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The Way of the Guerrilla Mortgage Warrior

by Brian Brady

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Q: What do HVCC, HERA, and mortgage brokerage fee agreements have in common?

A: They make our job a lot easier..BUT we're screaming about it..and that makes us look anti-consumer.

Here's my dirty, little secret: HVCC is working out well for me!

I have NO control over the appraisal process so REALTORs can't badger me like they have in the past. No more double-apps and borrowers paycloser attention to mortgage rates. I'm no longer the "market-maker", I'm a consumer advocate.

New TILA disclosures? I embrace them. I don't tell consumers that their closing is going to be delayed, I inform them that it MIGHT be delayed if they don't sign and return the loan disclosures in a timely matter. I get to cite transparency and consumer protection as my compass.

How about the fact that Bank of America makes mortgage brokers use that a prior negotiated mortgage brokerage fee agreement? I swiped that sucker and use it on every loan, regardless of the lender.

I use transparency as a weapon against the banks. I walk into a bank branch and snap a picture of their mortgage rates, on the lobby sign. I e-mail that picture with a copy of the wholesale rate sheets (from the same bank), and SHOW THE CUSTOMER HOW MUCH "SECRET PROFIT" THE BANK IS MAKING ON ITS MORTGAGES. I explain how yield spread premium can lower the portion of the mortgage brokerage fee they pay me. Sometimes, I lock the loan with the same bank and laugh along with the customer.

Customers think of me as the guerrilla mortgage guy, sneaking behind enemy lines, to win the war for them.

Customers love you when they know you're working on their behalf. HVCC helps them get a fair appraisal without undue influence. Early TILA disclosures, disclosed with a written lock-in agreement, and upfront mortgage brokerage fee agreements tells them you have nothing to hide. Why would you hide ? You're a hero, helping your customer navigate the murky maze the big banks legislated.

Get out of your own way and get on the customer's side. Stop fighting the Goverment and the big banks; use their strength against them... like a Guerrilla Warrior.

Article by: Brian Brady

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Filed under: Mortgage Marketing, yield spread premium, appraisal, hvcc

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Eric Fang | Contact or Connect with this Member

Good post, Brian.

jeff billups | Contact or Connect with this Member

Sounded great until I got here: "HVCC helps them get a fair appraisal without undue influence." Yes the "undue influence" of having to be accountable for the appraisals that are turned in. My latest laugh was last week when one of the appraisers made a 10k adjustment for a fence on a comp when the picture of the comp clearly showed no fence. Could only shake my head in disbelief. It took me over 10 years to navigate through the jungle of appraisers in Florida to locate and establish relationships with experienced and trustworthy appraisers in every county. I love the glass is half full mind set but that is a hard sell to convince me that HVCC is a benefit for me and my clients.

Brian Coester | Contact or Connect with this Member

The HVCC is the best thing to happen to the appraisal industry. Of course there will be times when you wish the appraiser did a little better job, but that goes with everything. Lenders want to make loans as that is how they make money. If they felt the appraisal was low or of poor quality they would order another one. I own a national appraisal management company that does appraisals for TPO business for lenders and they want an accurate appraisal that is truly reflective of the property nothing more, nothing less. The HVCC allows the apprasier to do his job in a professional manner and protect the lender without losing a client. For a long time appraisers have been screaming about the pressure from loan officers and real estate agents. The HVCC will not cause values to drop, but rather adjust to there true worth which will enable a strong base moving forward. You can only through so much smoke and mirrors at something before it reveals itself as BS and the HVCC will let appraisers value properties and do there job.

jeff billups | Contact or Connect with this Member

I disagree. This has taken money away from the appraisers and justified it with the "smoke and mirrors" benefit of allowing the appraisers to operate out from under the influence of the brokers. What you are saying is that the appraisal industry basically needs to be paying someone to protect them from being bullied? The easier fix is to simply have the lenders do their due diligence(which they still do by the way) on the appraisal and simply black ball the appraisers that are consistently submitting sub par appraisals. HVCC squeezes profit out of the system under the banner of consumer advocacy. I haven't checked lately but what % is the appraiser now making and what % does the management company take?

Brian Brady | Contact or Connect with this Member

"HVCC helps them get a fair appraisal without undue influence." I should have written "Customers believe that HVCC helps them get a fair appraisal without undue influence". Mea Culpa

David Orsini | Contact or Connect with this Member

This is why you are the man Brian. I love the strategy about emailing out the rate sheets alongside the photo of the advertised rates on their lobby sign.

David Schwartz | Contact or Connect with this Member

I have actually used the tactic of going wholesale with the borrower's retail bank sought after first. The one example I use the most is about the borrower who came to me and we got him a point better on his interest rate without the 1.5% discount points. The best part was...He worked there! I pull that story out for my clients when they ask about "Their Bank", and how we compare. Brian, I truly believe in what you say, and how you utilize what some see as "More Negative Changes," into a tool that works for the client. Transparency and utilzing education on their loans and how we are paid is a discussion I have with every client and they love you more for it! Clients feel comfortable when they know they are not being taken advantage of. Especially when you can be the person to show them how someone else almost did take advantage of them, but you CAME TO THE RESCUE, just in time! Now, if we could get all Mortgage Brokers to do this, maybe we would be more trusted than Used Car-Salesmen!

Yvonne Cummings | Contact or Connect with this Member

Brian surely your not using a copywrited agreement improperly are you? "How about the fact that Bank of America makes mortgage brokers use that a prior negotiated mortgage brokerage fee agreement? I swiped that sucker and use it on every loan, regardless of the lender. "

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The Way of the Guerrilla Mortgage Warrior

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