This week a former Loan Officer stopped by my office to say “Hi!” In the summer of 2020, she was poached by another mortgage firm, and I hadn’t seen her since. She was with our company for about a year, and we taught her the ins and outs of the business from scratch. With the historically low rates due to Covid, she was approached with an offer that was too good to be true, and she couldn’t pass it up.
During our discussions, I found out from her that their offer was, in fact, too good to be true because it didn’t turn out as she expected. She went on to tell me that she was now at her fourth mortgage company since leaving Approved Funding. With each venture, what she was told during the “courtship” was not what she ended up experiencing once joining the respective companies.
For starters, she was promised training and mentorship from top performers, but it never happened. She was assured help with her business development at another mortgage company, but there were no further strategy discussions after her second day. There was no one to help with loan scenarios, and she felt alone when challenges came up with her files. The list went on and on.
Unfortunately, this scenario plays itself out many times in the business world and even more so in our industry. Some sales professionals are highly charming during the “wooing” period while trying to earn your business. They are incredibly aggressive and overly charming, jumping through hoops to get you to commit. From there, they are quick to extract fees for applications, appraisals, or rate locks which weigh you down from going elsewhere.
Last week, I was referred to a client who was frustrated with the counseling she was getting from her current broker. She admitted that he was impressive in all their discussions before her application. Once she submitted her paperwork, he vanished, passing her on to an assistant who was not as experienced. This often happens when working with “big banks” who departmentalize all the loan functions, and it becomes a scramble to know whom to contact for what.
After this woman agreed to move forward with me, the original loan officer reached out to her. He called and texted her every day in his attempt to convince her to move forward with him. He was back in the courting stage, which is evidently where he thrived. When she told him the rate I was offering, he acknowledged that he could not match it and finally wished her well.
Bait and switch tactics go well beyond merely increasing fees after the agreed-upon deal. Often there is a perception of what an experience will be based on how the initial conversations go. However, many people don’t realize until it’s too late that slick dialogues don’t translate into “better” deals or superior service. Whether you are looking for a loan or looking for a career – Caveat Emptor!
Special shout out and birthday wishes to Sandra Applebaum, Mike Dube, Avi Glanzman, Gila Guzman, Jordy Jacobs, Jay Kierman, Sara Kohanim, Howard Komendant, Meir Kruter, Aviva Lazaros, Igor Lavitas, Jacob Lustig, Aryeh Morris, Yannai Segal, Shana Schmidt, and Talia Strobel
Shmuel Shayowitz (NMLS#19871) is President and Chief Lending Officer at Approved Funding, a privately held local mortgage banker and direct lender. Approved Funding is a mortgage company offering competitive interest rates as well as specialty niche programs on all types of Residential and Commercial properties. Shmuel has over 20 years of industry experience, including licenses and certifications as a certified mortgage underwriter, residential review appraiser, licensed real estate agent, and direct FHA specialized underwriter. He can be reached via email at
[email protected].
