Lynn B. Friedman - Atlanta Homes ODAT Realty: Out-Of-State Call Center Lenders . . . And Why I Don't Like Them

Out-Of-State Call Center Lenders . . . And Why I Don't Like Them

Dear Readers -

In this post, Carla Muss-Jacobs, Principal Broker (503) 810-7192 dives right into a very important topic - working with LOCAL LENDERS for Mortgages. My only exception that proves the rule is working with Mortgage Lenders one knows via our interactions on ActiveRain.

Carla explains her reasons very clearly. Yet let's focus on the overall importance of one aspect of Mortgage -- accountability of the Lender Representative. 

Accountability is so critical in the mortgage process - working locally makes a lot of sense! In a comment, Dan Tabit uses the phrase "Relationship Lending" - I agree with him - that can be a key factor that allows for using someone in a different location - the relationship adds accountability.

Carla's posts always have a bit of "spice" to offer the reader. I am sure you will enjoy this one and others on her Blog. Try reading about Giving Legal Advice and another one, Condo Assessment Data.


Have a successful day -  Lynn 

PS -- If I haven't thanked you personally for following my writings, please accept my gratitude now. Your views and comments mean a lot to me.  L.

Every so often I'll have a client who will forego my sage advice.  When that happens, there's nothing much I can do but uphold my fiduciary duties, which include "obedience" to the clients.  

When it comes to experience in all things "real estate" this is what I've formed as my own, personal opinion when it comes to "lender call centers":  I don't like them!

My clients are given two or three lender referrals.  The majority of buyers will borrow money, rather than paying cash and that's when "the talk" comes in to play.  

Local lenders are much better to work with

Over the years, when I've had to deal with the lender in an out-of-state "call center,"  I cringe.  I've had rude from:  Chase, Wells Fargo, Quicken, etc.

Not that it makes a difference to what I think, but here's the thing that chaps my hide . . . 

How can a lender in a call center located in Kalamazoo . . . or Cucamonga know the local standard of practice in . . . Beaverton?  How can they know what my Sales Agreement stipulates?

They don't!

Oh, sure . . . the lenders in the out-of-state call centers actually READ each and every contract they receive and know/understand the terms and conditions of the borrower's financing contingencies . . . {rolling eyes}

True story:  I had clients who went with whomever picked up the phone at the 800-call center at Wells Fargo.  They didn't know her.  They would never meet her.  It was just over the phone . . . somewhere.

When my clients were ready to make their offer, we discussed the close date.  They wanted to move at the end of January and we submitted that term in the offer, which was accepted by the seller.  

The close date, as innocuous as it may seem, turned into a heated debate between myself and the Wells Fargo out-of-state call center lender.  

This is what bothered me:  

  • The Sales Agreement is a contract.  The terms and conditions were negotiated AND mutually accepted between the principals.  
  • The "Lender" is not a party to the contract, but there are FINANCIAL TERMS AND CONDITIONS that the borrower (Buyer) has to rely.

And yet . . . when the Wells Fargo lender received a copy of the fully executed contract she said  "The close date wasn't possible."


Here's what she wanted to happen . . . she wanted the close date of January 29 moved into February . . .


Reason?  She wanted to have her numbers for Feb. look good!  She wanted to manipulate my clients' close so she could get some good numbers for her February stats!  If memory serves, this was close to a 40-day escrow WITH our close date.

Remember, she works in a call center and her "motivation" is:  VOLUME!

Keep in mind:  If lenders are located out-of-state and get loans from all over the country . . . how in the HECK can they be familiar with the language in each of the sales contracts?!?

I have a hard enough time in my local market with listing agents and local lenders not being as familiar as I think they ought to be with our contracts.  How is it even possible that out-of-state lenders who receive CONTRACTS written from all the various real estate markets are knowledgeable about each and every lender term and condition contained therein?!?

I bet these out-of-state call center mortgage lenders don't have a clue what the contract states when it comes to the financial contingencies of the borrower.  I bet they don't even READ THEM! 

I had a Chase genius tell me he didn't need to read the contract or know what it states because "that's your job" . . . OMIGOSH.   My job is to make sure the out-of-state call center lender doesn't screw things up on their end with THEIR customers' loan??  Well, since they apparently can't read the contract . . . I guess it is!

Which is why I like working with LOCAL LENDERS . . . they have only ONE CONTRACT to be familiar with.  It's the standard one we use in our local market.


Buyer Focused ~ Buyer Results


Representing Buyers in the Portland Metro Real Estate Market | Clackamas Multnomah and Washington Counties | Since 1999

Carla Muss-Jacobs, REALTOR®, ABR, CEBA, ePro
Principal Broker/Owner

Direct: 503-810-7192 | |

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100% Buyer Representation ~ 100% of the Time

Isn't it time you had your own Exclusive Buyers Agent?


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Comment balloon 8 commentsLynn B. Friedman • June 01 2016 06:36PM


I just closed one a couple of months ago when the buyers did their own thing and in the end we didn't close on time and it cost them more money than was quoted by a LOT.  

Posted by Tammy Lankford,, Broker GA Lake Sinclair/Eatonton/Milledgeville (Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668) over 3 years ago

I am all for working with a known lender now if it was George Souto  or Joe Petrowsky  if they were licensed in CA I would use them. Know them, trust them and  would feel confident about the results...unknown un accountability type people... NO Way!!Endre

Posted by Endre Barath, Jr., Realtor - Los Angeles Home Sales 310.486.1002 (Berkshire Hathaway HomeServices) over 3 years ago

Good morning Lynn. Good choice for a re-blog. I understand the frustration that Carla shares about, out of state or out of town lenders aren't necessarily a bad thing, but some of these lenders are set up as smile and dial operation and have not credibility.

Posted by Joe Petrowsky, Your Mortgage Consultant for Life (Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709) over 3 years ago

This is a nice blog by Carla. Thank you for reblogging it. 

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) over 3 years ago

Lynn B. Friedman Thank you for re-blogging Carla's web-based lenders more and more, so everyone needs to be thinking ahead on how to best protect our sellers, buyers and the transactions from imploding. I suggest requiring cross-qualification for all buyers with a trusted local lender, and note that requirement right in the MLS Brokers Remarks.

Posted by Sandy Padula and Norm Padula, JD, GRI, Presence, Persistence & Perseverance (HomeSmart Realty West & Geneva Financial, Llc.) over 3 years ago

Good morning Lynn B. Friedman ,  A great choice for a re-blog! Carla Muss-Jacobs, Principal Broker (503) 810-7192 tells it how it is!   I had a stubborn client that didn't want to use the local lenders that we suggested and found one in some other state.  After having the process drag out until within days of the contract's closing date, the Lender decided they couldn't help her afterall.

After going back to one of our local lenders, she was closed within 30 days.

Posted by Larry Johnston, Broker,Friends & Neighbors Real Estate, Elkhart,IN (Broker, Friends & Neighbors Real Estate and Elkhart County Subdivisions, LLC) over 3 years ago

Lynn-I generally agree with your premise. However, there are some competent loan officers/loan processors in regional and national companies.

Posted by Wayne Johnson, San Antonio REALTOR, San Antonio Homes For Sale (Coldwell Banker D'Ann Harper REALTORS®) over 3 years ago

Hey, nice re-post! I agree with Carla's insight. I prefer local myself Lynn B. Friedman 

Posted by Paul S. Henderson, REALTOR®, CRS, South Puget Sound Washington Agent/Broker! (Fathom Realty Washington) over 3 years ago