home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Stories For Salespeople
Loan originator and broker news and stories. Advice about improving mortgage loan originations. Insights to and profiles of mega-producers.
sales stories | sales books | originator newsletter

Carving Out Your Jumbo Loan Niche

Discussion about flat-fee origination

April 3, 2001

By Dave Czach

Learn seven words to quickly grab the lion's share of the market. What's your hook? How do you attract customers? How do you create "buzz" for yourself? You need
to create a "hook" or phrase to differentiate yourself.

You need to become "known" for something. Have you ever been in an office and overheard a conversation when someone said, "Oh yeah, isn't he the one that .....(something)....?" The person they were talking about was popular for some reason. Perhaps he or she exploited a niche and did it so well that everyone talked about him or her. That's exactly the method behind these powerful words:

"$1,500 Origination Fee Regardless Of Loan Size"

Welcome to the world of flat-fee origination. This niche requires discipline. You offer a par rate plus $1,200 origination fee plus all 3rd party costs. That's it. No more. No less. Ever! At first you may be tempted to tack on an extra fee "here and there." But resist the temptation at all costs. If you stick your neck out and retract your offer, your reputation is history - and so is your market share.

Greed will kill your flat-fee business. I know a couple loan officers who told me "that's a great idea, but why not make it a tiered-fee system?" For example, they proposed an
origination fee of $1,250 for loans under $150,000. An origination fee of $1,800 on loans under $200,000. All other loans are charged an origination fee of $2,500. Then they also suggested "grabbing an extra 1/2 point or so on the back." Do you see any difference between their proposed tiered-fee system and the standard 1% commission? Not much. But what did they really do?

Greed wiped-out their unique marketing position. By eliminating your unique marketing position, you give away your business. You become just another loan officer lost in the crowd. Nothing special. No better than anyone else. No reason for someone to call. And certainly no "WOW factor!"

Belief and time will win. At first, real estate agents, builders and others may not believe you will close a loan without cranking up the fees at the last minute. That's fine. Reassure them that you honor your word and it's in writing on the Good Faith Estimate. Once a few loans have closed and you have proven you honor your flat-fee system, the agents, builders and others will begin talking about you.
Thus ..... BUZZ!

Dave Czach is President of zakPublishing.com
and a 12-year veteran mortgage banker.
hosted by USANow.net

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders