My husband just had a client, whose loan was ready to go into closing, call him and request that he stop everything and turn over the appraisal to him so he could have his neighbor, who is also a loan officer, resubmit almost the same exact deal through the same bank. He's doing this because he doesn't want to p-off the neighbor. My husband has been doing this work for 15 years and says he's never had a client bend him over like that. Ofcourse my husband is asking for reimbursement for incurred expenses (I think he should be asking for origination fee too!), but who knows what's going to happen next.
What's the worst experience you have had with a client when processing and closing their loan? I've been a broker now for over 7 years, and I've learned that buyers are not going to tell you if they don't like the service you are giving them. They are very touchy, and emotional. And whether you know it or not, they are always talking to someone else to get advice on the deal until they are completely comfortable with you. And if they do tell you they are going with someone else (which your lucky they didn't just stop answering the phone), they will never tell you the truth. It is more likely that the neighbor looked at the deal and said %26quot;they are ripping you off%26quot;. I find it important to be the 2nd opinion when it comes to a buyer, not the 1st. If a buyer brings me paperwork from another broker, believe you me I'm going to beat that deal. That is most likely what happened.
You can't take it personally, it's going to happen. If he's been doing it 15 years, I'd be suprised if this is honestly the worst thing that's happened to him. And it is illegal to collect an origination fee if the deal isn't closed. That is RESPA guidelines, which don't vary state to state when it comes to origination. I've worked tons on deals that never closed, had some fall apart right at the closing table!! But I've also had plenty of deals close that took little or no effort which makes up for the wasted time on the other one's. If your husband is good at what he does, then loans are not that hard to do. Nor do they take a lot of time if your dilligent and get everything you need up front.
As far as the appraisal goes, tell him to pound salt and get another one. If he stiffed you on the appraisal (since you were talking about money invested), then let it be a lesson to you that you should NEVER invoice appraisals. I don't ever! And it has yet to kill a deal for me. If anything, the buyer is less likely to disappear since THEY will have money invested.
Since your deal was all the way to closing, I can almost gaurantee that the neighbor told the borrower he could beat the deal. Maybe offer to drop the closing costs, or the rate to save the deal. The lender shouldn't let another broker send the same deal through a different company, and if they do, stop using that lender!!
What's the worst experience you have had with a client when processing and closing their loan? I have had a few loans like that. The client should know that it will cost him whatever fees you husband has incurred and then I would sit on it for a awhile. That appraisal cant be transferred without your husbands approval. It would sit on my desk . By the time I released it the client would either go through with the loan with me or wish he had because of the frustration it will cause him.
What's the worst experience you have had with a client when processing and closing their loan? *update*
For the person that gave me a thumbs down sorry.
What fees did you incure? Let me think? ZERO. only time.
I totally disagree with you. If your neighbor can do a better job on the loan, maybe your husband shouldnt be doing them.
I actually feel sorry for you that your husband sucks so bad at his job that this would ever happen.
What's the worst experience you have had with a client when processing and closing their loan? That happens. Clients can be fickle. Your husband should tell the client that not p-ing off the neighbor is not a good reason to cancel the deal. The client should leave ONLY if he is getting a better deal, better service, or a more reputable company. If I were the client I wouldn't want to go with the neighbor anyway because I wouldn't want my neighbor to know all of my personal financial information.
