Leverage – How to get paid

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

Recently I read a posting on NAMP that disturbed me. A contract processor was trying to get paid by a broker for work she had completed. The broker hemmed and hawed, made excuse after excuse, and avoided giving up the money.

This is a frustrating experience for anyone, let alone someone who is self employed and does not have a bi-weekly paycheck coming in.

In the mortgage industry we need to be prepared for the worst. If you are not already collecting your processing fee paid directly to you or your company on the HUD, you should seriously consider doing so. This can be worked out 99% of the time.

Even in cases where the lender or title company might bulk at first, a simple one page form authorizing the title company to release the funds to you or your company, should do the trick. You will probably want to have an attorney draw up the agreement to cover any state specific laws. Once you have had the form prepared, make sure you have all of your brokers sign it when they sign your contract as a new client.

I always hold onto the compliance docs until I receive payment. This gives you leverage in the event that your fee was not put on the HUD, or if the check made its way to the broker instead of you.

If you are working on any other files for that broker, you can let them know that you will terminate working on them until you receive payment, and that you will not be shipping any files back.

I have had this situation come up a few times and it is funny how quickly the funds reach my desk when they find out compliance docs will not be released to them until I receive payment.

In summary: do not do business with any client that will not sign your contract, and try to make sure your fees show directly on the HUD. Working off a contract will ensure that you are properly compensated for your work and will give you the leverage to collect in those rare instances when there is an issue.

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.