What do Realtors really want from a mortgage broker? Mortgage expert, Janet Guilbault, has compiled a tell-all list from agent feedback on ActiveRain.
We’ve culled Janet’s findings into a top-10 list reflecting our 2 cents.
What follows are 10 things Realtors may be thinking when evaluating you as their new mortgage broker:
- I expect on-time closings.
- I want my calls always returned promptly.
- I DO want a backup mortgage person. I’m just not going to go out looking for you.
- It is hard for me to trust you because you are a direct reflection on me.
- My biggest fear is that I will need to apologize because I referred you.
- I need to know you are in this for the long haul.
- It turns me off when I see you are looking out for yourself more than the client.
- I don’t want your sales pitch, I don’t want your donuts, and I’m pretty sure I don’t want your rate sheets either.
- Your occasional referrals of potential buyers show me this isn’t a one-way street.
- If I don’t know you, you are not getting my customer’s name. It isn’t about your marketing, it’s about our relationship.
(Original source: California Mortgage Advisor)
That’s great, you are missing one of the main things many realtors want these days from brokers—“KICKBACKS”, HALF THE FINDER FEE, ETC!
Can any realtors out there comment on what they receive as a “kickback” or can mortgage brokers post what they give a realtor who refers them business.
This is a pretty good list. One thing I would add is that Realtors expect brokers to shop all lenders instead of merely their ‘preferred’ lenders.
I would take also issue with John’s comment. As a real estate agent myself I would rather have a broker who works in my client’s best interests than one who “kicks back” referral fees. I get paid well enough that I don’t need to add a conflict of interest to the mix by receiving broker payments.
No need to take issue, if you notice I phrased the comment by saying–“many realtors”–>not all.
Realtors make 2-3 times what a broker does on a typical deal. If you’re a broker and your offering payola to an agent, you must be pretty desperate. I don’t know any mortgage brokers worth their salt who pay agents for business.
Is a referral back in your direction a good “kick-back”? Often mortgage brokers/agents have clients who still need a real estate agent!
Amen to that Greg!
Good article, those tips are interesting and true. I think its also good to avoid mortgage brokers that are “in house”.
I’m a Realtor out in the Vancouver Lower Mainland area of BC. I have used a number of different Independant Mortgage Brokers over the years depending on how I know they may best relate to my clients. I have never received any incentive to use any particular broker. My greatest reward is that the client comes out of getting a clearer picture of their finances by being WOW’d by who I referred them to. When complications are overcome with ease on the financial side without a hitch – this, in turn, has me using particular Mortgage Brokers again and again. A smooth process makes a happy client overall!
In reference to “On-time closings” in the initial list realtors need to know that in most cases this is more in the hands of the lawyers than in the hands of the mortgage broker.
Even then, if there are title issues delays in closing are often inevitable until any issues are resolved.
These days, with constant awareness of fraudulent transactions or money laundering there are more reasons than ever for a closing to be delayed until the parties are satisfied in all respects.
Hi Everyone, Superb feedback. Thank you! – Rob
I’m a mortgage broker and I usually give kick backs of at least 10%. Brokers are lieing if they say that they dont!
Not everyone shares the same moral compass as you Greg. I find it insulting when a Realtor asks for a kickback. You would never do that with other professionals like accountants or lawyers for example. There is no place for it in mortgage planning either.
I’ve found that most realtors simply care that you get the deal done, period. Sure, they want to send their clients to someone who knows their stuff, but ultimately it comes down to getting the deal done and for both parties to get paid.
And to Greg: I’ve tried that, and it failed miserably. I’m sure most people on here would tell you something similar. 10% of your commission is nothing to the real estate agent making 20 times that.
There is an entire mortgage broker company (mb.com) that markets openly to(ReMax) that they give up to a 25bps “kickback” to the realtor for each referral.
Ya and have you seen MortgageBroker.com’s stock price lately? LOL
http://finance.yahoo.com/q?s=mbkr.ob
Kickbacks must be working out real nice for them, eh?
Hi, Well I am the mortgage broker for you I always close on time, I always return my calls, you can trust me – I want the deal and referrals just as much as you do, you will never have to apologize for me, I am in it for the long haul, my clients are my best referral source so I always look out for their best interests, I dont have time to send you rate sheets as I am too busy helping your clients, if you scratch my back I will return the favor. So if you are looking for the perfect mortage broker email me at klangford@dominionlending.ca.
In California it is ILLEGAL for a mortgage broker to give or receive a kick-back. It is also ILLEGAL for a mortgage broker to give or receive anything of VALUE in exchange for business. It’s no wonder the industry is in the condition it’s in. Does anyone actually care about the client any more?