Rich Hayden, a mortgage banker with HomeFirst Mortgage in the Washington, D.C. area, offers his tips for working with loan officers.

Client ownership has long been a sore topic between loan officers (LO) and real estate professionals. Never, of course, in those cases where there’s a long-standing relationship between real estate professional and LO. Rather, it's in those cases where the client brings their own LO into a transaction—something akin to a real estate blind date. With no rapport in place between LO and real estate professional, the client has been a bit of a ping-pong ball in a heated match for who “owns” the poor soul.

Until January 1, 2010, there had always been that chance that any friction between well-intended real estate professionals and/or LOs will end up driving a client away from one or the other at some point in a deal only to be paired up with a go-to guy or gal. Inconvenient for all? Yes. Deal breaker? Not necessarily.

Enter your new chaperone—the Good Faith Estimate of 2010 (GFE-2010). GFE-2010 does more to tie a client to a LO and slow/halt any mid-stream changes than any regulation that has come along in years. 2009 saw the advent of the Mortgage Disclosures Improvement Act of 2008 (MDIA) and the Home Valuation Code of Conduct (HVCC). Both have some outstanding consumer protections at their core, but have created roadblocks to quick and timely closings. Mix HVCC, MDIA and GFE-2010 and you'll come up with much more than alphabet soup.  You now have a potential showstopper for clients who want to make justified relationship changes mid-stream once a contract is ratified.

Such is the backdrop for the “real estate blind date” in 2010. The client is now “owned” by the regulatory process more than by the real estate professional or the LO. What should you do if you find yourself on a real estate blind date? Follow these 5 simple tips:

1.    If The Real Estate Professional Owns the Client–Be Prepared: Like any date, you want to know as much as possible going in so you're comfortable—o matter the outcome. Whether the client is using your go-to guy/gal or not, tell the client to get pre-qualified earlier in the process than they ever have. Rudimentary? Yes. But, I can't tell you how often I see it from rookie agents to old-salts where they head out the door and write a contract without their ducks in a row. Outcome...a crummy date.

2.    If The LO Owns the Client–Be Prepared: Sound familiar? The same holds true for LOs as it does for real estate professionals. If a LO turns a client loose without having been properly pre-qualified, that client is going to get into a world of hurt awfully quick when the shifting sands of underwriting take hold. The best way to make sure you'll never get the second date with a new agent is to send your client out unprepared. Outcome...you might just get a phone call back.

3.    If Neither Own the Client–Know the Ground-Rules:  Like any blind date, you should know the boundaries going in so no one is taken for a loop.  Understand the 3-day disclosure periods, 7-day re-disclosure for APR changes, HVCC limitations, regional contract requirements, basic underwriting guidelines, short-sale processes, etc. so that you're NOT surprised when the client has to do something to either get the loan or be patient enough to get the deal. These guidelines are your chaperone and will keep everyone on the date happy and tuned-in.

4.    If Neither Own the Client–Be Flexible/Patient: Like any blind date, there will be things you discover along the way that you like and some things you don't. The rules of lending are ever changing—as are the nuances of every contract you write. About every eight weeks for the last 36 months, there have been changes to the rules. The introduction of HVCC, MDIA and GFE-2010 has created the need for all parties to be flexible and patient with any changes that may trigger waiting periods and/or re-disclosures. Impatient participants will only prolong the bad date.

5.    No Matter Who Owns the Client–Be Attentive: Like any date, have a genuine interest in your dance partner. That means paying attention to the signals that the client is putting up. This will tell you if your interaction with the LO is going well. The client will determine what is best for him or her and will ask for guidance along the way. The client will give clues as to what his or her needs are and will let you know if changes need to be made. Attentiveness will help you to navigate the regulatory milestones with ease so that your blind dates all go smoothly.

There you have it. Every tip is common sense. But, if you've been out of the dating scene for a while this little refresher course will make you much more comfortable out there. Have a successful 2010!