What I want to share with you today is something I believe is the single best way to save you time so you can earn more money! If you are already earning enough money, then this will allow you the time to go enjoy the money you are earning with your family and friends! This is a section of a “White Paper” I wrote called “Thirty Days”.
I have never met a loan originator that hasn’t told me that they were busy. My response to that is often, “are you busy or are you productive?” There is a huge difference. I have seen loan originators and managers working twelve to eighteen hour days to close a few loans and not make all that much money. All because they are constantly trying to “remember” what they need to do next or they have a closing deadline in a few days. This causes them to act reactively instead of proactively.
Most loan “drama” comes from three places: 1)Improper loan submission. 2)Bad communication. 3)Unrealistic expectations.
Master these three areas and you will find your life, and the lives of your clients, processors, underwriters, managers, even your friends and family members will become less stressful and more profitable!
So let’s take a look at a few things I have been working on with some of my more successful, high loan volume clients. Since the average loan originator closes less than three loans per month, we need to get past how they do business and focus on those that do seven, nine, or even twelve loans a month or more on a regular basis working thirty to fifty hour work weeks.
One common thread amongst those in this arena is some very clear habits and systems. Those loan originators do a great job knowing what to do and when to do it. It all starts with a crisp and clean application. An application your processor feels comfortable with and can see all your notes about the transaction. If the loan has ANY quirks or questions, address them early with your processor! All the questions asked and answered, all the boxes filled in. A clear understanding of what the client wants and needs, and the time frame in which it all gets done. More than that, the client and originator have had a complete conversation about what is going to happen, and when it is likely to occur. Good loan originators explain the entire process, complete with dates, times, and requirements the borrower has to the process so the loan will close at the time desired and at the price promised. The client has a real interest in knowing they have obligations to perform in a timely manner that might have real financial consequences.
The conversation with that client goes something like this:
“During the loan process there are certain milestones that we need to be aware of so you close on time at the price promised. It is very important that we take a look at the next thirty days so I can share with you what will take place and how your participation and timely responses are critical to a smooth and hassle free transaction.” Here is a simple timeline for your thirty day closing:
Day 1: We take a complete loan application.
Day 2: I submit a completed loan application into processing.
Day 6: We will review disclosures, loan findings and requested documentation. You will have 48 hours to return signed disclosures and any documentation requested.
Day 9: We will review your submission and appraisal.
Day 12: Your file will be submitted to underwriting.
Day 15: We will review underwriting findings and any additional documentation requested. You have 48 hours to supply any additional documentation requested.
Day 20: We make a final submission to underwriting.
Day 23: We have the “clear to close”; we will review the closing process and set a time to review your HUD-1.
Day 28: We review the final HUD-1.
Day 30: We close your loan.
Now obviously you have to take into consideration weekends, holidays, and your own company’s turn-around time. Also, it is imperative that your processing and underwriting teams are on the same page by providing accurate information. It is the loan originator’s job to track these deadlines and schedule time accordingly. Just like with the client, you need the same type schedule to track processing and underwriting to be sure you meet all dates.
I am sure if you follow these steps, you will reduce the stress in your life, and provide a better quality of service for your clients and referral partners. If you would like a copy of the entire “White Paper” please just email me and I will be happy to send it to you.