3 Common Mistakes Loan Originators Make that Cost Them Dearly
There are several mistakes loan originators make that can result in several major issues, killing the chances of further referrals. However, as damaging as these mistakes can be, they’re actually fairly easy to fix — all it takes is a little effort to improve organizational processes. Here are some of the more common problems along with their solutions.
Far too many times, loan originators either fail to ask customers for enough details or fail to listen to them. They don’t ask for specifics when they hear something that doesn’t sound right during the customer interview, or when they move on to another question, they fail to follow up.
Another big mistake is not acting quickly enough when a customer says that time is of the essence, or trying to force a type of loan on a customer that he or she doesn’t want.
Not Utilizing a Lender’s Resources Properly
Loan originators are simply asking for trouble if they don’t know how to price a loan, and they try to get an account executive to do it for them. They can also underutilize resources. For example, failing to talk to an AE about how to structure a loan the right way so they can get through underwriting the fastest and easiest way possible.
Failing to Get the Proper Training
This is probably the biggest mistake that a loan originator can make — one that could eventually drive him or her out of the business. If you’re using customers as guinea pigs, you might as well start looking for a new line of work. There are way too many loan originators out there that don’t know how to be in compliance with the Fair and Accurate Credit Transactions Act (FACTA), or can’t even read a rate sheet or understand proper underwriting guidelines.