Dustin Owen exposes myths, red flags that plague the mortgage industry

By Housing News

In
a
recent
episode
of

“The
Loan
Officer
Podcast,“

hosts

Dustin
Owen

and
John
Coleman
sit
down
to
expose
common
mortgage
industry
myths
that
can
impact
everyone
from
the
media
to
recruiters
and
branch
managers.

To
start
the
episode,
Owen
dives
into
media
misconceptions
concerning
the


Federal
Reserve
’s

interest
rate
cuts

and
their
impacts
on

mortgage
rates

and

home
sales
.
He
and
Coleman
agree
that
there
is
no
direct
correlation
between
benchmark
rate
changes
and
mortgage
rate
fluctuations,
despite
common
beliefs
to
the
contrary.
Owen
explains
that
the
Fed
can
impact
the
trading
of

mortgage-backed
securities

(MBS)
by
purchasing
them,
which
drives
up
the
prices
of
the
bonds
while
lowering
yields
and
mortgage
rates.

“What’s
sad
is
to
see
so
many
mortgage
companies,
lenders,
real
estate
agents,
or
talking
heads
on
TV
use
that
as
clickbait,”
Owen
says.
“But
it’s
improperly
educating
the
consumer
because
they’re
left
to
believe
that
one
leads
to
the
other.”

The
second
myth
addressed
involves
what
they
call
the
unnecessary
adoption
of

30-year
mortgages

in
the
housing
industry.
Both
hosts
share
a
bit
of
background
on
their

homeownership

history,
highlighting
the
fact
that
neither
of
them
have
owned
a
home
that
warranted
a
30-year
mortgage
commitment.
Owen
says
that
your
home
is
a
five-
to
15-year
decision,
while
a
mortgage
is
a
five-
to
seven-year
decision. 

Most
lenders,
Owen
says,
will
use
potential
savings
to
sway
buyers
into
30-year
mortgages.
But
these
savings
are
not
consistent
enough
to
use
as
a
basis
for
choosing
a
30-year
loan.
Therefore,
the
consumer
is
being
misled.

Next,
the
third
myth
targets
the
one-size-fits-all
mortgage.
Owen
shares
that
all
loans
and

interest
rates

are
created
based
on
21
factors
that
differ
depending
on
the
individual
lender.
He
says
that
mortgages
should
be
specifically
tailored
to
each
consumer,
putting
them
in
the
best
position
to
buy
a
home. 

Next,
the
conversation
shifts
toward

recruiter

red
flags
that
mortgage
professionals
should
look
out
for.
Owen
mentions
recruiters
who
bash
other
lenders
in
an
effort
to
sway
loan
officers
into
choosing
them
for
employment.
The
duo
agree
that
recruiters
should
focus
on
syncing
with
candidates
on
five-
to
seven-year
goals,
and
they
should
look
for
commonalities
between
a
candidate’s
career
goals
and
the
lender’s
long-term
growth
trajectory. 

Furthermore,
misleading
pro
forma
statements
in
the
mortgage
industry
may
also
cause
issues
with
recruiting.
Pro
formas
are
standardized
financial
projections
that
predict
a
company’s
performance
over
a
set
period
of
time.
In
the
mortgage
industry,
lenders
use
pro
forma
statements
to
attract
talent
with
favorable
numbers.
Owen
points
out
that
some
branches
fail
to
account
for
variables
such
as
expenses,
new
salaries
and
other
elements
that
impact
their
finances.
He
advises
lenders
to
offer
accurate
pro
formas
and
avoid
bad-mouthing
other
branches
to
boost
recruitment
potential.

The
last
red
flag
involves
a
practice
that
Owen
relates
to
personally.
According
to
Owen,
every
branch
manager
should
be
available,
invest
in
their
LOs,
have
a
great
sales
culture,
maintain
systems
that
a
new
LO
can
tie
into
and
set
an
example
of
professionalism
for
their
staff.

If
a
branch
manager
does
not
push
a
new
hire
to
improve
professionally,
then
they
are
doing
a
disservice
to
any
new
hires. He
urges
managers
to
determine
the
best
ways
to
relate
to
new
hires
and
teach
them
in
a
manner
that
is
unique
to
them.

“What
made
them
work,
what
made
them
tick,
might
not
work
for
you,”
Owen
says.
“The
way
I
love
may
not
be
the
way
my
wife
likes
to
be
loved.
Management
and
being
managed
works
the
exact
same
way.”

 

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