Bet you didn't know that there are no mortgage loan specialists in Las Vegas, NV. That's right, not a one. No FHA Specialists, no VA specialists, no first-time buyer specialists, etc. How can this be you say? What has happened to the mortgage industry in Nevada?
The MortgageLending Division is what happened. My sources tell me that they are going to begin cracking down on loan officers who claim they are "specialists" or "experts" in their advertising, newsletters, websites, and blogs. According to my source, the MLD is going to start penalizing and fining mortgage companies for using either of these terms, and if the practice continues after the warning and fine, then the loan officer's license will be revoked.
Now "Expert" has long been a word ActiveRainers realize can be misused, over-used, or just downright wrong (see Matt's blog on the subject), and that's one most loan officers have shied away from in the print/tv media. But a specialist is (by using the good old Merriam-Webster definition):
SPECIALIST "one who concentrates one's efforts in a special activity, field, or practice"
What's wrong with that I ask you? Don't many of us in the real estate industry prefer to specialize, knowing that often times finding a niche and working it can produce more income than the wide-net appraoch? I personally concentrate my efforts on divorcing couples and how to deal financially with their mortgage. I've spent years reading, training, and even presenting information on "Divorce and Your Mortgage" which certainly doesn't make me an "expert" but does, by definition, make me a "specialist."
I've argued this point with the MLD on several fronts for the past few months to no avail. I had originally wanted to say "Divorce Mortgage Specialist" which they nixed. I then argued to be able to say "a Mortgage Broker Specializing in Divorce," but that too was shot down. Apparently the only way to set myself apart on this particular subject is to say "concentrating on" or "focusing on."
So take heed fellow loan officers in Las Vegas, NV--the MLD Specialists are out to get you!
I'm not sure if that's a good thing or a bad thing. I wonder, too, how long before that reached Arizona. But it would keep a rookie from mis-leading advertising.
Absolutely Jane. The MLD has the right idea--to protect borrowers from unscrupulous "loan experts." It simply sticks in my craw that they won't let me use my "specialist" or "specializes" tag, especially when I have evidence to back it up. As an aside by the way, real estate agents in Nevada CAN call themselves specialists--whom do you think has a better lobby? LOL
Kendall - Things that make you go...hmmm. Personally, with a litle less than eight years in the mortgage industry, I would never call myself a specialist. Even though more than 80% of my business is low-medium income buyers and has been for most of my mortgage career, I would still not call myself a specialist in this field. JMHO :)
Donne--I appreciate your opinion. I argued with the MLD on this more for the "specialize" than "specialist" front. Most people misuse the word "specialist", thinking it means the same as "expert" when it simply means devotion to a particular subject or field. I could quasi-relate to the MLD's position on the word "specialist" (even if the definition of the word doesn't support it), but had a problem with them not letting me use "specialize." "Specialist" could possibly be misconstrued to mean that the Mortgage Lending Division gave me that title, but that same argument could not stand for "specialize." One can specialize in something without being an expert. It may sound like semantics, but in my opinion I do specialize in divorce mortgages. Heck, even thesaurus.com doesn't list "specialist" as a synonym for expert. Somehow I don't think the MLD is going to give in--just wanted to rant.
Gov't intervention....excellent!!
Well with the way things are changing there will be NO LOANS period here soon! (just kidding, or not?!?)
HA! Congrats on the feature Kendall!
Kendall... well, starting over with my comment, since firefox just crashed... lol In any case, you said your sources... is this just for Nevada? Nationally? The west coast? Nothing against California, but I have found that this is where most of the loan officers don't know much. Many were just conventional and subprime lenders/loan officers.
In regards to calling one self an Expert or Specialist... in my opinion, an expert shouldn't know 'all', but in most cases, know 'most'. I think there is more to it to be an 'Expert' or 'Specialist'. I wrote this blog back in April of 2009. To be or not to be an Expert, that is the question. (I hope you don't mind the link). But I wanted to share this with you for a few reasons. There were many good comments and that you could share this with your MLD.
Overall.... this could be good or bad. I have found several to call themselves as Experts for marketing purposes and they either have no clue or are just phonies. I lost a deal to someone else that called them-self an expert and I the guy never closed with him. I said there was no way that he could offer that rate for that loan. Sure enough, the rate and points changed. But there are many reasons why so many shouldn't be called Experts or say that they specialize. But how does the public know what is true or not? hhhhmmm... that is a tough one. I do have my red flags that I tell consumers to watch for, which I have written about. If interested, let me know. I don't want to drape my links in my comments of your post. Congrats on the feature...
Rich--Big Brother is coming for you next :)
Renee--Appreciate the support for my first Feature. There will still be loans here, just through BofA and Wells since the MLD has no jurisdiction over them. Their loan officers can "specialize" all they want! Brokers in the crosshairs.
Jeff--Thanks for the read of my post. My source is here in the Nevada MLD and these regulations only apply here for now (and only to brokers not BofA and the like).
Couldn't agree with you more about the "expert" label. I read your article (you are welcome to link through whenever you'd like) and really liked what you had to say. Common sense tells us that no expert could know "all" and hopefully knows "most." Unfortunately you're right, too many LOs have held themselves out there over the years as experts only to fall well short of expectations (especially in CA). Talk about a few bad apples. Makes it very difficult for Joe Q. Public to seperate the wheat from the chaff. I would definitely be interested in any posts you have regarding red flags to pass on to my database. Thanks again for being part of my first featured post. Hope to be joining you in the 400,000 club soon :)
Rich... my pleasure. We need more to fight this fight and I look forward to some of your blogs in the near future. Here is one that I did on Red Flags. I think I did one this year, that I added to. I just need to find it. In regards to my 400,000 points? I can sell you some. ;o)
Ever the entrepreneur Jeff :) Thanks
Kendall: Although I understand that there are some liberties taken by some regarding their abilities, wouldn't or couldn't that be addressed by some simple guidelines? Surely they must be able to allow a lender to advertise or broadcast what distinguishes themselves from other L.O.'s .. or what sets them apart from the proverbial pack? If you have established an expertise or niche through education or plain old experience and have a reputation for it amongst other professionals and your peers ... why can you not utilize that within your marketing?
I am hoping that this is another example of "what is done in Vegas, stays in Vegas"!
Best of luck moving forward with this issue ... and thanks for the "heads-up" on it.
Gene
I agree with Gene above... if you have established yourself as an Expert... but I guess that is the problem they might be trying to nip in the butt? How does one know who an Expert or specialist is...??? I guess if we can solve that problem, then it would be okay, right? Now we need to put our thinking caps on, to push back people like the MLD in Vegas... because if this ever caught on, this could hurt some people than it would help, even the consumer. Tell these agencies to crack down on the misleading advertising !!! I just wrote about that yesterday and that crap has been going on for decades...
How does one know who an Expert or specialist is...???
I believe this is the problem with "calling" yourself an expert. There is no accredited curriculum for our industry that gives a designation of VA Expert. You can obtain a designation, like Certified Mortgage Planning Specialist, but there are no established designations for FHA/VA, First Time Homebuyer, Divorce Expert. What if doctors went around promoting themselves as a Heart Surgeon Expert but they had no training or weren't accredited in their field?
I don't intend to bash anyone for using the terms to show they have expertise in the field that you specialize in but the problem isn't the 1% of people like Jeff Belonger, rather the 99% of people that have no clue what they're doing. They just jump on the bandwagon. If I have done (1) FHA loan and I choose to "concentrate my efforts in the special activity, field, or practice" of FHA loans, by definition, doesn't that make me an expert. So wouldn't I be in the same league as Jeff in the consumer's mind even though he's been in the business for 17 years and I have been in it for 60 days?
NAMB established the GMA®, CRMS®, and CMC® certification exams to provide members with an
opportunity to be recognized as leaders within the increasingly competitive field of mortgage brokering.
I disagree with David above. I do think that "Specialist" is a very generic term. I personally specialize in certain types of loans, but I do have a person who works with me that I would consider our FHA specialist.
The word expert is a little grey though, in my opinion.
Kendall...Not to start a fight with you....but, I respectfully agree with the MLD on this one.
Experts. Specialists. Gurus. Masters. Mavens. Twitterati. Jedi. IMHO, those terms are misleading and self-serving. I, for one, support this decision for the protection of the unwary consumer.
Kendall
More and more, I am seeing government agencies pile more new requirements on our industry while letting the banks and big boys with Lobbyist clout get away with all kinds of things.
While I agree with your premise, it's disheartening to see our broker industry take the fall for the sake of so many that were involved in the first place.
Let's hope that things at some point come back to reality.
Best Regards
Gene--The MLD understands that I want to differentiate myself from the crowd, but is hyper-sensitive about the terminology I use so as not to mislead the consumer (which none of us want). I would love for them to set up some simple guidelines or create their own levels of educational experience for those who want it. Sadly, they are underfunded so I'm not holding my breath.
Jeff--You're right, for years here in Vegas there were "experts" running rampant through the streets. Our MLD was only established about 5 years ago and have only really been tough on the advertising for the last three or so. I'm bound and determined to push the "specialist" term through or at the very least be able to say "I specialize."
David--I can see the MLDs stand on the term "expert" (although I truly believe agents like Jeff have earned that label through multiple avenues) but not being allowed to use "specialist" seems unfair. They won't even let me say I "specialize" in divorcing clients. By the very nature of the definition, that is what I do. I've even begged them to give a synonym that would work, but they have no suggestions. As you mentioned in your post, even the NAMB uses the word "specialist" in one of their designations--and that's after only 2 years in the industry and an exam.
Karen--Sounds like we're on the same page. It's all about vocabulary and perception.
Clint--Please see my response to David. Additionally, as if adding insult to injury, BofA Loan Officers (not regulated by our MLD) can call themselves experts, specialists, masters, etc. Realtors can also label themselves the same way. I know from your own AR page you refer clients to "specialists" and have obvious "expertise" in your field. I know life's not fair, but if we don't fight for our little corner of it... By the way, check out Tara's Blog. When I read it yesterday I thought you might help guide her.
Wayne--Disheartening to say the least. The banking industry smells blood in the water and they are gunning for us. Wish our lobby had the clout of theirs or the Realtors.
Kendall,
This is good to know. Hope we can do some business together in the future.
Ryan
Las Vegas
Great News, Uncle Sam (I guess in Las Vegas it would be Uncle Oscar) legislating job titles to protect the consumer.
I'm not sure consumers need protection from "job titles". Today's consumers are a lot more educated and SKEPTICAL than we give them credit for. I doubt many decisions to hire a lender or a Realtor are based solely on having a "expert" or "specialist" title.
Consumers, are getting more of their information from the Internet and as a result get to investigate much deeper into a "expert's" abilities before even picking up the phone and interviewing the so called "specialist". I've been in the business since 1981 and have not had one phone call from a consumer that said "I saw your job title as specialist/expert and I want to hire you to do my loan"
If any of you have had that call, I would like to hear the story.
Ryan--Look forward to it. I'll call you next week and take you to lunch. We can talk about the SUNY system (I grew up near SUCO in Oneonta).
Greg--Love the Uncle Oscar bit! Very good point. Perhaps we get too wrapped up in labels that the consumer simply dismisses.
I try to avoid the word Loan Officer at this stage of my career. I've realized that I am no Officer. What the heck does that mean anyway.. Actually I am starting to believe it is scary to the unknowing borrower. Oh my!! I have to go to the LOAN OFFICER!! Funny now that I have spelled it out.
Ted--Excellent point. Never thought of the "officer" part before--does seem a little severe. I have tried consultant, mortgage broker (that's got used car salesman connotations these days, lender, etc. and have yet to settle. Guess I'm leaning toward consultant in line with your title and the NAMB's designation.
Attorneys, at least in California, have had to be aware of "specializing" for some time as it has "special" meaning and must be used in very definite context only resulting in "concentrating in" and the like.
Christine--Attorneys do have it tough as well here in Nevada. One infamous attorney here was known as "The Heavy Hitter" and had to change it to "A Heavy Hitter" so the public didn't think the Nevada Bar was endorsing him. Silly, but part of our reality now.
Kendall,
Appreciate the heads up. Looks like MLD is overreaching a little bit here. Guess it's time to get creative and come up with something else suitable.