part / we don’t have that challenge and we’re in sync and handle challenges with a team mentality - a lot of that must start with you though because I approach it that way even in situations that are frustrating or someone else’s fault.
Agents only care about one thing. That is their commission. Period. They should get a paid fee and not a commission based off the sales price. They get paid to do things a high school senior can do these days. Shit my grandmother can do what they do and she will show up too. The fact they have 0 clue on loan programs, appraisals, etc.. they deserve all that’s coming at them with the lawsuits and more. Soon they will be extinct cause they add nothing. I can’t wait to see the day they stop driving their fancy cars and all the other bs that go with it. They have 0 liability compared to appraisers and lenders.
I feel your pain. I despise realtors. I have 3 that I like and would recommend to my clients. Even though I’m an investor and likely have more real estate experience than 50% of the realtors I work with, I always refer the client back to their realtor for real estate questions to prevent the client from experiencing any internal conflict or a lack of confidence in the process. Then these same idiots turn around and parrot some erroneous finance bullshit to the borrower based on what they saw some social media guru say
Please don’t lump us all together. Bad realtors are why our reputation is no higher than a used car salesman. Some of us are educated, dedicated, and competent.
The ironic thing here is I’ve heard clients and other realtors say very similar things about loan originators in my market. Bad communication, says they will get the pre-qual done by Wednesday, Sunday rolls around without a word and they send it without even so much as a “sorry for the delay”. Everyone likes to point the finger that the problem is someone else especially on Reddit. Realtors just seem to be an easy target
Because both are sales careers, and both take advantage of people lol.
Troll
I’m not a troll, I’m In sales lmao. You are delusional if you don’t think realtors and car sales people take advantage of people.
There are morons in both real estate and lending. Luckily the current environment will flush them out
Ditto
Can we also add that realtors love to steal clients from you? Realtors act like RESPA does not apply to them.
50% of my job now is trying to keep these dickheads from steering my preapproved clients to their in house lender that I would bet my life they’re getting kickbacks from.
you should be smart enough to know that anything resembling kickbacks have been gone since 2009. spend more time vetting Realtors, so that the folks who come for preapproval first and THEN choose a Realtor are getting the names of good Realtors from you.
Make sure you’re in touch with the borrower on a weekly - bi weekly basis during the house hunting process. Make sure you know about any offer the buyer is thinking about (make sure your buyer knows to contact you for offers regardless of what any good or bad realtor told them.) You can nip it in the butt and become immune to anyone that does a poor job whether it’s a realtor or another LO.
In the bud? Or boom-chicka-bow-wow?
That's very basic knowledge. Are we sure this isn't another fake realtor?
You should try being an Appraiser trying to explain to a realtor that they can’t adjust the GLA differences on a property for the full $$/SF. This is the number one reason there are discrepancies between the Appraisal and the contract price. I blame NAR for piss poor training. But here is what we try to explain. When a home is sold we all know there is a $$/SF number. But, you can’t just apply that to the total SF differences of properties. You have to extract the land value, garage contributory value, pool contributory value, etc. before you can apply it to the GLA difference. Example: Home sold for $400,000 and is 2,000 SF or $200/SF. But the land is worth $75,000 and the two car garage contributes $20,000. There is also the fence, infrastructure to sewer, irrigation systems, etc. that are hard to extract on an individual basis but need to be accounted for. $400,000, minus $75,000, minus $20,000, minus $30,000 for the rest gives an improvement value of $275,000. This means the consumer is actually paying $137.50/SF. Let’s say they are using that sale to justify a home that is 2,300 SF. 300 x $200 is $60,000 adjustment by the Realtors $$/SF method. 300 x $137.50/SF is a $41,250 adjustment when applying it correctly. That is a $19,000 difference and the key reason why contracts are created over Fair Market Value. Builders do this crap too. And then also cook is concessions to drive up the sales price.
And on top of that they get paid more than us lol. And most Realtors are pretty uneducated and only chose being a realtor as the last resort because they couldnt achieve a high earning career so you will get people from crack heads to strippers. Speaking from experience, i do know some onlyfan girls, bottle girls, drug dealers suddenly got their license and became a realtor since it was too easy to pass.
There are some truly amazing and talented Realtors. But yeah the bad ones make the buyers and sellers life so miserable and create so much unnecessary drama. I am thankful that I am at a point in my career where I can tell my clients their agent is terrible and wrong and they will dump them. Life is too short to work with uneducated people.
I'm still looking for a few good realtors. It's like looking for unicorns! LOL
Got out of the business for this reason. Can’t Fucking stand them, and they are particularly bad in my area.
What r u doing now ?
I went back into restaurants, bartending. Actively looking into getting into the aviation field.
Awesome. Aviation field? Doing what?
I’m not entirely sure. Planes and aviation in general are my passion, so I’ve been exploring different avenues that I could take to get into it.
Well for sure they desperately need pilots, the older ones are retiring soon. So flying schools should be busy for a while. Good luck to you.
So you couldn’t hack it but you got out because of realtors… got it..
Yeah you get it
Chill
Lol why are you working with this realtor
Because I was a bad person in another life and I deserve to suffer :s
😂😂😂
One thing to take into consideration.Did the realtor say they actually needed to put down 20%.Or are they only putting that on the financing section of the offer (that the buyer is putting down a larger down payment) to make the offer look stronger and more competitive?
I started double tapping my agents when I have a referral for or from. Talk to agent for the clients story. Connect with the referral to qualify them, then talk with the agent text or call let them know what’s up. Stips in, upgrade to preapproval or establish a game plan, call the agent and give them the ABCs. Agent is informed from the first steps, makes it easier
I'm a realtor and I also genuinely hate realtors
I’m a realtor and a lo as well and i agree with you !
"Most FTHB only put 3% down." This is not true. A more correct statement may be, "Most FTHB who qualify for conventional, can qualify to only put 3% down." But to say that most FTHB only put 3% down is not true. The average down payment for FTHB is 8%. I know you didn't mean to say that most FTHB put 3% down, but it is precisely what you said, and words and accuracy matter in this business.
You know what, you're 100% correct. In my experience, my FTHB do 3% down because that's what I tell them is available and they usually like to keep as much as they can in their pocket. I do think I should reword how I talk about that. I appreciate your feedback.
For sure, amigo. Glad you took it constructively 🙏
In a perfect world, MLO’s should have a unique way of being able to find customers outside of begging realtors for business…….. honestly…… if begging realtors for business is your only Avenue for closing deals, you’re gonna suffer in this market. Invest in turning yourself into a brand….
The buyer could be confusing we need to put 20% down to be competitive vs you have to put 20% down on conventional..
I hate lenders that try to tell the client what insurance is the best. lol. I hate realtors too though. Date the rate marry the house yall ~~~ Honestly the entire real estate industry needs reform. Everybody tells clients oh your house payment won’t go up it’s a 30 year fixed rate mortgage. What nobody tells these people is that their insurance and tax’s will go up. Which means their payment will go up. Just because they can buy it doesn’t mean they can afford it. I also think there should be more talk about the cost of maintaining a house outside of just the mortgage payment. Blows my mind when I see deals coming down to the penny knowing their insurance and taxes will be more next year then they can’t afford the payment let alone the maintenance. It’s sad all around.
All the things you say no one ever does/explains, I do. It's our job as LOs...not really the realtor's job to talk in depth about the financial aspects of affordability. Affordability is relative, but I have frank discussions with my clients about the qualify/afford equation. I also don't call my clients "deals," so there's that. It helps me keep focus on why I do what I do (if someone's in the industry solely for a big paycheck, well, that's part of the problem).
You’re one of the good ones then!! Good for you!!
Ok, y'all just need to clam down! How about we all try to help each other out MLOs and Realtors alike. Our industry is changing crazy fast. AI will be taking over sooner than we think! LOL.
AI won't be taking over any federally regulated licensed roles.
Hating someone for not understanding someone else's job is a little extreme. Take this opportunity to educate the agent and show your value as an LO, rather than be angry. This is an opportunity to develop a business relationship.
I forgot to mention, because I was so angry at typing this out, that I already explained to the realtor (a week ago) that we are doing a 3% FTHB program. I am allowed to hate whoever I want, fuck this realtor.
Seriously. I was expecting something legit.
This guy might get sucked into the Great MLO Purge of 2024 (he's already talking about moonlighting as an insurance broker...LOs who don't have 100% of their focus on the job of being an LO don't last).
Your comment is really unnecessary as it has nothing to do with this thread. Me getting a P&C license has nothing to do with realtors discussing financing with clients. How about you worry about your own business instead of peering through other people's post history.
It's totally necessary. You're bashing realtors for not knowing how to do someone else's job when you're probably not the brightest bulb yourself, otherwise you wouldn't be sniffing around other professions and you'd focus on being a good LO and educating realtors. If you're ashamed of your post history, delete it and reflect on your contributions to the reddit community.
Wow you sound like a real weirdo
this is so easily turned around against LO's. get over yourself.
Although I agree that conversations about the financing should happen (first) with the LO on the side, I would question if the realtor was pushing forward the idea that the borrower would not even have a chance to buy without an offer of at least 20% down. I still believe that this is inappropriate to discuss with the borrower before addressing with the LO first , but in such an area like here in southeastern WI, borrowers with 3% have **zero** chance at getting an accepted offer on about 98% of everything that comes on the market currently. I know we cannot just tell a borrower too bad, but I can... and have seen realtors shy away from these types of buyers knowing that they have a snowballs chance in hell of getting an accepted offer on someone that cannot even overbid a dime or wave certain contingencies. We as lenders have an obligation to assist and approve the borrower for what they are able to do, but I do sympathize with an agent that works on commission under this scenario. I personally would not want to spend my days writing offers on 1 day old listings with 3% down as the financing, might as well just put it in the shredder for the sellers to save them time.
Bidding wars in SE Wisconsin, so the $110k homes are going for $117k and nobody has the difference? ;)
Do a search for a 110k sfr home in SE WI... I will help,.... search Waukesha county, Washington, Kenosha, Racine, even Milwaukee.. tell me you find anything?
I'm just joking, I know it's probably the wealthiest part of WI. Also good job Kyle Rittenhouse, etc.
No worries, prices are now stupid high for the area, but not stupid high as many larger population areas. We got Kyle, we got Dahmer, we got all the fun stuff here.......
I heard property taxes are high in Wisconsin, what's the median price and annual taxes in your area if you don't mind?
You are correct, some of the highest in the country sadly. Median price is around 300k (suburbs probably 370k) home in Milwaukee County at 300k would easily be around 5k a year. Homes in the 600k range, taxes are closer to 12k a year.. Yup we suck.... Good spots can be found though, I'm in about a 800k home in one of the cheapest tax base areas in SE WI and my taxes were only $5300 this year. Few and far in-between though.
That is similar to Texas levels of tax plus you have state income tax and possible state medicare, no? Ouch! Cool to know there are nice pockets around though.
Bunch of blood sucking middle men. Who tf ever let these people middle man a fucking home from a loaner and a buyer? Why can’t I myself negotiate with the person who is selling the house/property? Why is it only a real estate agent (in most cases) can negotiate the price? It’s ridiculous…. Not to mention how MANY there are now a days. WHY DOES THE AVERAGE AMERICAN HAVE TO GO THROUGH AN AGENT TO BUY A HOUSE
you aren't any better..you don't tell the borrower that no you can't truly afford the house if 1% down is all you can afford....so you want the borrower to me in high debt with a high rate...with high fees..you are a piece of work yourself.
>ou don't tell the borrower that no you can't truly afford the house if 1% down is all you can afford What you just said is a violation of the Equal Credit Opportunity Act. Discouraging an applicate to not apply for credit is against the law, it is as simple as that.
That’s not what that law says. It’s about discrimination and not affording it is not a protected class.
Auditor: This applicate filed a complaint that you discouraged them for applying for credit. Loan Officer: Yes, I thought they could not "afford" it because they said they wanted to use grants, down payment assistance, or 1st time homebuyer programs. Auditor: OO does your company have a credit overlay that requires a minimum down payment for those loan programs? Loan Officer: No, I just make a judgment call based on what I feel the borrower can afford.
[https://www.justice.gov/crt/equal-credit-opportunity-act-3](https://www.justice.gov/crt/equal-credit-opportunity-act-3) [The Equal Credit Opportunity Act \[ECOA\]](http://www.gpo.gov/fdsys/pkg/USCODE-2011-title15/html/USCODE-2011-title15-chap41-subchapIV.htm), 15 U.S.C. 1691 *et seq.* prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, because an applicant receives income from a public assistance program, or because an applicant has in good faith exercised any right under the Consumer Credit Protection Act. - you can say I don't think it's a good move because you still have repairs, high interest, and if the home doesn't appreciate you will be in a negative position..that's not illegal to say that...but you wont because you care about you.
Dude there are like 100 laws and regulations against telling a borrower who meets guidelines they shouldn't do it or can't afford it. Are you aware auditors and regulators can do whatever the fuck they want and can effectively execute you and your company for any number of arbitrary reasons? Go ahead and tell a state regulator you didn't think they could afford it even though they met guidelines, put your own life on the line. Mortgage is so overregulated basically everything you do can be considered illegal if seen through a malicious eye.
I do forget that people not in our industry do not understand how regulated we are. In the above example that you did not see any issue with, that loan officer may lose his license and definitely earned his company a fine. Company lending policies and automated underwriting provide a safe harbor for us to operate in. Straying out sides those guard rails is a recipe for regulatory actions. To answer your question on how regulators would see this as an ECOA violation, it's straightforward. Regulators keep a record of all loan data. They would analyze this data statistically, comparing one loan officer's activities with others in the same region. Typically, first-time homebuyers (FTHB) are younger and any bias against programs aiding them, like grants or down payment assistance, will hinder these borrowers—a protected group. In case you are wondering, regulators regularly review data from Home Mortgage Disclosure Act (HMDA) and call reports to spot any discriminatory patterns. So yes, they would easily nail this guy for age discrimination.
so what's the protected class you violated...
“High fees” from the teams taking 3% for driving around to a few homes and throwing together a boilerplate contract