Say Hello to Keller Williams Mortgage
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Mortgage News, Real Estate News
Say Hello to Keller Williams Mortgage
admin - Thursday February 22, 2018
Mortgage News, Real Estate News
admin - Thursday February 22, 2018
Looking forward to using Keller Mortgage
They said 50bps to $1M, 65bps to $2M and 90bps for $3M or more.
our jobs are to protect and guide buyers and sellers through sales… not to be sales people that want to have everyone move, and divorce, and upgrade, and down grade… we are supposed to guide! educate them on the process for an educated decision. Make sure you understand what you are doing buyers and sellers!! if there are large discounts on peoples work…you may not be getting the proper care.
There is no tooth fairy and there is no KW credit without a markup in rate. In other words, it’s a marketing claim. Considering millennials are about a decade behind previous generations in mortgage knowledge and homebuying experience, it will probably work on many of them. Of course I could be wrong and KW may have found a source of funds that costs a point or two less than Fannie and Freddie. Sure.
Keep in mind who leads Keller Williams. Gary Keller. The man’s very smart, very researched based, and very strategic. He has surrounded himself with even smarter people and has a plan to execute. If you look at his track record, when he and his direct reports make plans and make hires to execute the plan things get done at a high level. Anyone who thinks that this is just a marketing ploy doesn’t understand who is leading this effort. As far as attracting Hacks… The most talented and most well paid buyer’s agents in the business many times work for less than 50% when working for top level teams. The EGO of getting paid a higher % often gets in the way of the actual opportunity of making more $ by staying in income producing activity vs administrative support. Those with the leads control the industry.
your absolutely right there is no free lunch. However in Southwestern Ohio there is a mortgage powerhouse called Union Savings Bank. Union has about a 45% market share! Their commission structure is similar to Keller Williams. Also Union is a Freddie Mac lender and Freddie does not require Title Insurance. So yes with Union your commission is lower however you have the ability to do more loans. I have been with them for over 15 years and have been a top producer. You just have to embrace what works
I am with Union Savings Bank too. Yes we make less money per loan, and do not even tier up to the levels you say Keller goes to BUT, I can walk into a room of 100 LO’s and believe noone is taking business from me. I know I help people keep more of their money for more important things than paying bank fees and interest. I have all the business I can handle and work whatever hours I choose. Our rates are normally lower too and we DON’T “just roll everything in”. We just make good loans and service them for a looonnng time because nobody leaves once they learn the difference. That’s why 45% market share at the Cincinnati home office (and growing in all markets we serve).
I am a KW agent with a team. If you actually listened to Gary Keller at Family Reunion, the real estate market is fundamentally being disrupted and the battle is for how the real estate industry looks in the future and who gets the commission is happening now. You can criticize it all you want but if ignore the war that is happening now in the real estate and mortgage industry then you’re living in the past. Instead you should be asking your company and bosses about how they are battling quicken loans or Keller Mortgage. You are right it’s all about referrals and now it’s a fight about who controls all the eyeballs on the Internet. If your company is not in that game or the data game you will be left behind. Think Taxis to Uber or Blockbuster to Netflix. Unremarkable agents are going to fade in this new market and you are right, only remarkable loan officers will survive as well. Good luck to everyone!
Well the first issue I have as a Keller agent is referring my client to someone who is not local, there is no relationship built, I have no idea which LO I will get from client to client and my future referrals from this client are hanging on the hope that the KW LO does a good job. The other issue is do we really know the rates are going to be better? Also the traditional lender fees that a buyer will save on are exaggerated. Lender fees in our area at least on a $200k loan are definitely not 2%. The $1000 credit is great but depending on the rate may or may not be a deal. Finally I just have a hard time referring my client to an out of state LO who may or may not be a rockstar like my local LO. Only time will tell.
This has all been tried before. Back in the 80’s there was Coldwell Banker Mortgage, which later evolved in to the Sears Financial Centers and Sears Mortgage. It didn’t take long for LO’s to figure out they could make more working for the S&L’s, until the S&L’s went bust!
Hey guys…I am the HECM expert in Texas for Movement Mortgage. I spent the last 3 years teaching realtors about the purchase aspect of the program and helped many get into homes. The class I teach always creates buzz and business has picked up; nonetheless, more people need to know about it. I love to get on your show or take your suggestions.
Thanks in advance
Karl
It will be steering. Not for the seasoned KW agents, but for the newer agents. The branch managers will introduce the less seasoned agents to the “in house” KW lender, and suggest they be used for future transactions. Heck, the branch managers will ask the seasoned agents to throw a bone once in a while to show the less seasoned agents the in house lender is ok. This is an every day occurrence. No different than any other MSA type of relationship. Let’s invite the competition. I have been competing with this kind of stuff for nearly 31 years. It has been there, and will be there.
This news prompts a couple thoughts from my chair as a LO….and I have enjoyed great relationships with KW agents.
1. What is the close rate for the walk-in’s KWM will bring you, and how does it compare to your current close rate? If I close 75% today, but my new close rate drops to 50%, the compensation differential is more pronounced. And vice-versa….right?
2. If the KWM LO’s sitting in the KW offices have job descriptions modeled after the Quicken order takers, then the service level changes…right? As an agent, how many calls do you (or your title company or client) have to make to get to the person handling your particular issue? You don’t have a KW agent come sell a client on signing the listing agreement, then disappear and have a staffer handle all the issues that arise….or do you? Your compensating your LO on a scale similar to what that Quicken order taker makes…do you need them to do more?
3. Here’s what I see from Builder and In House lenders (my closest comparison to the KWM model as described)….I’ve got 15 people making application. I have capacity for 12. Those 3 that are self-employed or challenging just aren’t gonna survive the cut. Even if I have the expertise to work the deal….I don’t have the incentive or bandwidth. That Buyer goes elsewhere, and retains a warm and fuzzy feeling about KW? How about you as an agent, do you then send them to me? So, you’re going to send me the hard ones and they get the easier ones?
4. If you are a full service LO, even if you close 100% of the leads provided, 50bps or $5,000 in compensation is not near enough compensation for the work required to close an average of five $200,000 deals per month. Might be good for part time income for two $500,000 deals…or even three at +/- $340,000 deals part time. But, I’m required to work shifts at a desk in your office for that income? It’s like the unemployed professional who takes a job he’s over qualified for just to generate an income vs being unemployed. As soon as they get enough experience or get a better opportunity…they’re gone. Anyone who has spent any time as an LO, knows that the effort put in two close any two loans varies….but we all know 50bps is not enough compensation for the composite of all the loans in your pipeline.
I’m sure people smarter than me researched this model and put it together. I remember back when the Fred Sands – Merrill Lynch online mortgage business got started and died in the 90’s. These things have a way of working themselves out. Will be interesting to see how this model works for KW and the KW LO’s.
You heard it here first, my friends…this too shall fail or at least fall way short of what’s being promised. Over 40 years, I’ve seen this done time and time again by real estate firms trying to double dip on every transaction. By making it a “one-stop shop” KW is also taking on ALL of the risk to the transaction. I suspect KW Mortgage is essentially a correspondent for a number of wholesaler’s, none of which will alter their guidelines one bit to accommodate KW buyers. This has been tried and failed so miserably over the years. It’s just a matter of time.
I am a KW agent and I attended family reunion. Gary did not say that we could expect a class action suit if KW mortgage was not recommend. What he did say was, if this is the lowest cost option for your client and you are not offering it to them, you are not upholding your fiduciary responsibility. He then took the time to detail out the normal costs in loan origination and provided a side-by-side comparison. The comparison was with a traditional mortgage broker, so I do not know how the numbers compare with a similar lender such as Quicken. Time will tell. Gary’s vision is that the real estate transaction is it all in one transaction including the home, attorney, insurance, lending… the buyer will see one price and that will be it.
Maybe Lenders need to start using discount Realtors now because the lowest price Realtor must be the best Realtor…
Bravo to Mike. He is right. If it is all about saving our clients the Benjamin’s and any monkey can do loans or real estate then Purple Brick looks like a better alternative to KW since they don’t charge high RE commissions. All that being said I say bring it on and the market will decide who is right…as always.
Yeah… no possible conflict of interest, or double-dipping happening here, folks. What next? KW appraisers, and KW closing agents too? As an LO, I’m not worried about this as “competition,” as my company can offer the same $0 fees, and $1000 credit… I’m concerned for all the home buyers who will be taken advantage of because they didn’t have an independent party looking out for their best interests.
Where is the CFPB when you need it? Keller Williams Mortgage is teetering on the verge of a massive RESPA violation. I would call this “steering”…”disparate treatment”…and I want to know if they aren’t offering higher rates to offset these great “discounts.” I should be able to access their make believe terms regardless of whether or not I work with a KW agent…Also, lender fees are rarely 1-2%. Lastly, KWM is hardly comparable to UBER (i.e., in Barbato’s UBER v. Taxis comment). This is purely a “has-been” marketing campaign. It’s not innovative in the least.
I’m not sure why everyone is misunderstanding what Keller Williams is saying. They say there are “NO LENDER FEES” they did not say no closing costs! Lender fees are only about $1500 on average. I don’t know of an Lender who charges 2-3% for their fees.
I’m a high producing agent in the SF Bay Area and guys that made this clip are marketers first and LOs second. 95% of the LOs in my area are 1) beggars “they call on Monday’s and expect to be feed our leads” YUCK! or so buzzy as 2) “the back-up guy” for the agents when the beggars fail that I can’t reach them or depend on them. So we are now screening for 3) pipeline builders that work their butts off and they are very rare around here where loans average $500k – $1M.
As for Keller Mortgage I think that there is a massive amount of lenders and banks that work for less than those rates, with horrible guidelines and a company that is trying to make a big profit so Keller mortgage is a zero dollar business for Keller Williams and they just want to produce do your flow and take market share from the other brokerages. I think that there is a massive amount of lenders and banks that work for less than those rates, with horrible guidelines and a company that is trying to make a big profit so Keller mortgage is a zero dollar business for Keller Williams and they just want to produce deal flow and take market share from the other brokerages. There’s also a lot of compression going on in the lending space, Refi’s are drying up fast.
I am a pipeline builder, I started just over three years ago and have 4800 contacts in my database. They are not all the best quality, but don’t want to beg are coming to me asking if they can call my lead it’s just gross, if you know any pipeline builders in the bay area have him give me a call.
Why would anyone want to do more for less?
Well I’m not in the loan business but I am in the process of buying my second home through Keller Williams and it has been a nightmare. I decided to go with keller because they told me I would have zero out of pocket costs and because they said my payments would be around 1590. per month on a 300,000. loan. Long story short. None of what keller has told me has come even close to what they originally told me and their loan process has been a nightmare with them losing our paperwork four times and the loan officer has been extremely aggressive with us to just do what they want us to do which equates to “I want my commission now”! If we weren’t already close to closing I would just start over with another lender. There is still that option and will depend on the terms of the loan. We were told we are locked in for 3.5% with no closing, and no down payment with payments of 1590. on a VA backed loan. Does this sound possible? Well after two months of going through the process we were told last week we had to come up with 9,400.00 at closing, we argued this as this amount was supposed to be rolled into the loan amount as it is VA funding fees. Then a week after this we were told you will need 3400. at closing for closing fees. We argued this because the seller offered to pay 7,000.00 in closing fees. Then we get an email with an attachment asking us to sign committing to paying 3400. for closing fees. We were told on day one no closing fees, VA funding will be rolled into loan and seller to pay 7,000. The paperwork we received a few days ago states $21,000.00 in closing fees! Now I don’t know about anyone else on this board but my husband and I have purchased two previous homes and our daughter purchased two homes under VA and one of those homes our daughter bought in Hawaii for 650,000.00 and the closing cost on the 650,000.00 home was only 5,000. which the seller paid. So how is it that on our 295,000.00 loan we are paying 21,000.00 and end up with a payment of over 1800.00 per month when they quoted zero at closing and 1590./month! Needless to say the documents Keller sent to be signed committing to this are not signed and will remain unsigned.