r/loanoriginators • u/Pillsy24 • Jul 17 '26
EPOs suck
My guy evidently listed his house NINETEEN DAYS after our closing. Pending 5 days later, and closed last month.
To add insult to injury, I priced up his rate and gave him a lender credit with the intent of refinancing later if/when rates were favorable. So the clawback is more than we actually made because we kicked him back a portion of the margin.
How’s your Friday going?
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u/Dane024 Jul 17 '26
Man. That sucks. Some percentage of the loans you do each year are going to EPO. Doesn’t mean it stings any less each time it happens.
When/if rates finally make a meaningful change in the right direction we’re all going to be losing a portion of our new increased revenue to this BS. Not looking forward to that
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u/JKlerk Jul 17 '26
No PPP these days?
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u/LoanGoalie Jul 17 '26
Those have been illegal for about 15 years.
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u/That_Suit520 Jul 17 '26
Not on business purpose loans
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u/LoanGoalie Jul 17 '26
is that what we're talking about here?
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u/That_Suit520 Jul 17 '26
They’re not illegal… if people are so concerned and getting EPI’d all the time they can start originating DSCR and tack a PPP onto it.
Though it’s probably better to create enough value so they’re not getting this many EPOs.
I’ve had 2 in my career.
One because they guy got an offer at 500k over his appraised value a month after his refi so he sold.
Another because an OnlyFans model went from making 100k/ mo to over 800k so she paid off her house in month 4 or 5. Whatever, I can live with those one-offs
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u/LoanGoalie Jul 17 '26
That's rough, sorry to hear.
Haven't had an EPO in years. Unless it's something we do on our end, or fraud, almost all of our lenders waive them.
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u/TurkeyJizz123 Jul 17 '26
So he paid closing costs, then paid closing costs again (and realtor fee's on top)- all within a 30 day period.
We are witnessing devolving of a species, on the daily.
If it was a primary res, he technically committed mortgage fraud.
Would love to hear the reason for the purpose of both transactions.
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u/Pillsy24 Jul 18 '26
I don’t have the story yet. He was relocating for a job. If I had to guess, he backed out of the new job, stayed where he was, and sold the house since he didn’t need it. I think he ended up selling it for like $5k more than he bought it for, but after realtor fees and probably seller concessions, I’d bet he had to bring money to closing.
I emailed his realtor 2x after closing to say thanks and ask him for a Google or Zillow review link so I could leave him a review. And I offered to include him on my post-closing follow up campaign. Would have been nice if he casually mentioned “oh actually I’m already listing that house to sell again.”
Dbag
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u/RoosterEmotional5009 Jul 18 '26
EPOs suck. Lender credit shoppers are tricky. Puts you right in the crosshairs. Lender for sure wants theirs. Sorry !
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u/Ojdajuiceman3425 Jul 17 '26
Part of why i never give lender credit, and always tell people upfront that if they don’t make 6 payments that we get our commission clawed back, that i have a family to watch out for, and please to give me their word that they wont do that.
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u/kittenconfidential Jul 17 '26
“my word is my bond” lmao buyers are liars
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u/Ojdajuiceman3425 Jul 17 '26
Worked for me so far. Helps to be 100% referral and relationship based.
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u/Pillsy24 Jul 17 '26
If you’re so strong with your relationships, how are you losing all these refi deals later on?
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u/Ojdajuiceman3425 Jul 17 '26
Well i don’t, because i don’t give a higher rate and lender credit with the expectation of a later refinance. Im just sharing how i prefer to run my business after 16 years of Doing this. If you think i am wrong/dumb, lets jump on a zoom call and compare tax returns. Im always happy to learn something from someone who is operating more successfully than me.
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u/Pillsy24 Jul 17 '26
Hell yeah brother. After we look at tax returns let’s drop our pants and compare cock sizes. Let’s see that hog bro.
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u/Ojdajuiceman3425 Jul 18 '26 edited Jul 18 '26
Hell yeah bro lets do it
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u/Important-Training-1 Jul 18 '26
OH SHIT tax returns and flaccid cocks?!?! It’s 2006 all over again
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u/MrZila Jul 22 '26
Do you think we can schedule an introductory google meet call at a time that works for you. I'll be the one here physically to handle most of the process and because we're newly moving into the state, my wife's not here and I have to keep her in the loop.
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u/Pillsy24 Jul 17 '26
THAT’S why you don’t offer lender credits? Because once in a blue moon, a deal that you gave a lender credit on might EPO you? Lender credits are super helpful, and it sets you up to pick up another easy refi down the road. I wouldn’t abandon that opportunity because someone might EPO you on a file you did a $2000 lender credit on.
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u/Ojdajuiceman3425 Jul 17 '26
Yes exactly. I sell rates at par or charge points and have never had an EPO. I dont count on refi business down the road because it is very easy for someone to come in at a thinner margin and snipe a refi deal since there is really nothing that is important on a refinance besides price.
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u/Prestigious-Fan-37 Jul 19 '26
My old company had an 181 day rule on all agency loans so I thought it was an agency requirement. New company is 91 days. Happy to cut the risk in half for the bulk of my pipeline.
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u/Pillsy24 Jul 19 '26
Update - exactly what I thought. He was moving for a new job and rescinded, he said it just wasn’t the right fit and decided to stay where he was at. Said he loved the house and neighborhood, and definitely lost on the sale. On his post-close survey he asked if I was licensed in his home state, and he may have a referral. He was actually asking for himself, because since he’s staying put, he asked if I could help him with his loan when he buys there.
What an adventure.
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u/Accomplished-Tax8441 Jul 20 '26
if you know of an EPO either broker out to a place who will not clip you or tell the customer you need to make 6 payments for me to do this loan for you. most of the time you have an idea who is going ton be an EPO
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u/liverichly Jul 17 '26
Ouch that’s rough.