Who’s Wachovia Looking Out For?

According to a front page story in the Charlotte Observer (Sunday March 30th, 2008), Wachovia is putting pressure on it’s loan officers to push it’s “Pick-A-Payment” option ARM mortgage program. The story highlights a borrower that approached Wachovia to refinance her home’s mortgage only to be “sold” on the “Pick-A-Payment” mortgage program. After everything finally was disclosed, the homeowner realized that this mortgage program’s interest rate was higher than the mortgage she currently had! So why did the loan officer advise this program over the traditional Charlotte 30 year fixed rate mortgage program with a rate over 1 point lower?

Maybe because Wachovia is putting pressure on their loan officers to sell it!

According to the Charlotte Observer, Wachovia has placed minimum requirements on their loan officers to sell a certain number of each type of mortgage loans they offer. Failure to reach the minimums in each category can result in discipline, including termination! So instead of offering the best mortgage program to fit the borrower’s needs, Wachovia’s loan officers are under pressure to steer borrowers to the mortgage programs that fits Wachovia’s needs! If a Wachovia loan officer has sold enough traditional mortgages for the month, there may be more pressure to steer a borrower to a different product even if it is not in the client’s best interests. And with Wachovia currently being number 2 in these types of option ARM programs, obviously the sales pressure is great!

If I were to offer or advise the wrong mortgage program to a borrower, my ability to close a loan is severely limited. My focus when working with any borrower is to find the best mortgage loan in Charlotte to fit their needs and close it in a timely fashion. In my humble opinion, looking out for the borrower’s best interests is not “sales”, but is instead a valuable “service.” I don’t need to sell anyone on my services when I offer them the best mortgage program for their unique needs.

So when you are shopping for a mortgage loan in Charlotte, look for a loan officer who’s focus is on YOUR needs, not the company’s. I am here to find you the best mortgage loan in Charlotte, period.