Tag: Borrower Management

Psychology of Lending and The Dunning-Kruger Effect

Better Borrower Management

There is some basic psychology knowledge that all lenders must possess to help them excel on their job.  One field of psychology that lenders should understand is the Dunning-Kruger effect. The good news is that the Dunning-Kruger effect is not a disease, a syndrome or a mental illness.

How To Tell When Your Borrower is Not Truthful

Borrower Management and Lying

If we got a dollar every time we heard a less than truthful explanation from a borrower describing terms and pricing obtained from a competing bank we wouldn’t have to work.  We have heard hundreds of borrowers tell us that they obtained fixed-rate loans at X% interest for ten years, only to find that the LOI expressly indicated a five-year reprice or a 5-1 ARM.  Of course, not all deceiving comments we hear are flat out lies - borrowers relay less than the full facts and are often not motivated to inquire about the details.  Borrowers are moti

Subscribe to Tag: Borrower Management