Complaints

Written By: John Hoxsey
Certified Master Loan Processor (CMLP)

Last week we tackled dealing with mistakes. This week we will tackle the distant cousin (hopefully twice removed) to mistakes – the complaint.

We now realize that when we make a mistake, we need to take ownership and deal with it appropriately (see last week’s article). Dealing with complaints in the mortgage industry can be a different minefield all together.

As a contract processor, my business would not exist without brokers. Without brokers my business would not succeed. I want my brokers to be happy and satisfied, which should translate into a successful business for me.

Even the best run processing office will receive complaints. Loan officers may become unhappy about something that is completely out of our control or may be unreasonable, but, if they are not happy with the service, it can impact the relationship.

How do we handle this without throwing ourselves under the bus or taking on unreasonable extra duties?

Complaints can be a good thing. Actually you should invite them. Think of complaints as a feedback system that enables you to know what your loan officers are thinking. It is better to receive the feed back than it is for you to have unhappy quiet customers who simply disappear.

I do not recommend taking on more responsibilities in order to accommodate laziness. (i.e. the loan officer complaint is that they do not know how to run automated findings, does not know how to register a loan, and they want you to do it because their old processor did).

No.

It is easy to take on the additional responsibilities and then find yourself buried under a mess you can never get out of. Remember we have systems in place for a reason (see past articles). If everyone does their job, the system will flow, and the volume will take care of itself.

The Better Business Bureau has some great recommendations that easily translate to our business.

http://www.bbbvan.org/resolve_customer_complaints.php

The following information is from their website:

· When you receive your customer's complaint, put yourself in their shoes and try to see the problem as though it were your own.
· Disregard outrageous claims or expressions of frustration and stick to the central issue(s).
· Acknowledge your customer's distress and apologize for it (even if it's not your fault).
· Respond quickly and as briefly as you can.
· Offer a settlement, a compromise, a goodwill gesture, or some options. Don't just dig in your heels, claiming that truth is on your side and that the other party deserves no consideration.

Defusing an Angry Customer

Some of the customers you deal with will, at some point, display some degree of anger. You will need to defuse the anger so you can focus on the customer's real problems and needs. Here are some rules for defusing anger:

Do:

· Listen.
· Show empathy.
· Remain calm and respectful.
· Acknowledge the anger.
· Apologize without accepting blame.
· Agree with the person who is angry.

Don't:

· Debate the facts.
· Ask "why" questions.
· Jump to hasty conclusions.

Providing Good Feedback to the Complaining Customer

After a customer has vented his or her frustration, you will want to provide a good response directed at the customer's problem. Good feedback is:

· Descriptive (not judgmental).
· Specific to the customer's problems.
· Well timed.
· Clear and easily understood.
· Suggestive of actions the customer may take.
· Doesn't make commitments that can't be kept.

In general, follow the "Golden Rule" of business: treat the customer as you would like to be treated yourself.

Remember - Your reputation is your business.

Happy Processing!!!

About the Writer. As one of NAMP's volunteer writers, John Hoxsey is currently a NAMP member in good standing and is a NAMP Certified Master Loan Processor (CMLP). If you would like to become a volunteer writer for NAMP, please email us at: blog@mortgageprocessor.org.