Real estate agents to originators: Stop over-promising

by MPA05 Aug 2013

The most common complaint real estate agents receive about loan originators is mismanaging expectations, industry figures have said.

Marc Manieri, loan origination coach for The Rainmaker Method, has told the Florida Association of Mortgage Professionals annual conference that new originators often over-promise before knowing they can deliver. The best way to manage expectations for real estate agents is to keep open communication and to meet with borrowers and agents at least weekly to update them on the status of their loan, Manieri said.

Real estate agents attending the conference have argued that originators over-promising and under-delivering is a common complaint from borrowers, with originators often setting unrealistic goals for loan closings or pre-approving borrowers without all the necessary information.

Manieri told the conference that originators should be up-front about the probability of a loan going through, before real estate agents and borrowers moving forward with a deal. If borrowers and agents receive the news later rather than sooner, he said, originators are likely to lose both the client and future referrals.


  • by Bruce | 8/5/2013 7:56:30 AM

    I wonder if it's the originator setting unrealistic closing dates, or it's the real estate agent that puts a unrealistic closing date in the contract that can't be met.

  • by Amy | 8/5/2013 9:11:41 AM

    I completely agree and we have built all of our marketing around keeping our promises. However the real estate community needs to step up too. We get calls on Sunday afternoons to pre-approve buyers about to make an offer - don't take the buyer out and show them property until they are thoroughly pre-approved. Allow the lender enough time to do the job correctly, speed kills in the mortgage industry and time is our enemy if an issue comes up in the mortgage file, so stop demanding immediate pre-approvals and fast closings. I believe that the credit risk folks and the regulators want the process to take a full credit cycle to insure that the borrower is true to their profile. Work with lenders who keep their promises, get your buyers to good lenders early and give everyone time to do their jobs.

  • by JennyM | 8/5/2013 9:17:29 AM

    Whoa, the LOs do this?? When we get a contract 5 days after execution with 21 days remaining? And *I* setting them up to fail? Really. Huh.


Should CFPB have more supervision over credit agencies?