Posted by Bob_Chicago on 3/13/13 3:02pm
Msg #460999

The reality of the state of our biz, as I see it.

First let me state that I do not condone "low-ballers" Even worse are those who
hire NSAs and do not pay them as agreed in a timely manner and withour hassel.
For those of you who do not know me, i have been on this board since it was founded and have been a full time NSA since 1998. I have done in excess of 20,000 signings.
I fondly remember the days when we frequently received in excess of $200 for a local signing.
Sadly , those days are now like my darlin' Clementine. Lost and gone forever.
Back then, lenders were charging big closing fees, and giving out buckets of cash back with limited reliance on the abllity of the borrower to repay the loan.You all know how that turned out.
Now , most lenders are charging little , or nothing , in the way of fees to the borrower , and are checking them out to a faretheewell.
This of course results in less revenue and higher costs to the lender. They are trying to save expense in many ways. One of these ways is to require the title company to reduce the closing charges to the lender/borrower. You all know what rolls down hill. The NSA, is of course, at the bottom of the hill.
The title cos/ SS make some of the reduced revenue up by reducing the compensation to the NSA.
They make a business decision to acceopt a certain amount of NSA mistakes,.
A large portion of loans being processed are "HARP" type loans, You have seen one Chase, BOA, or Citi Harp loan , you have pretty much seen them all . A NSA would have to be borderline brain dead to screw one up.
The TC/SS do not much care if you are in a state with strict NP qualication, record kkeping requirements , or a state where the NP can pretty much do their on thing. The fees offered are going to be set the the loest common denominator.
Some of us are in urban areas with compact areas, and some with a lot of ground to service.
Some have made the iinvestiment for low cost, high speed printing, and others have a high toner expense. Same with cars, A Prius, vs a Hummer.. etc, etc.
Each NSA needs to decide at what price to accept a particular fee for a job based on all circumstances applicable to that NSA.
Those who say, "I will not walk out my door for less than $125 plus mileage, plus faxbacks, etc, etc, are free to do so, but unless that are in an area with few NSAs, they may end up spending a lot of time looking at that door and waiting for the phone to ring.
The first decade of the 21st century was a lot of fun, but you need to realize that the times have changed, probaly for the foreseeable future, You need to adjust your biz plan to reflect the new reality.
Good luck to all.
I was hoping for a new gig as the Pope, but I guess they passed me over for some guy from
South America.

Reply by 101livescan on 3/13/13 3:22pm
Msg #461005

Bob, I was just thinking that my next gig is going to be a beer bar in Sturgis, South Dakota with a tattoo parlor and piercing salon next door. It's got to be more profitable than NSA work of late.

Gotta fight tooth and nail to stay in business doing it the right way...This busioness has deteriorated to the point of constant frustration and diminishing returns.

Reply by 101livescan on 3/13/13 3:27pm
Msg #461006

The reality of the state of our biz, as I see it.

Oh, yeah, I saw those days too, I'm pretty sure I've done at least as many loans as you have. In 2003, I signed as many as 20 a day at a title co. in their corner conference room, people lined up out to the street waiting to get in to sign before their rate lock expired.

Now, those were the days, and lots of piggy backs.

W're paying for it now.

Reply by 101livescan on 3/13/13 3:28pm
Msg #461007

The reality of the state of our biz, as I see it.

Oh, yeah, I saw those days too, I'm pretty sure I've done at least as many loans as you have. In 2003, I signed as many as 20 a day at a title co. in their corner conference room, people lined up out to the street waiting to get in to sign before their rate lock expired. The holidays went on without me. I slept through Christmas and New Years Day. Worked around the clock. I was but a young thing then.

Now, those were the days, and lots of piggy backs.

We're paying for it now.

Reply by Stephanie Santiago on 3/13/13 3:55pm
Msg #461018

Hey Bob - the white smoke came to soon...

Nice to see you - I do recall those times, back in the day, so to speak...
Stephanie

Reply by Notarysigner on 3/13/13 4:58pm
Msg #461025

Re: Well said Bob

I didn't become a NSA until 2007 and for me then $125.00 wasn't bad so I had no complaints. I appreciate your synopsis of the salary history you provided. Thanks
My commission comes up for renewal in two years (wow seems like I just renewed it last year) and with good health, will renew again. But not with the mindset of making a killing as a NSA!

Reply by ENGELS - JAN on 3/13/13 5:45pm
Msg #461040

I could not agree more with you Bob...but we still can not give the farm away for 'peanuts'. I beleive I charge a 'reasonale' rate but fax backs take time.....sometimes longer than the closing. I do not feel fax backs are necessary unless it is a Investment property. To fight traffic back to your office, fax and then get to Fed eX or UPS in time is a challenge lots of days. But I love this business!!! Je

Reply by JanetK_CA on 3/13/13 7:22pm
Msg #461059

Great post, Bob, and so very true, especially two key points...

First, "Each NSA needs to decide at what price to accept a particular fee for a job based on all circumstances applicable to that NSA". I don't at all, however, think that necessarily equates to jumping on the lower fee bandwagon. Just be realistic - and be sure to include ALL your costs of doing business when you decide on what fees you can live with and still make a profit. If you're losing money, you'd be better off with a job with benefits.

Second key point is: "You need to adjust your biz plan to reflect the new reality". There are lots of ways we can modify our business plans other than accepting low ball fees. These are the things that each person has to figure out for themselves (or get the advice of business experts, like the folks at SCORE).

I think these are especially important concepts for anyone who has been in this business for less than 2 or 3 years to read and read again. From some posts on this forum, I get the impression that lots of those newer to our field are expecting that once they get some experience, it will be happy days for them in the world of loan signing. Lots of those folks are going to be in for a rude awakening when interest rates start to go up, unless they're in an area with little competition and are willing to drive a long way. I'm not trying to discourage anyone, just saying to be smart with your expectations, do your homework, and maybe have a plan B in your back pocket.

The disclaimer we often see with statements related to financial investments, etc., applies in many ways to our business, as well: "Past performance does not predict future results."

Reply by 101livescan on 3/13/13 7:31pm
Msg #461062

You're absolutely correct, Janet. We're dealing with an entirely different economy, loan product and lender/title attitude. Everyone is driven by the bottom line, more than ever. It is a highly competitive arena, from top to bottom. Sharpen your marketing tools, everyone. Only fittest will survive the coming years.

I had a borrower tell me last night they interviewed three loan officers before making their decision. I asked what made up their minds. The one who always answered his phone or called us right back. The other two lagged. We needed someone who was proactive. Someone who would get it done.

Well, that's the kind of NSA these LOs want too.