I am an AE for Beneficial. Last year we got really excited when we found out that we were going to start originating conforming loans and the company actually encouraged us to convert as many clients as possible to these new loans. This was good for clients because many were in loans with rates in the 8 to 12% range. Conversion would put them at 6.5 to 7.5%. Great news right? Heck no! I personally have had several clients get approved all the way through the process only to be told that we couldn’t sell the loan so the deal is turned down. Get it? Approved loan but cannot sell = we turned the well qualified home owner down. WTF? Why not put them in a portfolio product?
The answer is simple. Management wants to draw down the portfolio so the clients that we already screwed once by slapping them with a 10% mortgage get to be screwed again.
Starting today the “buydown” strategy is going into high gear.
The company just introduced new LTV guidelines that are going to make it virtually impossible for us to write loans unless the clients home is worth at least 100k. That is going to kill business in rural areas. Thats what the company wants though…no new portfolio loans. Of course that means no new bonuses for AE’s.
All management is saying is wait till January…dont leave yet. Apparently FHA and several prime options are to be introduced on the 2nd. I guess we will see.
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