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“What you don’t know can kill You-Dave Ramsey”

Did you ever get a phone call, or visit with a client and sense that something just wasn’t right? If so, you may have been mystery shopped!
Mystery shopping, also known as “paired testing” is in full swing with the regulators. In fact, chances are good that your mortgage originators are being “tested” right now! In the BancorpSouth settlement, we see how the CFPB was just warming up, as the testing from that case, occurred quite a while ago. So if mystery shopping in our industry is going to exist, then any prudent lender needs to be fully prepared!

Mystery shopping of your originators can be done by anyone, but generally include:
• Regulators
• Consumer Advocacy Groups
• Your Competition
• Industry Analysts
• Your Company

Mystery Shopping is done:
•Over the Phone
•In Person
•Through Social Media Interaction

Results are used for:
• Regulatory Compliance
• Basis for complaints to HUD or the CFPB
• Market Knowledge/Intel
• Market Condition Analysis

To uncover the “mystery” of Mystery Shopping I am doing a 3-part series on this subject. There is a distinct methodology used by the regulatory bodies and the companies that they contract for these purposes. Understanding that methodology is the first step to properly prepare your staff for the inevitable day when they will be shopped. In Part One of this series, you’ll learn how companies are “scoped” to determine who to test; and what you should be aware of to prepare for that scoping….so Stay Tuned!

Worried about your originators passing the Mystery Shopper Test? Contact me for my comprehensive training program on “Passing the Mystery Shopping Test-What Every Originator Needs to Know”. It makes a great conference training session!

Tammy Butler, Master CMB

Author Tammy Butler, Master CMB

More posts by Tammy Butler, Master CMB

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