On somebody's side? You bet! It's us against them when it comes to big bucks. Ever hear the phrase Business is Business? What did you think that meant? Does your favorite wholesale AE tell you he/she closes $5+ Million a month? Ever think about that, maybe do the math yourself?

Before loan production volumes started going through the ceiling these last three or 4 years, and wholesale AE's had the opportunity to earn hundreds of thousands of dollars personally annually, the AE was a sentinel for his or her employer. They solicited business and helped residential mortgage loan brokers understand their employer's various funding programs, took them to lunch, coffee, drinks, etc. - but were vigilant to protect their company from getting stung with losses. Mostly it was a pure public relations type job. In those days, 'somebody' was responsible if transactions went sour (not so much anymore). Small and large wholesalers alike, were ultra careful not to 'burn' their investor base … and terminally harm their reputation in the Secondary Market. If you were lacking in the ethics department it quickly became widely known ... this is a small industry - very small.

But times changed as interest rates fell hundreds of basis points – today Production is King and at many wholesale shops it's production for production's sake! Make enough loans and you can outrun any default problems, is the present day mindset. Wholesalers are booking BILLIONS annually, when just a few short years ago, that lofty milestone used to take many years to reach.

Consider this: With so many wholesalers paying 60+ basis points in commissions to their outside field reps - do you think the AE continues to protect their employer from transactions & loan originators who may be less than totally honest with submissions? Like maybe they look the other way, give a wink and a nod, and spend their time & efforts helping originators ‘structure' the transactions, so they end up becoming a kind of agent for the loan originator to help stuff a round peg into a square hole?

Out in California where loans often average $300,000 and where some wholesale AE's are ‘required' to bring in up to 5 deals a day (that's $1,800 x 5 = $9,000 in potential personal individual income daily ) – can't you see them twisting the transactions to fit what they know 'internally' their employer will swallow? Or, on the other hand, do you feel they always stay above the temptation, as they should? What do you really think? Discuss this item on our Board

 
 
 
 
 
 
 

Visited our new mortgage professional discussion board yet? It's off to a nice start with a growing population of fine contributors. I'm sure you're agree, it has the right tone to it so far. Below the Main area, where all the action is, you may find our Virtual Campus section has something to offer you too. We want you ... so check it out! Please Click Here
 

 
 
 
 
 
 
 
 
If you think it's time for a change, we've got the answer! The next Live class session on our Secret! System is here in So.Cal March 28, Click Here to get the specifics. Even if you already have your own website, this class is for you!
 

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Have you heard about our Secrets of the Mortgage Industry instructional CDs yet? To look over our developing selection of available lessons, and see why 36% of our orders are from repeat customers, please Click Here. 

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Looking for a personal mentor? Our Counselors may have come along at just the right time! Our year long one-on-one coaching could be exactly what you're looking for! Click Here and look over our faculty. Having access to advisors of this caliber ain't that easy to find. But, we've got them for you!
 

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Feel free to Click Here and access any of our previous editions right now!
 

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Happy St. Patrick's Day!
 

I saw this news piece yesterday (provided by one of the advertisers on our mortgage industry discussion board). After you read our first story above today, this one sorta makes you wonder who's minding the store these days, doesn't it?

"Mortgage lenders are pretty much on their own when it comes to fraud -- i.e., identifying perpetrators, preventing exposure and chasing culprits into jail according to mortgage executives speaking at the recent Subprime Summit conference. And, don't look to brokers for help in avoiding nefarious ploys, adds a NovaStar executive. 'Even though they may have given blank verification forms to the consumer, their attitude is they didn't do anything (wrong). It's a case of ignorance, she said, but not an acceptable defense. 'I tell them (brokers): 'If it came out of your office, you're responsible'."

Even with all the heavy production numbers being ranked up, is there any wonder the serious delinquency numbers are on the rise? Discuss this item on our Board







Something On Your Mind?
If you might like to write a short industry relevant article (approximately 500 words) for this monthly newsletter; please contact us. We're all going through some very interesting times right now; your point of view on all the changes out there, could be fascinating to our readers! Give it a shot, it could possibly even develop into a regular column for you! Ya never know ....