Why You Should Say No To Some Loans with Geoff Zimpfer

Geoff makes the case that saying no to certain loans — rate shoppers, credit-challenged files, tiny loan amounts, near-impossible collateral types — is a growth strategy, not a cop-out. He backs the argument with MBA pull-through rate data and real LO quotes, then ties it into year-end business planning around people, process, and technology. Best for LOs who are stretched thin and reflexively say yes to every file.

Takeaways you can run this week

• Set a written minimum loan amount and a list of collateral types you will not touch (e.g., geodesic domes, non-warrantable condos) — communicate both to your team so they can screen at intake before a file ever hits your desk.
• Before submitting any file, ask yourself: 'Am I confident this loan will close?' If the honest answer is no, do not submit it — use the MBA benchmark of ~72-78% pull-through as your floor for what a healthy submission rate looks like.
• Use this commitment script before moving a client to processing: 'We are 100% committed to you. In today's market where time and resources are scarce, we need to ask — are you equally committed to closing with us?'
• If a client keeps shopping after you've given them competitive numbers, follow the John Yusner (Mason McDuffey Mortgage) approach: tell them directly, 'My team doesn't have time to work on loans that aren't committed to closing with us,' and refer them elsewhere.
• Pull a report on every active referral partner: count the last 3 loans they sent you and note the common challenges. If you see a pattern of unbankable files, schedule a curious (not confrontational) call — ask about their lead source, their intake form, and offer to help them improve borrower quality upstream.
• Run a year-end review on your business using three buckets: People (right roles?), Process (where are the bottlenecks?), Technology (what can be automated?). Identify one change in each bucket to implement before Q1 2021 purchase season kicks in.

The playbook

1. 1. Screen at intake: apply minimum loan size and ineligible collateral filters before accepting an application.
2. 2. Pre-submission confidence check: only submit files you believe will close; target a pull-through rate above 72%.
3. 3. Commitment conversation: before moving to processing, verbally confirm the borrower's commitment using the script above.
4. 4. Rate-shopper response: if a client continues requesting additional disclosures to shop after receiving competitive terms, politely decline the file.
5. 5. Referral partner audit: review last 3 files per partner, identify quality patterns, and schedule a conversation with any partner sending consistently unbankable borrowers.
6. 6. Year-end business plan: assess People, Process, Technology — make one concrete improvement in each area before the next purchase cycle.

Worth quoting

“We can't be chasing rabbits all over the park right now.”

“My team doesn't have time to work on loans that aren't committed to closing with us.”

Best for

LOs who are overwhelmed with volume and saying yes to every file, at the cost of their team's capacity and their most profitable relationships.