I work in an office that has an in-house lender. You know the ones. Where some kind of marketing or rental agreement is signed between a lender who wants more business and a brokerage that wants more revenue.
Personally, I tend to not like these arrangements. To me an agent’s duty is fiduciary to the Buyer, not the broker or in-house lender. And some of the arrangements between in-house lenders and brokerages make me wonder if they would stand up to a serious RESPA challenge. I’m doubtful.
But never-the-less, you have to deal with the challenge of winning a real estate agent’s business when his/her broker is certainly encouraging them to use the in-house choice.
Now here is the deal. Most producing agents will still tend to lean towards the lenders that have done a good job for them in the past. I’ve been in my current office for three years. Our office is on our third in-house lender. Is that our office’s fault? Maybe in part since the first year we were brand new and may not have generated the business they thought we should. I was always a little leery of the first lender’s in-house gal. She did okay, but communication could be shaky.
Our second in house lender went through two “guys” before we finally agreed to sever the relationship. A couple deals went bad with a couple of the bigger agents’ clients (mine being one of them) and that meant no more leads. When the top agents of an office stop using the in-house guy, it’s curtains time.
Our third lender shows a lot of promise. There is innovation there. And personality. And so far challenges being met. So I’ll have to keep you posted on that.
I still have my previous relationships that get the lion’s share of my referrals. But every once in a while I choose to also give the name to the in-house gal to see what she can do.
So, Chris, what is the point you are trying to get across? Don’t be afraid of the agents with an in-house lender. If you previously had a good relationship, I believe that will stand the test of time. If you are trying desperately to get an “in” with the agent, the in-house lender won’t be any bigger of a challenge than another lender in another office.
Once again, and I’m going to repeat this a lot, real estate agents want to refer their clients to;
- lenders that match the personality profile of the buyer.
- will communicate thoroughly with client AND agent.
- have competitive rates and fees.
- will close the loan when the contract says. (Or give plenty of notice that there is a situation to work through along with answers as to how to solve it.)
So don’t be afraid of the big, bad in-house lender. Just because a broker wants the agents to use them doesn’t mean a producing agent won’t think on their own.
Chris Lengquist
Residential Investment Property Specialist
Chris
This is a great post. Everyone always seems to forget, in their panic to make it through, over, or around the “wall” of the managing agent/owner, that relationships are the key to it all. Agents want the deals to get done, and to get done with professionalism and care.
I have found that most in-house lenders lack not only the professionalism but also the knowledge and savy to get many loans done. In addition, they don’t have the support that the good loan officers do have. And real estate agents (the smart ones) recognize this.
Richard Cohen
Richard – thanks for the comment. All we want is what you want…to get the deal done. Whether that’s an in-house lender or a guy from planet Mars, everything just has to work.
I agree, relationships are the key. How do relationships develop? When a Mortgage Loan officer helps buyers “buy”.
Step #1 is getting past the Receptionist !! Most offices are “closed” these days – and for good reason I’m sure. So how does a knowledgeable, reliable, diligent, experienced, hard working Mortgage Loan Officer get to step #2? An Alliance.
The Alliance, in-and-of itself, will not take the place of building relationships. But it will get you past the receptionist!! After that, it’s back to the basics of building relationships. Nothing, not even a huge desk-rental fee, substitutes for good old fashioned “helping buyers ‘buy’”
I agree, relationships are the key. How do relationships develop? When a Mortgage Loan officer helps buyers “buy”.
Step #1 is getting past the Receptionist !! Most offices are “closed” these days – and for good reason I'm sure. So how does a knowledgeable, reliable, diligent, experienced, hard working Mortgage Loan Officer get to step #2? An Alliance.
The Alliance, in-and-of itself, will not take the place of building relationships. But it will get you past the receptionist!! After that, it's back to the basics of building relationships. Nothing, not even a huge desk-rental fee, substitutes for good old fashioned “helping buyers 'buy'”