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Multiple Choice Mortgages

Imagine a scenario where someone calls you up, wanting to pay back the approximately $400,000 they’d borrowed from you, if you would just calculate the exact balance due including interest.  Would you:

A.  Say “sure!” and provide a calculation right away; or

B.  Ignore three requests and then begrudgingly provide the information only after the borrower begged, beseeched and then screamed at you?

If you’re some lenders, you’d choose “A.”  If you’re Bank of America, I’ve observed that choice “B” seems preferred.

Or how about a situation in which you’re trying to become the largest and best well-known credit union in the area.  Would you spend a lot of money on advertising and then:

A.  Expeditiously move matters along with the highly trained and motivated staff you added at the time you pushed for new borrowers, or

B.  Pile too many refinances and purchases on too few processors’ desks and not care whether the buyers and sellers in the delayed closings were stressed to high heaven over your tardiness?

The preferred answer, in my observation, again appears to be “B” if you’re Bethpage Federal Credit Union.

Perhaps you’re one of the myriad mortgage lenders who entice would-be borrowers with terrific rates and then advise these borrowers to “lock-in” the rates for 30 or 45 or 60 days at the same time that they apply for a loan.  Do you:

A.   See interest rates rising and then delay the approval of the loan past the lower than market lock-in rate, or

B.  See interest rates falling and move heaven and earth to close the deal during the time the buyer is commited to the higher than market rate?

The answer is “both of the above.”

Thanks for playing the borrowing game.  You can’t win, but maybe the low, low interest rates you enjoy for 10, 15, 20 or 30 years will be a gratifying consolation prize.

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