If you are a mortgage broker or loan officer, how much time do you spend on average on a client's loan that closes (from initial intake to closing)? How much of your time does a typical refinance take versus a purchase loan? One loan officer told me that tasks and paperwork add up to about 3 hours on a typical refinance and 7 on a purchase (excluding time spent by the loan processor). Does that sound about right in your experience?

It all depends on the complexity of the file and how many stips you need to run after AND whether the borrowers cooperate or not. No two loans are EVER alike.

yes. . . every borrower/loan is unique. But there is some mathematical average that surfaces over time.

To simplify, what would the average be if you are not dealing with problem loans (low FICO, lousy credit, documentation problems) and are not dealing with pristine credit (high FICO, full doc, fantastic credit, cooperative) just run-of-the-mill loans.

If an average doesn't come to mind, may I ask, what was the most amount of time you had to work on a loan that finally closed, and what was the least amount of time you had to spend on a loan that closed?

How about this: How much time is spent on loans that DONT close?

Oh Aaron that was a good one! Yes, let's talk about those, shall we? Those loans always make your overall average time spent increase and significantly decrease your ROI!

If you really want us to give you a range, I'd say anywhere between 3 hours and 3 months.

Also someone less experienced may spend more time on the same deal as someone who's been doing this for years. It's all relative really.

Aaron, perfect answer. I cant tell you how many favor deals I get trying to clean up someone elses mess. Those are the worst, and usually end up ticking everybody off. I am actually closing a loan tomorrow that will pay me $46.00. No joke! It has been an absolute nightmare, and the only reason I did it was to do a realtor a favor. Everytime I get done with one of these messes I sware never again, but always end up felling bad for someone.

I litterely had 19 voicemails between 8PM last nigh and 9:15 this morning pertaining to this deal alone.

Its funny how when it comes down to it, the broker ends up eating all the costs when there is a problem. Ever try to get title or escrow to lower their fees in order to make a deal happen?

Nah! I just get to the point where I just want the deal off of my desk so I will do it for free if that is what it takes. Funny thing is you never seem to get to many refferals from these please do us a favor loans.

The top producing loan officers I know just have set rules for deals they will work and deals they wont. These people are always closing loans and rarely put up with BS. I am eventually going to have to cut my heart out of it, and get down to business.

TN, you are such a nice person and sometimes in this business it's a real curse. It takes one to know one I guess There has been plenty of times when I wished I didn't have a conscience just because some people just use you and abuse you and no matter how good of a deal you give them it's just never good enough and they still think that you are out to **** them over. These people, I either a) want to strangle them for questioning my integrity coz God knows I could O.d on it or b) send them to a real shady broker and tell them to come back to me later with flowers and a letter of apologies. Sometimes, you're just left wondering if indeed the good guy always finishes last, for real. So yeah, there has been many times when I wished I wasn't so caring but NOOOOOOOOOO that never happens. I'd like to thank my mom and dad for raising me well and for placing a limit on my greed and income potential!!!! :p Oh I'm mad, can't you tell?

Ok seriously now, I don't deal with BS anymore. It's just not worth the aggravation and that time would be better spent on other borrowers who actually respects and appreciates the value we bring to the table plus the fact that what we promise is what they get. When I get a rate shopper, I tell them about all the factors that go into determining their "true" interest rate, if after that they still ask me to throw a rate at them without letting me take an app, I just tell them I'm not the right loan officer for them and that only deal with educated or wannabe educated people who value expertise, professionalism, and being treated fairly from begining to end.

And that's all I gotta say 'bout that.

alea,

how long have you been in the business?

Going on 5 years. Started on the wholesale side as an assistant for a top producing AE, then learned processing, and underwriting, and then moved to the retail side. Hey Alvin, you''re my neighbor

yea i just started in encino with first magnus/charter/great southwest mortgage

First Magnus has some good investment products. Alvin take a note from the above conversation, and set strict rules of what you limits will be on loans you accept to do. For starters if it doesn't have sticks and Brikcs it's a turn down. In Cali you wil obviously have better loan amounts, but if it was a turned down elsewhere deal beware. Sometimes the best answer for everyone is No sorry I cant do your loan.

thanks. i havent learned the products yet but i was told to start focusing on selling and presentation, then onto essential knowledge.

my main niche is targeting investors so i know theyre already ready, willing, and able to buy. if they have the money and cant qualify for the loan, im willing to put up my corporate credit for a 50/50 equity partnership.

Interesting topic.

As a new loan officer you pretty much try (more like optimistically hope) to close anything!

As already mentioned by some of the guys, every loan is different and has it's own uniqueness. I think what plays a very big part on the time spent on a loan, is what your knowledge of the industry is and most importantly your past experience.

You will probably know how to deal with a specific lender, stipulation or client if you've had experience with it before. So as time goes, the amount you spend on a file is less.

Unfortunately the clients see this as "charging me for 3 hours of work". What they don't realize is that we've spent hours, days, years and a lot of time on files that never went through to be able to do a loan "quickly" so to speak.

Back to numbers now. I probably spend 3-4 hours on a purchase loan not including the time my processor spends on it. Like right now, I have a huge loan with only one lender that can do what I want. So I'm basically triple checking everything to make sure it goes through just fine the first time. The pay out is much higher, so the extra time spent is well worth it.

What most loan officers forget is that our jobs aren't to sit in the office and process loans all day (I'm one of them). Our job is to find clients, qualify them then pass everything on to the processors. Unfortunately in this new era, lots of processors have no idea what they're doing so we do everything anyways :rolleyes:

It seems that the industry as a whole has shot itself in the foot with mudslinging adverstising tactics. Homebuyers who are not savvy all seem to think that everyone is out to rip them off and paying any kind of closing costs is out of the question. I think the Ditech and E-loan commercials are the worst culprits because they promise impossible loan terms.

I pretty much work only with investors now and its much less stressful for me.

These companies are the biggest bait 'n switchers in our industries and people fall for it everyday. Ever asked a real estate agent what their experience was when a client chose to go to one of those internet lenders and call centers to get their loan? It's pretty alarming. Oh and of course, there are the testimonials you find on the internet like these ones about Diech, Quick Loan Funding and the likes:
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Ditech.com is a bait-n-switch company. Great advertising, but poor service. They do not honor what they tell you. All they want is your social security number and a $500 NON-REFUNDABLE fee. Their loan officers don't have a clue, don't return phone calls, and promise the world!

If you don't understand APR, you better learn FAST before you deal with their bait-n-switch rates.

Their rates are NOT better then everyone else. It comes loaded with fees and points you do not want to pay.

If they are on all TV channels in all markets all day long, who do you think ends up paying for all those expensive commercials. THE CUSTOMERS! How do they get all the customers? They BAIT-N-SWITCH.

DO NOT USE DITECH.COM! I got a much better deal with my local lender, who was honest, and experienced. In the end, I was able to recover the $500 I wasted at Ditech.com within just a few months using a better lender!

John
Atlanta, Georgia
U.S.A.
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We applied to DiTech for a refinance/remodel loan. Tons of paperwork. Had to stay out of work and be home for appraiser (who was not even from the area house is located in). No word from DiTech for several weeks. Called us finally and told us they could not approve our loan until all remodeling was completed and another appraisal done. House did not photograph well! Told DiTech if we had money to finish the remodel, we would not need a loan! DiTech had already contacted our home owner's insurance company weeks earlier and had themselves put as the new loss/payee. Would not have know this except for a note from out insurance agent. Decided to try refinace/remodel loan with local bank. No problems. Closed on a great loan in less than 3 weeks. LISTEN UP PEOPLE - try your local loan companies or banks before letting TV hype influence you.

Donna
Marshville, North Carolina
U.S.A.
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What should have been a speedy refi has turned into a 5 month ordeal! Ditech.com, through inefficiency, ineptitude, and unsurpassed poor communication has cost me thousands of dollars. Consumers beware! Do not do business with ditech.com! They spend all their money on advertising and hire amateurs to complete the transaction. After they took my $500 rate-lock, the processing department left the paperwork in limbo until the rate-lock expired. A second rate lock is within a few days of expiring and still no loan after months of faxing, phoning, and emailing.

Thomas
*******
U.S.A.
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I was previously employed by this company. And I have recorded proof of Quick Loan Funding guaranteeing people that their loans will be approved after the appraisal fee is paid. This company also cheats their employees out of their wages, creates false documents, And offers employees promotions to lie for them in court. A word to the wise do not do business with this company or seek employment with this company. That is if you have any morals . This company does not have any morals.Quick Loan Funding is what one would call SCANLESS.

Holly
Irvine, California
U.S.A.
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Gotta love those ex-employees who spill the beans

Anyways, there are pages and pages of that stuff. If you want to know where they are, just let me know.

can you PM me the info?

i need to learn the objections and how to analyze and expose the bait n switch

Just did.

We spend at least 57.78 hours per funded loan. Read on.

We spend about 3 hours on any individual file depending on it's complexity.

But I'm giving props to Aaron like others. We work over 8 hours a day and the average loan officer closes 3 loans per month (roughly).

Figuring for a 40 hour work week and 52 weeks per year (we work more than that), then that puts us at 57.78 hours per closed loan based on the average of 3 loans per month.

I spend about 5 hours worth of work on a purchase and about 3 on a refi. That's just office work though and doesnt include the other stuff like marketing.

People who do not appreciate their credit enough to be disciplined often do not give anything back. Think about it. Many of them get a chance then mess it up. People do favors and give them loans and they default. You can usually tell right from the beginning whether you will benefit after closing or not.

But, some live and learn and try to get back on track because they start to care about creditors. Those people get that lucky loan and deliver more than any perfect credit borrower.

It is hit and miss..

If you spend more than 3 days placing a loan cut them loose and advise them on credit repair. If they follow your instruction and come back great. If they continue to shop then they really do not care about credit. Let's face it brokers are about the same across the board. Some know more than others and have niche's to get it done. But more than 3 days is too much. Your time would be better invested into marketing for a loan that you know will happen.

Also when you only have 1 lender you better tell your customer. When there is only 1 lender there is a reason. 50/50 chance on closing it. Or you have an AE who over promises and under delivers.