Are You Doing Business With The Right Mortgage Company?

Just in the last 48 hours, we have had some major news in the mortgage industry that continues this year's theme of disruption. In a planned announcement, Nationstar Mortgage officially became Mr Cooper, and no I don't understand that name either, to 'rebrand and focus on customer service'. With that being said, probably a good move as, in my experience as a Loan Officer, their customers were generally upset, uninformed as to the details of their mortgage. and were provided with little/no help in the refinance process.

However, this is just one of many mortgage companies that has 'churned 'n burned' customers, building up a hideous reputation in the process, just to change names and start the process over again. For example, GMAC became Ally Financial after their subprime customers defaulted at record rates around 2010. GreenTree became Ditech once the reputational damage was too strong. And we all remember the former Countrywide Financial & American Home Mortgage.

The issue that I am attempting to illuminate is that of customer service. I once heard someone tell me "If you focus on customer service, you will not have good results. Instead, you should focus on employee satisfaction, and the customer service will follow". Great advice, and one reason why you be working with the incredible men & women at loanDepot!

One more update, as of Tuesday the 22nd, Provident Financial's stock price collapsed from 1800 Pence Sterling, or roughly $23, to under 700 Pence ($8) at some points. The reason? Their subprime lending habits caught up with them, and their loans are defaulting at a much higher rate than expected. In fact, the CEO issued a guidance for shareholder that their would be no profit this year, and instead the operation would post a significant loss. Provident's CEO resigned shortly afterwards. No word yet what impact this will have on continuing operations.

So, this brings me to the question: Are you working with the right Mortgage partners? loanDepot is remarkably well positioned to become the market mover in more ways than one. We are pioneering innovative technology essential to the next generation of mortgage lending, we have a staff of nearly 5,500 dedicated employees who LOVE working here, and more importantly, we practice sustainable lending, not scorched earth and bankruptcy.

About:

Andrew Leonardis is an Account Executive with LoanDepot Wholesale focusing on Broker and Correspondent lending, but is also an experienced Loan Officer. Andrew studies, follows and researches economic, financial and mortgage market related topics. Please reach out with any questions/comments on the article, or with any mortgage related scenarios to [email protected] or 609.254.4976