I do think that the licensing issues will continue to weed out shady and weak LO’s… the economy will shake away the fray…including some good LO’s who just couldn’t make it.

I would think that 2009, in Washington State, we’ll have much more professional LO’s (at least those of us who are required to be licensed).

I may have to start posting my GFE’s w/HUDs and black out the names/address of my clients…. that was a good idea you had…but you’re right, most consumers would not want to do all of that legwork.

I thought of something else. If a loan originator also held a certified financial planner designation/degree/certificate, that would also be a good indicator that this person owed me way higher duties than an average random LO.

“Maybe there should be a public record somewhere of that LO’s loans showing how many went into default, how many were subprime, FHA, etc.”

They can add how many clients returned to the LO too…I think that’s a positive sign when the consumer returns to the original LO. The record could also indicate what the LO specializes in–how many loans are investment, reverse mortgages, gov., etc.

by selecting an LO who owes fiduciary duties to their clients.

by education level, knowledge, experience.

Maybe there should be a public record somewhere of that LO’s loans showing how many went into default, how many were subprime, FHA, etc.

I’d want samples of the last 10 GFEs and HUD I’s so I could compare. but I’m anal retentive that way. consumers aren’t educated enough to know what to look for.

If an LO doesn’t even have 10 GFEs for me to look at, then the LO isn’t very experienced and that would warrant me negotiating a much lower fee.

I would pay a higher fee to an LO who owed me higher duties from the start.

How do you recommend a borrower select their mortgage/loan originator?

I doubt the other lender (a big on-line lender) will be able to his purchase in 3 weeks. But the rate is what he opted for.

I try to educate consumers as much as possible via blogging, but I’m sure sometimes I sound like an old broken record.

Glad to hear that you’re okay. I was getting worried…

Tim we’re in a transition period where loan originators have two feet on different tracks. On the one hand, many still behave as if they are retail salepeople and the industry itself really has done a beautiful job of training consumers to shop for a mortgage based on rates and fees.

On the other hand, LOs are beginning to emerge as a profession. When I hire an attorney, I could care less about his/her hourly fee. Instead, when something’s going on in my life that’s important enough to need legal help, I select the attorney based on experience and reputation and the hourly fee is further down on the list.

We’ve trained consumers to leave us at the last minute for Die Tech/Lending Tree. Why wouldn’t they leave for a better rate when we (the industry) continues to sell rates?

Across the marketplace, the shift from salesperson to professional will take years.

Jillayne, not much flooding yet. We’ll see.

Rhonda, I really dont’ understand why there is resistance (could be I’m reading it wrong) to consumers doing shopping for rates and fees. The problem as I see it is that “service” is not tangible to people whom they have not known (referrals always break the ice, true). But, money out of their pocket is tangible immediately. You, me and everyone else can talk service till were blue in the face, but money talks (fees, commissions and rates).

However, after going through all that… you get the call I described in my first comment because despite all your hard work, at the end of the day it still boils down to what’s my rate for most folks regardless if you deserve a purple heart.

This job makes more and more cynical every day, but I do love it…. lol