Ethics, Morals, or Personal Preference in the Mortgage Business

Here's the situation, Broker A just sold an Option Arm to a guy and come to find out another broker (Broker B) already submitted the deal through the same lender. The only reason the borrower went somewhere else was because of a little disagreement, or misunderstanding, with the explanation of the POA from the Broker B. Broker A was told by the Lender that he had to wait 60 days after the current application is withdrawn before he could resubmit it UNLESS Broker B gave a letter saying he will withdraw the application and will receive NO COMPENSATION for anyone else that submits/closes the deal with the Lender. Broker B refused to write the letter and his statement was "if I can't make any money with it, I don't want anyone to make money from it."

Ever run into this situation? If you're in the origination side of things, chances are you either have or will in the future.

I have to admit, I ran into this same situation several years ago, it's not pretty. One person's ego gets bruised while the other person either puffs out his chest or gets pissed about not getting the deal.

What it all boils down to is how do YOU want to be perceived in the business? Oh sure, we're all here to make $$, but how we make it is the issue.

Personally, I actually don't think it's about ethics or morals, I believe it's about personal preference. Let me explain why I think this way. Ethics and morals are more what's-right or what's-wrong. This situation isn't about right or wrong.

The guy has every right not to give up his commission to someone else, he shouldn't be criticized for doing so, that's his preference. BUT, here's my thought, and I'll put this in a first person perspective...

If someone doesn't want to do business with me, I want them to go away and not think about me any more. I don't need bad publicity at all. If I make that person have to stay around guess what? He starts telling more and more people about how "I screwed him" whether it's true or not. If I can make that person forget about me, the less he will tell others about me. Let's face it, if I keep the borrower tied to me if he doesn't want to be, who does that hurt in the long run? In other words, I would give up commission on ONE DEAL to prevent bad publicity, especially in this business. Oh sure, the borrower will always feel like he's been "screwed", but why keep him feeling that way? The quicker he forgets, the better it will be for me. Does that make sense?

Just something to think about.

About the Author

Andrew Poletto has been in the mortgage business for several years as a broker, a manager, and a trainer. He is the author of the ebook: The ARM Factor: The Guide to Selling and Understanding the Pay Option Arm. www.RealMortgageTraining.com

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