Converting Turn Downs Into A Paycheck

Brian Aber, one of my colleagues on a real estate networking website published a blog a while back that I thought was extremely helpful to Loan Officers everywhere.  Essentially, what the posting covered was the purpose of credit repair companies and how they can truly help our clients as well as help us supplement income through the rough months.  I’ll answer some questions right out in front:

1. Does this seem like a self-promotion?  The answer is Yes it does, but I can assure you that the only reason that I am re-posting this information is because it needs to be read by Loan Officers everywhere. Again, I am not affiliated with HTDI, but I do send my turn down clients to them!
2. Why would you post this on your training and tips blog?  The reason is because all Loan Officers need to have a little more strength with what they can offer.  If the client doesn’t qualify, then why not send them (or refer them) to a credit repair company?  Does it hurt them or you?  Absolutely not…it actually helps them and it will help your wallet as well!
3. I can’t really think of anymore hypothetical questions…..so read on, folks…

I’m sure that we have all seen a significant restriction in guidelines, etc.  This is especially true of a minority of us were trained in FHA loan origination.  So, here is what Brian wrote on how you can capitalize on a market where you can’t approve everyone: 

 1)       Credit repair works!
HTDI Financial has years of experience in the credit repair industry. The credit bureaus hate us and our clients love us. We do not dispute that the client has these trade lines; we simply take the creditors and credit bureaus to task for what they report.

We use the consumer protection laws to force the creditors and credit bureaus to produce the information that they must have to verify the debt. More specifically, they must prove that everything is exactly accurate. If they do not have the documentation or they reported something incorrectly, by law they must remove it!

Knowing the specifics of the ever-changing laws is crucial. Now if the consumer knows the in’s and out’s of the laws as well as HTDI Financial and has years of experience doing this work day in day out, they could possibly get the same results. They can also represent themselves in a court of law, do their own taxes and sell their own homes. But they hire attorneys, accountants, and realtors everyday to get the job done most effectively and as quickly as possible. 2) Credit repair makes a client’s credit better.
HTDI Financial’s primary focus is credit score improvement. This is done by removing negative items on the client’s credit report as well as educating the client on how to use credit to positively affect credit score. The value of our advice can last a lifetime.

3) When negative items are removed, they stay away.
After we have removed negative items from a credit report it is always possible that the original creditor can re-report the negative item. However, this is rarely the case. Given that the original creditor generally will only hold the debt for 4-6 months, they do not waste the time or the money to check on these items and re-report them. What typically happens is that the debt is sold or transferred to a collection agency which will re-report them in an effort to pressure the client to pay the debt. When this occurs we can go back and dispute the items under the same dispute that removed them in the first place.

4) Removing old negative items improves scores.
35% of your client’s scores are based on these derogatory items. This is the biggest chunk of the credit score pie! The less derogatory items they have, the higher their score can be. On average, our clients see a 40% cleanup in the first 45 days. 5) It frees up your time if you are trying to repair your client’s credit yourself.
Consider this, as a loan officer you are paid to originate loans. The more loan volume you write, the more money you make. A simple business concept called “leverage” dictates that the way to make the most money is to spend your time doing the things that generate the most income for your business. For you, that means meeting with clients and taking applications.

Show me a loan officer who processes their own loans and I will show you a loan officer who does very few loans. Focus on the things that pay you the most money for the time you spend doing them and delegate the other tasks to people who are proficient at those activities. How many times have you spent hours trying to repair someone’s credit only to be unsuccessful or have them go somewhere else to get the loan?Allow HTDI Financial to be your “Ace in the Hole” for all of your short term and long term credit score improvement needs.

6) The client saves significantly more compared to the cost of service.
Given the tremendous impact credit score has on a person’s overall financial life, the question really is, How can your client afford not to contract with HTDI Financial? Credit affects your client’s mortgage payments, car payments, credit card payments as well as auto & homeowners insurance, and the list goes on. If we improve your clients credit score 50-100 points, how much can you lower their monthly mortgage payment? 7) Not everyone you work with has great credit.
If you have been in the mortgage business for 10 years or more you are seeing more bad credit reports than you probably ever have. With the coming changes in the bankruptcy laws this trend will only increase. Currently at least half of people in the market for loans are candidates for sub-prime mortgage products.

8) At HTDI Financial, we can be trusted.
Every industry has people who do not operate in the utmost professional manner. HTDI Financial looks upon this as a tremendous opportunity to distinguish ourselves. In addition, a lot of the negative stigma in the credit industry about credit repair companies is hyped up by none other than the credit bureaus themselves.

Think about it for a minute. A dispute by a consumer or a credit repair company is going to add overhead to the credit bureaus operations. If the dispute process is successful, then the consumer will not be applying for credit as often because they do not need it as much. This reduces the credit reports sold by the credit bureaus. Is it any wonder that the credit bureaus would create bad press about credit repair companies?

9) Five out of ten clients are loan worthy in the first 45 days!
There are many credit repair companies who only work on 1-3 negative trade lines at a time until they are removed. If the client has 20-40 negative trade lines, which is not uncommon, this could easily take 2-3 years. Given this, we understand why you might feel the process takes too long.

At HTDI Financial, we pride ourselves on speed and are not limited to a couple of trade lines per bureau per month. We give you the ability to receive automatic email notifications each time your clients file is updated. You can login to a portal and track each client you have sent to us, no matter how many there are. Proper follow-up is KEY to closing more loans. 10) It is important to care even if you cannot close the loan this month.
In certain situations we may be able to bring the score up in 30-45 days to get a loan done. If it can be done, we are uniquely qualified to get it done. However, the goal of our service is to increase the scores 50-100 points in 90-120 days. This may allow you to do a band-aid loan today and guarantee a second transaction in the future. In addition, the long term loyalty this creates between you and your client will keep them coming back to you for life. 

Brian presents some great information here, and really is something that you need to take a look into if you are turning clients down.  Click Here for a link to sign up with HTDI Financial.