3 refi boom pro tips and 12 best quotes from loan officers
Do you have quotes and blocked loans until 3 a.m., wake up at 7 a.m. to see the rates have gone down even more, and say, “Aww f ** k.”
So you are definitely a loan officer in the heat of this 2020 boom refi. Up is down, locks don’t matter and you could have the year of your life.
And I’m here to remind you – with much-needed comic relief – that refi booms always play out the same way.
Rates continue to fall for a few months, but not without heart-wrenching volatility that blows up your customers’ foreclosure tips on a daily basis, wreaks havoc on the EPO, and makes you wonder if customer loyalty is still a thing. .
Let’s break down each of these, offer some tips and laughs to all loan professionals, and share your top 12 quotes of the week.
1. Customers are loyal at the best price
Stop looking for your soul on the question of loyalty. The answer is no, customer retention is not a thing in a market like this.
Running large-scale production in San Francisco for 16 years, I’ve formed a credo: Customers are loyal as long as you get the best price.
I learned this in a market where loans are big, clients sophisticated and they will leave you for an eighth no matter how smart your advice is.
The same rules apply nationwide in a refi frenzy.
And it just got worse and worse over time because it’s not just Thursday’s headlines on Freddie macWeekly rates that screw up your quotes and advice. It’s all tariffs everywhere all the time.
“Hey, I saw DJ Khaled’s Instagram story saying rates dropped another quarter.”
Are you kidding me right now?
There are so many sources of absurd rates to contend with and the social age is only making things worse.
You must therefore make your consultations and quotes ultra-fast and politely present take it or leave it.
Then if customers leave it and lock in with a competitor, just make sure they share their blocked rate.
Then you can bring it back when the market drops below your competitor’s renegotiation threshold.
Because that customer will later be loyal at your best price.
2. Don’t waste time explaining the rate cuts
Which leads us to renegotiate the locks.
I did a song titled What if the rates go down after I block my loan this week to save you time by answering the same old questions about the outlook for the coronavirus market, the basics of renegotiation, and using no-charge offers to create a future refi option if the market goes down further.
Don’t get brain damaged explaining rolldowns to customers who think they know the business and want every detail.
Waste of time.
If they don’t like the outcome after you teach them how your business calculates rolldowns, they’re going to leave you anyway.
This is especially true if you got a rating waiver on AUS scores, as they don’t have an in-game assessment fee skin.
Even if they do, the spreads on aging locks against market rates are so big right now, letting you take a market rate instead of your fixed pencils even if a client has to pay appraisal fees. .
The good news is that it works both ways. For every customer who forfeits your blocked rate, you will earn one who will leave another lender for the same reason.
I’m not applauding cruelty, I’m just stating the reality of working in a market where customers are loyal at the lowest price.
Of course, do all you can with your desktop locking to keep clients locked.
But speed matters, so how much time do you spend retaining potential defectors versus gaining new customers in today’s market?
3. Price conspiracies and tell customers what you are doing
I sometimes joke that crowd control pricing is in effect when quotes look lackluster relative to the market.
Lenders indeed use pricing to control capacity. They need to be able to operate during refi lockout times and need to save capacity for purchases as we head into peak home buying season with record rate.
But don’t play a joke as a pricing conspiracy. Capital markets teams must keep pricing in line with Fair Lending requirements, and they are the lifeblood and true profit centers of every lender. They understand the demands of the competition and are here to help.
So treat your foreclosure office like your best friend.
They will help you retain those stranded customers and cite recently closed customers without getting slapped with prepayment penalties (EPOs).
Oh, did you forget the EPOs ?!
Reminder to all loan officers (mainly non-bank) subject to OPEs: if recently closed clients referral elsewhere, you are still required to recover the recovery.
I know it’s raining new requests, but you need to find the time to re-quote recently closed deals to avoid the EPO storm later.
And please don’t tell your clients your bloody story of how touched you are if they repeat elsewhere. They don’t care and it makes you look selfish.
Bonus Section: Refi Boom Quotes Of The Week
This last note on the complexity of refi booms brings us back to our opening line: “Aww f ** k”
But hang in there and dance while the refis rain. You will indeed have the year of your life.
I’ve spoken to many of you this week, so I’ll send you your best quotes for inspiration, humor, and to know you’re not alone:
“I have worked 100 hours in the last five days. Work until 3 am, until 7 am ”
“We are refinancing loans that lasted last month. They’re fucking bananas.
“Price on refis, on the verge of triggering holy hell. But overwhelming on the purchase so that’s cool.
“I have had at least 100 inquiries in the past four days.”
“I’m playing without offense right now. All in defense.
“LOs are furious, about to be a price mutiny.”
“I’m not worth an eighth to any customer anymore, it doesn’t matter.”
“I will either fall asleep or fall dead.”
“Do you want the price on the website or the one I can get on an exceptional basis that is 50 basis points lower?” ”
“My head is spinning like hell. This is fucking crazy.
“People who locked up three days ago are asking for rolldowns.”
“Every customer is suddenly a market oracle telling you how it’s going. “