Lost in Translation – Why We Have the One Loan One Person Policy

Transcript

Hello everybody. Today we’re gonna talk about loss and translation. It’s not just a movie about Bill Murray in 2003, but it’s a real world problem when you’re dealing with multiple people working on a loan, and each step there is either documents. More information that is lost in translation From each step, what happens is the lenders invariably have to reach back out to the buyers, and they’re asking ’em for more.

Oh, I thought I gave you this. I mean, anybody who’s done alone knows how this goes. And I’m gonna go into why that is true, why what the reasons behind it are, how it’s been frustrating in my previous. And how we found a solution for it. So the reason the most lending companies do this is they want people who they don’t have to pay a very high, high, hourly amount to do the bulk of the work.

So this in improves their revenue per loan. But to do this, you have to delegate all these different parts and then you train a person to, let’s say just order insurance or. Call on appraisals and just order income verifications. So the idea behind it is this person is highly specialized and you don’t have to pay ’em very much cuz you only train ’em, do one skill and then you have all these com compartmentalization.

That’s why it’s set up. It’s a cost cutting measure. This did work 10 plus years ago. Since then, lending has gotten too. And that this system has fallen apart under its own weight. Anybody who’s done a loan in the last 10 or 15 years can understand this frustration. Even if you’re a first time home buyer, you can imagine if there’s eight different people working on a loan, all of the steps, and whether these people are talking, whether the person understands it, and then how it’s consolidated.

And there was this continual repeat of processes. So in my previous life, I got so frustrated with this with a. Then I actually broke down a spreadsheet to 165 data points in the loan, and then I mapped out all the different connections. Who would, who it went to with an interactive dropdown text call, email, software spoken, all of these things because there was a continual repeat of these processes.

Everybody was calling two or three people calling the customer for the same document. Do you have this? It caused a, not only a waste of time, but the people got scared. They were like, is my loan ever gonna close? Can, can these clowns close my loan? They’ve asked me for that. I’ve given, given that to you three times, and as a 23 year veteran of this process, I can tell you that once a customer gets scared, it’s.

It’s not a good situation. People are on edge, they’re emotional. I know I was emotional when I bought my first home and I do this for a living, so I can imagine what the general, what the first person thinks about. So I broke this down and I presented this to management because there was such a problem with this.

And they looked at me with a thousand yard stare and said, oh, you’re really techy. I. Are you outta your mind? This isn’t techy. This is file flow efficiency. This is not having redundant process. This is giving con confidence to a customer. This is just doing it the right way. This fell on deaf ears, so that’s why I have my own company.

So we have a solution for that. Myriad of problems, just by design will fail. Is one person, one loan. So one of the questions that most people don’t know to ask because it’s hidden by the lender. Who’s working on my loan in the middle when it really counts? Who’s compiling this information? Who’s quantifying who can I call and get an answer on the first call?

Not the 10th call, not the fifth text, and not not, and I don’t wanna hear. Let me check with so-and-so. How about just one call, one answer. Well, When you have multiple people on there, not only is information lost, but there’s so many hands in the cookie jar, it becomes a disaster. And lending’s too complex these days.

So we don’t do that. We assign one person to a loan and that person is the only person you talk to that collects and compiles that data and runs that loan from A to Z. So why don’t other companies do that? Well, like I said, it’s more. But the quality goes up. I mean, the best way to describe this in manufacturing terms, this would be like manufacturing in America, Japan, or Germany versus China.

China might be cheaper, but you won’t get the tolerances. Anybody who knows. Manufacturing knows that you get higher quality from some of these companies, but it’s more expensive. The irony is because we’re more efficient, I actually charge a lower price. So you get a higher quality and a lower price, usually unheard of because we break the loans down to revenue per hour, not revenue per loan.

If I spend less time on the loan, cause I’m efficient, I can charge a lower margin and get more loans so the efficiency feeds itself. It’s a, it’s a win-win for everybody, and the proof is in the pudding. You look at my reviews, look at how people respond to our processes. I can give you five names right off the top of my head, and you can call any one of them and they’ll tell, tell you hands down that this process is the most efficient.

There is nothing lost in translation. When you have one person and you are, you know, you’re getting taken care of because you get answers from a person who knows what they’re talking about. Not a person who just learned how to shuffle a few papers and learned a skill that’s getting paid a little bit above minimum wage.

It’s great that they’re doing that, but it’s not the best when you’re talking about a home purchase, you’re talking about, I mean, 2, 3, 4, 500,000 million dollars. You need somebody who’s worker who has a lot of experience to handle that. It’s too important to delegate to an entry level position.

Unfortunately, that’s what happens. So hopefully that explains loss in translation, one person, one loan process, how we’ve solved that, and how our customers appreciate that process in the long run. Thanks, and have a good day.