Q: What do mortgage originators and used-car salesmen have in common?<\/p>\n
A: Their customers like to negotiate.<\/p>\n
Wanna hear about how I screwed up this week?<\/strong><\/p>\n I read Jeff Corbett<\/a> and think highly about what he preaches; mortgage transparency. I read Pat Kitano<\/a> and think he is on the right track with transparency in real estate. I have practiced and written about transparency since I started originating mortgages. I used to do it this way:<\/p>\n Mr. Customer, there are certain fixed costs associated with every loan. Appraisal, underwriting, etc.. Then there is our margin. We like to make $X,000 per loan. If I am able to retain that margin, and close 8-10 transactions each month, I can make a pretty good living for me, pay the light bill, the broker, the supplies, etc., and give you a pretty good deal. Now, I’m about to let you in on a secret… <\/em><\/p>\n We all do this in the mortgage business. I choose to do this upfront and give you access to my wholesale ratesheets. I’m going to “pull back the curtain” and give you “access to the great and powerful Oz” (The great and powerful Oz is Wall Street). Let’s get in the game together and make this happen. I think you’ll get a really good deal if we do this.<\/em><\/p><\/blockquote>\n Some people love this transparency approach; many do not.<\/strong><\/p>\n I ran this idea past Laurie Manny<\/a> today. I’m helping one of her customers with an investment property purchase in Long Beach, CA<\/a>. Her comment ?<\/p>\n “What-ever! I trust you to do my client right.”<\/p>\n Laurie further cautioned that not everyone practices transparency in the mortgage business and I could be eliminating myself from the transaction by my inability to flexibly negotiate terms. She brought up a great point; people LOVE to “get a deal”. She reminded me that the reason I “captured” her client was because of the way I confidently quoted terms and “closed” her.<\/p>\n I was in Phoenix <\/a>earlier this week to meet with a would-be home buyer; I Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Q: What do mortgage originators and used-car salesmen have in common? A: Their customers like to negotiate. Wanna hear about how I screwed up this week? I read Jeff Corbett and think highly about what he preaches; mortgage transparency. I read Pat Kitano and think he is on the right track with transparency in real […]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-1126","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-real-estate","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":2910,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2910\/the-odysseus-medal-competition-voting-for-the-peoples-choice-award-is-open-25\/","url_meta":{"origin":1126,"position":0},"title":"The Odysseus Medal competition — Voting for the People’s Choice Award is open","author":"Greg Swann","date":"April 6, 2008","format":false,"excerpt":"We have 14 entries on the short list this week, out of a long long list of 96 posts. I've already decided on the winner of the Odysseus Medal, so I'm not linking that way. This week's Short List is all Zillow Mortgage Marketplace posts, all of them written by\u2026","rel":"","context":"In "Blog Carnivals"","block_context":{"text":"Blog Carnivals","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blog-carnivals\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1460,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1460\/extreme-transparency-in-lending\/","url_meta":{"origin":1126,"position":1},"title":"Extreme Transparency in Lending","author":"Brian Brady","date":"May 22, 2007","format":false,"excerpt":"Mortgage brokers have been under assault by the extreme transparency advocates these last few years. Very smart people have embraced technology as the catalyst of change. They proclaim that technology will change how the American public compensates mortgage brokers. I think their advocacy has some merit. Most consumers just don't\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":17262,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/17262\/overnight-news-grasshoppers-discover-new-and-better-ways-to-make-ants-move-away\/","url_meta":{"origin":1126,"position":2},"title":"Overnight News: Grasshoppers discover new and better ways to make Ants\u00a0move away.","author":"Greg Swann","date":"October 7, 2020","format":false,"excerpt":"This has been a year of amazingly poor choices. For example, the NBA has only just now discovered that spitting on its fans \u2013 again and again \u2013 is a poor fan-retention strategy. St. Louis has not scared away enough taxpayers in recent years, so now it is criminalizing self-defense.\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"Ya think it's easy?","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/08\/BHBNewTopImage-300x225.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":2150,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2150\/mortgage-grader-revolutionary-or-just-one-more-marketing-widget\/","url_meta":{"origin":1126,"position":3},"title":"Mortgage Grader: Revolutionary or Just One More Marketing Widget?","author":"Brian Brady","date":"November 1, 2007","format":false,"excerpt":"Mortgage Grader is a consumer-operated, automated underwriting system. Jeff Lazerson, its founder, has been working on this idea for 3-4 years. It was released this summer. Consumers enter information and are issued an approval. The mortgage grading engine mashes up various automated underwriting systems (FNMA Desktop Originator, proprietary sub-prime engines,\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2901,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2901\/zillow-mortgage-im-still-looking-for-the-yellow-brick-road\/","url_meta":{"origin":1126,"position":4},"title":"Zillow Mortgage: I’m Still Looking for the Yellow Brick Road","author":"Sean Purcell","date":"April 4, 2008","format":false,"excerpt":"There sure have been a lot of posts recently regarding Zillow Mortgage Marketplace.\u00a0 Greg Swann gave us a pre-opening preview here, the advertising aspect here, and the capitalist and cookie aspects here and here.\u00a0 Brian Brady takes a \u201cthe last shall be first\u201d attitude here and presents Zillow Mortgage as\u2026","rel":"","context":"In "Zillow.com"","block_context":{"text":"Zillow.com","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/zillowcom\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2892,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2892\/zillow-mortgage-marketplace-one-way-transparency-like-a-bad-online-dating-site\/","url_meta":{"origin":1126,"position":5},"title":"Zillow Mortgage Marketplace: One Way Transparency Like A Bad Online Dating Site","author":"Brian Brady","date":"April 4, 2008","format":false,"excerpt":"Zillow Mortgage MarketPlace rang the opening bell and loan requests came flying in the door. I was pleasantly flabbergasted! It's no secret that I'm a Zillow-phile; I believe they are leading the way to transparent loan and real estate transactions. I'm tenuous, however, about spending too much time there. 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