In this blog, we will cover and discuss how to avoid customer complaints by mortgage borrowers. Mortgage customer complaints have peaked at a three-year high due to the craziness in volume in the mortgage industry. More and more companies have implemented tougher lender overlays due to the coronavirus outbreak.
Conditional Loan Approval and Neverending Mortgage Conditions
Mortgage underwriters are issuing conditional loan approvals and then reconditioning them. Sometimes mortgage underwriters are issuing conditional loan approvals and then denying them because they changed their minds. It is a crazy time for the mortgage industry. Many company owners are paranoid about funding loans and not being able to resell them on the secondary market. Delays in closing are a common thing during the coronavirus pandemic. In this article, we will discuss and cover how to avoid mortgage customer complaints.
Stress During The Mortgage Process
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As a manager of licensed mortgage loan officers, I take customer complaints extremely seriously. Mortgage clients are different than any other consumer. Borrowers trust loan officers with their innermost personal information. Not just financials, but also personal information as well. Lenders need to know extenuating circumstances such as the following:
- why applicants had periods of bad credit
- had to file bankruptcy
- go through foreclosure
- had to do a short sale
- had gaps in employment
- were late on their credit payments
- had a judgment
- had tax liens
- other financial and personal information
Importance Of Customer Service
A Mortgage Loan Originator needs to service each client with golden gloves. They need to be sincere, respectful, honest, and most importantly, be available at all times and return phone calls and emails promptly. Knock on wood, I feel extremely grateful that to this day, none of my licensed mortgage loan originators had a customer complaint. One of my main mission is ongoing training on how to give five-star customer service to all of our borrowers. Being a loan officer carries a lot of responsibilities. One mistake from a mortgage loan originator can affect lives. From the lives of home buyers as well as home sellers.
How To Avoid Customer Complaints And Number One Customer Complaint
Many loan officers feel that customer complaints are inevitable with doing volume. I disagree with that. Being a mortgage loan originator is not like being a chef. Some people love the food while others do not like it and cannot stand it. Public customers have emotions. There is no other task that is as stressful as going through the mortgage application and approval process. Every loan officer has their own way of doing business.
Teamwork at Gustan Cho Associates
I have my own system and a team of licensed loan originators that I manage. We all need to agree with my system in order for us to work together. Some loan officers have 9 to 5 hours. Some do not give out their home or cellular phone numbers. That is perfectly fine. However, I used to be a real estate investor and borrower for over 20 years. I was always in a habit of returning phone calls timely 7 days a week. Those who return calls timely 7 days a week will not have customer complaints. We will discuss this in the following paragraphs.
Importance Of Timely Returning Calls
One of my biggest complaints with loan officers was that they did not return phone calls promptly. They were not available after hours and/or weekends or holidays. Once I began my loan origination career, one of the most important business models that I implemented is that I will be available 7 days a week which includes evenings, holidays, and weekends. Every question or concern from borrowers is important.
The Importance of Being Available For Clients
Clients are relying on loan officers and trusting them with all of their financials. In return, the loan officer should be available for them when they have any concerns. For example, clients have concerns about certain issues that are important to them on a Friday afternoon. If they do not have the loan officer’s cell and/or home number, they will worry all weekend until Monday. This is no way of treating borrowers. There are no rules or regulations for a loan officer to be available on evenings, holidays, and weekends. But in my opinion, I think it is good business practice and gives a level of comfort and trust for borrowers.
Pre-Approval Stage Is Most Important
The pre-approval is the most important stage in the mortgage application and mortgage approval process. An experienced loan originator should carefully review the following:
- 1003 mortgage loan application
- credit scores
- credit report
- income
- assets
- liabilities
- should carefully examine the past two years tax returns
- two years W-2s
- most recent paycheck stubs
- If overtime income, part-time income, or bonus income needs to be used to qualify borrowers
- make sure the loan originator gets a verification of employment to make sure that the other income is likely to continue for the next three years
- One of the biggest reason for mortgage loan denials is because income is not qualified correctly
- If a home buyer is purchasing a condo, make sure that the condominium is a warrantable condo
- Or if it is an FHA borrower, make sure that the condo complex is a HUD-approved condo
- Credit reports need to be carefully reviewed to see if there are any credit disputes
- Credit disputes need to be retracted and when credit disputes are retracted, then credit scores are likely to drop
Borrowers who barely meet the minimum credit score requirements may not qualify once they retract the credit scores due to the drop in credit scores.
How To Avoid Customer Complaints By Educating Borrowers
Advice on how to avoid customer complaints to mortgage loan officers is to educate and communicate with their borrowers throughout the application and loan approval process. Do not tell the borrower what they want to hear. Tell them the facts and be honest. There is no way for any loan officer to know everything and consumers understand that. If not sure of a borrower’s question, tell them to give some time and will find out the correct answer. Get back to them. I love talking to all my borrowers.
Professional and Personal Bond Between Borrowers and Loan Officers
Most of my borrowers become, my lifelong friend. By communicating with them and letting them know the process and the status periodically, borrowers will be at ease and understand and trust their loan officers more and be able to go to sleep at night. Mortgage loan originators do not have control of a clear to close. The mortgage process involves processors, underwriters, account managers, appraisers, title companies, insurance companies, and other professionals.
How To Avoid Customer Complaints By Communicating And Educating Borrowers
By explaining the application process and approval process to borrowers, the borrowers will be on your side. If an issue develops, borrowers can also help the loan officer with solving the issue. There is no reason why any loan originator should get a customer complaint. Treat each client like a family member. Treat them like you want to be treated. Keep them posted and updated several times a week.
How To Avoid Customer Complaints By Always Being Available for your Clients
Always return their phone calls and/or emails. Be available to your customers 24/7, 7 days a week. If you will not be available due to illness and/or other plans, please customize voicemail and/or email on the reason why you will not be available. Leave a number to a fellow loan officer who can take over your place. I was recently sick and was rushed to the emergency room where they admitted me for over a week. I did not have a chance to change my voicemail.
How to Avoid Customer Complaint By Setting Proper Expectations
My wife answered all of my calls. Told my clients about my being in the hospital. Took their name and number, and let one of my loan officers take charge of all of my clients. The bottom line to this story is that your clients are a priority and important no matter how sick you are like I was when I was in the emergency room and hospital for a week. Borrowers are counting on their loan officers. As their loan officer, you cannot let them down, no matter how sick you are. There are many ways How To Avoid Customer Complaints.
