Franklin Financial Group Blog

I am proud to announce that I have been approved as a Lending Integrity NAMB Member. What does this mean?

For the first time ever, homebuyers have a simple legitimate way to assess a mortgage professional – a sign that they can look for before they even step foot in the door. It’s called the Lending Integrity Seal of Approval, and those who display it have been through a rigorous validation process. They’ve pledged to adhere to a strict code of ethics, a best business practices policy, and an ethics grievance review process. They also receive ongoing education, and they’ve submitted to criminal background checks. Make sure you’re working with a responsible lending professional. Ask to see your mortgage originator’s Lending Integrity Seal of Approval. Visit lendingintegrity.org to find a qualified mortgage professional near you.

We live in a society where a large percentage of our population lives "below the line" as I heard from a recent business coach. My perception of what this means is that when bad things occur the tendency is to look outward at others and fault them for what has happened, rather than look inward at what we ourselves might have done to contribute to the problem.

If there were more "above the line" thinkers we most certainly would be in a different position. Recently I met with a customer who was certain she needed to refinance, and needed it done quickly. Prior to our meeting I presented a program that was going to combine two mortgages into one, with the rate being higher than the the rate on her current first mortage, and her payment being more than she was paying on her present first and second mortgages. It was initially thought that the rate was about to adjust and even though she was going to get a rate slightly higher than she presently had on her first mortgage, she wanted the comfort of knowing whe was locked into a fixed rate, and was willing to pay the closing costs to do so. At our meeting I looked at the documentation from the original closing of her present first mortgage. Upon review we realized that she had two more years before her present loan adjusted, and that if the index, for which any adjustments would be based, were the same in two years as it was that day, the interest rate on her first mortgage would actually go down. It therefore did not make sense for her to refinance at this time. While I would have liked the income from originating a loan for her, I liked more knowing that the absolute right decision was made and that she was going to save money by not refinancing at this time. She was "above the line" because she was not comfortable with having to refinance quickly, and wanted to thoroughly examine all the facts before proceeding. I was "above the line" because I could see that what was best for her was not to refinance and would otherwise add a potentially non-beneficial loan to the system that may not perform well, should she at some point not be able to make payments since they were higher than she was presently paying.

Being "above the line" is not the easiest thing to do. It requires that you analyze yourself and take responsibility for your actions which takes additional time and effort. It can also appear to yield less reward in the short-term. The reality however is that in the long-run there are greater rewards, much more satisfaction and the comfort of knowing YOU chose the outcome. At times when you realize a mistake was made, as they will occur along the way, being "above the line" enables you to avoid making the same mistakes again!