Comments on: Professional Status: Perceptions and Reality

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Wed, 30 Jul 2008 22:28:11 +0000

[...] Professional Status: Perceptions and Reality by Jillayne [...]

By: Chris Hyde

Chris Hyde — Wed, 16 Apr 2008 17:57:46 +0000

Wow…that video made me sick to my stomach! As mentioned in a previous comment I left on another article of yours, I am new to the industry and really had no idea that there are L.O.’s out there that work in this way. My eyes are being opened!

I also mentioned in another comment to you that I considered the mortgage industry to be a service industry. I NEVER considered myself being in a “retail” industry as an L.O. The self-regulation that you describe here MUST change the mindset amongst those in the industry from seeing ourselves as being a retail industry to seeing ourselves as being a service industry. Yes, we are selling a product, but it is not all about a sale. We are helping people to buy homes, finance their futures, and realize their dreams. Our job is to come alongside them and help them to meet their goals. In so doing this, we will have sales.

I agree completely with tightening up the requirements for L.O.’s and brokers and I am glad that steps are being taken to do so. But it can’t just be about regulation. Those of us in the mortgage industry must look at the value of our own integrity. You can’t be a “Professional” in an industry without having integrity!

By: Jessica Kristine

Jessica Kristine — Mon, 14 Apr 2008 20:23:31 +0000

There’s some great dialog here. I didn’t wade through all of the comments (some of them seemed to degenerate into bickering), but I wholeheartedly agree that education should be required to begin originating loans and that a loan originator should be required to put the consumer’s interests above his or her own. The current mortgage-lending crisis is probably a good thing in this regard: it should shake things up a bit.

By: Dale Uesonoda

Dale Uesonoda — Sun, 13 Apr 2008 23:07:07 +0000

Watching the video really hurts being in this business especially in these changing times. I moved out to the east coast in early 2006 and as i was intereviewing for LO positions, its sad to say how many shops I sat down with that ran operations similar to the video. Many had very young so called “hotshots or mtg kings” running the show with absolute no professionalism and simply a game to them. Not to mention, they actually had the nerve to have some of the hotshots sit down with me and drill me with questions like, “how would you sell this gfe which had 3-4pts on the front to a 700 borrower?”, i just walked. Needless to say, the shop no longer exists but there are so many shops in so many states that let the commssions run the show and ignore any and regulations and values. I am all for all states requiring licensing requirements and continuing education for lo’s, at least thats a step in the right direction. It doesnt take many bad ones to blemish the professionalism in the industry.

By: Jason ”Jack” Lowry

Jason ”Jack” Lowry — Mon, 24 Mar 2008 19:40:35 +0000

There are so many points to discuss here but I will mention only a few.
First, I love the Schoolhouse Rock mention.
Seriously, most of the negative experiences I or people I know have had with LOs & MBs are from recommendations of family members. Even more than having a friend in the industry being the brother/sister/son/daughter/etc of an LO seems to bring more bad recommendations. Family members often have no idea what their family does or how ethically they do it. I have had at least one experience where a friends brother was an LO who was certainly very fishy, if not completely unethical. There needs to be a better system of rating your LO/MB experience. Word of mouth & recommendations are great but don’t do enough for the loaner or borrower.

In response to David’s comment: “Rand asks “would increasing education standards decrease unsavory characters originating loans?” My answer is yes. From my experience folks like this do not want to sit in a classroom and learn ANYTHING about mortgage lending. They just want to go out and earn money now. They will find another unregulated industry.” I agree completely. Specifically I think the more knowledge you have to help your client the more ethically you are treating them.

Finally I think your statement “Make it PROFITABLE to be ethical, and unprofitable to be unethical and we will see a slow, gradual change.” clarified my question from the previous post.

By: Casey Camby

Casey Camby — Sun, 23 Mar 2008 21:12:22 +0000

If we follow our natural capitalistic approach to business in the US, as we are. The Mortgage Gangsters will be dwindled down, see few or no referrals, and for the large majority go back to selling cars and cell phones when the wave crashes. With the kind of money we make and the kind of control we have over someone’s financial future we should have licensing requirements, it’s empowering! With things like licensing regulations, CE courses, market changes, and a need to help and teach (again); the Mortgage Gangster’s will have to evolve into a Professional to stay in this business. Or at least give the illusion they evolved, there will always be that few that slip through it seems.

By: Gina Kwon

Gina Kwon — Sat, 15 Mar 2008 06:36:17 +0000

I wholeheartedly welcome the new licensing regulations that are being put into place in WA state. I have heard that only a small percentage of LOs have decided to undergo the testing now necessary to become licensed, effectively cutting out many LOs who were simply out there doing it for the quick buck. As more and more of those LOs drop out of the field, I believe the field will become cleaner and the industry in general more respected.

By: Neal S

Neal S — Fri, 14 Mar 2008 05:50:26 +0000

In my personal experience, I have known very few loan officers that resort to the tactics exhibited on the video, although certainly they are out there. I suspect the demise of sub prime lending will leave the pie of available loans far reduced. As a result, the loan originators that are solely money-driven will diminish in the same manner. Sub prime lending usually was held up as the part of the business that attracted the highest fees as well. Hence, the public & media attention is focused on the sub section of lending with the most abuse. I enjoyed the definition of professional shared here; it is good to refresh one’s notion of professionalism in terms of being part of a agreed-upon standards & licensing. The arena of lending has needed these higher standards for along time, I welcome the more strident requirements.

By: Taren Bjorgo

Taren Bjorgo — Wed, 12 Mar 2008 06:57:42 +0000

That video is wrong, wrong, wrong but has some truth to it! IT HAPPENS!!!!!That video shows the lack of someones self worth that they have to take advantage of another human being that is seeking the so called PROFESSIONAL HELP that we are supposed to be providing…..the continued education and testing, background checks is a great start but there needs to be more and it needs to be in everyones face all the time…..but if you need to have a daily reminder to be honest and true in Good Faith then you shouldnt be in this business go be a bill collector or something…..and let the people that really want to help and teach be there for the people who want to listen and learn.

By: C Seal

C Seal — Sat, 01 Mar 2008 19:54:48 +0000

Having spent many years in a highly regulated field, and recently joining the mortgage industry, I welcome the change of having to be licensed. I believe that the only way people will start to change their past practices is if they believe they might lose the ability to do their job if they are doing shady things. Also, when people realize that we need to be licensed, we will start to gain more trust from the public.