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Scott Cowan is taking the lead on this event.

Two excerpts from the "right" way to originate loans today:

David Bartels impressed me with his definition of our job as a “borrower’s advocate”.  He suggested that we would do well to align ourselves squarely with the borrowers.  While he never suggested that our lender partners are the enemies, his message was quite clear.  Originators need to help borrowers FIRST.  Banks are so puckered today that borrowers need a guide to help them interpret loan offerings, argue their case for approval, and secure the best terms possible.  When mortgage brokers fully embrace that concept, we will have earned the public’s trust.

Borrower advocacy is what originators need to do today; we need to fight for our customers.

What would happen if we encouraged borrowers to apply for the terms they wanted? I remember when I started in this business.  I used to ask customers what terms they hoped for and put it on the loan application.  I started with their best expectation and explained that we would put it on paper and run it by an underwriter and pricing manager.  We used to do that before automated underwriting systems were implemented and the business was easier.  Lenders sold us on the “instant approval” power but transferred the adversarial relationship from them to the originator; AUS positioned the originator as the bad guy.  Borrowers see the loan application as a “closing technique”  while originators know that a loan application is merely a starting point.  A common goal then, might just bridge the trust gap so that both borrower and originator “get what they want”.

Please read the full article

Jason Blackburn of Laser Focus For Life was our guest on Radio Mortgage last week.  I “met” Jason on Facebook two months ago, when preparing for the “Power Of Twelve” seminar.  Jason wrote a referral script for my seminar and asked nothing in return.  That connection led to a number of telephone calls which made me realize that Jason had a lot to offer.

Jason points out that many of our actions are incongruent with our mission.  He explains that our actions need to be inspired by the “buy-in” from both our hearts and our minds.  Jason is not a “touchy-feely” success trainer. He’s a nuts and bolts sales pro with over twenty years experience.

I expect we’ll be hearing a lot from Jason.  You can hear our 40-minute interview with him here.

PS:  If you click only one link, click “referral script“.  Jason lays out a simple way to generate referral business in about 800 words.

RE BarCamp Seattle has a time and a date.  From Todd Carpenter:

Rich Jacobson and Brad Andersohn from Active Rain, along with Drew Meyers from Zillow have established the basics. A date and venue. February 13 at Zillow Headquarters.  This happens to follow a Bloodhound Unchained preview event held the day before, also at Zillow headquarters, and also free!

Greg Swann and I are pretty stoked about heading to the Emerald City.   Scott Cowan signed up for Bloodhound Unchained Phoenix ‘O8 but had to decline participation to tend to familial duties.  Since then,  Scott’s been lobbying us to head up to Seattle to out on our “Mini-Unchained Event” for Coffee Bean Town.  Last month, I told him we’d gladly come if he could round up a venue and a group of eager people.  Scott called the folks at Zillow and we arranged to be a prequel to Seattle RE BarCamp.

Our event will be from 1PM until 5:30 PM, on Thursday, February 12, 2008, at the Zillow Headquarters. We’ll be talking about Direct Marketing (online and offline), Social Media Marketing, and Blogging.  David Gibbons and Rich Jacobson agreed to speak, as well.  Marlow Harris raised her hand to attend but I’m hopeful to have her to speak.

Our concluding session will be a debate between Glenn Kelman of Redfin.com and Greg Swann. 

GET MORE INFORMATION

Mortgage rates are 4.75%…No, wait a minute.  They shot back up !

Welcome to January, 2009.  It looks to be a rocky ride through Inauguration Day.  After that, all bets are off.  Here’s the good news, though; mortgage rates, while just over 5% this afternoon (up from 4.75% this morning) are still excellent.

Sean Purcell and I discuss why the lenders are raising rates on Radio Mortgage.

Give this ten minute podcast a listen.

I received a question from a REALTOR today, who read:

A Realtor's Guide to "PMI & Short Sales"

Let's call her Susan.  She explains:

I have done several successful short sales in my career but recently felt the "sting" of the bank claiming they will submit our current offer on the table for approval... providing the seller agree to sign a note to the PMI company for 15K for 10 years at $125.00 a month. If he refuses they claim the short sale will be denied.

The outstanding loan balance is 132,000
Offer amount 117,500
Offer amount will net the bank 104,980
BPO 119,000

My seller is refusing to sign such note and sees no alternative except to file bankruptcy. In your experience, what are my chances or choices If can get the bank to agree to a lesser amount of say.....half of what they are asking for to satisfy the PMI company.

Susan, I see three options:

1- Calculate the net present value of the "note" the PMI company wants (using a 6% return, that number is about $2100).  Propose that the lienholder take a $2,100 hit to the payoff and offer that amount up to the bank).  You may have to contribute part of your commission and the buyer's agent's commission to get the first lienholder to agree to this.

2- Figure out the net proceeds to the bank if the home were to be acquired through foreclosure (and subsequently sold asa REO).  Sales costs, at $119,000,  would be about 8%, which is about $9,500.  This means that the "net proceeds" would most likely be $109,000...BEFORE foreclosure costs.  The first lien holder and the PMI company would probably split up those foreclosure costs so you're awfully close at the current sale amount.  Present these numbers logically to the first lienholder and the PMI company.

3- Walk from the deal and abandon the listing.  It sounds like the seller is ready to do just that and file bankruptcy in an attempt to eradicate the loss.  The threat of BK (or actual filing) may force both the lienholder and PMI company to look at this scenario differently.

DISCLOSURE:  I'm not an attorney nor do I play one on television.  You may want to seek advice from your Broker's counsel.  Most of the time, however, the PMI company is "playing chicken" with you; they want to see if you can help them "get a little something".  I think option one is a good one.