I just got off the phone with a customer that is about to get taken advantage of, but there is nothing I can do about it.
It all started with a voicemail I received. The customer, who I have never previously spoken to, left a message requesting a Good Faith Estimate for a purchase. He asked that I call him immediately as he plans to make a decision today. Today being Friday, the last business day of the month, and the beginning of a long holiday weekend, I still managed to get back to him in under an hour.
When we spoke, he initially said he would provide me with whatever information I need. I began to gather the basic loan information and everything was going according to plan. He then refused to provide his social security number when I asked for it. I explained how Fannie Mae, Freddie Mac, and even FHA all have risk-based pricing. I also explained the value I place on integrity and that I would not want to issue a Good Faith Estimate based on pure speculation.
The customer became very argumentative. "I have spoken to 10 other banks today and none of them have asked for this information."
For a moment, I attempted to rationalize with him. He then said he was making a decision on his lender in 10 minutes so I needed to decide if I wanted his business.
Now, I'm not in the habit of turning away potential business, especially in the current market, but this statement helped me to easily make my decision. I simply wished him luck with his decision. He sat on the phone for 10-15 seconds in stunned silence before ending the call.
I'm sure that whatever this customer now thinks of me, it certainly is not something good. What he doesn't know is that I feel very bad for him right now. He has chosen to make the biggest financial decision of his life based on nothing more than hypothetical numbers. The loan originator that earned his business is the one that low-balled him the most. The closing date on his purchase is September 30th. He does not have a lot of time, thus he was in a rush. He thinks he knows more than he actually does, thus he wanted total control of the situation.
I imagine he has already called the lender with the lowest quote, and possibly already requested an interest rate lock. I imagine the loan officer is assuring him that the GFE he sent was accurate. I imagine that at some point (probably very close to closing) there will be a problem. Something unforeseen will arise. The rate will go up. The fees will increase. The borrower will be mad. The loan officer will blame it on not having all of the information up front. The customer will have no choice but to pay the higher cost as he will not have enough time to change lenders.
Right now, the customer sees me as a loser. In the end he will be the loser. And today, I feel sorry for him as he did not allow himself the opportunity to work with a true professional
Karl Peidl
;)
;)
Karl,
I have a funny feeling he'll be back. Heck, I'd might even follow up with him in a few weeks to see how it's working out for him in case his ego is to big to allow him to give you call.
Michelle