Why Every Company Needs Account Managers

Author: auditorcrossing Are you good with people? Have you always effectively managed your own business affairs? If yes, then account management jobs might just be what you’re looking for. Account management is for organized people with good people skills. Every retail company needs account managers to help organize and take care of all their customers. They need people who can remember to follow up with their customers, deal with their problems, and retain them as happy and loyal customers. There’s a high demand for people who can fill account management positions, so if you fit the bill, you’re only an application away from a job you might thoroughly enjoy! When you apply for an account management job, you’ll find the application process similar to most other careers. You send out your resume, and set up interviews with all interested companies, etc. Most people begin by entering at sales positions for the companies. They go on to prove they can sell the company’s product and can work with their customers. From there, they often get promoted to account manager jobs if they’ve well impressed their bosses and supervisors. So what does it entail? It varies, depending on the company you’re working for. However, there will be some similarities that run through most jobs in this field. If you’ve ever purchased from a major company, you’ll notice that most of them have sales people who are also account managers. When you call that same company again to order something else, they transfer you to your account manager, so you work with the same sales rep as last time. This way, you’re talking with someone who’s familiar with your situation, and can better recommend items and updates that’ll suit your needs. It also helps you develop a more personal relationship with someone in the company, making it more likely for you to deal with them in the future. If you’re always dealing with a new person, and have to explain your situation every time you call, wouldn’t you stop calling and go somewhere else? I actually remember calling a company that was unorganized like that. I had to explain my predicament dozens of times, before I finally found someone who could help me out. It was very frustrating and I almost gave up on the company without even resolving my major issue. But I stayed on the line and continued to go through the motions of my explanation simply because I had to solve this problem. All the while, I was thinking to myself, “I’m never working with this company again. This is ridiculous!” Account managers solve this dilemma. Companies now present a much more organized front by assigning account managers to deal with certain customers. When a customer calls in for the first time, he/she gives in all the information. Now, when the same customer calls again, the system can be looked up to find out who was assigned to be the customer’s sales rep and account manager. In the end, people will be relieved to be talking with you again, and will be in a much better mood throughout the whole transaction. They are also more likely to purchase that update or additional item you recommend, which will improve your commission and standing in the company. If you enjoy sales jobs, account management sales jobs might be a more interesting choice. First of all, a typical sales job could mean just about anything. Many of them are the one and the same as account management jobs, but in some cases, they’re just unorganized sales jobs. Account manager jobs indicate that you’ll be working for a company, with set hours and wages, with benefits, and the whole package. It means you’ll be working with multiple clients on a daily basis that someone else finds for you. It means people will be calling you, instead of you calling them. For anyone who’s ever worked at a referral center, you’ll understand the huge difference between in call and out call jobs. When you’re receiving calls, people want to talk to you. When you call them, they might not, and many of them will make it very obvious that they don’t want to speak with you at that moment. When you’re an account manager, you sit at a desk with others, doing the same thing, with regular hours, and a pretty standard monthly paycheck. You get commission off of the addition items you sell, and that’s your incentive to continue to be a salesperson, but you also have a little more stability than most salespeople. If you have a bad week, you still get paid, whereas most salespeople don’t. You need to know all about the product you’re selling, just like a salesperson, and you get to talk with new customers on a daily basis. So it requires the same people skills, and includes all the personal interaction with new people, as a sales job. Only, you have a constant influx of customers each day, due to the sales department (of course, this is all dependent on how well put together and talented your sales department is). However, sometimes you might be caught up in a few dry spells simply because of the changes being made in the sales department, and all the new people just getting their feet wet. So on the downside you have to rely on the talents of the sales department for you to continually have new customers to sell to. Also, the commission will be much less than the sales department because they will often have already taken care of the sale. However, in some companies, customers are sent directly to account managers. Here, the account managers handle the initial sale as well. Commission is divided between the salesperson who brought in the lead, if there was one, and the account manager who seals the deal. Everybody gets a piece of the pie, it just depends on which piece you want! Article Source: http://www.articlealley.com/article_767322_36.html

Identifying and Avoiding Mortgage Fraud

By Brian S. Icenhower

Recent financial industry distress publicly attributed to widespread mortgage loan defaults has generated mounting pressure on federal prosecutors to increase investigations into incidents of mortgage fraud across the nation. On February 6, 2004, CNN reported that the FBI warned that mortgage fraud was becoming so rampant that the resulting “epidemic” of fraud could trigger a massive financial crisis. Mortgage fraud has now become so prevalent that the United States Department of Justice and the Federal Bureau of Investigation have been forced to create an entirely new category for tracking these cases. According to a CBS news report, the number of FBI agents assigned to mortgage related crimes increased by 50 percent from 2007 to 2008. Prosecutors and investigators on both the state and local levels are also feverishly organizing task forces and creating real estate fraud departments to counter this burgeoning wave of crime. CRIME & PUNISHMENT The primary focus of these investigations appears to be on borrowers, investors, mortgage brokers, appraisers and real estate agents. Some of the charges levied against these perpetrators have included making false statements on loan applications, bank fraud, mail fraud, wire fraud, conspiracy to launder funds and a number of applicable state laws. However, the primary legal vehicle implemented by federal prosecutors has been section 1014 of Title 18 of the United States Code which declares mortgage fraud as a federal crime encompassing anyone who willfully overvalues any land or property, or knowingly makes any false statement, for the purpose of influencing a financial institution upon a loan application, purchase agreement or other related documents. A violation of the federal mortgage fraud law (18 U.S.C. § 1014) alone is punishable by up to thirty years imprisonment and a one million dollar fine. MORTGAGE FRAUD SCHEMES The most effective way to avoid prosecution for mortgage fraud is to identify mortgage fraud schemes prior to any actual involvement. Most mortgage fraud offenses fall into one of two general categories: “fraud for housing” and “fraud for profit”. Fraud for housing often involves fraudulent acts committed by a borrower, often coached by his or her mortgage broker or real estate agent, to obtain a loan for the ultimate goal of acquiring a home. These fraudulent facts generally pertain to the falsification of facts and documents during the loan application process to enable the borrower to obtain financing that he or she would otherwise not be qualified to receive. Conversely, fraud for profit typically involves a more concerted plan to abuse the entire real estate transactional process for pecuniary gain. FRAUD FOR HOUSING Income Fraud This occurs when a borrower inflates his or her amount of income to qualify for a loan or a larger loan amount. Although recent reductions in the use of “stated income” or “no-doc liar loans” has somewhat curbed income fraud, daring borrowers are increasingly generating more fraudulent documents to falsify income. Information technology and photocopy equipment have become so advanced that very convincing documentation, such as income statements, savings accounts and tax returns, can be produced on demand. Employment Fraud In order to justify overstated income in a loan application, borrowers will claim self-employment in a non-existent company or represent having a higher position in a company than the borrower actually holds. Failure to Disclose Liabilities The debt-to-income ratio is an important part of the loan underwriting criteria used to determine a borrower’s eligibility for mortgage loans. Consequently, borrowers will conceal financial obligations like newly acquired credit card debt, other mortgages, and private loans to artificially reduce their debt-to-income ratios. Occupancy Fraud Generally occurs when a borrower states on a loan application that he or she intends to occupy a property as a primary residence to secure a lower interest rate when the borrower actually intends to obtain the loan to acquire an investment property. FRAUD FOR PROFIT Equity Skimming and Cash-Back Schemes A straw buyer is typically implemented as the buyer of the property due to his or her creditworthiness and resulting ability to obtain favorable financing. Unknowing straw buyers can be manipulated by mortgage brokers and real estate agents to purchase a property as a primary residence with the broker or agent later serving as a property manager to collect anticipated rental income. After the escrow closes and the mortgage and real estate brokers collect their commissions, they proceed to collect rental income and fail to make the mortgage payments. Complex schemes can involve a knowing straw buyer, an appraiser who intentionally overstates the property’s value, a dishonest seller that intentionally inflates the selling price, and a dishonest settlement officer that makes undisclosed disbursements from the loan proceeds. All of these conspirators collaborate to collect portions of the proceeds of an inappropriately large loan before eventually letting it go into default. Appraisal Fraud or Price Inflation This fraud occurs when a dishonest appraiser intentionally overstates the value of a property or when an existing appraisal is altered to reflect a higher value. When a home is overvalued, more money can be obtained by the seller in a purchase transaction or by the borrower in a cash-out refinance. The New Appraisal Fraud: Price Deflation When done legitimately, a short sale occurs when a borrower that owes more than his or her property is worth sells the property below market value and the lender agrees to accept the lower repayment amount and forgive the difference. A new hybrid of fraud has emerged where an appraiser or a real estate agent drastically devalues the property in an appraisal or broker’s price opinion (BPO) so that the home will sell with ease at a price well below market value. Of course the new buyer is in collaboration with the seller, agent and appraiser, so all of the conspirators proceed to sell the home at a higher price for a big profit. Identity Theft Identity theft fraud occurs when a victim’s identity is assumed by another to obtain a mortgage without ever intending to make any payments on the loan. The perpetrators often abscond with a portion of the loan proceeds and sometimes are daring enough to lease the property and collect some deposits and rental income before disappearing. The Buy and Bail This completely new scheme is perpetrated by a home owner who cannot sell the home because more is owed on the property than its worth. Because no lender will provide the owner a loan for a second primary residence, the owner tells the lender that he or she plans to rent out the current home despite having no intention of doing so. Sometimes a falsified rental agreement is used to further support the falsehood. Once the second home is purchased, the owner “bails” on the original home and fails to make any further mortgage payments. AVOIDING & PREVENTING FRAUD Mortgage fraud frequently emanates from groups that complete an abnormal amount of similar transactions or churn out many offers to purchase at once. These outfits may appear disorganized or unprofessional due to the large amount of transactions they are attempting to manage. It is also no coincidence that mortgage fraud has significantly increased as housing values have decreased since most fraud schemes involve a financially distressed or otherwise vulnerable seller. It is equally important to remember that agents owe a very strict fiduciary duty to act in their clients’ best interests. So before reporting a client to your local authorities, speak with legal counsel or your state real estate licensing department to ensure that your proposed actions don’t constitute a breach of your fiduciary duty to your client. Real estate agents are in a unique position that enables them to identify and even prevent the occurrence of fraud by recognizing the red flags, asking appropriate questions, and giving the principals in their transactions the full picture of what consequences are associated with participating in mortgage fraud. While a lot of damage has been done in the real estate market, we can prevent more of the same from occurring in the future.

Brian S. Icenhower, Esq., BS, JD, CRB, CRS, ABR, a California Association of Realtors Director, practicing real estate attorney, a real estate expert witness and litigation consultant, a prosecution consultant of Tulare County District Attorney Real Estate Fraud. He may be contacted at bicenhower@icenhowerrealestate.com, or http://www.icenhowerrealestate.com/.

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