Close Your Own Loan.com announces the death of the Loan Officer

The Loan Officer has met his end.  The recent subprime mortgage collapse and subsequent consumer credit crisis has caused a dramatic shift in the mortgage industry.  At least it has for one mortgage company.

Close Your Own Loan.com has eliminated the Loan Officer so you can keep his commission. 

Most Homeowners don’t realize that 25-90% of the fees you pay on a typical home loan go to pay a Loan Officer’s commission.  Therefore, many mortgage companies have to charge each borrower a higher rate or higher fees to pay that person’s salary plus commission. 

You don’t call a travel agent to book airline tickets anymore.  You go online. 

You don’t drive all the way to the bank to stand in line just to transfer funds between accounts anymore.  You go online. 

Close Your Own Loan realized modern homeowners don’t need a salesman and they don’t want to be sold anything.  They want to go online and close their own loan.  Close Your Own Loan has embraced the modern internet age in a new way giving the power to the borrowers, not the Loan Officers.

“We took a good long look at the current mortgage business model and realized how outdated it was,” says Dan Mason President and CEO of Close Your Own Loan.  “We asked ourselves if you can buy a car, a boat or even an island online, why can’t you close your own loan online?  We researched it and found that this is what people have been begging to do for a long time.  So, we just gave them what they wanted.”

Online loan applications, “apply here” sections or online rate quotes are not exactly new, but what is new is the control of those features. “The biggest mistake many borrowers make is going to one of these 'get multiple quotes from different lenders' websites,” says Mason.  “What these information brokers don’t tell you is that they are going to sell your name and phone number to dozens of different mortgage brokers who will then overwhelm you with phone calls trying to sell you a loan.”

A recent survey suggests this is not what borrowers want when they go online looking for a mortgage.  The majority of respondents stated they would not recommend one of these “multiple quote” services to a friend. 

Mason says it was the results of this survey that inspired the creation of www.CloseYourOwnLoan.com.

How were they able to completely eliminate an employee that has been the central focus of home loans for decades?  The answer lies in technology. 

Close Your Own Loan uses a sophisticated computer underwriting system called an automated underwriter.  This automated underwriter is able to analyze every aspect of a borrower’s qualifying criteria including credit, employment history, income, assets, etc. and is able to issue a full loan approval instantaneously and upfront.

Most Loan Officers have to thumb their way through underwriting guidelines and loan matrices attempting to decipher which borrower qualifies for which loan.  But, people make mistakes.  These mistakes may cost a borrower time and money from a simple oversight on the Loan Officer’s part. 

The automated underwriter is loaded with every underwriting guideline for every loan program and is able to detect any problems, issues, as well as any loopholes, up front.  There is no more guesswork and no more putting your faith in a person who may or may not understand underwriting guidelines.  A Loan Officer is, after all, a salesperson first and an underwriter second. 

Does the automated underwriter sound a little too complicated for you?  Don’t worry.   Borrowers don’t have to learn how to use the automated underwriter. 

Once a borrower has selected their loan program and interest rate online, they will complete the online loan application.  When they return the signed disclosures and items needed, their Processor will run their loan file through the automated underwriter for them. 

So, homeowners get to avoid the salesman and they get to avoid paying their high commission, but what do they know about closing a loan?  How will they know what to do, what steps to take and how to get the best deal?

Close Your Own Loan has eliminated the Loan Officer, but they have not eliminated the Processors.  As any good Loan Officer will tell you, the Processor is the person who really makes the loan happen.  The Processor gathers the information, submits the loan to the automated underwriter, orders the appraisal and basically processes the file from start to finish. 

“Our processing staff is a big part of the reason this concept works,”  claims Mason.  “The technology allowed us to put the power in the borrower’s hands, but our expert Processors have always been the ones to make sure the loan process goes smoothly.”

Sharon Dinunzio, Senior Loan Processor at Close Your Own Loan, states, “Most of our borrowers tell us they were actually better informed and more comfortable with the process because they could check the status of their loan by accessing their secure online account any time day or night.” 

To learn more visit www.CloseYourOwnLoan.com or call 1-800-276-CYOL.