Why do clients cancel?

Written By: Tanisha Daniels

When your Processing Manager or MLO assigns you a new file it is an exhilarating feeling. Let’s face it, most of us who are passionate about the mortgage industry live for the adrenaline rush we get in doing our jobs.

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But what happens when your client cancels?

We have to remember that “no deal is done until it funds” so that timeline between originating and funding is a “lobby area” for the borrower. With loan processing times up over 25% from 2011 according to Mortgage News Daily.com – customer appreciation can be the factor in a client’s decision to stay with you or go to another lender promising a quicker closing. Remember, the borrower doesn’t get a chance to take advantage of that great low rate and reduced payment until the deal closes, so when they cancel their loan with us it’s hard not to take it personal, but in business – nothing is personal.

Cancellations happen to the best of us. Even with great low rates, educated clients, and even fast closings – borrower’s cancel.

But what can we proactively do to ensure that we minimize cancellations? We can simply show our clients that we appreciate them.

When you didn’t return their call. When you rushed them into making a decision. When you didn’t explain why you need those documents sent within 24hrs. You told them their time wasn’t important (and you don’t keep your promises).

When you took that phone call during your call with them, you showed them that someone else was more important to you.

There are many ways to show borrowers you appreciate them and many more ways to screw up. You can learn what to say or do through study and through experience, but one thing you must have and cannot be taught is sincerity.

You can’t fake it. People know. You can’t say the words and have your results say something different. The only way to communicate to your borrowers that you appreciate them is to appreciate them.

If you do, you’ll find your cancellations minimized. You don’t have to think about what to do or say or review a checklist. You’ll let them know in a thousand ways how much they mean to you and even if you are clumsy about it, they will know that you mean it.

Need FHA Training? CLICK HERE: http://www.FHA-Classes.org

If you don’t appreciate your borrowers, you can’t expect them to appreciate you, refer you more business, or come back to you the next time they need help.

About The Author

Tanisha Daniels - As an NAMP® staff writer, Tanisha Daniels is a lead instructor for Loan Processor University (www.LoanProcessorTraining.org) as well as has over 10+ years mortgage experience. She has used her baseline experience in loan processing to contribute to progressive and successful roles supporting Retail, Wholesale, and Correspondent clients. She has worked as a frontline and post-closing Underwriter, Account Executive, and Loan Modification Processor. She currently works as a contract Loan Processor for 2 small independent licensed Retail MLO’s. If you're interested in becoming a writer for NAMP®, please email us at: contact@mortgageprocessor.org.

Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.