As always Jeff Belonger brings up pertinent, challenging and informative topics. He also generally goes straight to the public, meaning his posts are open for the world to see. I really like that.
He posted this http://www.activerain.com/blogsview/555729/It-s-not-the , which violates the AR "Keywords-in-the-first-4-words of the title" rule, but Jeff is doing alright without those nice little tricks.
The topic is ethics in mortgage originators, but probably could be applied also to real estate agents, appraisers, title companies, ... .
Jeff's post asks consumers when they shop for a loan, what criteria do they use? The biggest name?
Jeff's point is "No matter how big nor small may that company be, we all get our money from the same place when all said and done. With that said, you should seek out a mortgage professional. One who is honest and ethical. By not doing so, could cost you thousands of dollars in the long run."
It is like the bottle water companies that sell tap water. We all get the money from the same place.
Jeff's suggestion is that consumers find an honest and ethical loan officer.
Some comments in that blog indicated that most unethical originators are by now out of the business. I do not think that is true, but given the focus of state audit I just went through last week, at least in Tennessee, unethical originators will be on the run.
My basic question is "what are ethics in a mortgage originator?"
Close on time, accurate documentation, understanding the customer, reasonable fees, basic competence, no surprises at closing, explain process, pressuring the appraiser for value, to omit minor repairs, telling the realtor to leave that detail off the sales contract
Second, how would a consumer who is shopping for an originator, using internet, newspaper, recommendations, yellow pages, and basic research, decide on which originator is ethical?
What early criteria should let a consumer identify the ethics of the originators she is considering?
Low quotes, disclosures provided, explain the process, questioning about the consumers circumstances, website, established business, recommendation
Part of the context of Jeff's post is that the originator, who was recommended to the customer, did not act in an ethical way towards the customer. So this story kind of makes recommendations not to be the great measure of ethical business people.
It certainly is not advertising. In Chattanooga there is a car dealer whose name is Big Hearted Smitty. If I am looking for a big hearted car dealer, is the business name or a tag line that says I am an honest dealer the best way to choose?
Do all consumers even want an ethical originator? I have been told many times by a customer when they call initially that they are looking for someone who can be creative? Or can we call this a second home? Or yes I am going to rent my free and clear $300,000 home on the river and move into the $85,000 house downtown because it is closer to work and I want a smaller home. (BTW, FYI prices in TN may be a little lower than in other parts of the country.)
What does ethics in mortgage origination mean?
How does a borrower identify the ethics in an originator when they are initially shopping?
Udate One thought that came from Laura's comment below - the consumer can ask test questions, or evaluate the originator's reliability by setting up a "follow up" test. Give the originator a time to call back with some information. And evaluate the quality and promptness of the follow up.
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