Weichert Financial Services is a wholly owned subsidiary of The Weichert Corporation, one of the nation's largest independent real estate brokerages, Weichert Realtors. In 2000, Weichert Realtors had 7,500 salespeople who did $18.4 billion with 80,525 transaction sides, according to a report in Realtor Magazine. One of the original one-stop-shopping pioneers, Weichert Realtors, through Weichert Financial Services offers a wide range of home owner products including homeowner's insurance, title insurance, auto and life insurance, and a home protection plan. Over 370 loan products are offered including 100 percent, "A," "B" and "C" paper loans , conventional, FHA, and VA loans. The relationship doesn't end there and continues with home equity loans, home equity lines of credit, bridge loans and refinancing.

But the real advantage that Weichert Financial Services offers to its affiliate Realtors is point-of-sale mortgage origination. Through their relationship with the federal insurers, and its technologies, Weichert Financial Services can qualify buyers with loan approvals in minutes in most cases. Find out why this is so important in the Agent News exclusive interview with Weichert Financial Services President, Fred Watkins.

A.N.: How important is point-of-sales mortgage origination?

F.W.: For the industry and my own company, it is critical. Not just from the standpoint of obtaining business, but critical from qualifying a bona fide buyer and their ability to purchase the home. The cash buyer is the most critical component at the point of sale.

In a matter of minutes, we can let the m (buyers) know what amount of money they can borrow, and that is when they turn into a cash buyer. That helps the buyer, the agent and the seller.

A.N.: How does it work? Do you have mobile consultants?

F.W.: Some are mobile and some aren't. It depends on the geographics. The majority of discussions between borrowers and loan officers happens on weekends. Contracts tend to happen on the weekdays, but the consultations happen on the weekends because that is when they are shopping for homes. Point-of-sale mortgage origination saves everybody time, and the buyers aren't disappointed because they know their range. This expedites things for the buyers, sellers and agents to know the true capacity of what a buyer can buy and it maximizes the opportunity to solidify the deal,

A.N.: Many agents take buyers out without getting them prequalified. Are they wasting their time?

F.W.: If you are buying a home on a Sunday, and you haven't quantified what you can borrow, then that is the equivalent of going to the supermarket, filling up your basket, and going to the checkout counter without knowing how much money you have. Do you really want to stand there and decide which items you are going to put back?

A.N.: You were one of the first one-stop-homeshopping services in the nation. What were your challenges?

F.W.: We started over 20 years ago, so we had a lot of hurdles to face. The biggest hurdle, of course, is financial risk, but the biggest hurdle in this type of lending is to gain the trust of the real estate associate.

A.N.: You mean that's hard even when you are an affiliate?

F.W.: You have to be superior to what they can get from other mortgage companies and we have to provide that level of service every day. We represent the Weichert name, and how the agents and the public see the real estate company and that has to be consistent day after day. You can't build it and turn your head. With agents, you are only as good as your last time at bat. And with the customer, you have to follow up and make sure that they had a good experience so they will come back for other products.

A.N.: So you had to woo your own agents?

F.W.: I don't know if you woo them, you have to earn their trust. You have to deliver to associate buyers and sellers, you have to be good, you have to have competitive rates, do as you promise , be consistent. It's no different from any other service business. That is the only way to woo an agent.

A.N.: With the banks entering real estate controversy, you are an example of the very reason banks want to do loans, so they can combine them with real estate services. How do you feel about that?

F.W.: Keep in mind that things change per state, but being a mortgage company affiliated with real state company we still have to abide by and be licensed by the state. We meet all of the local state and federal rules regarding mortgage banking, so that we can be licensed in specific areas.

From the banks perspective, we have to do what a bank would have to do to transact mortgage lending. Other than that, I don't have too much thought on that. From my end of it, a bank is already my competitor because they give mortgages now and I give mortgages also.

A.N.: Do you enable real estate agents to be mortgage loan originators?

F.W.: We don't believe in that. The agent best represents the customer in the real estate transaction. Financing should be left up to a financial services consultant and that eliminates conflicts of interest. The loans today are more complex - not everyone takes a 30-year fixed. You need to have someone independently look at the most appropriate product. That's best left to a professional.

A.N.: How do you quantify your relationship to the brokerage? Has being able to provide loans made the real estate side more money?

F.W.: We don't track what percentage of business we do versus what they sell, but we do a good amount, and we have a decent amount of referral business. We aren't here to make a profit for the mortgage company but to enhance the real estate business so our associates can have a market advantage over their competition in the level of service that we provide.

A.N.: You mean some agents don't take advantage?

F.W.: No one does 100 percent of anyone's business. Not everybody buys Coke or other brands, but we do a decent amount of business. It is convenient and enhances their ability to list and sell real estate.

A.N.: Do other Realtor brands use your services?

F.W.: We do more of that than some people realize, but we don't broadcast it.

Published: August 20, 2001

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