Insurance Agent Forum

[salpro22]

It's mostly the lenders fault and some fault to mortgage companies responsible for the record foreclosure statistics. The Lenders in secondary market set the guidelines for lending money through the mortage brokers.

I disagree with you about the fault lying on the lenders. The fault truly falls upon the person getting the loan because he or she made the mistake and is now paying for it. Lenders are in the business to make money, just like insurance companies. If bank statements were falsified then we should leave that up to the courts to decide as that carriers heavy penalities.

Imagine a guy saying, "I bought a GR Copay Saver plan because I was told it was the best of the best and it fit in my budget. The insurance company is at fault for having these plans available because now I have expenses they won't cover."

Really???????? Did you purchase your insurance online or through a broker (bankrate.com or local broker) ? Did they talk about ALL the plans available and narrowed down your options? Did you verify the agent's license in your respective state? Did you compare all of your options and weigh the risks. No, you made an impulse decision because Darwin is right!

Over half of the loans in the past years were the no income no asset(nina) and stated income stated asset(sisa) loans. This is referred to " liar loans " in which people can misrepresent their income on application without proof of documentation of w2's and paycheck stubs.

Interesting statistic. Where did you get it from? These same type of people also typically pay a higher interest rate and put no money down on properties. See Darwin comment above.

Fraud is another factor to this foreclosure rates. Appraisers would jack up the values or overvalue the price of property and loan officers misrepresenting and placing people on neg. amoritization loans and some arm loans that were not necessary if customer plan to live in house long-term.

I have seen this firsthand and it disgusts me. On the other hand, that is a risk these people take who conduct illegal activities. The no money down movement has been going on ever since William Nickerson wrote his first books back in the 60's. Robert Allen and the like have all continued to push it despite their backgrounds.

This is the reason I think Im going to make the switch to the b2b health industry sales because I NEVER been in an industry(mortgage business) where I personally experienced and saw so much greed and fraud to the customer and me personally.

Just wait until you see the agents in this field. Makes some mortgage brokers look like Mother Teresa.

[007]

Originally Posted by healthagent

I think you'll find health very rewarding. In the mortgage biz you make a sale. In the insurance biz you gain a client - and there's a huge difference.

How is that a difference when sales is sales in any industery?

[healthagent]

A mortgage broker doesn't have to provide on-going service after the sale. Once settlement closes it's over.

I'm also unaware of any chargebacks a mortgage broker can incur if they have an unhappy client 6 months later. Once you sign for that loan it's not like you can get pissed like with insurance and just cancel. Can you imagine: "Hello, Countrywide Home Loans? Yes, I need to cancel my loan today."

[senior-advisor-indiana]

Renewals is the BIGGEST selling point to me on being an insurance agent. I am on level renewals, so my income basically double every year. Other sales jobs you would have to sell double to earn double.

[salpro22]

Originally Posted by healthagent

A mortgage broker doesn't have to provide on-going service after the sale. Once settlement closes it's over.

Exactly.

BOA Rep: Mr. Broker, This is Bank of America.
Broker: Good Morning.

BOA Rep: We just wanted to call and let you know that the loan you settled 6 months ago has been switched to a different bank and now we need half the commission back.

Broker: Could you repeat that last part?

BOA Rep: It'll be my pleasure. We need half of the commission you had made 6 months ago on Mr. Smiths loan, which according to our records is approximately $1500. He decided to refinance his house with another company and we want our money back since he did not have the loan for 12 months. We will accept a credit card or check?

Broker: Uhhhhhh, are you serious? WTF! What happen to the loan I have going through right now?

BOA Rep: GREAT! That is not a problem. We will simply deduct the amount of money you owe from the commission amount once the loan gets' approved.

Broker: But the commission is only for $1000.

BOA Rep: I realize that, but hopefully you'll be able to get some more deals in.

Broker: Screw this, I'm going to sell insurance. It's better over there.

[healthagent]

Lol. There's just more incentive for mortgage brokers to be sleazy and unethical. First, there's no repercussions after closing. Secondly, you can't imagine how many unlicensed brokers there are who are ghost writing. Lose your license? You won't miss a day at work.

Yes, you can be an unethical insurance agent but I think it's a short lifespan. It takes a special kind of person to put up with a high amount of chargebacks and a barrage of pissed off clients. Plus, insurance companies don't play that game. Give enough complaints and you'll lose your appointment.

I was chugging the Mega Life Kool Aid all way to the point when clients started to call me all pissed off. Done.

[007]

Originally Posted by healthagent

A mortgage broker doesn't have to provide on-going service after the sale. Once settlement closes it's over.

I'm also unaware of any chargebacks a mortgage broker can incur if they have an unhappy client 6 months later. Once you sign for that loan it's not like you can get pissed like with insurance and just cancel. Can you imagine: "Hello, Countrywide Home Loans? Yes, I need to cancel my loan today."

I was trained to turn in clean files only and not have to worry about " Hail Mary full of grace" loans that won't stick. Chargebacks happen only for unclean dumb subprime loans people who don't know how to manage money..

[healthagent]

That was one nice thing about working for BMW as opposed to Pontiac/GMC. We dealt constantly with "dreks" who wanted the world yet had trashed credit. These were the 400 beacon scores who wanted 7.5% and a $300 a month payment on a Denali. At Pontiac we had to take the drek on the Denali test drive.

We had a program for those people at BMW - get the hell off the lot until you secure financing. We also had the Chinese payment plan "Onelumpsum." Also, come on in and ask to test drive the new 540 and see if we don't pull credit first. "Hi, I'm here to test drive the 750." "Yeah, grab a chair and fill this out."

It's always more fun to work with a better class of people. And we also wind back around to why I deal with small biz owners I telemarket instead of broke-ass internet leads.

[007]

[quote=salpro22;27387]The fault lies on the person getting the loan.Lenders are in the business to make money, just like insurance[/qoute]


No, and remeber many people were misrepresented who thought were receiving a fixed loan for long term but got neg. am and arm loans. Most subprime lenders are out business now and were responsible for lenient guidelines promoting 100% financing no income/ low doc loans.

Interesting statistic. Where did you get it from?

stats from mortgage banking assoc.

I have seen this firsthand and it disgusts me. On the other hand, that is a risk these people take who conduct illegal activities. The no money down movement has been going on ever since William Nickerson wrote his first books back in the 60's. Robert Allen and the like have all continued to push it despite their backgrounds.

Yah, I've seen brokers overcharge/price gouge many times to customers. I remeber william nickerson and may still have his old book on investing...

Just wait until you see the agents in this field. Makes some mortgage brokers look like Mother Teresa.

What do you mean SalPro because Mother theresa was wealthy person....

[007]

It's always more fun to work with a better class of people. And we also wind back around to why I deal with small biz owners I telemarket instead of broke-ass internet leads.

ROFL, that's too funny. I guess closing ratio statistic for internet leads is 1/28.

[healthagent]

Doesn't matter what that closing percentage is on internet leads. I have better things to do then get jerked around by some 26 year old broke smoker. If I'm gonna get jerked around, at least let it be by a 54 year old husband who owns a local auto repair business. That I can live with.

[midwestbroker]

I agree John. That is why I went senior market. I was tired of chasing 20 / 30 something year olds or dealing with people who were 400lbs diabetics.

Now, you can be a 500lb diabetic, as long as you just aged into Medicare or are getting an MA, it is no problem.

[007]

I see your point HealthAgent is that you're looking for stability in a prospect who more than likely will need health insurance long term for their family and likely will be a customer for a long time.

[healthagent]

You have the exception and the rule - and shared lead Kool Aid drinkers want to always talk about the exception.

The rule is internet leads are around 30 years old, not business owners and barely have enough in checking to cover the 1st draft. The rule is also that business owners are 45 years old on average, have more money, are more savvy to understand HSA and high deductible pitches and keep the plans far longer. They also tend to complain far less, are not emotional buyers and it really is "the last straw" before they cancel a plan.

Internet lead buyers are generally emotional buyers who want everything covered and have zero tolerance for any out of pocket expense. They cancel before you can even get to 'em.

Now - I'm sure we can talk about the exceptions 'till the cows come home.

[healthagent]

Originally Posted by midwestbroker

I agree John. That is why I went senior market. I was tired of chasing 20 / 30 something year olds or dealing with people who were 400lbs diabetics.

Now, you can be a 500lb diabetic, as long as you just aged into Medicare or are getting an MA, it is no problem.

It's why I'm a bit excited about doing MA on the side. It'll be a bit refreshing to sit down with that 400 pound diabetic and leave with a signed app.