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.
Tag: Borrower Management
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