It’s not an easy question because employment agencies offer a variety of services to a variety of job seekers and a range of businesses. Some agencies specialize in entry-level positions or in given professions. Others are generalists.

Also, of course, there is the question of whether or not you need an employment agency at all. The Internet is here and there are well-known employment sites online. Ask the agency what advantage it has over online applications. In some cases an agency may have a long-term relationship with an employer which could be beneficial, in other cases they may do little more than search the Internet for job opportunities — something you can do with little if any cost.

To see if an employment agency makes sense for you, ask these 10 questions:

1. Who is the client?If you’re paying the bill then you are the client and the employment agency is obligated to get the best possible job for you. However, if the employer is paying then the employment agency works for them and it’s goal is to get the best person to fit a given job — “best” may mean not only well-qualified by at the lowest cost possible.
2. What is the relationship between the agency and the employer?Is the agency exclusively seeking to fill a job for an employer or are 30 agencies looking for the right candidate? Has the agency previously obtained jobs from the employer? Similar jobs with other employees? Does the agency have a personal relationship with the employer or with someone at the employer?
3. Does the agency actually have the job you want?An employment agency’s stock and trade are the names of its business clients. You can’t expect an employment agency to give away client names but you can expect them to tell you the specifics about the job such as: What education, experience and training are required? What are the salary and benefits? Where is the general location (think of commuting)? Do you need a license or certificate? Must be you be able to be bonded and insured? What are the hours? Etc.
4. Are you the only candidate the agency is sending to the employer?If yes, great. If no, do they send every warm body they can locate? No, good. Then how do they decide who to send? Get a real answer. Don’t settle for generalities. Get specifics.
5. Will the agency help perfect your resume?This can be important in situations where the employer has a stack of applications. Not only do you want a resume geared to the specific employer, you also want an appropriate cover letter.
6. Will the agency help you prepare for a job interview?For instance, what are the 10 questions you are most-likely to be asked? What are the best answers? Remember, packaging and tilting your answers is important, stressing some points and not others can get you hired — or ignored.
7. What happens if you accept the job and leave a few months later?Are you responsible for the agency fee? What is your liability? Even if termination is required because you move? Get injured? Are fired? If you have any liability for the agency fee when does it end?
8. Is the agency state-licensed?State license standards vary. For example, the New York Better Business Bureau says that employment agencies in that state must have one license to charge applicants a fee but a different license if they only charge employees.
9. Is there any up-front cost for registration or for some or all of thefee?Some states ban upfront fees but that may not be the case everywhere. In general, up-front fees are a bad idea because you are paying for services in advance — services which may not result in a satisfactory job or in any job.
10. Will you receive a copy of the employment agency contract?This document should show the fee and when it is earned, due and payable. You must have a copy of this document to avoid future fee disputes.

10 Questions To Ask Every Empoyment Agency is a post from: OurBroker.com -- Refinance, Home Mortgage Loans & Rates, Home Equity Loan

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“The very success of the mortgage industry creates a dilemma for those who want to reform the system,” says Jim Saccacio, chairman and CEO at RealtyTrac.com. “How do you make the mortgage industry better without ruining the present system, a system which to this point reliably makes loans available nationwide at low rates and with little down?”

By “better” a growing number of consumer groups and lawmakers mean giving borrowers a stronger shot at low rates and less-expensive loans. Forget about how loans are packaged or sold, say reformers, who instead argue that the mortgage system is enormously successful and profitable precisely because borrowers routinely overpay for their loans.

Consider “stated-income” loan applications. If you apply for a loan and with a stated-income application the lender doesn’t check your salary or income. Of course, such applications mean extra risk for the lender so the loan rate is increased. The catch is that many of those who use stated-income loan applications don’t need them and don’t need to pay a premium rate for their loans, a premium that produces additional profits for loan officers and lenders.

Why is it that many borrowers don’t need stated-income loan applications? Because they’re employed. They can easily provide payroll stubs, W-2 forms and tax returns. For them, a stated-income loan application is unnecessary.

Reformers essentially argue that loan officers and borrowers are not equals. Borrowers enter the lending system every few years and are entirely dependent on experienced and skilled loan officers for current loan information. Shopping around for the best rates and terms makes no difference because loan officers have no obligation to obtain anything other than the financing which produces the highest commissions and largest profits. In effect, there’s no borrower advocate in the lending system and borrowers have insufficient knowledge and experience to make informed decisions.

Carolyn Warren, in her insider’s book, Mortgage Rip-Offs and Money Savers, offers this example:

As a wholesale account executive, I got a loan approved for a couple who had six pages of late payments and paid-off collections. These people had stiffed everyone from Visa to the pizza delivery guy. It was one ugly credit report! But this lucky family had just inherited money, so they got their loan. The catch was that they had to make a 20 percent down payment and take a high interest rate with a two-year obligation (prepayment penalty).

What’s interesting is that the investor wasn’t the only one who wanted more money. On top of the lender’s high rate, the loan officer jacked up the rate by an additional 1 .25 percent so she could collect the maximum back-end commission for herself. Then she added a couple extra points up front, too, because she figured they’d consider themselves “stuck” and wouldn’t shop around. So Mr. and Mrs. Lucky ended up paying triple for their bad credit, because on top of what the lender required. the loan officer saw an opportunity to take advantage. And that’s the way it usually goes.

But what if the system were changed? Instead of loan officers who have no obligation to the consumer, what if loan officers were required to act like doctors, lawyers and real estate brokers and put client interests first?

That’s exactly the standard being pushed by Sen. Charles Schumer (D-NY). Under Schumer’s proposed Borrower’s Protection Act, every mortgage loan officer would have a “fiduciary relationship with the consumer.”

Think about when you use a doctor, lawyer or real estate broker. In each case there are standards and expectations. If a doctor, lawyer or broker fails to put your interests first or does not meet basic standards of practice then you have recourse, you can sue for damages and the professional can lose his license.

However you can’t readily sue if there are no performance standards in place or if the professional does not have a “fiduciary” or “agency” obligation. In effect, you can’t sue a car salesman, loan officer or waiter if you pay too much.

In basic terms a “fiduciary” obligation means that your interests come first and that your doctor, lawyer or broker is really your agent. The word “agent” is a loaded expression because it means that an individual has defined, lawful obligations to serve your best interests.

The Schumer bill at this moment is merely a proposal, it’s not law. One can expect the lending industry to oppose Schumer’s proposal at every step in the legislative process.

“Some have proposed,” says Harry Dinham, president of the National Association of Mortgage Brokers, “that a fiduciary duty standard should be implemented and mortgage originators and their loan officers should act in the ‘best interests’ of the consumer. NAMB remains opposed to any proposed law, regulation or other measure that attempts to impose a fiduciary duty, in any fashion, upon a mortgage broker or any other originator.

“Simply put, a mortgage broker should not, and cannot, owe a fiduciary duty to a borrower. The consumer is the decision maker, not the mortgage broker,” according to Dinham.

John Robbins, chairman of the Mortgage Bankers Association said during June 2007 congressional testimony that “notably, MBA does not believe that a disclosure of function and fees is warranted for mortgage lenders. Unlike a broker whose role may be uncertain — agent or loan provider — a lender’s role is clear. A lender underwrites, approves and funds the loan. The lender does not hold himself out as an agent of the borrower. While a lender must serve its customers fairly, and the industry has done much to assure high professional standards, a lender owes a duty to its shareholders and investors. A borrower knows a lender offers its own products and does not offer to shop for borrowers.”

What are the odds that the Schumer bill will pass? In today\’s financial environment, perhaps 50-50 because you have a powerful and important senator competing with a powerful and important lobby. But if foreclosure rates rise, if the lending system becomes a political hot topic in the way that telemarketing was important to voters a few years ago, then no one would be surprised if Schumer prevails.

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Published originally by RealtyTrac.com during May 2007 and posted with permission.

Who Should Loan Officers Represent? is a post from: OurBroker.com -- Refinance, Home Mortgage Loans & Rates, Home Equity Loan

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