CFPB is changing the game.

Yet again… And for MSA’s BIG TIME.  I think this will affect Builder’s BIG TIME, right as the ground softens.  Winter’s not over, but a cold front just waved through.  And if you didn’t know, I’m referring to the most irritating, hardest objection to get around if your an originator.  It’s when Builders give incentives to have a client go through “their” preferred lender or forfeit certain incentives. TOTALLY STEERING.

Recently the CFPB slapped the wrist of yet another mortgage company.  And this time the Real Estate firms associated with the “deal” get slapped too.  And it’s all because the RE listing suggests that a certain lenders pre-approval is preferred and had kickbacks or marketing “budget” that was moved around monthly.  Let me ask you originators, have you ever come across a lead and the prospect says their shopping compared to a “builders lender”?  Every LO’s face just cringed.  It’s the worst, and as an LO even if you offer a better rate or lower costs, if that prospect uses you, they lose out on certain “upgrades”.  And benefits for their builder deal.  I’ve seen it time and time again.

Well the CFBP is sending a crystal clear message with this case.  And I bet, mark my word that some builder that steers clients to a certain “lender” or they forfeit certain benefits, will be going down next.  Big time.  It’s the worst thing an LO hears, they already know they can’t win against the builder’s lender and feel trapped.  For years this has been the case.  This summer might be a different story.  The kickback or benefits of using preferred lenders in some Marketing Service Agreement (MSA) will be a no no going forward.  Wait that was the way it was designed in RESPA years ago…. Oh, yeah, people are still trying to find holes or cracks to slide through… I also think more of the public eye and consumers as a whole (even RE and LO’s) are reporting these kind of practices that make for an unfair advantage.  Heard that’s how this happened, a competitor of the mortgage company snitched on them.  Good.  I think the CFBP has got it right on the preferred MSA’s out there and how they are wrong.  But I don’t see anyone bring up the builders benefit aspect.

In my opinion as long as the LO and RE agents are diversifying themselves and not doing all their business with one person, then they should be ok.  Never make it even look like your steering loans to one place.  The old saying, never have all your eggs in one basket right.  Just don’t put something on the NMLS listing that says all offers must be pre-approved by XYZ bank.  Or from an LO perspective never advertise conjointly with a RE agent and have exchanges of value.  Keep things generic and or a representation of the company that sponsors you. This is a great move technically and in turn helps the consumers and level’s the playing field.  No one person or lender is “preferred” or should be advertised that way in my opinion.  All approvals or pre-approvals are taken at face value of what they are, and lenders are expected to perform if they issue it.  I think it’s a win win to have this, and really  this kind of action was needed more than 5 years ago.

Builders are the worst in offering incentives and or taking them away if that “preferred partnership” is not used.  As far as RE agents go I don’t see someone saying they won’t show a house to someone, or they won’t accept an offer if not using that preferred party.  I am not a RE agent and don’t know how they could “take away a benefit” if that lender was not used.  However if they place it in a written ad on NMLS stating all pre-approval’s need to be through XYZ Mortgage Co.  Well then you have steering.  Stay away from that is my suggestion.  Still builders are and have been the worst at this.  And I think this new message could have lasting affects with not just kickbacks, but the taking away benefits to a client for not using a “preferred lender” they have a MSA with..  And for the better.

We’ll see this summer.  Everyone should be on the look out for a builder that says use my company or forfeit some aspect of potential gain on the building of the clients new house…. I hope builders get the message and it spreads.  That’s a new no no.  Well there you have it. The CFPB is changing the game again.  Nobody is preferred, or compensated for steering loans towards a certain lender partner.  Makes sense.  Clear cut and dry.  Message and Law has been around for a while (RESPA).  Why are people still trying to cut corners is what I ask myself…

AS A RESULT. What I see is opportunity.  If I was originating loans, I would be using this as education for those builders that “have a MSA” or preferred lender and educate them.  Partner with them NOW, and offer to be a balance to their portfolio.  The last thing a builder should want is a track record of having all their closings with one entity.   (hardly any LO’s network with builders)…. This is key.  And wide open for the taking.  That’s cause they all had “their lender” they steer clients too.  And LO’s know this.  All you need to do is start adding value to them by education on this.  New “partnerships” are about to be born, hopefully with no MSA attached.  lol.  No one should be preferred any more.  My suggestion, stay away from even the looks of steering.  RE agents you should network with at least 3 LO’s from different companies.  LO’s you should network with 30 RE agents. 🙂  And builders you should have at least 3 lenders you can recommend.  No one person/lender from RE to Builders should be “preferred” and no benefits taken away if those partnerships are not used.  It’s not fair to the consumer.

Happy Origination’s

Happy Builder partnering

-The Mortgage Juiceman


My Why

Someone asked me why am I doing this Mortgage Juiceman thing yesterday.  I will tell you why. Something about me being hearing impaired and the correlation of always being the most consistent sales person on the phone.  I pushed beyond more obstacles than most others right off the back as I’m challenged to really focus on hearing.  Just that simple act propels the many whys I have.  It fuels the energy inside of me that desires to know more, and help others. For me my why is fueled by something deep inside me that wants & desires to help others learn how to sell.  My passion for sharing success with others and ability to identify marketing opportunities and help others take advantage of them enhanced with my experience.  Something about the inherent feeling you get when you help a mortgage close, directly or indirectly, you helped someone become a home owner, or save a few hundred dollars a month.  It’s because there’s a bigger picture here.  A bigger calling that I’ve not yet experienced, I know it, and this will lead me to it.

It’s because I share guideline advice and best practices to help the masses construct and do the right things in the mortgage world.  It’s because I offer products that are unique and intentionally are providing value to my network.  It’s because I have had the opportunity to go through trainings and be coached and mentored by some of the best people in the industry in the past.  And now I share that knowledge.  It’s because I have a knack at reading the guidelines and being able to translate lending law in common knowledge and help others actually enforce it.  It’s because it’s a way to give back.

I do have a second sales book I’m going to publish this year.  The first one you can access by going here; “Persuasion as an Art”.  It’s because I have a sales training on relationship sales that will help others sell more of what they got.  It’s because of the long lasting relationships in B2B sales that has helped me cope, grow and get through the best and worst times in my career.  It’s because I know there’s a bigger calling for me to help those in the sales arena of Mortgages among other things.

It’s because I have 4 kids and wife that I love dearly and they all depend on me.  It’s because not to long ago I had everything aligned right, however stopped branding me.  And in the end didn’t end up being the opportunity of alignment I thought.  As a result, I know I will diversify my income many ways in the future.  You should too, and not just have one income source.  It’s because I’m the captain of my ship, and I will brand me, the mortgage Juiceman over any company for as long as I’m in the industry.  It’s because by branding and leveraging relationships and following trends is what makes dollars and sense in business.

You’re reading this, you must admit I’m on to something here with this whole Mortgage Juiceman thing.  I’ve been already told, “glad to see you back.”  I don’t know what it will become.  But I know it’s not going away.  And I know I will pour my heart out to align myself and my brand to help ALL of those that are in my network.  If you do mortgages, if you underwrite mortgages, if you process mortgages, heck if your in relationship sales in any way shape or form.  Pharmaceutical reps, other wholesale reps, account executives in any fashion of B2B sales, loan originators, branch managers, my intent is add value for you.  And I will.  I will help you know relationship sales tricks & tips, guidelines for mortgages and anything related to the next generation of “trends” that are to follow and help you as a tool to sell.  There is something so gratifying about being a mentor and coach, especially when it helps someone grow their business.

I know this, if I continue to align myself with great mentors, trade tricks and information that helps me have a competitive edge (from products and services) I will see success.  And that success to me is the positive stories I’ve heard, the testimonials of happy clients and of course more closed sales (loans).  I am all about impacting small businesses across the America, I’ve been doing this for a decade.  And in the process have helped brokers whom where on the verge of closing their doors, come back and build a profitable mortgage company.  All through marketing ideas and intentional actions to partner, advertise and grow a business.

Most of what I do with my current clients is free, like a consulting service for the broker’s of America that are looking for ways to fill their pipeline.  And of those that partner with me all I ask is small piece of the pie if I help them make their own pie.  I’ve been partnering with brokers all across the US for a long time now.  And no matter what company I aligned myself with, it was the relationships that made the difference.  I can teach others how to create a raving fan base, and have marketing campaigns that have low out of pocket costs and a high return on investment.  To even public paid advertising that has high rates of return.  I help others create these campaigns when broker’s partner with me.  That in turn helps them drum up more business.  I do this free, and then ask that partner to fund a few loans with me.

That’s always been my pitch, I rarely ever just came to the table asking for business, I came to the table adding value and truly partnering with my network.  That’s why I do the Mortgage Juiceman thing.  That’s where this is going.  I’ve done public speaking and sales conference calls to pump up wholesale account executives to loan officers in a mortgage company.  I help motivate, I help others make an impact.  And this is a great vehicle to help me do it for the masses.  I’ve been told that my positive quotes I do and motivational talk has helped others when they were down on luck.  Or seeing a sales slump, and something I said or did or painted a picture of helped them climb out of that.  That’s why I do this Mortgage Juiceman thing.  You know what it stands for?

Join Us In Creating Excitement *(JUICE).  So I’m the join us in creating excitement about mortgages guy.  The I gotta guy question guy.  Where others come to have me help them structure and know how to pitch a deal to the client.  What options are best, and how it could impact them.  And help loan originators change and structure a loan (sometimes to save it) to help the end goal.  A happy client.  Let’s me ask you, do you know someone in the mortgage industry? Help me spread the word and have other know the JUICE in the mortgage industry.  Invite them to the group we have for mortgages: Sales Talk with Mortgage Pro’s.  Lot’s of great information being shared.  Invite them to this blog, follow and better yet reach out and become a partner with me.

I look forward to adding value to you, partner or not, share, interact, like, repeat!  My goal is to impact the world of lending and mortgages.  I look forward to having fun, and encourage you to Join Us In Creating Excitement.

My Legacy (published in my book 10 years ago);

“I am the possibility of others living the life they desire; through positive thinking, dreaming big, having blind faith and in the pursuit of sharing success with others.”

The Mortgage Juiceman





Whacked out Wednesday!!

Change of circumstances.  Yep, the changes.  They drive every AE nuts.  I wish nothing changed on loans from start to finish, but that’s just not the world we live in.  The best practice is to evaluate those changes.  I see this all the time.  LO’s fail to re-run Du and actually see the effect of the change is on their loan prior to asking for it.  From a lock to an increase of loan amount etc.  Check it out, it’s an oldie but goodie from the Juiceman vault.  Best practice, know what your change requested does to the loan in all aspects.  Watch the video below.




Same Day Service, creating URGENCY

Remember that is what a mortgage is a “bond” that changes.  You know rates go up and down.  Well paint that picture.  Painting the picture that to the client you send all the application too, they need to actually SIGN IT and SEND IT BACK… Rather quickly.  It’s not a sit on it and analyze it type of thing for two weeks.  You don’t ponder a mortgage decision on a refinance.  A purchase ok take your time, when your ready come back to me and I’ll refer you a realtor with a pre-approval letter.

With Bonds or should I say mortgages there is a price associated on a LE that is sent in an environment of rates at a specific date in time.  You and I know rates come out daily.  Paint that picture, that fact that remains the exact price to the penny will not be the same exact price on the loan assuming it’s not locked at time of initial disclosures.  That’s a fact and part of our industry.  And why CREATING URGENCY is actually really easy in the mortgage business.  I never understood why other originators wouldn’t get their “books” back.  Book = Complete loan package SIGNED with supporting information needed.  I remember a time in the call center days we would “ring” literally a bell on the floor to create excitement.  Once a day I’d make it a goal to go over and ring that bell.  lol.

You know it all came down to “painting the picture”.  Shopper or not I stressed the fact that rates change daily and that either market (rising or lowering) that is link between the myth that what your promised and what a client gets are two different things.  (in the mortgage industry) The majority of people who say that where promised something one day, held on to something too long, the rates changed and when they locked that price was different.  They paid more for the same rate.  ENTER the one call close, what we called “Same Day Service”

When I used “rocket” before it was known, I would take the app in a conversation, scrub their credit, and “rocket” the loan for decision inside of 40 minutes most of the time.  I would give that client a consultative approach to solutions for their need, whatever it was.  I always dug deep.  And when the time came to push the buttons to generate the docs, I would offer a special same day discount of some sort.  All they needed to do was allow me to explain the docs one by one to them.  Which I did, I walked clients through each form, told them which lending law associated with each document, and then had them sign it.  Right on the phone.  And afterward I would attempt to offer to lock the loan in, if they could send me the supporting docs same day.  Boom 1 out of 10 would do it.  Most people I would call in the morning. Paint the picture of importance to get the book back, push the bruise (the why they are doing this to begin with, remember I dug deep) and gain a commitment on a time I would have it back by.

My ratios ended up being that 80% of the people hold on to the docs 24 hours or less and really do move to get supporting docs rather quickly.  10% ended up shopping and out of that approximately 2% would come back to me and say, I totally understand now.  The teeter tooter effect of price and cost and how they relate they either understood better and or trusted me.  And would do business.  The rest was same day or not at all.  Win some lose some.

Today originators do TWO things for me.  First place a big sign in front of you that says S W to the 3rd power.  SW3.  Some Will, Some Won’t, So What NEXT.  And try today to take as many applications all the way to “book back” in one call.  Achieve Same Day Service.

If you’ve done SAME DAY SERVICE, like the article.

Happy Origination’s.




100 calls 4 credits 1 deal