mortgagebot
Junior Member
Can't believe I'm making this post, but here it goes. And yes, I created a new username to be on the safe side. May be wordy, so you can skip to the third paragraph if you want to avoid the background info.
I've been a branch manager/loan officer at a community bank for two years. Duties are typical manager stuff, loans of all types - consumer, R/E, commercial. Unlike a LO at a big bank who is basically an application taker that works with processors, analysts, etc, our LOs handle the majority of the process. If I do a mortgage, I do the app/interview, collect docs, order appraisal, underwrite the file, order title, send closing package, schedule & attend closing with a check I signed, etc etc. Commercial same thing, I analyze tax returns/financials, calculate cash flow,global cash flow & debt coverage of related entities/guarantors, environmental assessment on property, etc. May not seem like much on paper but I promise, banker's hours don't apply. My salary is $39K which my tech school friends laugh at, but there are pro's to being at a community bank. As for performance, we don't have quotas but I know my interest/fee income for my second year will be about triple my salary and charge offs as % of total is a tenth of one percent.
There was little "training.” For 2.5 months I shadowed someone weekly. Not much structure and they usually were busy with loans so they’d just have me sit at computer and tell me to type what they’d usually be doing. But, I felt I would be ok despite being the only loan personnel at my branch as I could just pick up the phone. In reality, loans, especially mortgages, are SO regulated that a 30yr vet can be stumped, much less someone that had never even applied for a mortgage. No lie, I was taking a borrower through the whole process and I didn't even know what "title work" was or how to order it, for example. I couldn’t pick up the phone every time I had a question, so resorted to self teaching at work. If I wasn't sure, I was either searching bankersonline or trying to trudge through the reg itself, though initially I didn't know the difference from Reg B, X, or Z. I’ve spent hundreds of hours "researching" how to do my job as I'd have a pending loan and not know the next step, and the person to ask might have left at 3 because it was Friday. But I felt investing the time was valuable and the more I did, the more I'd know. Ultimately it seems the obsessive self-study has backfired.
Getting to the point. The bank is still under a consent order from bad choices during the downturn. It elected to not take TARP money and is slowly digging its way out, via annual FDIC exams and therefore (rightly) everyone is paranoid, including LOs because they randomly pull files. But it didn't take long to realize that sometimes a REG would not match up to our process. Basically, if an examiner cites us for something, we in turn do an extreme over correction. But few seem interested in being proactive about issues we've never had our hand slapped for. Again, I handle pretty much the entire loan process with "checkpoints" along the way – for ex. a lady that checks APR tolerances. When the file is complete it is fully checked and someone sends me a list of exceptions to clear. As I learned more, I shifted from doing as told without question (early on I was just scrambling to get a file finished), to actually asking questions if I thought something wasn't right. Often this was met with hostility (despite putting REG citation in email) and instruction to do it the way it's always been done. Though sometimes an issue I brought up resulted in fixes put in place (few). Still, I thought I was doing the right thing by asking questions, for everyone’s benefit. Today, my boss, the EVP/COO (2nd in command) called me to meet. We talked for 25 minutes or so, and asked to resign or be fired, at some point in the near future, next week I think. He gave two reasons, one, a specific event that itself wouldn't result in termination of an officer, just a correction (if I need to be more specific I can, basically a policy misunderstanding). The other reason was that multiple staff have described me as "argumentative." This was news to me, I did get that vibe from some, but I've always been polite and explained why I had a particular viewpoint. I never thought I'd wadded anyone's panties to that point.
I was allowed to leave and attend an afternoon closing as normal and fund it. Tomorrow, a loan officer I am friends with will come to my branch to work with me so I can give him the status on pending loans and other items to shift over. Few in the bank know, including my staff which will hurt because it’s mostly old ladies (tellers) and we get along extremely well, they’re going to flip out I’m afraid. Here are my questions, honestly I’m still a little shell shocked so would greatly appreciate any advice:
1. Boss told me I need to let HR know by end of day tomorrow whether I want to resign or be fired. What is the best route? I know unemployment comes into play. He said for job reference they generally just give dates. He seemed to imply that was in the case of resigning, I’m not clear if it’s same with other choice.
2. Naturally, I’d like to save my job but I can tell his mind seems to be made. Being a small bank, headquartered in my home town, I do have the option of calling the CEOs cell phone or texting him. My girlfriend’s dad goes to investment club with him and he’s been in my parents’ home even. Therefore I’m surprised he didn’t get with me at all on this and would really like to hear his view too, to make sure nothing was misrepresented. This guy is in this bank’s family (privately owned) and I’d like the chance to just explain my side, but I just can’t say he’d override the COO who generally he allows to run operations.
3. This may be some bad survival instinct kicking in but I’ll throw it out there. When I asked questions, I wasn’t always right. But many times I was. It is a FACT that some of our procedures are wrong. There are blatant RESPA issues - we re-disclose loans for illegitimate reasons. If an officer forgets a charge on initial disclosures, he will re-disclose with a reason of “failed to add X charge.” If you know RESPA you know this is against its intent to provide borrower an accurate estimate of charges up front; you ONLY re-disclose for borrower requests, unknowns, acts of god, etc. Otherwise the bank eats the fee. I really don’t think this is purposeful, but it does blow my mind that we do it. We make edits to loan docs after closing; nothing harmful to a borrower but it’s just dumb as it’s usually unnecessary. There are other things as well, and I have proof of much of it because I kept emails to cover my ass in case something came back on me. The CFPB provides means to submit instances of indiscretions by banks, though I’m not sure how far it usually goes. Probably depends on who reads it. I thought about the possibility of bringing up the scenario to my boss with a whistleblower spin. Not as a threat, but just to make it clear that I thought I was doing right by the bank to be concerned with procedures and now I feel I’m being fired for it (I do). At this point even if I could keep my job long enough to have a chance to find another that’d be great. But my common sense side is warning me this would only make things worse and seem spiteful?
4. Any other general recommendations I’ve missed. Never been in this situation. Obviously I have bills to worry about, including a mortgage. I’m also diabetic so really need the health insurance. Of course so is half the population these days I guess.
I've been a branch manager/loan officer at a community bank for two years. Duties are typical manager stuff, loans of all types - consumer, R/E, commercial. Unlike a LO at a big bank who is basically an application taker that works with processors, analysts, etc, our LOs handle the majority of the process. If I do a mortgage, I do the app/interview, collect docs, order appraisal, underwrite the file, order title, send closing package, schedule & attend closing with a check I signed, etc etc. Commercial same thing, I analyze tax returns/financials, calculate cash flow,global cash flow & debt coverage of related entities/guarantors, environmental assessment on property, etc. May not seem like much on paper but I promise, banker's hours don't apply. My salary is $39K which my tech school friends laugh at, but there are pro's to being at a community bank. As for performance, we don't have quotas but I know my interest/fee income for my second year will be about triple my salary and charge offs as % of total is a tenth of one percent.
There was little "training.” For 2.5 months I shadowed someone weekly. Not much structure and they usually were busy with loans so they’d just have me sit at computer and tell me to type what they’d usually be doing. But, I felt I would be ok despite being the only loan personnel at my branch as I could just pick up the phone. In reality, loans, especially mortgages, are SO regulated that a 30yr vet can be stumped, much less someone that had never even applied for a mortgage. No lie, I was taking a borrower through the whole process and I didn't even know what "title work" was or how to order it, for example. I couldn’t pick up the phone every time I had a question, so resorted to self teaching at work. If I wasn't sure, I was either searching bankersonline or trying to trudge through the reg itself, though initially I didn't know the difference from Reg B, X, or Z. I’ve spent hundreds of hours "researching" how to do my job as I'd have a pending loan and not know the next step, and the person to ask might have left at 3 because it was Friday. But I felt investing the time was valuable and the more I did, the more I'd know. Ultimately it seems the obsessive self-study has backfired.
Getting to the point. The bank is still under a consent order from bad choices during the downturn. It elected to not take TARP money and is slowly digging its way out, via annual FDIC exams and therefore (rightly) everyone is paranoid, including LOs because they randomly pull files. But it didn't take long to realize that sometimes a REG would not match up to our process. Basically, if an examiner cites us for something, we in turn do an extreme over correction. But few seem interested in being proactive about issues we've never had our hand slapped for. Again, I handle pretty much the entire loan process with "checkpoints" along the way – for ex. a lady that checks APR tolerances. When the file is complete it is fully checked and someone sends me a list of exceptions to clear. As I learned more, I shifted from doing as told without question (early on I was just scrambling to get a file finished), to actually asking questions if I thought something wasn't right. Often this was met with hostility (despite putting REG citation in email) and instruction to do it the way it's always been done. Though sometimes an issue I brought up resulted in fixes put in place (few). Still, I thought I was doing the right thing by asking questions, for everyone’s benefit. Today, my boss, the EVP/COO (2nd in command) called me to meet. We talked for 25 minutes or so, and asked to resign or be fired, at some point in the near future, next week I think. He gave two reasons, one, a specific event that itself wouldn't result in termination of an officer, just a correction (if I need to be more specific I can, basically a policy misunderstanding). The other reason was that multiple staff have described me as "argumentative." This was news to me, I did get that vibe from some, but I've always been polite and explained why I had a particular viewpoint. I never thought I'd wadded anyone's panties to that point.
I was allowed to leave and attend an afternoon closing as normal and fund it. Tomorrow, a loan officer I am friends with will come to my branch to work with me so I can give him the status on pending loans and other items to shift over. Few in the bank know, including my staff which will hurt because it’s mostly old ladies (tellers) and we get along extremely well, they’re going to flip out I’m afraid. Here are my questions, honestly I’m still a little shell shocked so would greatly appreciate any advice:
1. Boss told me I need to let HR know by end of day tomorrow whether I want to resign or be fired. What is the best route? I know unemployment comes into play. He said for job reference they generally just give dates. He seemed to imply that was in the case of resigning, I’m not clear if it’s same with other choice.
2. Naturally, I’d like to save my job but I can tell his mind seems to be made. Being a small bank, headquartered in my home town, I do have the option of calling the CEOs cell phone or texting him. My girlfriend’s dad goes to investment club with him and he’s been in my parents’ home even. Therefore I’m surprised he didn’t get with me at all on this and would really like to hear his view too, to make sure nothing was misrepresented. This guy is in this bank’s family (privately owned) and I’d like the chance to just explain my side, but I just can’t say he’d override the COO who generally he allows to run operations.
3. This may be some bad survival instinct kicking in but I’ll throw it out there. When I asked questions, I wasn’t always right. But many times I was. It is a FACT that some of our procedures are wrong. There are blatant RESPA issues - we re-disclose loans for illegitimate reasons. If an officer forgets a charge on initial disclosures, he will re-disclose with a reason of “failed to add X charge.” If you know RESPA you know this is against its intent to provide borrower an accurate estimate of charges up front; you ONLY re-disclose for borrower requests, unknowns, acts of god, etc. Otherwise the bank eats the fee. I really don’t think this is purposeful, but it does blow my mind that we do it. We make edits to loan docs after closing; nothing harmful to a borrower but it’s just dumb as it’s usually unnecessary. There are other things as well, and I have proof of much of it because I kept emails to cover my ass in case something came back on me. The CFPB provides means to submit instances of indiscretions by banks, though I’m not sure how far it usually goes. Probably depends on who reads it. I thought about the possibility of bringing up the scenario to my boss with a whistleblower spin. Not as a threat, but just to make it clear that I thought I was doing right by the bank to be concerned with procedures and now I feel I’m being fired for it (I do). At this point even if I could keep my job long enough to have a chance to find another that’d be great. But my common sense side is warning me this would only make things worse and seem spiteful?
4. Any other general recommendations I’ve missed. Never been in this situation. Obviously I have bills to worry about, including a mortgage. I’m also diabetic so really need the health insurance. Of course so is half the population these days I guess.
