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2018 MORTGAGE OUTLOOK
Wed, Jan 24, 2018 10:00 AM - 11:00 AM PST
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PRICING & COMPENSATION
Most of the branch managers and loan originators that work for Geneva Financial, LLC were attracted to the compensation we pay, and the pricing available, despite paying nearly twice the national average. It is an incredibly challenging offering, but one we have successfully offered since inception, and will forever offer. The sole reason I started this Company was to create the perfect environment for me, as an originator. It was a selfish move, but one that most of your appreciate.
The recent move in pricing/rates had nothing to do with Geneva Financial. We have not changed our Corporate margins. But we have made some changes.
It is the opinion of the CFPB that if loan originators in the same “area” charge different prices to the consumer, you are in violation of Fair Lending. Not to be confused with Loan Originator compensation laws. Fair Lending. This has been tested in the court of law and is not subject to interpretation; regardless of what the competition is doing. What is subject to interpretation is what constitutes an “area,” as the CFPB has not given clarity. Years ago, Geneva Financial, LLC decided to use “Metropolitan Statistical Areas” defined by the Federal government as our “area.” But over the years of positive growth, some MSAs have gotten a little out of whack.
Over the course of January, we have reached out to a small handful of branches throughout the country and forced them to make more money, so they could be more inline with everyone else that is within their MSA. While is will have a small effect on pricing, it in no way should effect your business. You are lower than the Company, and far lower than most of your competition. If you have not been contacted, your income has not been changed.
- If you have been contacted, it is because you are pricing loans lower and making less, than nearly everyone else at Geneva Financial.
- Geneva Financial is growing at 5%-10% per month because of our pricing and pay.
- I talk to nearly a dozen prospective loan officers a day, from nearly as many companies. None have had lower pricing and higher pay. A small few have been comparable in pricing, with pay 50% lower or more.
- I am not trying to compete with brokers.
- Rarely can we compete with banks on Jumbo loans.
- Those branches priced the lowest, ask for the most concessions.
- If you want the very lowest rates, work for a bank at $50K per year or at a consumer direct banker at 50 BPS.
- People that say “I do not sell rate,” tend to be the most price sensitive.
Companies like Academy and Security National are 0.375% - 0.500% higher to rate. To RATE! To name a few, we beat Supreme, Guild, Fairway, Academy, Movement, Nova, Security National, VIP Mortgage, AmeriFirst Financial, Finance of America, Citywide Home Loans, RPM, RPMG, Guaranteed Rate, etc. There will be individuals that will respond to this email “What about ABC mortgage.” Everyone will get beat from time to time. Those that sell themselves and develop solid relationships will seldom experience this fate.
Again, most of you are here because of pricing and pay. The vast majority stay because, while we are not perfect, we bust our ass for you. That is what I would demand as a loan originator. And most of the people we are hiring, what to charge even more, because their previous employers where charging 100-200 BPS more, for less pay. I have some asking to pricing as high as 500 BPS, and have capped them at 400 BPS. 400 BPS!!! What you charge does not effect my pay. I just hate to see anyone giving money away when I know we are competitive in all markets.
Have a great weekend. Go make some money!!!! 2018 is going to be fantastic for all those that believe they will succeed.
BTW: Telle and I will be in Miami all next week, beginning on board a very special group to our Team. We will be accessible, but some responses may be slightly delayed.
Geneva Financial, LLC.