Wednesday, December 24, 2025

I Will Buy My Toilet Paper at the Store, Not at the Bank!

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Loan Officer, hard at work!
Loan Officer, hard at work!

Today,  I was emailed an agreement…

from another real estate agent on an expensive property that contained a very low deposit, a very, very long closing date but worse, a typed letter from a loan officer from a national bank’s mortgage division that basically just said, yea, they’re approved.

Big whoop.

What actually was in that letter was worthless.  Do they think we are that stupid?

The way it works in the world of professional financing these days is that you must have a Fannie Mae DU/DO or Freddie Mac LP approval.

These are not the gold standard, but the only standard (with a couple of exceptions) to show that the client can truly get approved.

I have submitted agreements with the LP approvals and some agents actually did not know what is was.

Once I explained it, they got it.

But, remember

Because of the Red Flag rule and common sense, make sure the social security numbers, bank accounts and other personal info is blanked out.

Now, back to that letter……let other agents know that you won’t take them aymore.

That (hopefully) will trickle down to the loan officer that types on the toilet paper and then you will not lose deals because of the loan person’s word processing system.

Now that by the end of next year the loan officers will be licensed, background checked, fingerprinted, tested and continuing educated (except for bank employees- what’s up with that???) the quality will get better.

fredglick
fredglick
Realty Reality! That describes Fred, a sharp witted and outspoken realist for the mortgage and real estate world who has appeared on CNBC and NPR's Marketplace along with being quoted in the New York Times, The Wall Street Journal and other media outlets. Fred is the CEO of U S Spaces, Inc/Arrivva (a real estate brokerage firm in PA, NJ, DE and CA) and U S Loans Mortgage Inc (mortgage brokerage in PA, CA, FL and VA), and serves on the Board of Directors and is the Federal Legislative Director for the UpFront Mortgage Brokers. Fred is also the co-creator of real estate startup Rentscoper.com, a mathematically driven rental search engine. See everything Fred at fredglick.com.

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