Episode 2

hey guys on today’s podcast we’re going
to find out how well Vern really knows
me we’re also going to talk about some
of the funny stories that we’ve had over
the years with some of our clients and
the situations and then we’re going to
wrap things up with credit card debt
credit card debt is a major issue in the
United States luckily the equity in the
property is something that can help get
you out of it tune in I hope you guys
enjoy I mean the crazy number we talked
about uh a couple weeks ago at the
awards dinner is we closed more refi in
the month of February this year than we
did all of so if that’s any
Telltale sign of like you know what
there is some movement people are
refinancing uh I just always keep going
back to this this country is in the
highest credit card debt and they have
the most K loans taken out against
them so at some point everybody’s going
to have to start paying the stuff off
the only thing they’re holding on to is
that low interest rate on their mortgage
so Sarah thought it would be a great
idea we start with some funny questions
because we just hadit our year
anniversary we’ve known each other a
little bit longer than that but y I feel
like you should know me pretty well at
this point so we’re going to test that
it’s like one of those love shows
everyone says how much we love each
other so we’re going to test it out oh
here we go full disclosure I don’t have
no idea what’s going on right
now podcast with no name still working
on it we didn’t want to air anything
until we had at least like or so
episodes ready to go so we’re ready to
rock and roll need a couple hundred
thousand viewers couple sub subscribers
no big deal once we go viral it’ll
really take off yeah I’m expecting it to
go viral probably by like the third or
fourth episode I mean everybody around
here loves us I thought already making
money from this because Sarah just keeps
buying things for the yeah yeah it’s
amazing like this plant like she she’s
putting us in a debt we have buzzers now
we have a clock because apparently last
time we didn’t see her on the side
jumping around waving her arms telling
us to stop so she wanted to make sure we
got the table I ready to go or ready to
rock and roll got exactly minutes to
go guys we do so we better get to it
right so Sarah thought it would be a
great idea we start with some funny
questions because we just hadit our
year anniversary we’ve known each other
a little bit longer than that but y I
feel like you should know me pretty well
at this point so we’re going to test
that it’s like one of those love shows
everyone says how much we love each
other so we’re going to test it out oh
here we go full disclosure I don’t have
no idea what’s going on right now these
are random I did not make the questions
I have one at the end that that I’m
going to throw in there but just to
start just quick questions text or call
what do I prefer
text that’s correct bam Jordan or LeBron
Jordan damn he knows me so well salty or
sweet oh
salty I really thought I was going to
get you with these I’m just actually
answering these I would so I’m just
probably pasta or Pizza
Pasta damn it dude I love myself piz
Pizza is by far my favorite I know that
was the stumper one I was going to go
with pizza too it’s all right riding a
unicorn or riding a
dragon riding a dragon that was easy if
you got that wrong we would not be
friends super funny or super
smart me super smart I know you’re super
funny
too both both all right trick question
that was I she asked me for one I said
that’s impossible we it’s both shower or
Bass shower
no one has time for a bath only Fabio
yeah the only bath guy I know toilet
paper or
bedet oh see you don’t have a bedet but
I feel like if you had a bedet at your
house we’d have to go with a I got the
bedet attachments yeah % I think
toilet paper is disgusting I’m with you
anytime I get the bday you need to get
the baby wipes going see baby wipes to
that’s like a step up from toilet paper
but you got three layers that cake and
you can’t flush it if you have a septic
system go back to mortgages right that
that’s going to clog up your septic
system it’s going to fail I’m very happy
I don’t have
one Iron Man or
Spider-Man Spider-Man yes she thought it
was Iron Man I love Spiderman I mean
this is why this is why she’s the
assistant in the background right now
giving us all these ideas flipping as
the bird no big deal night in or night
out night out % last question Sarah’s
shoes heavy or her feet
heavy oh God she’s of the office yes I’m
I’m going to go with uh she’s got a
heavy foot I I agree that is the correct
answer does not matter what she wears
she is stomping around throughout the
office ugs sandals
flipflops doesn’t matter you hear her
coming from like what miles away so
it’s all good she sounds like a her of
cattle coming down the her and my
daughter both have two of the heaviest
feet in the world % % all right so
now that we got that fun uh that was a
fun little exercise yeah next time I
think we’re going to have Jena too so
stay tuned IQ wait so I thought we could
talk a little bit about uh you know some
of the wins in our career some of the
losses some of the funny stories some of
the things that we’ve done you know just
kind of bring up some things from the
past and you know one of the things that
I think was pretty funny we were talking
about earlier was how different it is
now than it was when we first started
just with operations the craziness we’re
still busy but things used to be a lot
more crazy what do we used to have to do
to get things done oh my gosh well you
know what now that you say that I walk
in today I see all the girls couple of
the guys getting prepared for a baby
shower it’s structured sprinkle getting
it ready and I’m like sitting there it’s
all organized they have decorations
everything the first couple years it was
slam busy we didn’t know if we were
coming or going remember we were buying
to Louis Vuitton bags Gucci bags for our
processors just so they’d spend don’ts
hopefully they don’t listen to this but
used to hold competitions if they could
hit so many clothes loans in a month or
if you could get a certain loan close
within a certain period of time I myself
bought a few Louis bags for for some of
the processors just to get a loan closed
in a week or two luckily now that
doesn’t happen the loans get closed in a
week or two we don’t have to bribe
anybody than for our amazing investors
CU back then it was a little tough it
was a little tough back then yeah I mean
that for sure I was thinking about the
other day when Sarah asked me to come up
with some of these questions remember
when Co hit oh my God that nightmare
that we had for about five weeks oh not
being able to get loans off our line not
knowing if we were even going to be in
business in three months after that we
had loans that were clear to close and
the investors all changed guidelines
because of Co overnight and now people
didn’t qualify and they couldn’t buy
their house anymore that was a crazy
time has anything like that ever
happened before no I mean Co was a
little different than right so
going through the like the writing
was kind of on the wall you had a lot of
people running out of the burning
building um if you weathered the storm
that’s really where like I was able to
make a name for myself because a lot of
people were getting out of the mortgage
business right so you had a bunch of
people in the business and then you lost
% of all The Originators throughout
the country probably that’s an estimate
I’m not % sure but it was a lot
exiting um Co was just another animal it
was almost the opposite side right so
after we got through the to day
like what the hell are we doing here
guidelines changing Warehouse lending
all that kind of stuff went back to
normal you had people coming into the
business it was just a a flood of new
loan officers people who used to do it
are my favorite ones right they got out
of it back in to they’re
calling hey uh you know I want to get
back into business I’m like H it’s a
totally different business like the
mortgage Evolution has uh evolved so
much over the last or years that I
feel like we go through these Cycles
every three to five years there’s
something new there’s a covid there’s a
there’s been a bunch of different stuff
regulatory stuff that we have to deal
with um rates increasing percentage
points or more in a year yeah I mean how
many people did we lose last year
something per the number Originators in
the industry and I don’t think we lost
even close to something per from our
company which is my opinion is awesome
you know when we had our work dinner the
other night we were talking about it and
it’s always easier to kind of go back
and think about it but there’s a lot of
people that stuck around and really
really grinded it out to be able to make
it to and it’s already getting
busier people are jamming we’re looking
at we’re looking at the credit FS
yesterday everyone’s numbers are way up
where the number the applications are
coming in the contracts are coming in to
be honest with you I think it’s getting
closer to a year and a half ago right
now with the offers being insanely
competitive over asking back again in
two seconds there’s no inventory there’s
no inventory I think we’re going to see
inventory free up a little bit like I
mean how many pre-approved buyers does
just little Milestone have in the south
coast and the the community commities
that we serve compared to and you add up
all those PR proof buyers across there’s
just not going to be enough houses
everybody’s like oh you think you
think we could see another crash there’s
too much demand there’s not enough
inventory prices are going to continue
to climb I don’t think we’re going to
climb from you know beginning of Co
to the end of Co like that’s just not
that because the rates went down so so
much that it just became affil
affordable yeah I hopefully they come
down where it makes people willing to
sell again which is the biggest problem
in this area because you’re never be
able to build in this area fast enough
for the amount of people I want to buy
right before this podcast I had a a past
client done all the family loans she
came in uh she’s going through some
personal things in her own life she’s at
years left on her
no and she needs to pull some cash out
I’m like you got to go open up equity
line or something you can’t do it this
way like you don’t want to get see
somebody give up on an interest
rate pricing it out the low sixes at
that point so it’s uh I I think if the
rates hit somewhere in the high fives I
think we’re going to go back to uh you
know hopefully buying Louis bags and
maybe some Gucci bags to the processing
team I think they they they deserve it
after what we’ve just been going through
for the last two three years I feel like
the work is not any easier but because
it’s just so much purchase business
there’s no refinance so the numbers
aren’t as crazy high as they were or the
volume isn’t as crazy high as it was but
the work is still there yeah the work is
still there I mean the crazy number we
talked about uh a couple weeks ago at
the awards dinner is we closed more refi
in the month of February this year than
we did all of so if that’s any
Telltale sign of like you know what
there is some movement people are
refinancing uh I just always keep going
back to this this country is in the
highest credit card debt and they have
the most K loans taken out against
them so at some point everybody’s going
to have to start paying the stuff off
the only thing they’re holding on to is
that low interest rate on their mortgage
luckily people have the equity you know
I I always tell people reach out before
it’s too late because luckily most
people you know the thing that they miss
last in payments is their mortgage
payment thank God but some people let it
get too far you know they have the
equity in the property but they they are
so fixed on not wanting to give up that
two or % interest rate that they’re now
in $worth a credit card debt
drowning and all of a sudden now they
start missing pay or the credit goes too
low now they can’t pull the money out do
something before or you got to sell you
know and do something else I mean
there’s nothing worse than when somebody
has hundreds of thousands of dollars of
equity they really can’t touch it yeah I
had that client yesterday I mean we’re
seeing that we’re seeing that come over
more and more and for everybody viewing
and I know there’s hundreds of thousands
of people watching this podcast
Nationwide um you know just rear to your
loan officer it doesn’t have to be
somebody at Milestone re your loan
officer if you’re carrying $with
a credit card debt junk debt I like to
call it right stuff that it’s you don’t
have a car there’s nothing uh nothing
fixed to it reach out to that loan
officer and just get an get an anal is
run on what you’re paying per month on
those liabilities compared to if your
rate was going to go up to % I’m just
thrown out % right if you’re at three
and a half somebody’s at seven you got
the one last week
$worth the credit card debt what
they’re paying just minimum is they’re
never going to get caught up they’re
never going to pay it
off they could save that one client
could have saved like $in cash
flow per month but she’s so fixated on
I’m at three and a quarter that’s great
you’re going to lose your house or your
C score is going to go to a and then
you’re going to be forced to sell your
house and not be able to buy something
immediately MH well talking about all
the negative stuff I think you know we
could probably talk about a few funny
stories too oh yeah and uh you know I
had a pretty funny one the other day or
maybe a couple weeks ago we get calls
from people all the time want the buy
you have usually there’s two sides you
got the people that are overly qualified
but very conservative so very easy to
pre-approve them they’re nowhere near
going to spend the amount that they can
get approved for and then you get the
other side where you the people that
have great dreams that they want to buy
a house but either the knowledge level
might not be there as far as what’s
needed to buy a house or what they need
but I think I got the best one yet
because I’ve had a lot of bad ones I’ve
had plenty of people with bad credit not
making enough income no money in the
bank that you know qualify for what
they’re looking for but I had somebody
reach out to me the other day through an
agent went to go see a property it was a
$million house nice some ser is money
you got to make to buy a $million
house so what do you think million
what do you have to make by the way I
don’t know way more than we do I’m not
looking at any $million houses I’m not
buying a $million house you have
enough kids to maybe want a $million
house I would just buy like multiple
other houses put them all in the same
little neighborhood and I’ll just have
my own drive a
golf the other one it’ll be cheaper that
way you I think so financially stable so
back to this client so this client calls
me wants to see the agent brought her to
the house to try to build you know reput
or relationship with with the buyer so I
have a conversation with her and she
tells me you know I just quick
conversation all right so what are you
looking to do I want to buy this house
okay you know how how much money are you
looking at back account well I don’t
have any money okay my credit’s a mess I
just got a new car I have a four
something credit score I didn’t run
anything so you know I’m not divulging
anybody’s information on what we
actually got to you know okay well well
you know what do you what do you do for
work what what do you make you know
maybe $worth of income so I’m
like know you want to you want to say
like what what are we doing here like
how is this a real conversation but I
dop into it a little bit you know I’m
just curious figure out what’s going on
here with this plan maybe educate them a
little more yeah you know I’m like you
know so how do you think this is going
to be a possibility or like what were
your goals to try to buy this you go no
no matter what I I I’ll work as much as
I can to try to do this I’m I’m you know
I’m going to be finished with nursing
school soon but this had to have been
the craziest story I’ve I’ve ever had
that’s out rightous legitimately was
convinced on trying to buy this $
million house and would do anything and
thought this was going to be a
possibility no C or nothing like
that credit score no money in the
bank $million
purchase yeah that’s going to be a tough
one that that goes down she asked me
what she had to do to to buy it I all
[ __ ] at the lottery yeah or or we three
million bucks we got win million and
then we can that is tough one that is a
tough that was all time so you know you
you definitely have to go through some
crazy conversations you have to deal
with some
unrealistic people and that could be
tough and that was obviously a super
super out there conversation but you
know it’s something we do have to deal
with a lot and I feel like at the end of
the day more than really anything we
become more counselors to the people
that we’re working with speaking of
counselors it just popped to my head I
didn’t have any crazy stories we don’t
script any of this stuff so business
partner mine refers me to their family
member for a refinance they’re going to
go from like years down to a -year
fix
so back then we didn’t have all these
online apps so I called the client very
strict he wants his rate to be act
year fixed this is when I’m going to
retire
great I call him back I get his
voicemail so I called the wife I’m like
hey I need to pay off the debt that’s
showing up on the credit report in order
for me to get you guys to qualify so I’m
like wow these guys are really
aggressive going to a year fix with
all this debt she goes all right yeah
just don’t tell him about that just add
it to the loan amount I’ve had that
happen I’m like all right no big deal
right let’s a business partners referral
who you know might be a relative of
theirs um I add it all up so
hypothetically they owe I show
up to paperwork with there’s a
young kid in the house so I show up
immediately page one is the application
it says loan amount like back in the day
you’d have to go over every disclosure
so I have my loan amount
that because I don’t owe on my
house I was like oh no I talked to your
wife she told me to roll in all the debt
so I could get the debt to income ratio
to work he goes I don’t know that okay
maybe I pulled the wrong social security
number and I know in my head I didn’t
because I already talked to the wife she
kind of verified it pull it up there was
close to about but we were only
paying off when I showed him the
credit report and all the liabilities he
immediately went into a tail spin starts
yelling throwing stuff and requests that
his wife goes into the basement now that
wouldn’t be the craziest part of this
entire story until there’s like a
-year-old running around upstairs now
with me the random mortgage guy showed
up to the house to do the true finance
and I just hear a bunch of yelling in
the basement needless to say they came
back upstairs signed all the paperwork
but that just made me think of like
where we are now with the most debt this
country and people carrying the most
Consumer Debt these stories are going to
keep popping up like one of the major
things I would say is just be honest
with with your spouse boyfriend
girlfriend husband wife whatever of the
debts that you guys have clean them all
up at once there’s been too many times
where I go through a refinance refinance
somebody and then they’re like oh by the
way my girlfriend my wife had all these
other debts it’s another
when you’re making as
combined household income paying off
$worth of debt is an obstacle
that not a lot of people are disciplined
enough to do like they don’t realize
that’s more than $per month to pay
it off in a year so I always ask them
what’s your plan to pay this off well
I’m gonna pay extra on it well what’s
extra right so I mean we’re definitely
going into one of those times right now
where those phone calls are going to
come back up you’re going to start
seeing the divorce rates flying back up
uh oh my God I have numerous clients of
the same I do I like to do a lot of
iners meeting probably less now than I
used to but a lot of them so you get the
application you pull the credit start
thr over the numbers this is what you
qualify for or maybe it’s a Cash out
refinance you start telling them why
well what you know and maybe it’s the
the wife you why do we only qualify for
this much I don’t understand this is how
much money you make well this is how
much credit card you guys have and then
the the ey Shi across the table I don’t
know how to handle this situation this
is uncomfortable I feel like we’re going
to need security at some point I’ve I’ve
been in some very uncomfortable rooms
because of credit card debt from one of
the two spouses that was not
communicated and it’s something that
that comes into play and I don’t know if
they don’t think it’s going to come up
or it’s not going to be an issue but I
feel like people think they can hide it
yeah you can’t hide this amount of debt
and again like I’m not saying it’s
or you might not be in
that much debt but if you have or
without a
plan you’re not going to get out of the
debt right so it’s just going to keep
compounding interest and then all all we
keep hearing is at three and a half%
well you should be at % on your
mortgage combine everything and just pay
it all off so and the next problem is
we’ve you’ve been doing this long enough
now you see them coming back and they
have another $worth of debt just
looking I can’t do pops into mind that I
have done numerous loans for over the
years and I haven’t been in this for
very long so for me to say that that’s a
lot but it was you know original divorce
or something going on separating need to
pay off the wife then months a year
later comes back wants to pull out more
debt to pay off things and it was like
anytime that Equity was going up he was
just trying to come back in and just
pull out more debt racked up all the
credit card debt that we paid off last
time and then some and it’s just over
and over and over again and you’re like
you’re doing this to fix the problem but
the spending habits need to stop unless
you’re going to just keep getting
yourself into this hole and I I I’ve
already heard from them recently again
trying to do something but unfor that’s
why we want the appreciation of homes to
continue to rise at % situation but if
not I mean you know what what are you
going to do so I think that’s the scary
part is there’s the most Equity that
have been in houses in history right
it’s not even close so at least
everybody kind of has a way out the
problem that I’m seeing now is they’re
just letting the credit build up and the
credit score is going down which is
going to make it even a worse rate when
they come to finally see us as opposed
to like you said earlier just coming now
like just call somebody get a quote and
you know see what the scenario looks
like I I think people don’t realize it’s
a lot easier to go get a credit card go
get an auto loan than it is for a house
yeah so before you rack up all that
stuff or you go that route look at your
options to try to do something that is a
little bit more feasible long term you
know going up and pulling out $
at your house not changing your pay with
that that much but what $in
credit card debt not the same oh my God
you know what if I had $wor a
credit card debt at any point in my life
and I’m not I’m not saying I I couldn’t
have done that I probably could have we
all can do that I just don’t think I’d
sleep man like my stress level I’m
already going gray I’m already getting
old my bones already hurt I can’t
imagine having $wor the
credit card that add
% but all they can remember is I have
and half% of my -year mortgage I
only have years left in my house I’m
like oh you’re worried about this uh
-year mortgage at three and a quarter
you’re years old so you’re going to
live in the house no no you’re going to
sell it so just can you clean up your
life and live a better life now I feel
like we are kind of like a combination
between loan
advisors C therapists problem solvers
contractors you know whether it’s a
issue on the property that needs fixing
everybody just kind of puts their hands
up I don’t know the whole deal is going
to fall apart and what do we do hold on
we’ll call somebody we’ll get the work
done maybe pay it at closing whatever
needs to get done to get the deal
happening I don’t think a lot of people
realize how much and I’m sure every
profession has that but we go way
outside the lines and what our job
description is to make things happen but
I think that’s what you got to do to be
successful I I % agree I mean that
was probably one of the best things I’ve
ever learned from you when I started
because that’s what you always did it
was always figuring out a pro there was
a problem figure out a solution not a
lot of people do that you know the other
day that same situation happened where
the house needed work trying to get the
deal together it was a rush thing work
needed to be done on the property and
they’re pretty much just at a stalemate
of this and I’m like guys this is one
little room needs a little Mudd in needs
a floor pass FHA it’s not a big deal
I’ll get a contractor up there here’s a
quote and how much did that cost $
these people are buying a house somebody
selling a house you got two agents
involved and we all work with some of
the best agents around so I’m sure that
was a newer agent a little outside of
our area and he was kind of away uh on a
work trip so he called me after though
which is why I brought this up because
you know I didn’t really think twice
about doing this this was just a problem
trying to figure out a solution he
called me after he called me on Friday
night it was probably about and he
called me and he thanked me and he said
man I have never worked with a loan
officer that has gone above and beyond
like that to try to make that happen I
was away you stepped in he goes you have
my respect forever and and I’m going to
send you plenty of business
but it wasn’t even at the time like I
did that to try to I just did it because
that’s what I thought we just had to do
to get it done to Deals and that’s how a
lot of people we work with it the same
way whatever needs to happen let’s just
get it done onto the next onto the next
onto the next because there’s so much on
the line for these people that are
buying these houses that are selling
these houses a few hundred a few
thousand do at the end of the day is not
worth holding up and stopping the whole
process and then starting the whole
process is sing over I mean we got Sarah
over here with her clock yeah we got a
few left I think you know with minutes
maybe uh maybe I should just ask you a
bunch of questions embarrass you about
some pasta or uh you can ask me whatever
you want I’ll make up a few answers I
mean we’re going to be spending a lot of
time together this weekend yeah so Craig
and I are going uh going away we’re
going to go to the uh Phoenix Suns game
to play in the Celtics down in Phoenix
on Saturday night so that should be a
good uh good experience we’re going to
have couple nights with no family no
kids I don’t know the weekend I don’t
know we’re probably just going to go
hang out at the pool couple guys from
Massachusetts coming out of the winter
we’re fit right in warm weather my legs
for weeks getting ready for this I’m
going to go lay in the tanning b or
something I don’t have any time to do
that but I mean we’re pretty much ghosts
at this point % yeah we’re going to
stick out like sore thumbs but no that’s
going to be a great experience go down
and see KD Tatum yeah that’s going to be
fun man something I’m definitely looking
forward to and I’m super happy that it
was something we were invited to I think
that’s a great I it’s something we’ve
always joked about say like hey when
when they bought this or when when that
bought the the Phoenix Suns I was like
where where’s my jet so we can go down
there we didn’t get the jet but we get
the invite in maybe we J Around guess we
got to close a few more loans maybe if
they make it to the NBA finals Celtics
Suns calling it now maybe we get a
private chat down there not paid by our
us we we are not buying private chats um
but this is going to be this goingon to
be a good weekend for everybody I know
this is only our second episode on the
podcast um a little nugget about Craig
that you should know about is he hates
vacations does not go on vacations it’s
impossible for me to get this guy out of
the office to go on like a work trip so
um he I think he’s been to my house in
New Hampshire like maybe three times I
think it’s two she would stop offering
that to my wife because I do not enjoy
it I’m like Craig go enjoy it go spend
some time with the wife and kids and
he’s like I need so much worse I don’t
it I don’t understand people think
vacations are fun you have to pack up
all this stuff you have to get all the
kids it’s stressful there’s a lot of
crying by me yeah there’s a lot of
crying by the kids and then before you
know it you’re back it’s Monday you’re
exhausted you’re back to work I don’t
understand how that’s enjoyable to
anybody no I would rather go play golf
on a Saturday enjoy the day have a
couple Tios and sodas that’s it and then
call it a day relax on Sunday and go
back to work on Monday but hopefully
hopefully this will be worth it I mean
yeah I mean it’ll probably be boring
we’ll probably sit in our rooms watch
TV candle light dinners and yeah I can’t
imagine I think it’s degrees when I
talked to my buddy Mike down there
awesome
yesterday sounding better and
better all right my man well I think
that was a good second episode I
appreciate it brother thank you for job
coming on again and uh doing this
hopefully next time I think maybe we’ll
bring a a guest on or something or
another fun game that Sarah will make us
do and before you know it we’ll have a
name for this thing let’s do it later
guys
guys