'Blaming the vendor' isn't going to cut it

by MPA27 Aug 2014

By David Lykken
Special to MPA

In just about every industry, the vendors a company chooses can have a significant impact on how successful they are. Customers are looking for the companies with which they choose to do business to deliver on their promises.

They don't need to peek behind the curtains to see how it gets done -- they just expect the finished product to be delivered from them without hassles. "Something went wrong at the factory" or "our shipping company missed a deadline" are rarely acceptable excuses. You can't blame the vendor when it is you who signed the contract.

It's the same way in the mortgage industry. The vendors we choose to do business with are the vendors we allow to serve our customers. When we sign the vendor agreement, we are putting our necks on the line. If borrowers are dissatisfied, it will often come back to us. The buck stops with us -- not our vendors.

Choosing a vendor is not just about getting the best deal. Nor is it merely about meeting compliance standards and doing due diligence. Choosing the appropriate vendor is about serving our customers. It's about partnering with a company that is going to share our values and bolster our reputation. In the end, a good vendor (or a bad one) can make all the difference between success and failure.

David Lykken is 40-year industry veteran who consults on virtually all aspects of mortgage banking. David hosts a successful weekly radio program called “Lykken On Lending” (www.LykkenOnLending.com) that is heard each Monday at noon (Central Standard Time) by thousands of mortgage professionals.


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