Business Card Marketing, Internet Spiders and Post Card Marketing

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Here's what's in this issue....

Business Cards & Post Cards! This is guerrilla marketing at it's finest. However, you need to develop a long-term plan and use these inexpensive marketing tools on a consistent basis. No, I don't mean just having a supply on hand and distributing them to clients who walk in your door. "What?" you might be saying -- "A long term marketing plan for business cards? Are you crazy?"

This issue features 33 things you can do with a business card. Business cards fall into different categories as well. They can be a unique size; they can be informative; or the method of distribution can be part of your marketing plan. What I am suggesting here is that you first decide EXACTLY WHAT you want your business card to do and where you want it to end up-and then create the business card. Not the other way around.

Some companies insist that you use only the company issued business card. That's ok. However, you can personalize it by adding unique information to the back of the card. Or you can come up with a unique distribution method.

Business cards and the creative use of them--can pay huge dividends and end up in places you never would have imagined.

Using a creative title on your business card can differentiate you (from other "mortgage consultants") as well. If you use a creative "title" on your business card, I would love to hear about it. Please email me through the website at www.loanofficermagazine.com

David Reed's article about bugs, I mean Spiders, is not to be missed! Just like "traditional" marketing methods--you could be the best and most educated loan officer on this planet--but if no one knows about you, you will go broke because people will never know who you are and why they should do business with you. David's article shows you how to take that important first step on how to be found on the Internet and how to rise to the top of the Spider Food Chain.

David knows what he is talking about too! As the Internet Marketing Director for South Trust Mortgage, David originates over $60M annually using the web as his primary lead generation source.

Post card marketing is one of my favorite guerrilla marketing techniques. They are easy to create. You can design your own, and there are also plenty of post card companies with a variety of "standard messages" you can use. The post card is cheaper (postage) to send in the mail. And, you get 3 for 1 readership--that is, everyone who touches the post card, reads it. For instance, if you send the post card to a real estate office, everyone has the opportunity to read the message--from the person handling the mail to the end recipient. The post card actually forces you to write a short, concise message. You can print your own on your computer or copy machine or have literally thousands of them printed for several hundred bucks.

"Those who are funny--make money." In this issue, we will cover a post card marketing campaign that is extremely clever, funny - and effective! With a little imagination, you can develop an effective post card campaign as well.

Don't take business cards and post cards for granted. They are excellent guerrilla tactics that can give you valuable exposure for very little money.

Oh, one more thing! Part II of Bob Williamson's Article: The Difference Between Hype and Performance--How to Help Your Client Negotiate the Lowest Possible Price for the Home They Buy,", will be published in the October 1, 2002 issue. You will learn how to completely outmaneuver your competition for the purchase market business by focusing on showing your home buying client how to save thousands of dollars on the "sales price" of the home--instead of focusing on loan programs and interest rates. Bob's article is not to be missed!

If you want to comment on any of the articles, we would love to hear from you.

If you would like to write an article about the marketing and sales techniques that you use, please email me with your idea and outline. Regards, Karen Deis

A Tribute to My Sister-A True Guerrilla Marketer!

A few weeks ago, my younger sister, Becky Donovan passed away. There was only 10 months difference in our age so we were as close as you can get without being twins. Becky lost a valiant battle with breast cancer. She was only expected to live for about a year but lived for 8 years because she did not let the doctors "treat" her but took control of her own treatment. She did her own research and told the doctors how they should administer her many chemo treatments.

I want to take this opportunity to pay tribute to Becky because she was a true guerrilla marketer. Her career background included bookkeeping, office equipment sales, newspaper and magazine advertising sales and business supply sales. All these careers came together when Becky and I founded Cornerstone Mortgage, Inc in South Bend, Indiana in 1992. We started the company with a $4,000 gift from our mother. We decided that this money would be allocated strictly for "marketing and advertising." We decided that the $4,000 had to last us for one year!

When I wanted to spend money on advertising, Becky taught me how to find just the right newspaper, magazine, radio and TV stations to attract the types of customers that we wanted. When it came time to print brochures, create free reports, and in fact, generate all the printing, she was able to find us the best copier for the job. In fact, she was able to show us how to save almost 50% on everything we ever did-and still make it look professional. (Remember, a true guerrilla marketer has more TIME than MONEY.)

One of the things that we decided early on was that when it came time to sell the company, the one asset worth selling would be our database of clients. Our furniture and computers would be pretty much worthless but if we kept our database current, it would be worth some money to someone one day. We spent our money on maintaining our database and when we "sold" the company, we were able to sell the databases for some pretty decent dollars.

We were in the mortgage business for almost 9 years together. During that time, we had the best time of our lives and grew closer as sisters. I am forever grateful to her for the vision and expertise she brought to the partnership. We made money, had lots of fun and our clients regularly referred their friends and family to us.

And yes, we made the $4,000 advertising budget last for a full year!

In this issue...The yearly subscription price to this E-zine in $119.00. If you prefer to "try us out", we now have a new option of a six-month subscription for $69.00 CLICK HERE to subscribe.

Our "theme" for this issue is pictures. The article called "The Power of Pictures" shares with you the effective marketing mileage you can get out of taking pictures of clients, realtors and sellers at the closing table.

George Hanzimanolis is the President of Bankers First Mortgage. His article on "For Sale By Owner Marketing Made Easy" shows you a unique way of calling on FSBO owner clients, taking pictures of their homes and distributing FSBO flyers to clients who come in to be pre-approved for a mortgage. It's an easy system that you can implement immediately.

And finally, from Integrity Home Funding, Brian Sack's article called, "How To Get the Attention of the Media So You Are Perceived As The Mortgage Expert In Your Town" says that you are not a mortgage expert until you let everyone KNOW that you are one! Establishing the all important media contacts is the first step in getting recognized as the mortgage expert in your community. In this article, Brian will show you how it's done. Brian's best selling system, "How To Close More Loans, Make More Money and Have A Life" can be purchased CLICK HERE for only $297.00.

...and one more thing!

Turn On Your Million Dollar Brain III Workshop CLICK HERE plans have been completed. The workshop theme this year is CREATIVITY and begins with a 3-hour workshop on how to jump-start your creative brain to increase your mortgage business.

It's unique because it's a workshop-not a lecture-type series-where you actually participate in each presentation. There is also a special session that is worth thousands of dollars because loan officers throughout the country share their best marketing ideas with fellow attendees. And, if you are a mortgage company owner or manager, come in a day early for our Special Management Session called "Recruiting and Retaining Loan Officers."

Sponsors of the event are MGIC, Mortgage Coach, RightLoan, Arch Telecom, Broker Magazine and Origination News. In addition to the other sessions, each one of our sponsors will provide sales and marketing workshops also designed to increase your business.

If you register by December 1, there is a special registration fee of $795.00 for the 3-day workshop. For the management session, the registration fee is $359.00. For more information, check out mortgagespeakersbureau.com.

After each article, you have the chance to comment on its contents. I welcome your comments and suggestions for future articles as well.

Your Guerrilla Marketing Editor,
Karen Deis
715-426-3647

What do newspapers, doctors, nurses and free reports have in common? Guerrilla Marketing

I can't begin to thank you enough for your comments and over whelming support for LoanOfficerMagazine.com. In just 2 issues, we have engaged almost 1,000 subscribers. This E-zine is dedicated to loan officers, branch managers, company owners-the "feet on the street" originators-the ones who bring in the business.

In this issue, part two of Bob Williamson's article "How to Help Your Client Negotiate the Lowest Possible Price for the Home They Buy" creates a huge paradigm shift for loan officers. You can purchase the 12 page report by clicking here.

Speaking of paradigms, I have worked with Barry Habib, GMAC Mortgage, over the past few years. The number of phone calls and the amount of work that he is able to accomplish has always amazed me. In a special interview, "Time Management and Your Doctor's Office," he has agreed to share his unique strategy with you.

If you advertise in newspapers and magazines, Mike Martinez, First Financial Mortgage Consultants, will tell you, "How to Pick a Newspaper That Delivers Customers." Yes, it relates to the types of customers you want to do business with. One more thing-be sure to check out the Quick Tip Section!

After reading Williamson's article, I asked him to put together a FREE REPORT that loan officers can use in helping clients negotiate the best price. Not only did he provide a FREE REPORT, but he also developed a SAMPLE AD for you to use as well. Your investment is only $49.00. This is one of the best marketing pieces I have seen.

The "Quick Tip" article is intended to provide you with creative ideas designed to increase your business immediately. These ideas may not have enough content to devote a whole article to the topic-but can make you aware of simple marketing tools. This edition of "Quick Tip" covers the best days of the week to send your clients mail and the best days of the week to hold seminars.

Barry Habib is National Training Director for GMAC Mortgage and the creator of the Mortgage Market Guide. In this article, Barry shares his "origination philosophy" and how he is able to close an average of $100M in mortgages, year after year, conduct training sessions and still run his other business-The Mortgage Market Guide. I know that you have been closing your guts out with the refinance business, but take some time to think about Barry's suggestions and see if you can implement at least one or two of his ideas right now.

As a mortgage loan officer, the product that you sell is MONEY. I encourage you to check out the Mortgage Market Guide-where Barry shares with you all you need to know about the financial markets-so you can sell more money!

I received several emails asking if we were going to provide industry updates or articles on government issues. In one word: NO! There are plenty of mortgage industry publications that do a great job in providing the information to you. Here's the Catch-22: You definitely need to know the rules and licensing requirements. However, how can you practice them-if you can't get the business in the door in the first place? That's what "guerrilla sales and marketing" is all about-getting the business so you need so you can become better at what you do best. If you have not yet subscribed, I encourage you to do so. It's only $119.00 per year for 24 jammed-packed, e-mailed issues.

(CLICK HERE to subscribe)

I encourage your comments. If you have an idea for an article, I would love to hear from you. If you would like to write an article please email me your outline or article at deis4@aol.com.

Thanks and please let me hear from you!

The Mortgage Business is the Best Job on Earth!

I just returned from a trip to Belize (where my husband and I celebrated our 20th wedding anniversary). We arrived in Belize City to catch a flight to the little town of Placencia. The plane's passenger capacity was ten, including my husband sitting in the cockpit with the pilot! The "airport terminal" (and I use the words loosely) was a small, mobile home type building. Posted on the building were a couple of signs-one advertising RE/MAX? and the other advertising mortgages thru the building and loan company.

My "beach bag" of choice was one of those carry-all bags that you would pick up when attending mortgage conventions. So, the guests at the resort did not hesitate to ask me about interest rates and refinancing options. One guest even wanted to get into the mortgage business.

The point here is that wherever there is real estate for sale, there are mortgage companies and loan officers. We are one of the few professions in the world where we are instrumental in fulfilling one of Maslow's Basic Needs (and then some). We owe it to ourselves and our clients to give THEM the best advice we can give them-and not look at each transaction as a "commission". Love your job! I think the mortgage business is the BEST JOB ON EARTH.

Oh, one more thing-just to show you that you just can't get away from this business of ours, I thought I'd share this picture that we took on our trip to the rain forest. I think this says it all.

Just think of the advertising possibility using this picture.

(click on image to enlarge)

In this issue...

Don't some of the commercials on TV and radio by the Dot.Com mortgage companies get you downright MAD? It's not that they are lying about any of their claims that they cut out the middleman or that they have lenders competing for your loan! It's when they blatantly tell consumers "even if you have applied someplace else, you can still apply with US." Tom Ward (Tom Ward is CEO and Founder of Majestic Mortgage Corp., (now in its 15th year wih annual volume of $300M), and Majestic Consulting & Marketing. He is a frequent a contributing writer to industry trade magazines and speaker at industry events. Majestic Consulting & Marketing provides profitability, operational and marketing consulting to mortgage originators, bankers and brokers.) has written an article called The Dot.Com Challenge and How to Sell Against the APR. To make sure that his clients compare "apples to apples," Tom shows his clients how the APR quoted by the Dot.Com Mortgage Company translates to the TRUE AMOUNT OF CLOSING COSTS they will be paying. Using your HP 10b Business Calculator, and Tom's simple formula, you too, will be able to "sell" against your dot.com competitors.

Mike Moffitt, Mortgage Resource Group of US Home Mortgage (Mike is a Senior Loan Officer with the Resource Mortgage Group, a division of US Bank Home Mortgage, Minneapolis, MN. He specializes in the first time homebuyer market. Mike has closed $51 million YTD with $25 million of that in the purchase business.) has created a Realtor™ Referral Program. In his article "Forget the Donuts! Here's a Program That EARNS your Realtor's™ Business," Mike tells you why real estate agents (sometimes) treat you like dirt and how you can turn the tables on them by providing them with referrals! But, before he refers even the first client to them, he "interviews" them to see if they (yes, the Realtor) are suitable to become a "preferred agent." Then he goes one step further and has them sign a "contract" that says THEY must deliver a high level of professionalism to continue to get referrals. Mike also provides them with a buyer's needs analysis. (Purchase all forms and sample contract for $69.00! CLICK HERE)

In my travels throughout the country, I am obsessed with real estate magazines. What I find is that most of the ads look the same...picture of the real estate agent...real estate agent's "quaint slogan"...picture of the home for sale...short description of the home...phone numbers. Even worse are the mortgage ads where loan officers claim to be Number One. They can do every loan program ever known to man. And, of course, the ad includes their picture-which is either a professional pose or a glamour shot. In the article "Strike a Creative Pose," I have given you examples of some unique pictures that I hope will get your creative juices flowing the next time YOU place an ad in a real estate magazine.

In this issue's Quick Tips section, Tom Goodhew, Loan Officer with Argent Funding, Covington, KY, provided us with a wonderful idea that provided a "synergy" to George Hanzimanolis' FBSO Marketing article (featured in the 10-1-02 issue). By including a mini-application form as part of the FSBO Information Sheet, he is able to substantially increase the amount of pre-approvals-and the FSBO seller does the marketing for him. Read this short article to see how he gets clients to call him-a true consumer-direct marketing concept.

If you are looking for training at affordable prices, please check out www.LoanOfficerSeminars.com It's an on-line training company (that I co-own) that provides training to loan officers via the web and telephone conferencing. Best of all, for one registration fee (per location), everyone in the office can attend for only $149.00 total. The "Lunch & Learn" Teleseminars include both technical training and presentations by super star loan originators. The next scheduled sessions are:

October 24, 2002 - "Strategies of Raising Credit Scores" with Mari Gottdiener, President of OutSource Solutions and California Attorney

November 14, 2002 - "Creating Lasting Realtor Partnerships" with Greg Frost, President, Frost Mortgage and super star originator

December 5, 2002 - "Positioning Yourself as a Trusted Advisor" by Tim Braheem, First Rate Financial and superstar originator

We record each session as well so the CD Replay (a CD ROM to be played on your computer) is available to purchase at www.LoanOfficerSeminars.com. Click on "products."

It Takes Courage to Change

When I first viewed this picture, my initial impression was that the person who installed the basketball hoop directly above a picture window-must have been truly "confident" of their abilities. However, since that time, I have changed my perception and now think that the person first had to possess "courage"...

...the courage to install the hoop in such a delicate place to begin with.

"Courage" is defined as: Audacity, backbone, boldness, bravery, daring, determination, endurance, firmness, grit, guts, nerve, luck, resolution, spirit, spunk, and tenacity.

The articles in this issue are all about COURAGE. They are about the courage to take control and having the backbone and daring to do things differently than everyone else.

"Know Your Client, Know Yourself" is realizing that EVERYONE is not your customer! People do business with people who are like them and it takes one heck of a lot of courage to face the fact that not everyone will LIKE you or even want to do business with you. So stop advertising that you have every mortgage program known to mankind. Once you figure out who your ideal customer really is-then it will be easier and cheaper to develop a marketing plan to attract those clients.

"Is There A (Financial) Doctor in the House?" Doctors recommend a "physical" once a year-regardless if you think there is anything wrong with you or not! They check your blood pressure, weight (ugh) in addition to the poking and prodding. You are also asked a series of health questions. As professional mortgage consultants, have you ever thought of offering an annual FINANCIAL PHYSICAL as part of an overall financial-health plan? It's only 60 days to the end of the year and tax time is around the corner. NOW is the time to send your clients a Financial Physical Form and cover letter (CLICK HERE to purchase for $59.00). Here's the great part-those who return the form or request a free copy of their credit report have "identified themselves" as your future clients.

"Commitment Is A Two Way Street," by Tom Ward is a BOLD, and very smart technique requiring clients give you a "commitment fee" to lock in their interest rate. Wait! Don't say that this does not apply to you in your market-because it works everywhere. After all, a true commitment works two ways-you have committed to LOCK in the rate and your client is committing to CLOSE the loan with you. You will quickly weed out the rate shoppers and close a huge percentage of the loans that you have in your pipeline. You are in business to CLOSE loans-and not just practice PROCESSING them!

"Locked, Re-locked and Loaded" by Barry Habib, shows you that it takes backbone and guts to confront clients who have locked in their rate-and now want a lower rate! Even with 1/4% decrease in interest rates, Barry tells you why it's not in their best interest to re-lock. Read his ideas! Learn the math! Practice your "script" when your clients demand a lower rate.

Get People to Remember You

We get many questions from our readers, so we have introduced a new column called "Mortgage Masterminds." Dave Hershman, speaker, author and trainer (www.originationpro.com) is our new "Ann Landers" for the mortgage set! Since this e-zine is dedicated to guerrilla sales and marketing, we encourage your questions (CLICK HERE) relating to these topics—and questions about articles we have published.

One more thing! The TURN ON YOUR MILLION DOLLAR BRAIN III Workshop will be February 6-9, 2003 in Delray Beach, Florida. The reduced registration fee of $795.00 is only good until December 15—then it goes up to $895.00. Register at www.MortgageSpeakersBureau.com. There is a special manager's session the day before. If you are a customer of one of our sponsors, MGIC, Mortgage Coach or ARCH Telecom, you can get an additional $100.00 off the registration fee. However, you must register thru their website—and by December 15.

ENTER OUR CONTEST FOR THE MOST UNIQUE TITLE AND WIN BIG!

Faith Popcorn, one of my favorite authors, has written the book, Dictionary of the Future. (Check out www.amazon.com for more information.) You probably are saying to yourself, "the only thing more boring than reading a dictionary is watching ice melt!" Ok, just bear with me for a few more minutes and I’ll make it worth your while!

To quote Faith, "If ever there was a need for a dictionary that anticipates the life to come, it is now. The Internet is not just the initiator of change, but also a distributor of it. (Important statement here.) Language is our most obvious and meaningful monitor of this change. It’s not just about the words but the ideas behind the words."

So what does that have to do with the mortgage business?

One of Faith’s innovative concepts is called "title choice." "Unexpected and descriptive titles are all the rage—from Director of Great People (Human Resource Director) to Director of Lasting Impressions (Marketing Director). Choosing a title is not a GIMMICK anymore—it’s a way to describe exactly what you do; inspire your performance and define your exact role to the reader or listener." Take a traditional title, "Computer Technician". Does "Network Zenmeister" sound better? What you are trying to do here is define EXACTLY what you do and how you would like people to perceive you. You can have more than one title too.

LoanOfficerMagazine.com is holding a contest for the BEST AND MOST UNIQUE TITLES describing what it is that you do. Not only do we hope to find some very creative and imaginative loan officers, the prizes are pretty cool, too! If you already have a great title, we would appreciate your submitting it to us. If you don’t already have a great title, here is your chance to just lock yourself in a room and come out only after you have a title that best describes what you do—or your niche market.

Here are a few examples of some existing mortgage titles to get your creative juices flowing:

Cash Flow Consultant (could mean refinance expert)

Loan Goddess

Mortgage Professor

Prizes include:

1^st Place – FREE Registration Fee for the Turn On Your Million Dollar Brain III Workshop in Delray Beach, Florida from February 6-9, 2003. www.MortgageSpeakersBureau.com/delraybeach.htm. ($895.00 Value. Includes registration fee only. Does not include transportation or hotel accommodations.)

2^nd Place – FREE on-line seminar of your choice from www.LoanOfficerSeminars.com. ($149.00 Value. Seminar must be chosen before July 1, 2003.)

3^rd Place – FREE subscription for one year to www.LoanOfficerMagazine.com ($119.00 Value. Current subscribers receive an additional year free.)

CLICK HERE to submit your entry. The contest ends at midnight on January 2, 2003. You may enter as often as you like as long as your entry contains a different title each time. You do not have to be a subscriber to win. There are no cash values or substitutions of prizes or winners.

Have fun and good luck!

"An Easy Corporate Referral" System That Is Guaranteed To Get You Business Regardless of Interest Rates" demonstrates a simple way to get corporate accounts to endorse you as their mortgage loan officer of choice.

"Take Me Off Your Calling List" by Dave Udy, President of 1^st Money Mortgage shows you how to STOP other mortgage companies from calling your clients.

"Using a "Financial Life-Events TimeLine Chart to Predict Your Client’s Future Financial Needs" describes a database marketing strategy that shows you how to market financial services based upon the age of your client. This is a HUGE break through and another way to set up your database.

Just a reminder! If you pay for your subscription, you will receive a bunch of FREE stuff—14 months’ worth of articles—instead of one year; free audiotapes and CD’s by superstar originators.

Thanks and here’s wishing you a happy holiday!

Karen Deis,

Guerrilla Marketing Publisher.

P.S. Please feel free to pass on to a friend.

Is Your Business Customer-Centric?

Written By: Karen Deis

Self-service gas stations. Restaurants where they hand you an empty cup so you can fill up your own drink. You wash your own car. Self-service shoe stores. The Internet.

Sure, some of these things may be time-savers—like not depending upon someone to find your shoe size in the back room – but it seems that more and more, companies are moving away from focusing on the customer and more on how to get customers to “service” themselves.

My editorial in December on “Concierge Marketing” CLICK HERE TO READ illustrates a trend towards developing an effective customer-centric environment for your clients. Not ALL of your clients mind you, only the top one-third who are “raving fans” that have not only done their last 4 mortgages with you—but refer their friends and family as well.

So what does it mean to be “Customer-Centric”?

It means different things to different people—but can best be described by some examples I would like to share with you.

Customer Clubs

Forming a “club” (not just a network or affinity partnership) of like-minded people shows your customers that you recognize they are unique. A loan originator mentioned she noticed an increase of real estate investors (purchasing single-family and duplexes) calling for mortgage loans. Finding out that she had become part of their “network”, (and that investors talk to other investors), she decided to formalize the relationship by forming a Real Estate Investment Club, inviting her clients and real estate agents who were interested in rental properties.

She made herself president and set up regular club meetings. As a loan originator, clubs can be created not only for your clients, but your affinity partners—like a CPA Club, Financial Planner Club, and even a real estate agents-who-specialize-club ( in resort properties, buyer’s agents, rental properties). Doesn’t being a member of a “club” sound better than being a member of a “network”?

Seminars

Seminars are a great way to generate leads. First-time homebuyer seminars seem to be the norm. However, if you take the customer-centric route, you should consider holding niche-market seminars. Here are some themes you can use:

• Women-Only Seminars – Not only do women think differently than men, they have different concerns when it comes to purchasing a home. Safety. Maintenance-free housing. Location near school, daycare or work. Home warranties. Cash-flow. Credit. All of these things can be covered in your seminar.



• Investment Properties – Personal investments in the stock market, 401K programs and mutual funds have not done so well in the last few years. More and more people are putting their money into real estate again. This unique market has its own set of underwriting guidelines, property appraisal issues and tax benefits so why not create a seminar with your appraiser and CPA to address these issues.



• FSBO Seminars – The National Association of Realtors^TM, in their annual report called Home Buyers and Home Sellers, says that at least 30 percent of home sellers will attempt to sell their own home FIRST, before contacting a real estate agent. However, they go on to say that 4 people out of 5 will eventually list their home with a real estate agent within 60 days of trying to sell it themselves. A FSBO Seminar is just the ticket to not only educate them on how to sell their own home and qualify them for their next home, but it’s also an opportunity for you to recommend them to a real estate agent (of your choice) when they get tired of the hassle.



• New Construction Seminars – Not only will you address the mistakes people make in building a new home (bring in your builder, architect and decorator), but also address construction loans, long-term interest rate lock-ins, overages and how to buy a lot.

Customer Surveys

…and I don’t mean a customer survey at closing! Customer surveys should be conducted on a regular basis in the form of yearly financial fitness forms (As a PAID subscriber, you will be able to download for FREE, a copy of the financial fitness forms. The download is available at the end of February's Mortgage Marketing Minder.) (If you are not a paid subscriber, and would like to receive the financial fitness forms for free, SUBSCRIBE NOW.) You can also offer a free copy of a credit report; or annual telephone calls to your very best customers asking them what’s happening in their life. Are their children getting ready for college? Are they planning to retire? Maybe looking for a 2nd home? On going surveys via the phone or mail will also get your clients thinking about the future—and how you might be able to help them.

FAQ’s

Take a tip from Progressive Insurance—where they give customers up to 3 insurance quotes from their competitors. As a mortgage originator, you would never do that right? Well, Progressive Insurance has found that even WITH providing competitors’ quotes, that they still capture 78% of the leads. This serves two purposes. They are giving an “apples to apples” insurance quote as many times the client does not know exactly what to ask or even how to compare. Secondly, once they have made the decision to do business with you, the shopping stops and you have a loyal customer. As an originator, it would be too difficult to constantly compare interest rates, but comparing loan programs, closing costs or services would be a huge time saving for your clients. Your FAQ sheets could be completed for each one of your competitors and if someone mentions that they are also calling XYZ Mortgage (to compare), YOU provide the info on your competitor.

Taking the customer-centric approach takes more time—but remember it’s only the top 33% of your customers.

The big players in the mortgage industry try to be all things to all people. Even if you work for a larger company—the mortgage business is still all about relationships—one customer at a time.

Copyright, 2004, LoanOfficerMagazine.com

Are Internet Leads Being Ignored? A Recent Study Says Yes!

The expense of generating a lead is enormous! Estimates range from $ 300.00 to over $ 1,000.00 per qualified lead! Regardless of your estimate, there has been a recent study done by both the real estate industry and the national homebuilders’ association that nearly ½ of entire Internet inquiries go ignored!

The survey asked homebuyers what happened when they requested information on homes or mortgage financing via the web. Here are the results:

• 35% received a reply with several hours
• 13% received a reply within several days
• 52% received NO response at all

While many clients did receive replies via "auto-responders," over 50% received no follow up phone call of any kind.

If you co-market with a Realtor® or builder on their Internet site—I would recommend that you do some checking. Your agent or builder may be in the 52% category and you are losing valuable leads because your Internet partner is not even responding to the Internet leads.

Ask for the leads that they receive—regardless if they have inquired about financing! Offer to make some calls on their behalf. You’ll get a pretty good idea from the responses if you have been co-marketing with an agent who returns their phone calls.

So what does all of this tell you? There is a HUGE opportunity out there for you—by emailing or calling these Internet leads. Sit down with a Realtor® or builder. Offer to screen the Internet leads for them. You pass on the information that the client has requested about real estate and you provide the financing information. The synergy that you can create here is enormous. Are you leaving 50% of your income on the table? Someone is! Don’t let the Realtor® or builder control your income!

We encourage you to check out Cindy Douglas’ and David Reed’s articles this month that address this issue!

This is your last chance to enter our contest for the best and most unique title describing what you do—loan goddess, mortgage professor or cash-flow consultant, to give you some examples. The contest ends on January 2, 2003 and there are some really great prizes that will be awarded to the winners.

1^st Place – FREE Registration Fee for the TURN ON YOUR MILLION DOLLAR BRAIN III Workshop in Delray Beach, Florida on February 6-9, 2003.
www.MortgageSpeakersBureau.com/delraybeach.htm. ($895.00 value. Does not include transportation or hotel accommodations.)

2^nd Place – FREE, Online Seminar of your choice from www.LoanOfficerSeminars.com ($149.00 Value. Seminar must be chosen by July 1, 2003.)

3^rd Place – FREE 1-Year Subscription to www.LoanOfficerMagazine.com ($119.00 Value. Current subscribers will receive an additional year free.)

CLICK HERE to submit your entry. If you would like to read more about the contest, it’s more fully described in our editorial of December 5, 2002. (CLICK HERE to view.)

Since we started the magazine about 90 days ago, we have had over 1,000 readers. Thank you for subscribing! If you have an idea for an article, please let us know. If you would like to write a sales or marketing article, we’d love to hear from you.

I would appreciate your forwarding of the Website www.LoanOfficerMagazine.com to your fellow loan officers. The subscription price is only $119.00 per year and is published exclusively on-line, 24 times per year. As a special bonus, if you subscribe right now, you will receive a free audio CD by one a superstar originator, a free audio tape by Dave Hershman on "synergy" marketing, a copy of a Free Report on the Mistakes Buyers Make Shopping For a Mortgage, an audio CD titled, "Songs of Success: Positive Music That Inspires a Life of Winning" and a bonus of 2 extra months’ free. That’s 28 issues instead of 24! (CLICK HERE to subscribe).

We promise to have some exciting and unique marketing ideas for you in 2003 and look forward to helping you increase your business.

Thanks for viewing our magazine! We wish you an extremely successful and healthful 2003! Enjoy your holidays with family and friends. That’s what it’s all about.

Ciao – Karen Deis, Guerrilla Marketing Publisher

What Is The Difference Between Direct Marketing, Advertising, PR and Branding?

Deep down, the importance of brand names has always been known but the word "branding" is an old concept! Back in the early 80’s, the Harvard Business Review said that one of the most important goals of all businesses was to build "brand name" awareness.

What does BRANDING really mean these days? Especially when it comes to "people" and not strictly related to "businesses" or "products"? The answer can be found in this analogy that was published several years ago by Jay Conrad Levinson (but we changed the occupation):

Several loan officers have developed the "branding" genre. Greg Frost of Frost Mortgage created billboards, radio advertising and even purchased a limo (with his name on it, of course) to take clients and Realtors® to closings. Even though Greg has not used the limo for several years, when he meets someone at a party, they always say, "Oh, you’re the guy with the limo."

Dan Smith, Republic Bank, is known in his area as "Dan the Mortgage Man". His claim to fame is placing his picture on grocery carts located in the largest grocery store in town. People walk up to him all the time and tell him that their child sat on his face today!

Co-branding has also been a huge success. This is the synergy marketing mathematical formula that 2 + 2 = 7. Take PepsiCo for example. They own Taco Bell and Pizza Hut. The restaurants are usually located near each other. If you don’t want pizza today, walk next door and load up on tacos. Their delivery trucks show both brand logos on the trailer. But hey, they only serve Pepsi products!

The co-branding analogy for loan officers would be in-house mortgage companies located within real estate offices. However, I have seen huge co-branding successes with a loan officer and a financial planner in one location or next door to each other.

We recommend two books which both can be purchased at www.amazon.com. They are:

The Brand Called You by Peter Montoya

Be Your Own Brand by David McNally

We encourage you to check out the annual TURN ON YOUR MILLION DOLLAR BRAIN III workshop being held February 6-9, 2003 in Delray Beach, Florida. The 3-day event kicks off with a creativity workshop by Ted Coulson and Alice Stickland, authors of WOW! How Did They Do That? Visit www.MortgageSpeakersBureau.com/delraybeach.htm for more registration information. The January 15 deadline is approaching fast!

Copyright, 2003, LoanOfficerMagazine.com

Winners and Contest Entries for Mortgage Titles and Job Descriptions

By: Karen Deis, "High Priestess of Sales and Marketing"

Thank you all for your contest entries of creative titles you can use on your business cards and in your marketing materials. Not only should a title describe exactly what you do (the title "Vice President" really doesn’t say exactly what you do) but a good title is an important step in the "branding" process that needs to take place in the minds of your clients.

Our esteemed panel of judges has selected the three titles they think best describes exactly what a loan officer does day in and day out. However, as an added bonus to our readers, we are also providing you with a listing of ALL the entries that have been submitted—maybe one of those title BEST describes what you do!

The winning entries were:

Submitted by:
Lonna Jean Espedal
US Bank Home Mortgage
Roseville, Minnesota

(Winner of FREE Registration to the TURN ON YOUR MILLION DOLLAR BRAIN III Workshop in Delray Beach, Florida-$895 Value-- www.MortgageSpeakersBureau.com/delraybeach.htm )

Submitted by:
Jerry L. Wible
First Mortgage of Indiana, Inc
Indianapolis, IN

(Winner of FREE Registration to www.LoanOfficerSeminars.com online seminar -$149 Value)

Submitted by:
David Kuiper
Republic Bank
Hudsonville, Michigan

(Winner of 1 Year FREE subscription to www.LoanOfficerMagazine.com - $119 Value)

The following is the complete list of entries. Look them over. Think about it. Maybe one or two of them best describes your niche market and will be an important step in "branding" you as the best loan officer in town.

CONTEST: Do You Have A Humorous Mortgage Lending Story to Tell?

By: Karen Deis, Publisher When I was in the mortgage business, I just could not wait to get into the office. The mortgage business (and your clients) are like "mini soap operas". You hear stories about divorce, marriage, children, bankruptcy and illness. They are true stories and are sooooo "out there" that no one could have made them up, right?

I remember some of the unusual names:

Rusty Nail, Elvis Presley Malone, Harry Bottom (and his wife Edgy)

Don’t forget some of the answers you have gotten on the 1003!

Sex: Yes!

Ages of Children: 28 & 35!

Personal Property Value: $112.00

Because we should all find humor in what we do and because some of these stories are so good they just have to be shared, we are holding a contest for the best funny mortgage story, credit letter or humorous incident that you have experienced while in the lending business.

CLICK HERE to submit your stories. We will compile all the stories received and publish them in a future issue of the magazine. The contest deadline is at midnight, March 1, 2003. You may enter as often as you like as long as you entry contains a different story each time. You do not have to be a subscriber to win. There are no cash values or substitutions of prizes or winners.

We look forward to hearing from you—and keep smiling!!

A Free Report for LoanOfficerMagazine.Com Subscribers…and More!

I just returned from hosting the annual TURN ON YOUR MILLION DOLLAR BRAIN III Workshop in Delray Beach, Florida. If I must say so myself, it was the BEST ever! A special thank you to over 130 mortgage professionals who attended—and especially to those who shared their sales and marketing successes with the entire group! Some of the marketing ideas will be published in future issues of this magazine.

In fact, in this issue, you will find the questions (and the reasons behind asking the questions) from Tim Braheem’s "Page 5 of the 1003 (Loan Application Form)". If you don’t want to make this form up yourself, you can purchase the PDF version for only $29.00. CLICK HERE to purchase.

As a special thank you to all of our subscribers, we are GIVING YOU a FREE REPORT on "identity theft" that you can include in your newsletters, give to clients at the time of loan application or have available in your lobby for everyone to pick up. It is simple to read and as a trusted advisor, your clients will appreciate you providing this information. It is the most comprehensive report on the ongoing epidemic!

Just a reminder—the BEST MORTGAGE STORY CONTEST ends on March 1, 2003. We have received some really interesting stories so far—and we are looking for more. The first place winner will receive my CONSUMER DIRECT MARKETING KIT valued at $395.00. This kit includes FREE coaching. (The kit can also be purchased at www.MortgageSpeakersBureau.com). The 2^nd place winner will be awarded a FREE log-on to our online seminar at www.LoanOfficerSeminars.com with a value of $149.00. Be sure to enter soon. CLICK HERE

As always, we are always looking for sales and marketing ideas to publish. Even if you don’t want to take the time to write one, please call me and we can help you get it published. Call me at 715-426-3647!

Take care and keep warm!

Karen Deis.

"I Often Quote Myself. It Adds Spice to My Conversation."

Humor is an important part of the mortgage business. The business, by its very nature, is stressful to begin with. In fact, I interviewed a person for a loan officer’s position and asked what qualities they thought they possessed that would make them a successful originator. The answer was that they were "able to take on a high amount of abuse and stress." That about says it all!

Looking for the humor is a welcome break from the frantic calls from Realtors®, managing underwriting conditions and meeting deadlines. I suggest that, at the end of the day, you "look" for a funny story or incident—and share that with your strategic partners, just like you would a "letter from the heart" or "success stories". I believe a funny mortgage story would have double the marketing impact and also makes everyone’s day a little better.

Listed below are the stories that were submitted for our HUMOR CONTEST! Like a Reality TV show, we are asking you to vote for your Number One and Number Two favorite stories. We will post the winners in the next issue.

We are "paying" First and Second places:

1^st Place—Winner will receive a Consumer Direct Marketing Kit ($395.00 Value) and free coaching (www.consumer-direct-marketing.com)

2^nd Place—Winner will receive a free "internet-registration" to www.LoanOfficerSeminars.com for a 90-minute, information packed presentation with a SuperStar originator. ($149.00 Value)

Thanks to all of you who submitted stories—and try and find a little humor in everything that you do!

Stories Submitted 1. I had a single woman that was buying her first house. She had a mailing address that was like a Mailboxes, etc. service. She used this address to protect her privacy. The address was not a P.O. Box, but a street address with a unit number. The underwriter did an address search to verify the borrower’s residence and determined that it was not a residential address. She required a letter of explanation from the borrower. The borrower wrote, "To whom it may concern: I do not live in my post office box." 2. My Senior Underwriter’s elderly mother is so proud of her daughter, that she tells all of her friends that her daughter is an under liner! 3. During an application interview, I once asked a lady if she had any liquid assets. She quickly responded, "Yes, I own 10 water shares in the Lehi Irrigation Company." 4. One of the more "unusual" sources of down payments I’ve had was the sale of a $75,000 comic book collection! Talk about hard to value and verify, but we did it. 5. I once had a client sell a parrot to come up with a down payment! 6. A client put "Department of Corrections" as his former employer, "Cabinet Maker" as his position, and left the previous employment income blank. When asked about it, he said they did not really pay him much, as he was an inmate, and had learned cabinet making as a trade while incarcerated. The underwriter asked me if he made any license plates while he was there so that we could put "metal worker" on his application too. 7. I produced a marketing flier template for my loan officers and posted it on our Internet. The template was in Word format so anyone could just type in their name and direct contact information, print and copy. A loan officer called me soon afterward to complain. "I downloaded the flier and I can’t use it," he told me in a not-so-nice tone of voice. "Why is that?" I asked. He explained in a manner that suggested I was an idiot, "…it doesn’t have MY name printed on it, it has YOUR NAME." Well, just to throw back a little attitude myself, I explained, "Here is how you fix it. Get a pen to write this down. Ready? OK, go down to the courthouse and legally change your name to YOUR NAME and presto, the flier works!" Silence, utter silence. Click. 8. A lady called into the office one day asking about different loan programs. She asked about "VHS" loans. She was very clear to say that this was the kind of loan she wanted. I asked if she wanted an "FHA" loan? She corrected me and said, "no, VHS". Needless to say, we closed her with an FHA loan and everything went fine. After closing, I followed up with her and we both got a good laugh. I explained that, if in the future she needed a "VHS or Beta" loan, I would be here for her. 9. Borrower stated: I have been on time with all my payments since I filed bankruptcy at the end of last month. Loan Officer responded: But we can’t help you because of the bankruptcy. Borrower stated: I don’t see why not; I can’t file for at least seven years. You’re protected. 10. I can remember when I started in the business in 1989, and would do house calls. It was about 8PM and pitch dark in a pretty rough neighborhood. I knocked on the door and told the woman I had an appointment with her husband at 8:15PM. I waited for about 30 minutes and finally figured out something! There where no address numbers on the home. They had fallen off! To my surprise, after watching Jeopardy on their TV for 30 minutes, I realized I was in the wrong house!! CATEGORY: Stupid Moments We'd Like To Forget Answer: Not At This House! Question: Where Was My 8:15 appointment? 11. About 2 weeks ago, my loan coordinator called stating that one of my buyers had been terminated from his job two weeks before he made a loan application to refinance. I thought that this is odd but obviously it was a case of a common name, so I called him and he confirmed that yes, he had been terminated. As my mind is racing through several thoughts, he added, "Don’t you remember, you even asked me if I was off today and I told you yes I was." Now trying to keep my cool, I said, "But when I asked you how was work going, you said Great!" To which he added, "Well, it was great for 29 years. Is this going to make a difference," he asked, "because I never would have used you, if I thought that you would actually call and check up on me!" So the moral of this story is…we need to make loans but never really verify anything…ever! 12. How about the guy who worked on a chicken farm, and his VOE came back saying that his job description was "Breeding Technician"! Makes for a pretty funny visual. 13. Several years ago, when I was a loan processor, I sent out a VOE (verification of Employment) on a borrower. She worked at a small manufacturing company and her boss (a male with limited type writing experience) filled out the VOE. Her position? Sexretary! (Not Secretary) That is exactly how he typed it! We got a great laugh at the office over that one! True Story! CLICK HERE TO VOTE FOR YOUR TWO FAVORITES

Karen Deis, Publisher.

More Humor….. And Our Contest Winners!

Funny stories were found on cave walls! Even after all of these millions of years, these stories are being shared! Humor is "social". It’s meant to be shared…shared with your fellow loan officers, appraisers, title company reps, underwriters and yes, even real estate agents.

In this editorial we will "share" with you stories and quips for you to pass along. In fact, you might want to consider faxing or emailing to your "internal network". It is out of the ordinary and will set you apart from all the other loan officers out there.

With appraisals taking an extraordinary amount of time to complete these days, you might want to use the following appraisal to submit to your appraisers! Hey, you might even want to include it in your underwriting package! More appraisal jokes can be found at www.appraisaltoday.com.

Thanks for taking the time to vote for the funny mortgage stories published in the March 5, 2003 issue. The first place winner is Chris Snydal of Boulder Funding, Boulder,CO.with this story. Chris won a Consumer Direct Marketing Kit ($395.00 value) with free coaching. (www.consumer-direct-marketing.com)

The second place winner is David Presnell, Affordable Home Funding in Tampa, Florida. He has won a free online seminar ($149.00 value) offered by www.LoanOfficerSeminars.com.

A client put "Department of Corrections" as his former employer, "Cabinet Maker" as his position, and left the previous employment blank. When asked about it, he said they did not really pay him much as he was an INMATE, but he had learned cabinet making as a trade while incarcerated. The underwriter asked me if he was a "metal worker" too—and if he makes license plates as well!

We hope to have added a little humor to your day! We encourage you to submit funny stories that we will publish from time to time and thanks to all of you who shared your stories with us.

Karen Deis
Laughing My Guts Out!

The REVISED Outlook for Mortgage Lending 2003…I Wish I Knew A One-Armed Economist!

Have you ever heard an economist say, "On the one hand—the economy is the best it has ever been—but on the other hand……" Let’s give some serious thought to requiring economists to speak with one arm tied behind their backs.

Then there is the economist who was asked what he thought the future of the economy would be? He replied, "One things for sure—history will repeat itself."

I recently attended the Mississippi Annual Convention of Mortgage Bankers and heard David Berson, Chief Economist for FannieMae talk about the REVISED forecast for the housing market and mortgage finance markets.

The original forecast was that purchase transactions would remain steady—but loan origination activity would DECREASE by over 30%.

But, "on the other hand…" FannieMae is saying that loan originations will INCREASE approximately 19% (from 2002 levels) to a total of $3.2 Trillion in mortgage loans for 2003.

The prediction for 2004 is another story. Mr. Berson said that loan originations would decrease from the all time high of $3.2 Trillion to $1.68 Trillion—about a 50% decline. The good news is that existing and new home sales will continue to increase as refinance business goes away.

The other good news is that you have another year to formulate a sales and marketing game plan. The bad news is the same—you only have a year to formulate another game plan, and must attempt to do so between loan applications.

For what it’s worth, my advice is that you enjoy this great mortgage business of ours but sock some of your money away for a rainy day. In a recent online seminar featuring Sue Woodard, she asked attendees to write down their income for 2002. Now, decrease that by 50% (based upon the predictions) and stare at that income number. Can you afford to live on that amount of income in 2004? History will repeat itself.

Start now to develop purchase business (both new and existing homes) by embracing ONE marketing idea at a time. It does not have to be HUGE! Just take baby steps. Set up one corporate account per month. Sign up one union account every two months. Give a first-time homebuyer seminar every now and then.

Whether or not you believe the numbers mentioned above is irrelevant. I hope I got you thinking about your future in the mortgage business. Just remember, "History does repeat itself".

Telemarketing and the Mortgage Industry—A True Story!

Consumers have had enough! They have had enough of telemarketing calls, the lies, the scams, the come-ons from everyone — including mortgage companies.

Why do you think that over 35 states have passed strict laws on the do’s and don’ts for telemarketers? Why have many states started a "Do Not Call List" where consumers can place their name on a list with State agencies? The State of Minnesota passed a similar law recently and on the very first day, over 1 ½ million people placed their name on the list.

I have elected NOT to place my name on these lists—because as a marketing person, I feel that it is part of my "research" to field telemarketing calls and keep track of the truly great opening lines (of which there are very few) especially from mortgage companies.

I am appalled and embarrassed for the telemarketers in the mortgage industry today. My calls range from:

• "Hi, I’m from XYZ Mortgage and with the rates so low, I can help you consolidate your credit card debt." (Whaaat? I don’t have any.)

• "Hi, I’m from ABC Mortgage and I can give you a home equity line of credit." (Why, did I call and ask for one?)

• "Hi, I’m from LMNOP Mortgage and I can give you a great rate if you have bruised credit." (Why would they think that?)

Here’s an idea! Why not try honesty? I am not knocking telemarketing—it’s another method of marketing, but here’s a script that I would appreciate hearing.

Permission Marketing needs to replace the "hard sell" and the "lying". If part of your business strategy is telemarketing—I suggest that you consider re-writing your scripts and begin asking for permission to help clients with their mortgage. This is important to all of us because our industry needs to "market" at a higher level!

What is your USP? Enter The Contest and Win!

Millions of words have been written about why companies (yes, and even individuals) should have a USP—or Unique Selling Proposition! So, what’s the big deal? To put it simply, a USP is designed to separate you from your competitors. And, yes, you can have more than one USP—one for every loan product that you have from A paper, to sub-prime, to jumbo loans. Or you can even have your very own loan officer USP (separate from your company) if you wish.

Here are some dynamic examples of Unique Selling Propositions that we found on the Internet, in printed advertising and on radio & television commercials. One thing they all have in common is that the use their distinct UPS in every piece of advertising.

When I owned Cornerstone Mortgage in South Bend, Indiana my USP was, "We Work for You—Not the Bank". As a mortgage broker, surrounded by swarms of Savings & Loan companies, my USP was developed so that people knew how I was different from all the other mortgage lenders out there.

In our next issue of the magazine, we will discuss a simple method to develop your very own USP. Many of your companies already have one—but do you have one of your very own? Here are a couple of examples of personal USPs:

Deadline for entries is midnight, June 1, 2003. Our distinguished advisory board members will judge the entries. You may enter as often as you like as long as you have a different entry each time. You do not have to be a subscriber to win. There are no cash values or substitutions of prizes. The winners will receive a FREE audio CD by a superstar originator (of your choice) with a value of $129.00. ( CLICK HERE to enter).

Looking forward to hearing from you—and thanks in advance for participating in our contest.

Karen Deis, "Providing Guerrilla Marketing Ideas for Loan Officers". (My USP)

Tell Your Story With Your Unique Selling Proposition!

Ernest Hemmingway said that he could write a story in just six words…"For Sale. Baby Shoes. Never Used." It is a sad story to say the least—but it illustrates the point that you too can write your own "business story" using just a few key words.

However, for those of you who do not currently have a USP—or if you wish to enhance the one you already have, we have a few tips on how to go about creating your very OWN Unique Selling Proposition—or tag line. Your USP reinforces your IDENITY, sets you apart from your competition and tells the public exactly what it is that you do!

The first step is to decide what it is you want to COMMUNICATE to your clients. Ask yourself these questions. You do NOT have to incorporate all of these answers into your USP. Choose the one that sets you apart from everyone other loan officer in the world.

Then, prepare to brainstorm. The more words you come up with, the better—use verbs, nouns and adjectives and write each word on index cards. You can do this solo, but it’s best to gather a few select people to help you brainstorm here. Use the Thesaurus. Come up with 50-75 words.

Try combining the words on your list. When an idea looks promising, write it down. Add your own name to it if you can. Does is "suggest" a homonym or a pun?

Marcia Yudkin, President of Creative Marketing Solutions (www.yudkin.com) advises us that creative words make you think of "what the best ones of different sorts" are called, such as king, big fish, pinnacle, mogul, goddess, queen, master of, biggest or best! She advises that you can also try out rhymes—like Vacation Station or Dan The Mortgage Man.

One last piece of advice: make sure that you check out the legality of the USP you select. Oftentimes, mortgage companies and loan officers are trade marking and/or copyrighting their USP. You can run a preliminary check to see if someone else has used your USP (and has officially trademarked it) at http://www.trademarkinfo.com.

Once you have created it, use your USP on everything that you do, including your business cards, letterhead or signature line, your post cards and yes, even your email signature. You may also wish to add to your picture. You can have more than one USP. Let’s say that you specialize in Jumbo Loans and New Construction. Develop two USP’s and use one or the other—depending upon the client!

Creating a USP is not the easiest thing in the world to do. But, I assure you, that once you have developed it, it will make a huge difference in your business.

And the Winners of the Best USP/Tag Line Contest Are…

Thank you for submitting your Unique Selling Propositions/Tag Lines. We received 128 entries, and it was extremely difficult to choose just 5 winners. So, we have listed the judges’top 5 picks and the top 10 honorable-mention winners.

But, before we do that, consider looking outside the mortgage industry to develop your very own, unique selling propositions or tag lines. You can then develop your marketing campaigns and sales strategies around them.

There are currently 2 companies whose marketing and tag lines could easily transcend into a mortgage-business strategy.

The first example is Progressive Insurance! Their most recent billboard tag line is "Fat-Free Insurance Rates". What if it was changed to "Fat-Free Mortgage Rates"? You have yourself a tag line and a marketing campaign. I can see this working with flat-fee closing costs or zero-zero-zero mortgages (where you increase the interest rate to cover your origination fees and closing costs). And, really thinking outside the box, you could create variations of the programs calling them "Cholesterol-free Home Equity Loans" or "No Additives/No Preservatives Flat Fee Closing Costs".

The second concept relates to the recent commercials for GM Cars (all makes and models). The following is a sample of the GM ad from their website, but what’s really ties the campaign together is the music—it’s from the song "Paradise By the Dashboard Lights" by Meatloaf and the phase from the song is "Let Me Sleep On It".

Spend some quality time with a GM vehicle. Introducing the GM 24 Hour Test Drive Making up your mind on a new vehicle purchase can be pretty difficult.Wouldn’t it be great if you had more time to think about it? Well, now you do. Spend an entire day and night with one of our vehicles. Use it as you would your own vehicle and then sleep on it. When you wake up and see it sitting there, you’ll know that it’s the right choice for you.

You could easily adapt this to your mortgage business as well. Imagine telling your clients that you provide a "24-Hour Mortgage Test Drive" where they can take their paperwork home and review it for 24 hours and then make their decision. Now, you might be saying to yourself—"what if my clients shop around during that time? What if they decide to cancel? Hey, they are going to do it anyway—with or without the 24-hour Mortgage Test Drive. But in reality, what will happen is that you gave them the "chance" to live with the paperwork (decision), and you will decrease your fall-out ratio. Why, because you gave them time to "sleep on it" and "make their decision in the morning" (as the song goes).

Now, you might be saying to yourself—"Karen, are you crazy?" "This is waaaaay out-there." In order to be "noticed", you have to be—and do something different. Looking outside the box (the mortgage box that is) and at other industries (related to the mortgage business or not) will help you develop your very own USP or tag line—or even marketing campaign.

OK, now on to the contest winners! These USP are copyrighted or trademarked—which means you will not be able to use them for your own USP. However, this is to give you an idea of how you might change the words or the concepts to fit your very own USP or tag line.

The top 5 picks win a FREE audio CD recorded by a SuperStar Originator based on one of their most popular sales and marketing LIVE presentations.

Top 5 USP Entrants:

• Because it’s a Jungle Out There © Pat Hill, Tiger Mortgage, Inc.
• Where Your Family Comes First © Sheryl Jensen, Family First Mortgage Corp.
• We Do Your Homework © Lynn Hogan, Family Mortgage Group
• The Home of Truth, Justice and a Mortgage You Can Brag About © Ruby Mason, Four Corners Mortgage
• Moving at the Speed of Excellence © Guy Keith, American Pacific Mortgage

And the Honorable Mention—well—receives an honorable mention. They are as follows:

• Closing Loans. Building Relationships. © Craig Ackerman, BLS Funding Corp.
• Building Generations of Comfort © Michelle Howe, Prestige Mortgage
• Your Home, Your Equity, Your Choice © Alex Beaujean, EQUITYLINQ
• Simple as 1, 2, 3. Leave the Rest to Me! © Sherri Mulholland, National City Mortgage
• From the Kitchen Table to the Closing Table. © Kim Delman, HomeKey Mortgage
• Service, Go Where No Customer Has Gone Before. © Mike Marlowe, Security Mortgage
• Is Your Lender Less Than Ideal? © Jennifer Vacchio, Ideal Mortgage Bankers Ltd.
• NO is negotiable! © Andre Gonzaque, Ginger Mae Financial Services
• Wholesale Home Loans. Heroic Savings. © Bill Norcross, Ranger Financial Corp.
• Experience the Difference of Diversified Financial Mortgage © Regina Penman-Garcia, Diversified Financial Mortgage

We thank you for your entries and hope this gives you some ideas on how you can position yourself as "different" in the eyes of the consumer.

Karen Deis, Publisher

Buying Mortgage Leads—Think Twice (Maybe 3 Times) Before Spending Your Money!

Let me begin by saying that the lead generation/list sellers of leads (to mortgage loan officers) will probably never speak to me again, but I want to tell you my experience of "getting placed on one of those so-called HOT LISTS."

It all started when I received a fax advertising a 3.35%, 15-year fixed rate (there was no APR disclosure either). The fax provided no loan officer name, no mortgage company name—just a phone number.

As the true guerrilla marketing person that I am, I called the number to find out more about the mortgage deal of a lifetime, and gave them some information over the phone (name, address, phone number, mortgage balance—and that was about it!). The person at the other end of the phone told me that they were NOT a mortgage company, but that they collected information for mortgage companies and would pass my name on to those companies who would be able to help me (like they even asked enough questions to help me in the first place).

A few days later, I received my first (of many) telephone calls from a loan officer employed by one of the largest lenders in the US. The loan officer had the basic information that I had initially provided (that was my first clue that my lead had been sold), asked me a few more questions, but when I asked about the 3.35% rate, he went "silent" and really did not know what to say. I asked about closing costs, points, how long it would take to refinance (you know, the usual stuff) and asked for a good faith estimate to be faxed to me.

Within the next 2 weeks, I received no fewer than 8 telephone calls from loan officers who purchased the same lead from the list company. A handful of these loan officers were brand new to the business and really did not have a clue that they were about the 5^th person to call me.

What I found interesting is that the very FIRST loan officer to call me was from one of the largest mortgage companies. Now, it may be a coincidence, but my thought is that someone is paying top dollar to be the FIRST person to buy that lead. Are the larger mortgage companies getting first dibs? Is there a preferred list of loan officers? Just thinking out loud!

So, my advice, for what it’s worth, is that if your business plan depends on purchasing leads, you insist that you are the FIRST loan officer to purchase it. Even though you may be paying MORE money up front for the lead, it’s worth it to be the FIRST loan officer to make the call. Buying "mortgage leads" is an "art" and it seems like you should ask a few questions before plunking down a wad of cash.

The same story also applies for the mortgage refinance offers sent by email. The e-mail solicitation lists NO mortgage company name and tracing the source of the email in next to impossible.

Quite a bit of this SPAM is generated by list companies and I believe they make mortgage companies and loan officers look like used-car salesmen—only it’s over the internet and not jumping up and down in the auto dealer parking lot on TV.

My belief is that the list companies are lowering the perceived integrity of the mortgage industry by generating leads via SPAM over the Internet - all in the pursuit of generating lists!

By the way, I’m still waiting for the faxed good faith estimate.

Positioning Yourself To Work With Realtors (AGAIN)!

By: Karen Deis, Publisher

I just returned from attending the National Assocation of Mortgage Brokers' Annual Convention in Baltimore! As busy as everyone is these days - this was their biggest show ever, with about 5,000 attendees and over 400 exhibit booths.

So, why would so many people attend - if they have more business than they can say grace over?

In speaking with loan officers, company owners and wholesale reps, one clear messgae was conveyed - they are concerned about the future of their business when the refinances dry up and blow away like a tumble weed!

Some of the speakers talked about building your database; some spoke about customer referrals; and quite a few talked about how to get back into the "purchase market" mindset - which means, working with Realtors^TM.

Some of you might be saying to yourself - I'd rather eat worms than work with real estate agents again. Some of you have never worked with Realtors^TM (just refinancing your guts out), but some of you have been working with them all along. No, you don't have to bite the bullet and pass out rate sheets and cute trinkets again - it's a matter of POSITIONING yourself with real estate agents - where you become their trusted source for mortgages.

Just like any other career, many real estate agents "specialize"! From listing agents, to buyer-only representation; from first-time homebuyers to ethnic groups; from relocation specialists to real estate agents specializing in the "baby-boomer" market - you might start by finding a "niche-market" real estate agent to work with.

Many of the NAMB speakers - including Greg Frost - said that the positioning process should begin by becoming their "teacher, consultant, advisor", and showing them how to get more business. This can be done with Realtor-type newsletters or through a series of training sessions. Greg has a system where, when he gets a good customer survey back from a client or a real estate agent, he sends a copy of the survey to the agent's sales manager bragging about the good job that they (both Greg and the agent) did. After sharing 2 or 3 surveys with the manager, he asks if he could hold a sales meeting. Not just ANY sales meeting, but a training session on how he can help them get more listings. To purchase Greg Frost's survey questionnaire, CLICK HERE.

Now, here is your chance to position yourself within the real estate community with an online seminar being held on Thursday, July 17, 2003, featuring Linda McKissack, Keller & Williams Real Estate Company, Texas. Linda is one of the top listing agents in the country, and she carries 50 to 60 listings per month.

www.LoanOfficerSeminars.com is providing an online seminar featuring Linda, and what she has done to become a top listing agent. This is your opportunity to train your real estate agents, feed them pizza and cokes (any kind of food will do), log on the web and listen to the 90-minute conference call with Linda about how she is able to list 50-60 homes per month and the simple system she uses. As a free bonus, Linda will email her 90-page listing booklet, which you can duplicate and give to all those realtors who came to your office. (Consider this as your follow up call to meet with them again, ask for their business and give them the booklet.)

While you could always hold the online seminar in the real estate office, I wouldn't recommend it. You want them to become familiar with your office, staff and location and what better way than to have them come to your office. (Plus, you are able to invite agents from other offices too.) Here's a party check list for you to start on:

1. Send a personal invitation - via mail or email if you can.
2. Distribute "admittance tickets" along with a map to your office.
3. Call Sales Managers and invite them individually.
4. Serve food!
5. Start about 45 minutes to 1-hour earlier than the seminar, to give yourself a chance to mingle and eat.
6. Collect their email addresses, as the 90-page boklet that Linda is giving free, will be emailed to you. (However, you could also print and distribute the booklet when you setup a follow-up with the agents that attended.)
7. Send thank you notes!
8. Email (or deliver) "Listing Your Way to Success" Booklet.

For more information on the seminar contents and times throughout the country, log on to www.LoanOfficerSeminars.com to register. The one registration fee of $169 is specific to location, so you can only be logged on using one computer. It's another reason why you have to control the seminar - and location of the event.

If the thought of calling on real estate companies makes you sick - this is the perfect way to "have them call on you" with an online seminar designed to help THEM increase their business - held by one of their peers!

Consider transitioning into working with Realtors^TM because they still play an intregal part in 87% of all purchase transactions. It may just be the future of your business!

What Does Exceptional Customer Service and Alaska Have in Common?

By: Karen Deis, Publisher

My son Matt and I just returned from vacationing at a wilderness camp located 100 miles within the Denali National Park in Alaska. Camp Denali is open from May 30 to September 1 (about 90 days annually). The 100-mile trip into the park takes almost 7 hours (by bus) on a single-lane gravel road that is cut into the side of the mountains. The modest cabins don't have electricity or running water. The main lodge and kitchen operate by gasoline generators. There is one pay phone, no fax, no Internet service and no TV or radio.

The camp is considered one of the most sought-after lodges within the park. It can accommodate only 30 people per week. You can't leave - the bus arrives on Monday and there is no way out until Friday. And, the temperature averages 60 degrees and it rains quite a bit.

Leaving the camp after our 5-day stay - my son commented: "Mom, that's the best customer service I have ever experienced!" My son is 17 years old--and even at that age has become an astute consumer.

Let me tell you why!

When we arrived at the main lodge, the staff was introduced. Most staff members either had a Masters Degree or a PhD in Biology, Natural History or Geology. However, their positions at the camp were not as glamorous - cooks, guides, mechanical repair, and drivers.

Then it was our turn for 30 of us to introduce ourselves. From that moment on, every single staff member remembered each and every one of our names! Impressive to say the least.

Each family was escorted to their cabin with an explanation of its location to the lodge and dining area. The log cabin was not more than 15 X 20 feet, yet time was spent showing us "around" - how to use a propane lantern; how to use the wood burning stove and the most important, filling out the comment book before we left!

The food was gourmet - actually more than 5-star quality! The chefs introduced themselves at each meal, told us what we would be served and how it was prepared. The presentation of each course was exquisite.

As far as activities go, there was never a lack of choices. They ranged from easy to strenuous hikes, fishing, canoeing, panning for gold, lecture series and a library stocked with books.

The most amazing thing to me was that out of the 30 "campers", 14 were repeat customers and 8 were referred to the location by someone who had been there. Matt and I found Camp Denali on the Internet - and choose the lodge because of its wealth of information provided.

What does this all have to do with the mortgage business?

Exceptional customer service has nothing to do with buildings, brochures, office furniture or great interest rates.

It has to do with education - learn everything you can about your mortgage business and get your Masters Degree in "mortgage lending".

It has to do with choices - give your customer options - not just 15 or 30 year fixed rate mortgages--maybe a home equity loan or an 80/10/10 alternative.

It has to do with presentation - provide your clients with computer-generated scenarios or specific financial advice - presented in an easy-to-read format.

And most of all, it has to do with PEOPLE - REMEMBER to send thank you notes, newsletters and referral gifts. Be sure your database is up to date so when past clients contact you, you can recall their financial history with you.

Make your clients' mortgage experience a memorable one and you will have more business than you "can say grace over". It's all about the experience!

By the way, the camp is booked 2 years in advance!

Karen Deis, the Denali Diva

How Do You Treat Your "Paycheck"?

Written By: Karen Deis

Look up the word "CUSTOMER" in the dictionary. It says: "the person who PAYS you".

The real estate agent does not pay you! The builder does not pay you! In fact, your company does not pay you. The company is a clearinghouse for collecting the money from a customer and writing the payroll checks. The people who put the money there - in the bank account - are your customers.

In Jeffrey Gitomer's newest book www.amazon.com called Customer Satisfaction is Worthless; Customer Loyalty is Priceless, he provides 12.5 thought-provoking question and action steps you can use to evaluate just how successful you are in developing customer loyalty. (I will talk about 7 of them in this article.) I encourage everyone in your company to read these questions. I am going out on a limb here, and suggest you hold a meeting to discuss each question and action step.

Customer Loyalty or just Satisfaction?

First Year Anniversary Reflections!

Written By: Karen Deis, Publisher

It's been one year since LoanOfficerMagazine.com hit cyberspace. It's still the only mortgage sales and marketing e-zine exclusively for loan officers (and published by a loan officer who has been in the mortgage trenches). And, it's the only one to provide step-by-step ideas, along with actual examples of marketing letters, reports or newsletters. No other mortgage magazine, printed or cyber, can make that claim.

We wanted to reflect on how the e-zine has evolved but, more importantly, sincerely thank you for your comments, ideas and support by subscribing.

First of all, as a subscriber, you now have access to all the archives with over 100 articles available!

We have held contests and awarded valuable prizes worth thousands of dollars.

Audio has been added to the site.

We have provided LIVE links to important websites, so you can click thru and research while reading one of our marketing articles.

And, we have added inexpensive sales and marketing systems you can purchase -along with the article explaining how to use them effectively.

As a special bonus with our anniversary edition, we would like to reprint the top 5 rated articles - articles that may not have been as important when they were first published, but may have a significant impact on your business today, especially with the change in interest rates.

The Top 5 Rated Articles Are:

• Know Your Clients, Know Yourself!
• How To Help Your Clients Negotiate The Lowest Possible Price For The Home They Buy.
• How To Demonstrate "Net Effective Payment" To First-Time Home Buyers
• An Easy "Corporate Referral" System That Is Guaranteed To Get You Business Regardless Of Interest Rates!
• Provide Added Value To Clients & Real Estate Agents Using A Simple Marketing Analysis.

Gratefully Yours,

Karen Deis, Publisher

P.S. If you know of anyone in your company who you think might benefit from subscribing to LoanOfficerMagazine.com, I would appreciate your referring them to our site. Please email to a friend by CLICKING HERE.

Contest for the BEST Email Signature

Written By: Karen Deis

While the subject line and content of your email messages are extremely important, there seems to be less attention paid to the signature block of email messages. Granted, your email signature may not be as important - however, a great signature line can set you apart from your competitors - with your clients, Realtors^TM, builders and affinity partners.

Just "signing" your name is not enough these days. I have seen some absolutley stunning email signatures that were highly effective and professionally done.

Here are some examples from some of the emails I have received:

1. My complete email signature, including the "Click-thru" audio messages (which you can listen to by clicking on the play button) as part of the email signature, is as follows:
Karen Deis Foundation Marketing, Inc. 327 Soo Line Road Hudson, WI 54016 Phone: 715-426-3647 Fax: 715-426-3649 Email: deis4@aol.com
Affiliated Sites:
www.MortgageSpeakersBureau.com www.LoanOfficerSeminars.com
2. Internet "Click-thru" to a phone number that automatically dials your office
3. Name of processor, closing agent and assistant with phone numbers
4. Unique Selling Proposition slogan
5. Loan officer's picture

Therefore, we have decided to hold a contest for the BEST EMAIL SIGNATURE block! Submit your entries by midnight, October 1, 2003 to be eligible to win. The 1^st place winner will receive a FREE, online seminar featuring Chip Cummings, entitled, "E-Commerce: The Power of Recruiting and Retaining Customers For Life", on Wednesday, October 22, 2003. The online seminar is hosted by www.LoanOfficerSeminars.com and is a $169 value.

The 2^nd and 3^rd place winners will receive Harry Beckwith's audio book "Selling the Invisible". Harry Beckwith is a best-selling business book author, whose book have been in the Top 10 of the New York Times Best Seller List. Harry is our featured speaker at our Fourth Annual TURN ON YOUR MILLION DOLLAR BRAIN Workshop, to be held February 4-7, 2004, in Delray Beach, Florida. For more information about the lineup of fantastic speakers, and the workshop's events, please go to www.TurnOnYourMillionDollarBrain.com.

There are 2 ways to enter the contest. You can submit your entry HERE and insert your signature line or you can email me at deis4@aol.com with a short message that you are entering the contest and include your signature line.

You do not have to be a paid subscriber to win.

Thanks in advance for sharing your email signature with us, and we encourage you to enter the contest. We will be sharing the best-of-the-best email signatures with you in our October 5, 2003 issue.

You are all winners!

Karen Deis

Change!

Written By: Karen Deis, Publisher

The Winds! The Tides! Your Job! Your Career! What they have in common is that they all "change". In the mortgage business, "change" is its middle name.

You know what I mean? It can make you crazy - or you can welcome change as an opportunity to grow - both personally and in your business. We have defined areas where the mortgage business changes constantly and have added some tactics to help you adjust to change.

Loan Program Guidline Changes: This is the easiest to accept. Learn and master the changes and determine what new, competitive advantages these changes bring. Look for ways your customer will benefit from these changes.

Rates change 5 times a day: The rates go up - the rates go down. Stop focusing on rates and talk value. Talk about a mortgage as an investment tool. Talk about real estate as an asset. Work with a financial planner or CPA to illustrate the value of investing in real estate (such as rental property, commercial property or a second home).

Market Conditions Change: The demand for refinances decrease. Your real estate referrals dry up. Constantly work to increase your customer base. Network more. Sell like your career depends upon it (it does). Start an hour earlier or stay an hour later - not for the sake of time - but developing a marketing plan.

Competition Changes: Your competitor lies about their rates. They talk trash about you. You find that your competition has stolen your best referral source. FIND OUT WHY. Make the changes necessary so that this never happens again. Then, find out where your competitive advantages lie, and learn to sell AGAINST your competition. (See the archived article aboput spying on your competitors, "Know Your Clients, Know Yourself.") CLICK HERE

Customer Base Changes: Your best real estate company is bought out by a company who owns their own mortgage company. Your best referral source moves out of town. Your favorite real estate agent retires. Don't ever leave "well enough alone". Become vigilant about adding new people to your database and developing new relationships - DAILY.

Pay Changes: With the decrease in refinance business, your paycheck may certainly suffer too. Look beyond the paycheck and ask yourself if your mortgage career will lead to long-term job fulfillment. Figure out what the mortgage business really means to you in a work-load, and dollars-per-hour worked, and see if you should change - change companies, start your own mortgage company - or just quit and do something else.

Staff Changes: Just when you thought you knew everything about Underwriting 101, the underwriter quits and the new underwriter interprets the regs differently. People come and go. It can cause a lot of stress in your life. Look at the "reason" for the change. Why did the change take place? Determine how you are going to react to it.

Personal Growth Change: Marriage. Divorce. Death. Too much debt. Look at how it's affecting your business. Listen to positive tapes, music (www.Dare2BU.com) and attend seminars whenever you can. It will take some extra effort - but you will need to FOCUS more than you ever have in your life. This is the hardest "change" you will ever have to deal with.

Now here's the rub: You cannot affect change - it affects you! It's how YOU handle the change that will make the difference between your being successful or quitting.

• Understand the changes (no knee-jerk reactions)
• View the change as a challenge and learning experience
• Focus on your ability to compromise
• Maintain a positive attitude
• Don't allow change to divert your focus and drive to succeed
• Speak about the changes in a positive way
• Don't join the "pity party" group
• Suggest solutions and compromises

According to Jeffrey Gitomer, "Your ability to accept change is at the fulcrum of your ability to succeed."

Different Is - As Different Does!

Written By: Karen Deis, Publisher

The Situation: The mortgage landscape has more competition than ever before - twice as many loan officers chasing about half the business. The types of mortgages are virtually endless. The consumer is more reluctant than ever to make a decision. It has made the "buying cycle" longer. And to top it all off, the price competition is so intense that we are cutting our commissions just to bring business in the door.

Mortgages are a "commodity" and the marketing "messages" are virtually identical.

The Dilemma: The consumer is unable to determine whether any of the products or even services that mortgage companies offer are better or worse, or any different from any other offer. Just take a look at the ads in the real estate magazines. The TV commercials. The voice mail greetings. The email signatures. They all look the same.

Why do you think the Internet is soooo popular? It's because people are looking for information. Information to educate themselves on the nuances between mortgage companies or loan programs. Consumers are trying to determine how easy it is to do business with you. Something as simple as returning a phone call within 30 minutes or answering an email may make the difference. (Did you know that only 7 out of 10 customer phone calls are ever returned, and only 3 out of 10 emails are ever answered.)

The Reality: These are 3 truths that you need to know.

1. All businesses want one thing - CUSTOMERS.
2. All customers want one thing - THE BEST DEAL.
3. Your marketing should do just one thing - ARTICULATE WHY YOU'RE THE BEST DEAL.

LOAN OFFICERS - Articulate why you are different. Here are some suggestions:

1. Change your "image" ads in your local homes magazines to "information" ads. Offer a 25-year fixed rate mortgage (instead of the 30-year fixed rates) with the headline that screams the difference between you and the competition.

"Do you know why mortgage companies and banks won't tell you about OUR 25-year fixed rate mortgage option?" "It's because they don't want you to save over $32,000 in interest expenses - that's why!" Just compare the difference: Term Loan Amount Interest Rate Payment Interest - Life of Loan 30 Year $150,000 5.75% $875.36 $164,410 25 Year $150,000 5.75% $943.66 $132,097 Yes, the monthly payment is $68.30 higher with a 25-year fixed rate, but the interest savings is $32,313 comparing both loan types. Call me and let me compare you loan amount for you too. I'm sure I can save you some money!




Check out www.MortgageCoach.com for a fantastic software program which allows you to compare not only mortgage programs, but tax benefits, and returns on investments.

2. Increase your chances of getting clients to call you - by including your phone number within your email address. Not just any phone number, but one that automatically dials your phone number thru the Internet, with a message within the body of your email that says, "CLICK HERE TO TALK TO (YOUR NAME)."
   
   Check out www.DavisTelecom.com. If you are bragging about the great customer service you provide - this is one tool that will prove to your customers they don't even have to pick up the phone to call you.



3. Want to "talk" to your customers thru the Internet? With www.AudioGenerator.com, you can record a message and "paste" it to your email (here's an example.)
   
   When they open your email, they simply click on the special LINK and they listen to you speak rather than reading an email. And, it's not only for your clients, but real estate agents, builders and title reps to update them on a file. Just think about the possibility of sending an AUDIO newsletter! If you want to be different - this is the ticket!




4. Are you offering a free report in your advertising? Use an 800-number system, such as www.800service.com. Information Now has a special offer for our subscribers. Click on the link, and then click on SIGN UP. At the bottom of the page, you'll be prompted to enter in a special code. Type Karen and it will then bring you to a page where the $297.00 activation fee has been waived for you!

   When potential clients call to listen to your pre-recorded message, you will have the option to be paged immediately; send a fax on demand; or forward the call on to one of your real estate partners. Remember, right now they are offering FREE activiation ($297 value) when you use the link listed above, to register.




5. Here's a tip on how to use the outside of an envelope effectively! I just received some junk mail from "TalkAmerica" ( a new long distance service.) One the outside of the envelope were the words "SBC/Ameritech (my local phone company) hopes you throw this envelope away!"
   
   Just think about the possibilities in your mortgage business. Who is your biggest competitor? Is it Wells Fargo? Washington Mutual? Or even a small bank or mortgage company within your area? Why not use the same type of "headline" when mailing direct marketing pieces? "Washington Mutual hopes you throw this envelope away." Your letter has to demonstrate you are different - so, be prepared to articulate WHY!
   

Suprisingly, very few mortgage companies or loan officers really make more than a token attempt to distinguish temselves from the competition. Read the ads. (I'm a Top Producer; I do all types of loans; I have the lowest rates. Call me. Visit my website. Here's my picture.) You are asking potential customers to give you their business for no justifiable, rational reason other than you are the same as anyone else.

For those that aren't aware, we have been running a "Best Email Signature Contest" during the last two issues of the magazine. The following is a great example of how to distinguish yourself from the competition, and here's the winning entry!

Do something different!

Power Words

Written By: Karen Deis, Publisher

There have been hundreds of thousands of hours invested by the greatest advertising minds trying to figure out what motivates people to buy...anything from washing machines, to apples, to mortgages.

Companies have also paid hundreds of thousands of dollars to develop just the right words to induce people to buy their product. There are "power words and phrases" that are meant to elicit an emotional response and subsequent action from your prospects. When John Caples analyzed the 100 greatest moneymaking headlines, he found that these 10 words appeared over and over and over again. They are listed here in order of importance:

The top 2 words are "you" and "your" which illustrates the importance of addressing your prospects as an "individual". They want to know WIIFM (What's In It For Me).

The use of effective "headlines" to get prospects' attention is a most effective marketing technique. While headlines are traditionally used with free-report marketing, they are extremely effective when used as the 1st sentence in your marketing letter (refer to the article, published in this issue, called NET WORTH CLIENT CAMPAIGN) and post card marketing.

I wanted to share with you some headlines that I have used successfully in my free report advertising (www.Consumer-Direct-Marketing.com).

Headlines or story lines are used to get prospects to qualify themselves - that is, they will call for a free report or more information if the headline applies to them. For example, a 1^ST time homebuyer will not call for information on the headline that says, "Don't sell your home or purchase another one..."

Here are some time-tested headlines and storylines you might want to use:

• Don't sell your home or purchase another one until you read this FREE REPORT on how to save thousands of dollars when you choose the right mortgage!



(This is used to attract second-time homebuyers. When prospects read the headline, it assumes that they have a house to sell.)

• If you've decided to BUILD a new home, don't make the mistakes that most people make when it comes to financing and locking in their interest rate! Call for a copy of your FREE REPORT on mistakes that most mortgage companies won't even tell you about!



(Used to attract new construction loans. It's important that you have a new-construction program in place - or the ability to lock in the interest rate for at least 6 months.)

• Did you know that for as little as your 1^ST month's rent and security deposit, you may have enough money to buy your very own home? Call for a copy of our FREE REPORT on how to buy a home with little or no money down!



(Used for Apartment Dwellers or those contemplating moving into an apartment. It's not necessarily meant for 1^ST time buyers but to get a prospect to change their paradigm that even if they don't have much money, they could buy a home instead.)

• When your lease is up, do you know where you are going to live? Call for a copy of your FREE REPORT on how you can have your own home instead!



(Use this as a headline or in a letter when mailing to apartment complex occupants. Once a year, they have to make a decision to either renew their lease or move somewhere else. Why not "plant the seed" before their lease is up.)

• Are you embarrassed to apply for a mortgage because your credit has been less than perfect? Your FREE REPORT tells you how you can own a home of your own!



(Use to attract credit-challenged prospects. You have addressed the fear of their embarrassment and you can help them buy a home.)

• Don't even consider selling your home yourself until you know you can qualify for the next home - your FREE REPORT shows you how!



(Use for FSBO prospects. Include the headline in a letter or include this as an "ad" in the classified section of the newspaper.)

Don't worry that the headline is too lengthy. You are asking your prospects to literally identify which "category of buyer" (credit challenged, 1^ST time home buyer) they fall into and the headline or storyline must include a call to action (call for the free report).

Oh, by the way, we have counted how many times we have written the words "you" and "your" within these headlines - it appears 28 times.

Copyright, 2003, LoanOfficerMagazine.com

Automobile University

Written By: Karen Deis

I wouldn't call myself a "Seminar Junkie", but I try to attend at least 3 or 4 seminars per year. While one or two of the seminars are always mortgage related, I make sure that several of them have nothing to do with the mortgage business. Seminars - that have nothing to do with our industry - are where I usually find the biggest break-thrus.

What do I mean by that?

Attending a seminar that has NOTHING to do with the mortgage industry can be extremely profitable and rewarding because it gives you the opportunity to "swipe" successful ideas (used in other professions) - and "adapt" them to your mortgage business!

I had the opportunity to attend a seminar where Zig Ziglar was one of the speakers.

He went on to discuss a concept called "Automobile University". Since loan officers spend anywhere from 1 to 2 hours commuting each working day, why not put that time to good use and listen to tapes and CD's that are motivational, informational or inspirational. Zig went on to say that listening to tapes and CD's for an hour a day for 5 years, is equivalent to two years of college education - at a fraction of the cost.

With that in mind, we are introducing a new feature called "Automobile University" where we will periodically recommend tapes and audio CD's referred by you and our advisory board members that have helped them with both their personal and professional lives.

The very first audio book that we recommend is "Think and Grow Rich" by Napoleon Hill. The audio CD (abridged version) is $16.07 and the Audio Tape (abridged version) is $12.57 at www.Amazon.com. Napoleon Hill was commissioned by Andrew Carnegie to interview 504 of the most successful men in order to find, through their experiences, a success formula that would work for the average man. "Think and Grow Rich" is the summary of his 20-year project for Carnegie. The book was first published in 1937 and many of his observations still apply today.

If you have a favorite tape or CD that you would like to recommend for AUTOMOBILE UNIVERSITY, CLICK HERE. If you would like to find out more information about this months selection, CLICK HERE.

"Part of success is "preparation on purpose." ~ Jim Rohn

"A termite takes little bites - but it brings down a house." ~ Zig Ziglar

I encourage you to make it a point to start your "self-education" today!

Copyright, 2003, LoanOfficerMagazine.com

What Are You Thankful For?

Written By: Karen Deis, Publisher

Our family tradition at Thanksgiving dinner was one where - before dinner was served - and after "grace" was recited - everyone was requested to state what they were thankful for!

Being the oldest of nine children, our Thanksgiving dinners are made up of 32 to 45 people in any given year. So, it takes quite a bit of time to go around the table. In addition to being thankful for our parents, brothers, and sisters, our great country, and you name it, my 5-year old niece stated that she was thankful for the "garbage truck".

While we are thankful to the many people that have been an inspiration to us throughout our lives, this child was grateful for the little things in life too.

I owe thanks and the inspiration for www.LoanOfficerMagazine.com to Mortgage Originator Magazine. As a featured columnist (and highest rated writer) for over 5 years and an advisory board member for 4 years, I felt the magazine did not focus enough for those of us who work on commission and have to market ourselves each and every day. Being in the mortgage business for 28 years, I realized very early in my career that my "major" was "marketing" and my "minor" was the "mortgage business".

Saying it another way - You may be the best and brightest loan officer in the world, but you will go broke if no one knows who you are!

I owe thanks to you, my subscribers for your support, comments, in rating the articles and participation in the contests.

CLICK HERE FOR A MESSAGE

I owe thanks to our Advisory Board Members for your comments and suggestions. And, I owe thanks to Jenna Bennett, our Magazine Director, for making it all happen.

I encourage you to think about your mortgage business this year - and give thanks not only for this wonderful business of ours, but for the miracles that happen to you day in and day out.

Like the processor, underwriter and closer who helped you close the impossible loan.

Like the client who referred you 10 people this year.

Like your family and friends who supported you during the busiest time ever in the mortgage business.

Take a few minutes to reflect - what are you thankful for?

Gratefully yours,

Karen Deis, Publisher

Attention Wal-Mart Shoppers! Apply For Your Mortgage In Aisle #3!

Let me apologize up front for (maybe) scaring the pants off of you, but just when you thought RESPA Reform has gone away and Uncle Mel Martinez has resigned, there is a new threat to the mortgage industry as we know it - Wal-Mart!

I recently attended a mortgage conference where one of the panelists stated that the loan originator population has doubled (and maybe even tripled) within the last 3 years. With all the new faces in the industry today, and a new way of thinking about marketing and mortgages, the prediction has been that there would be a higher percentage of "mortgage veterans" leaving the business. Reason? They won't know how to compete against the new mortgage landscape.

Take my brother-in-law for example. He lives in a small town in South Dakota and got into the mortgage business a few years ago. He decided that he could not compete with the banks and mortgage companies who have been entrenched there for years. So, he asked a local home improvement store if he could move a desk near the lumber department area and provide home equity loan financing for people who are remodeling their homes. He's made over $60,000 "minding" the store 3 days per week.

Here's a twist on a recent Inman News article (where the fear is that Wal-Mart's next step will be selling real estate):

1. Imagine Wal-Mart greeters (loan officers) at every open house.
2. Wal-Mart will force the secondary market to be realistic about their pricing because we all know that Wal-Mart forces its suppliers to offer rock bottom pricing.
3. The masters of efficiency will automate the mortgage process within a year.
4. Wal-Mart will force down loan officer commissions.
5. Wal-Mart's "10-foot-rule" will apply. Whenever an associate is within 10-feet of a customer, the person is to be looked in the eye, greeted and asked if they need any help. Imagine a Wal-Mart loan officer walking around the store soliciting loans.
6. Customers will get a Sam's Club Membership card as a free gift with every mortgage.
7. Bentonville, Arkansas will be the secondary marketing capital of the world.

Now, I don't mean to keep harping about this - but if you hope to be successful and compete against the Wal-Marts or Home Depots of the world, you'll need to think differently.

Do you ever find yourself walking into your office in the morning - with no appointments scheduled - and decide that you were going to develop a marketing piece - just because you had nothing to do that day?

Every month, we will provide you with 2 or 3 marketing ideas, which will be designed to generate leads from past clients and real estate agents. We will also provide you with an explanation on how to develop each. By the end of 2004, you will have a complete marketing calendar you can use year, after year, after year. Check out January's suggestions, or CLICK HERE to subscribe NOW.

Be prepared for the Wal-Marts and the Home Depot's to be your competition because it's not a matter of IF - just a matter of WHEN. Develop your customer loyalty program so when your clients hear the word "mortgages", they think of you first.

Wishing you a great Holiday
and successful New Year!

Karen Deis, Publisher

Copyright, 2003, LoanOfficerMagazine.com

Concierge Marketing and the Next Economy

Written By: Karen Deis

People are stressed. Not enough time. Conscious about how they spend their dollars. Don’t know whom to trust.

With the oceans of information on the net, TV and radio, billboards, and ads on bathroom doors, true marketing people are now realizing that providing even MORE information isn’t the answer.

Instead, more companies are positioning themselves as concierge marketers. In Elliott Ettenberg’s book called the “Next Economy: Will You Know Where Your Customers Are?” (ORDER NOW) He states that we must move from a “consumer” to a “customer” mentality. A consumer is the “user” of goods and services. A customer. is a person who has distinguishable wants, needs, concerns and lifestyles that we need to learn about, embrace and learn how to market to those wants and needs.

Take a tip from a concierge. Hotel concierges are those helpful people who are just inside the front door of the hotel. They answer guests’ questions about restaurants, shows or other happenings. Their “experiences” help guests cut through the mounds of information and save valuable time and money.

A concierge can recommend the best because they have been asked the same questions hundreds of times. Some concierges are so good that people choose to stay in the hotel because of the concierge. When I’m in Chicago, I stay at the Drake Hotel because they can secure theatre tickets for virtually any play I wish to see. They know my name. They know I read USA Today and leave a copy at my door each morning.

So, what is a Concierge Marketer?

At the heart of it, they try to simplify their customers’ lives. They offer helpful tips, tools and knowledge so their clients can navigate thru the mounds of available (and unavailable) information. They know their clients’ wants and needs. They are not afraid to compare themselves to the competition. And, they realize they are not all things to all people.

This is important.

According to Ettenberg, the top 33% of your customers will generate 70% of your income and profits. The bottom two-thirds (67%) will be focused on "needs" rather than "wants" and there's almost no money to be made in "needs" (except for the low-cost providers like Wal-Mart). As a mortgage professional, only concentrate on the top 1/3 of your best customers.

Here are some examples of concierge-type companies to investigate. Swipe and adapt their methods, and incorporate their ideas into your mortgage business.

Progressive Auto Insurance Company:

They provide clients with up to 3 insurance quotes from other companies and ask them to compare not only insurance rates, but coverage terms as well. They don’t always win the bid, but when they do, they know that the client has “chosen” them as opposed to letting the clients “shop around” themselves. They give them a list of questions to ask other insurance companies.

As a loan originator, it’s extremely important to know your competition. (View the archived article, "What You Don't Know Will Hurt You", FREE as a paid subscriber.) Taking the tactic of comparing your company (or loan programs) to your competitors and sharing that info. with your clients, establishes you as a concierge mortgage originator. You make sure your clients are comparing “apples to apples”. Fax or email a list of questions (to your clients) for them to ask other mortgage companies.

Think about the psychology of this tactic? You are telling the client that you are not afraid of the competition, that maybe it’s in their best interest to apply for a loan at a competing company and you have done the shopping for them to save them time and money.

Fearlessness instills trust.

www.Amazon.com:

When you make purchases on this website, your preferences are cached. When you log onto the site again, they have not only created a special page for you showing what you have purchased in the past, but also provide you with a list of “related” products that you might consider buying in the future. They know what their clients “like” and create a “need” for visiting the website again and again.

In the mortgage business, the customer information you “cache” within your database will assist you in creating your very own concierge marketing system. For example, by caching the ages of your clients’ children, not only can you recommend a financial planner who can set up a 529 College Savings Program for them, you can provide a refinance or home equity line if they need the money to send their kids to college several years from now.

www.Reflect.com:

This is a health and beauty website that I have personally used. When you register online, you are asked a series of about 25 questions about your skin type, color of skin, hair, eyes, age, etc. Whatever products you decide to order, it is specially mixed for you and you are given your very own, personal ID; so when you reorder, you are guaranteed the same products each and every time. Not only that, but every few months, you get an email asking if you would like to re-order. Or, you can set up an automatic program where you provide your credit card and your health and beauty products are sent to you on a pre-determined time frame.

The 1003 Application Form contains a wealth of information. But you need to REALLY get to know your customers. Page 5 of the loan application (ORDER HERE) and the Page E (for Expectations) of the loan application (ORDER NOW or DOWNLOAD FREE if you are a paid subscriber) are the first steps you need to take to insure the future of your mortgage business.

If you would like to become a Concierge Marketer, first identify the most common information voids your clients face. Ask yourself these questions:

• During what stage of the buying process are people confused?


• What information do they lack?


• What customer questions do you repeatedly answer?


• What questions do they ask after the loan has closed?


• What is the “customer profile” of your VERY BEST clients?

After you identify and prioritize the answers, design the tools to filter the information for them. Know your competition. Give them the scoop via free reports, your on-hold telephone messages and your website. Ask questions about their needs and wants.

Remember we are living in an ever-expanding universe of information—and it will only continue to grow. As a concierge marketer, you can increase your business by offering clients expert knowledge and timely follow up—based upon their personal preferences and life-time need for mortgage products that will save them time and simplify their lives.

Oh, by the way, each time I order from Reflect.com, I am given a choice of receiving either a long-stemmed rose or orchid stem as a thank you gift.

Wishing you a successful 2004!

Copyright, 2004, LoanOfficerMagazine.com

Do You Fear The Competition?

Written By: Karen Deis

Competition is a fact of life…competition for food, jobs, learning, and mates! You have competition from everywhere and right this minute, you are losing loans that you did not know even existed!

Oh, all right, maybe you know they are floating around out there somewhere, but you may never get the chance to even speak to potential clients because you simply don’t have the advertising dollars that are being spent by the big guys to acquire leads.

Since loan originators are trying to get new business from the same customer pool, the key is NOT to fear the competition, but to compete with them through knowledge of their strengths and weaknesses. Exploit their weaknesses. Promote your strengths.

Take Ditech.com for example.

How can you compete against those incessant TV commercials—24 hours per day and on every single channel?

To learn more, I decided to “test” the hype and personally apply
for a loan with Ditech.com. You know the one with $395 in
total closing costs?

Here’s their “secret” to “low” closing costs—higher rates and poor customer service! On January 6, 2004, I was quoted an interest rate of 6.125% and $395 in closing costs. Yes, I could receive a lower rate, but my closing costs would be $4,000. So, no big secret there right?

In addition, before they would even begin the loan application process, I had to agree to give them my credit card number and authorize a $500 charge to my credit card! At this point - they did not even ask me my name!

I asked what the $500 was for and they informed me that it was to lock in the rate. I told them I did not want to lock in the rate. They stated that it was also for the appraisal and title work. I told them all I wanted to do was be pre-qualified at this time and attempted to give them my name (at this point, they still did not ask my name).

They refused to take ANY information unless I gave them my credit card number. I then asked them to send me the paperwork in the mail and I would send a check (for $500) with the completed paperwork, but again, the answer was NO. It’s a credit card up front—or nothing.

Thinking I called a cranky loan officer, I called them back 2 minutes later.

Sorry! Same deal with the next loan originator—however in just 2 minutes, the rate had increased by 1/4%--for exactly the same loan.

As you can see, it’s a clear marketing ploy to get the phones to ring and to hook the consumer into a higher rate by telemarketers on commission. I'm not judging here whether they are "right or wrong". It's the way they chose to conduct their business.

Armed with information like this (by shopping your competition), you can position yourself to address clients’ questions before they are even asked. You can explain how “the other guys” can make the claims they do and how you differ.

Knowledge is Power!

First of all, determine exactly who you think your local and national “perceived” competition is? Notice I said “perceived” because you are looking at it from the prospects point of view. The perceived competition is the one that has the biggest advertising presence in your market area.

Second, armed with some well thought-out questions, do some mystery shopping to learn exactly how they do business—their strengths and weaknesses. It’s important to do this “shopping” yourself to get a true “flavor” for exactly how your competitor operates.

Third, figure out how to sell against them. Focus on their weaknesses and your strengths. Make sure you have a Unique Selling Proposition (USP) of your own that makes you different or better. (See archived article)

Mention your professional area of expertise and experience when speaking with prospects. Offer references, certifications, etc. Include all this information in free reports. Use it in your seminars and print ads. For example:

What’s the point of me telling you this story? Because your marketing cannot be effective unless you know your competition. And the only way you can do it effectively and truthfully is get it straight from the horse’s mouth.

Oh, by the way, the rate lock with Ditech.com was for 30 days and if the rate expired or decreased, I would have to pay another $500 and start all over again.

Your Mystery Shopper,
Karen Deis

(A special thank you to Don Lanman, Integrated Marketing Communications who assisted me with this article. He specializes in mortgage company marketing and advertising and he can be reached at 561-845-1295 or imc4u1@aol.com.)

Copyright, 2004, LoanOfficerMagazine.com

Building Your Business...One Brain Cell at a Time!

Written By: Karen Deis, Publisher

TESTIMONIALS FROM ATTENDEES

Kevin McGovern, President, Majestic Mortgage

David Kuiper, Loan Originator, Republic Bank

Ralph LoVuolo, Mortgage Industry Trainer

Ken Pederson, President, Aarrow Mortgage

Sheila Smith, Owner, The Real Estate Loan Co.

The 4^th Annual Turn On Your Million Dollar Brain Workshops were held a few weeks ago and here is a recap of some of the Share & Tell ideas that attendees shared with the group.

Almost 170 of the most gifted loan originators from all over the country, and a fabulous lineup of speakers and trainers, showed up for the 4^th annual Turn On Your Million Dollar Brain workshops in Florida. They literally doubled their amount of brain cells - in the area of the brain responsible for sales and marketing - the right brain.

Not only do I want to thank the speakers and sponsors for making this content-rich event one of the absolute best in the mortgage industry, I also want to thank all the loan originators who participated in the famous "Share & Tell Session", where some of the best lead generation ideas were shared.

Here are a few of the winners, and their creative ideas:

Dan Poulos - Food Seasoning (specially blended) with a label showing his picture, contact information and asking for referrals. The label also states that when they run out of the seasonings, to call Dan for a replacement jar. (Thanks Dan for providing a free jar of seasoning to everyone in attendance.)

Leslie Lowery - Business cards printed on the back of a "$1 million dollar bill".

Kim Toland - Appears on a local radio talk show - whose audience is mostly women. She talks about problems specific to women and finances.

Lorcan Lucey - Niche marketing ideas to Hispanics and Women where he presented a series of ads specifically addressing financing issues facing the Hispanic homebuyers and single women.

Chris Vinson - A "Realtor Survival Kit" that he delivers to Realtors at open houses. It's presented in a bag with instructions on how to use the contents. The contents are: Car Wash Certificate; note pad; pen to write purchase agreements; a package of M&M's for instant energy; gum to freshen their breath; stress-squeaky shaped like a house; and his business card with the instructions to give to clients when they need financing.

Sheila Smith - Multimedia business card which is a customized, personalized CD Rom to distribute to high-end clients and Affinity partners. Not only does it include information about yourself, it provides live links to your website and email address.

Mike Moffitt - First-time homebuyer seminars - over the telephone. He discussed how he attracted 1^st time home buyers to "attend"; how it was set up over the telephone, how clients register, what's presented and how he follows up after the telephone seminar has been completed. He averages 30 people per telephone seminar and eliminates travel time and meeting expenses.

Denny Andrews - Presented a series of 6 commercials he produced for television; why he placed them during the morning and afternoon news programs; the cost to produce and run for 3 months. Seminar attendees viewed the completed commercials.

Vivian Feng - When she receives a voicemail from clients thanking her for helping them with their mortgage financing, she downloads the audio to an audio CD and has created a series of testimonials (on CD) she can send out to other clients.

Jack Long (MGIC Sponsorship) - Imprinted golf balls - but with a twist! The golf ball contains the words "$5 Reward for returning this lost ball to XYZ Mortgage Company (with phone number and address)".

And David Kuiper, a 4-year alumnus of the "brain workshops", made a special presentation on the ideas that he has used in his business (from previous "share and tell" sessions) and how he incorporated them into his business over the last 4 years. Eleven of the ideas have made a huge impact in his sales and marketing efforts.

I personally want to thank each and every person (18 in all) for sharing their ideas with the exceptionally brilliant group of loan officers attending the sessions.

And, I would not be able to sleep at night if I did not extend a huge thank you to all the speakers and sponsors for the event. The speakers were:

• Amy Tierce: "Work as an LO, But Think Like a CEO"



• Mike Moffitt: "How to Create Your Own Personal Sales Force"



• Chip Cummings: "Internet Marketing in the Key of E"



• Doug Smith: "Successfully Selling to Realtors^TM"



• Sue Woodard: "Your Database: Making You an Army of One"



• Mike Baker & Jack Davis: "Earning What You Are Worth - Let's Get Started"


• Tom Ward: Special Management Session on Profitablility

And finally, Harry Beckwith (famous author of Selling the Invisible, The Invisible Touch and his newest book What Clients Love.) Harry spoke and absolutely WOWed us for over 3 hours on how to make our business more customer-centric. He shared important ideas on the power of your brand; why integrity is paramount; why you should conduct your business at a break-neck speed; and why each and every customer experience has to be predictable. He shared a story about how a $12M account was lost just because of the way the receptionist answered the phone!

I also encourage you to visit the sponsors' websites. They were choosen as sponsors because of the exceptional and valuable services they provide to help you increase your business.

The purpose of the workshops are

...to re-generate your "brain cells".

...to "brainstorm" with other loan originators from other parts of the country.

...to thaw the "brain freezes" (Florida in February) that seem to keep us in a rut.

...to simply get out of the office and "think" about your business.

After all, you may just be the best and brightest loan originator on the face of the Earth - but if nobody knows about you - you'll go broke!

Your Brainstorming Buddy,

Karen Deis

P.S. Remember Florida next February!

Copyright, 2004, LoanOfficerMagazine.com

Are You An American Idol?

Written By: Karen Deis, Publisher

American Idol fascinates me. It attracts an average of 30 million viewers (and voters) per week.

What if there was an American Idol contest for mortgage originators? Would you win?

And what does the show have in common with the mortgage business? In my own Simon Cowell-kind-of-thinking, there are quite a few comparisons.

Did you know that over 70,000 people auditioned, and less than 200 were sent to Hollywood for even the first cut? Do you know how many loan originators you are competing with in your area? When you receive a phone call or inquiry from a client, you, in reality, are auditioning just to make the 1st cut!

The 32 finalists were separated into 4 groups of 8. Out of 8 contestants in each show, the voters choose the top 2. I believe that group dynamics play a huge part in each show. In the first show, only 1 singer stood out with the rest being mediocre at best. In the 2nd show, the singers were generally, awful. The 3rd show was the best—with virtually ever singer possessing superstar potential.

I think you are as good as the group you hang with. Are your co-workers and friends bringing you down or building you up to do your best?

While Simon, Paula and Randy “comment” on each performance, it’s the public that votes which contestants make it and which ones fade into obscurity. In the mortgage business, it could be your boss coaching you, but it’s the consumer who makes the ultimate decision to do business with you. It’s your past clients who make the decision to refer you or not. The moral of the story: Play to your audience—not the judges.

Not every singer can sing every song. In the mortgage business, you can’t be all things to all people either. You need to choose which genre—or niche market—that is suited to your personality, education and interests. Become KNOWN for one thing in your market place—do it well and you’ll see your income and “idol status” soar.

Idols are “created” and not “born”. They have coaches. They have publicists. They improve with each performance. Consider each phone call you receive as an audition; each client as a voter; your knowledge of the industry (niche) market, as your genre and make a concentrated effort to improve your sales skills with each performance.

Break a leg…Karen Deis, Publisher

Copyright, 2004, LoanOfficerMagazine.com

Is This Marketing Letter Deceptive?
Your Opinion Please!

Written By: Karen Deis

A few months ago, the mortgage industry experienced a triple whammy -

1. Interest rates increased
2. Do-Not-Call Lists
3. Anti-Spam Legislation

Loan originators and mortgage companies struggled to fill their pipelines—and literally stay in business. With that being said, one of the last marketing bastions for loan originators to generate leads is DIRECT MAIL.

Peruse the Internet! There are about as many direct-mail companies, articles and ideas as there are stars in the sky (or about 11 million on a Google search). However, there are some direct mail pieces that almost cross the line of being misleading, deceptive, and ambiguous. It’s this type of direct-mail marketing that gives the mortgage industry a black eye and ranks us right up there with the public’s perception of a used car salesmen.

The mailing piece that I’m about to publish was recently sent to a friend of mine. Now, we are not talking about a 16-year old here—but a professional who received this and actually thought this was some sort of notice from the government notifying her that her mortgage company was charging her too much money on her mortgage payment.

Here’s the piece and you can judge for yourself:

In a previous article, Page E of the 1003, I talked about a “white paper” produced by the CFI Group where it was determined that among financial institutions and insurance companies, mortgage lenders ranked the lowest in customer satisfaction and trust.

I believe it’s marketing pieces like these that not only make consumers suspicious of all mortgage lenders, but are so borderline that it deserves to be published and exposed so that you, the reputable mortgage loan officer, know what’s going on – without you even realizing it. By knowing what your customers are receiving in the mail, only then can you develop a strategy to neutralize the effect it might have on your business. If I were still in the mortgage business today, I would mention it in a client newsletter and actually publish the “letter” and say, if you get a letter like this, please call me. It’s deceptive and misleading.

If anything, by exposing your competition, you have notified your clients and subtly told them that you don’t do things like this…you are truly their trusted advisor!

The Direct-Mail Market Police, Karen Deis

Copyright, 2004, LoanOfficerMagazine.com

RESPA Cracking Down On Kickbacks and Referral Gifts

Written By: Karen Deis

“RESPA Reform Is Dead” has been in the news, the Internet and both mortgage association and Realtors ™ heralded its demise. Even if it would have passed, the one thing that would not have changed is “Section 8: Kickbacks, Fee Splitting, Unearned Fees”.

Do a Google search (RESPA Kickbacks) and you will find 3,960 articles on the subject—half of which are about kickback schemes and fines levied by the RESPA Police. (We have published some of them in this article.)

HUD has made an example out of the large mortgage companies, title companies and real estate firms.

Here are some of the things that you might have heard mortgage speakers saying what they have done to generate business—which is specifically prohibited by RESPA:

• Taking real estate agents (who have referred you business) to real estate seminars and paying for their admission ticket!
  
  
• Paying for Realtors^TM listing ads in real estate magazines and newspapers.
  
  
• Providing toll-free numbers and call-capture numbers in exchange for referrals.
  
  
• Holding a Referral Contest (where everyone who referred a lead to you is entered into a drawing for a gift or a dinner).
  
  
• Giving sporting event or theatre tickets in exchange for referrals.
  
  
• Giving a party for everyone who has referred you business.

Now, please note that the key word here is “referrals”. If you hold a client appreciation party for ALL of your clients, regardless if they gave you a referral or not, you are NOT in violation of RESPA.

The key to this whole thing is the discriminatory practice—that you are giving a reward—any reward, to a group who is referring business to you.

While I don’t claim to be an expert on the subject by any means, I wanted to let you know that HUD has increased its police force and if you have heard a speaker or read an article about client referral gifts, or rewards to affinity partners, Realtors ™ or builders for referring clients, it’s pretty much illegal under RESPA.

I have to admit that when I owned my mortgage company, I sent out a bag of popcorn and a Blockbuster Video Rental card to clients who referred someone to me. I thought I was “safe” because I had always heard about a $25-threshold, that you could spend and still be legal. In fact, the mortgage associations right now are still touting this “safe dollar amount”.

However, I have published the “rule” below—and I don’t see anything about a $25 rule, do you?

The Internet is full of RESPA violations and crackdowns,
and I wanted to print a few of them for you to read.

Thousands of homeowners could benefit from a class action lawsuit filed recently in Augusta, Ga. Four mortgage insurance companies have been named in the suit, which alleges illegal kickbacks to lenders. Specifically, the lawsuit alleges that the companies provided mortgage lenders with products and services, such as pool policy coverage and underwriting, at below market price. Pool policy coverage is a type of insurance that mortgage companies are required to purchase to help safeguard the pool of loans they make. Tuesday morning, as many as 20 federal agents from HUD and the U.S. Postal Inspector raided the home office of Titleserv Inc., at Plainview (Long Island), New York. The action was pursuant to a search warrant accusing the title company of paying kickbacks to attorneys for referrals of business, in violation of RESPA section 8(a) (12 U.S.C. section 2607[a]). ARVIDA/JMB was accused of charging a percentage of home sale prices for closing costs, and pocketing excess over actual costs. It was also alleged to have charged homebuyers an extra $300 fee if they declined to use ARVIDA's affiliated title company for settlements. ARVIDA will refund $45,750. Transamerica Corp. was accused of running a referral scheme on flood and tax services for local lenders similar to that of First American's. It agreed to pay $500,000 to nonprofit housing groups, and $113,000 to the federal Treasury. HUD's investigation found that Znet represented the ReMax of Atlanta agents as "employees," paying them $400 for each consumer referred to Znet. The real estate agents are actually "sham employees" after investigators found the agents performed little or no origination work other than filling out loan application forms. Under the terms of the settlement, the companies, their officers and the real estate agents agreed to stop this bogus employee compensation program. Further, the ReMax agents will refund $400 to each consumer referred to Znet for a total of $9,200. In addition, Znet will make a settlement payment to the U.S. Treasury of $15,000. World Savings Bank, a large California-based lender with operations nationwide, paid up to $100 to real estate agents for filling out and submitting on-line loan applications for prospective borrowers. HUD has long considered that a real estate agent may not be compensated for merely filling out a loan application. This compensation may even be considered a fee for the referral of business in violation of Section 8(a) of RESPA. World Savings agreed to discontinue the program and made payment of $7,557 to the U.S. Treasury.

I started in the mortgage business in 1972, prior to RESPA in 1974. Kickbacks were rampant! Not only was RESPA meant to protect the consumer from paying higher fees, but also was meant to level the playing field between lenders.

While we all know that things are not always FAIR—there is one way you, as a loan officer or mortgage company can level the playing field. Make sure that your fellow lenders are playing by the same rules as you are. If you know of kickbacks that are going on in your playing field, by all means—report it! Contact your Regional HUD office.

Competition is competition—but let’s as a group, cut back on steroid abuse—I mean kickbacks-for-referrals!

Karen Deis
Referee

Copyright, 2004, LoanOfficerMagazine.com

Buying Leads - Part 2:
Another True Story!

Written By: Karen Deis

We published an editorial, "Buying Mortgage Leads - Think Twice
(Maybe 3 Times) Before Spending Your Money!" in 2003, about
lead-generation companies and why I believe that loan officers
are getting ripped off.

E-mail soliciations for mortgages are rampant on the Internet (regardless of the CAN-SPAM Act) and periodically, I will click thru to one or two of them just to see what happens. (As a mortgage loan officer or company owner, I encourage that you become a student of the industry. Periodically apply for a mortgage online and fill out a form that has been emailed to you on the Internet. It's amazing what some of your competitors are doing.)

This editorial is about purchasing leads and my personal experience within the last 10 days. This is the email I received and I decided to click thru and see where the link took me.

It took me to a link for a "Kelly Mortgage Group" which showed something I had never seen before; my information already entered onto a form. Here's what it looked like!

I decided to enter an interest rate of 3.95% on a 5-year balloon and that I refinanced a year ago. I provided my telephone number to see who was going to call me because I thought 3.95% was a pretty good rate.

The completed form was emailed back to them at 8 AM.

At 1 PM, I received my first phone call from a loan originator from Dana Capital, who informed me that I had applied for a mortgage with them and all they needed from me was my social security number, my income and for me to sign some papers that they would send to me. I informed him that I filled out a form with Kelly Mortgage (not Dana Capital), and that I did not apply for a mortgage. The reason I completed the form was that I wanted more information on the 4.41% interest rate they advertised. He did not know what I was talking about and told me that he got my name from the recorder's office in my county.

So, I gave him the loan information that I had filled out on the form, told him my credit score and that I could afford the monthly payment. I just wanted to know the rate, the closing costs and the type of loan - period. He would not answer me, and insisted that he needed my income and social security number in order to help me further. Again, I told him that I had refinanced many times and just wanted the info on the loan programs. Each time I gave him an objection, he did not have the answer and asked to call me right back. This guy called me back 3 times. I never did get the loan information I was asking for.

You guessed it, about 2 hours later, I received a call from AmeriQuest Mortgage. Again, I asked them how they got my name because I filled out a form with the Kelly Mortgage Group. This person told me that they did not know who Kelly Mortgage was, and the form I completed was their form, and they were calling from Wisconsin. (Note: the address in the email is listed as Colorado). Again, he did not have the loan information that I completed on the form and after a few questions, which he could not answer, he pretty much hung up on me.

Next day - I received a call from The Mortgage Exchange. I told the loan officer that I filled out a form for Kelly Mortgage Group and he told me he did not know who they were, but admitted to purchasing my lead from E-Loans. This guy was an experienced loan originator and even faxed me some loan comparisons. But you know what...I have not heard from him since!

That evening, I received a call from a different loan officer from The Mortgage Exchange. The lead had been sold to two different loan originators within the same company!

My point with the first two examples stated, is that someone (my guess is the company) paid for the lead and gave it to an inexperienced loan officer who did not know the answers to most of the questions.

Secondly, it's a waste of money to purchase a lead and not have an effective system to follow up with prospects. Unless you have a systematic, step-by-step plan on how you are going to call, market to and follow up, you are throwing money down a black hole.

More importantly, when you purchase leads from the lead-generation company, ask to see a contract. Make sure they pass on the information generated from the lead; make sure they guarantee not to sell the lead to 2 people within the same company; find out how many times it will be sold; and will they buy back if they have not adhered to the terms of the contract.

TEST THEM! Ask one of your friends to request loan information and keep track of what happens.

I filled out the information requested on the form and yet, the lead generation company did not pass it on to the loan officers. I don't believe that loan officers would have even purchased the lead if they would have known the interest rate I gave them was 3.95% on a 5-year with only 1 year into the refinance. On my worst day, I would not have
purchased that lead.

Remember the guy who told me he got my name and mortgage
information from the recorder's office?

I don't have a mortgage in my name AT ALL!

Karen Deis
Investigative Reporter

Copyright, 2004, LoanOfficerMagazine.com

Lead Generation Editorial - Readers' Comment!

Written By: Karen Deis

The responses received from our editorial called "Buying Leads - A True Story!" generated an enormous amount of interest from our readers. And yes, we even received a letter from a lead generation company as well.

Each one of you has to make the decision on how to generate business. If it's buying leads, that's great - just as long as you have a system to "work those leads". My only motivation in sharing these experiences with you, is that before you spend your hard-earned money on ANY lead generation method, investigate the source and make an informed choice based on facts, contracts, documented results and referrals from other loan officers.

Here are some of the comments:

Scott Hoag, Affordable Home Funding writes:

"I enjoyed reading your article about tele-marketers and have to admit to doing the same. I had 2 credible companies call me, send me information, but NEVER called me back. Amazing. In fact, as I write this, I received a tele-marketing call from a loan officer who was given a list from Equifax. He shared that he has been in the business for 2 weeks. I told him my rate was 5% but he still stuck to his "script". He kept pushing to set up an appointment to refinance.

I turned the tables on him and asked him how much he was being paid to set up an appointment and he said $100 per loan. So, I asked him if he would like to find a job where he could talk to better quality prospects and make $200 for every loan closed. This is a way of recruiting - especially if you feel the loan officer is good on the phone."

Anonymous writes:

"I'm one of those loan originators who pays for leads and had no idea where they really came from.
I have spent thousands of dollars and can say that I have made some good commissions over an above what I spent, but there must be an easier way to make a living in this business."

Mark Conley, Lead Generation Company, writes:

"I read your article regarding buying leads...you are absolutely right when you say that spammers are ruining the mortgage industry leads.

I am one of a handful of lead generators who strive to generate genuine leads for lenders. By genuine, I mean interested prospects; sold only once; no spamming involved. I will be submitting an article not only to set the record straight on the motivation behind spamming, but also to educate the loan officers on what is involved in generating quality leads from them at a price that is realistic. Too many LO's think that they should be paying $12 for an EXCLUSIVE lead. Now, THAT's a price that's unrealistic.

I work long hours in the leads business and would like to share my viewpoint with you."

Anonymous writes:

"Probably the worst experience I ever had buying leads was from a salesperson that claimed that they were a fellow broker selling their excess leads. It turned out that in reality, this slime bucket did have a license to broker, but never did one origination due to poor sales skills and lack of ethics. All he did was purchase crappy bogus leads from other vendors and resell them to unsuspecting customers."

LoanOfficerMagazine.com strives to provide methods and systems that you can use day-in and day-out; year-in and year-out to generate good, quality business. Yes, it does cost money in advertising, marketing and an investment of your time in setting up the systems.

However, I can assure you that once you have a system in place, your business will grow and you won't have to start over with every phone call you make.

Copyright, 2004, LoanOfficerMagazine.com

Achieving Origination Superiority!

Written By: Karen Deis (with contributing information by Barry Habib, www.MortgageMarketGuide.com.)

It was really nice to have loans thrown at us for the majority of the past three years. But times are changing and the competition is getting tougher for a shrinking pie.

It's not only imperative that you know your loan programs, underwriting regs and interest rate strategies, you should be able to intelligently help your clients - and increase your credibility - by obtaining either a real estate license OR a Series 6 Securities License. Maybe even both!

Let's face it! Every day we attempt to help clients interpret real estate contracts; answer questions about investments; advise them on debt management. Yet, very few loan originators have had the formal training or credentials needed to truly make an impact to assist your clients with the biggest decision of their lives.

Obtaining a real estate license is a HUGE step in gaining credibility. You work with real estate contracts day in and day out - yet most originators have never taken the time to read the contract or learn the real estate laws created by state and national associations. Admit it! As a loan officer, you have made suggestions to home buyers on how to "word additional conditions" or interpret clauses on the real estate contract. You may even have questioned some of the wording written by real estate agents. By obtaining your real estate license, you have resources you can tap into, in order to provide your clients with the correct advice.

I obtained my real estate broker's license over 10 years ago (and still have it today) and found it to be an invaluable tool to get my foot in the door with real estate agents and builders. In the credibility department, you have taken the same courses and passed the same test as all of the other real estate agents have.
If working with FSBO's is part of your marketing game plan, you can LEGALLY help them complete a real estate contract if they have found a buyer for their home.

By obtaining your real estate license and joining your local board, you can also participate in the Realtor-related activities (instead of just being an "affiliate member"), subscribe to their magazines, and get complete access to their website, which contains a wealth of information.

I have known Barry Habib for about 15 years and he has always advocated obtaining a Series 6 Securities license. His advice is as sound today - as it was 15 years ago.

Quoting Barry: "Creating value by acting as your clients Trusted Advisor will continue to be paramount. One sure way to increase your clients' desire to work with you is to provide information on how they can create wealth and improve their financial future. Uncovering the basic secrets that financial professionals use is easier and less expensive than many think. Start by getting the training for a Series 6 license.

It is not necessary to obtain an actual Series 6 license...just get the knowledge. A great resource for this is Dearborn Financial. They offer a Series 6 training course for just $79. The link to order their product is: www.Dearborn.com.

Once you have become familiar with some of the tools and disciplines, you can start pointing out some of these possibilities to your clients. This will also give you an opportunity to make a connection for them to work with a Financial Planner. This makes for a happier, more financially sound client, who is more likely to be focused on the big picture instead of small fee differences. There is also a very good possibility that they will tell others about you."

The sole reason we publish this ezine is to share with you ways to differentiate yourself from the competition.

Adding "Licensed Real Estate Agent" or "Registered Agent" to your business cards, brochures and real estate ads could be just the ticket!

Karen Deis
Publisher
Licensed Mortgage Broker & Licensed Realtor^TM

Copyright, 2004, LoanOfficerMagazine.com

Do Mortgage Lenders Need to Worry
About Online Discrimination?

Written By: Karen Deis, Publisher & Sue Flowers, Research Assistant

On March 23, 2004, the Fair Housing Center of Greater Boston filed suit in Federal court against several real estate agencies, accusing them of discriminatory online advertising practices.

The lawsuit is newsworthy because it targets housing discrimination advertising ONLINE instead of the traditional newsprint ads.

The Fair Housing Center claims that the agencies' use of phrases like "professionals only" or "no undergrads please!" violates federal and state laws because the ads using these phrases tend to restrict housing opportunities for people with children or rental subsidies. Since a disproportionate number of families with children or rental subsidies are people of color, the ads thus discriminate against people based on race, color, and national origin, says the nonprofit watch group.

The suit is of particular interest to the mortgage banking industry because similar charges could be brought against websites promoting mortgage programs to special groups.

Searching the web, there are several heavily promoted websites offering home loans to physicians. The homepage of one of these sites assures would-be borrowers that the site specializes "in providing home loans to physicians, from the new resident to the established doctor."

According to the American Medical Association, African-Americans and Hispanics make up only 5.7% of all physicians in the United States (2002 data). Following the Fair Housing Center's premise, does that mean that websites promoting mortgages for physicians discriminate because the number of minority physicians is disproportionately low?

Maybe - maybe not!

Lawyers we consulted for this article disagree on the viability of the Fair Housing Center's suit. The Fair Housing Act prohibits discrimination against a recognized "class" of people. Minorities and women are classes recognized by law, but homosexuals and smokers are not. Thus, it is illegal for a landlord to use phrases like "No minorities", but technically legal for a landlord to say "No smokers".

The Fair Housing Center's argument thus is weakened because the socio-economic group of "non-professionals", those who are not "professionals" and therefore excluded by the offensive phrases, is not a group recognized by anti-discrimination laws.

Extending this back to the example of websites promoting mortgages for physicians, the group of people who are "non-physicians" are not a group recognized by law.

According to attorneys, the Fair Housing Center also has to demonstrate that recognized socioeconomic groups were denied access to equal housing opportunities because of the miscreant advertising. Apparently, lawyers for the nonprofit organization feel they can do so, otherwise they would not have filed suit.

However, when we again extend this analogy back to the physician loan websites, the ability to demonstrate discrimination is even shakier. Our assistant made a telephone call to one of these sites and said that although she wasn't a physician, she was still interested in a home loan.
She was quickly transferred to another loan officer, who was more than happy to discuss her loan needs.

Of course, if the physicians receiving loans from these sites are getting a significantly better rate than non-physicians, there might be an argument.

The concept of exclusionary groups is stretched further when you look at other professions, like teachers. Freddie Mac sponsors teacher mortgage programs (www.mbaa.org), and many mortgage companies offer information about these programs on their websites (www.bankofamerica.com). Thus, analysts suggest that website owners can argue that promoting special mortgages to special groups is already an accepted practice.

The greatest protection that mortgage website owners may have on this issue is the nature of the Internet itself. The U.S. Department of Housing and Urban Development concluded a study in 2002 that looked at discriminatory practices by mortgage lenders (see All Other Things Being Equal: A Paired Testing Study of Mortgage Lending Institutions, www.huduser.org). The study found that, "The pilot test results show that African-American and Hispanic homebuyers face a significant risk of receiving less favorable treatment than comparable whites when they visit mortgage lending institutions to inquire about financing options" (p.iii). The greatest chance for discrimination to occur to a minority is when he or she walks through the mortgage company's front door.

The Internet, however, is a great equalizer. When a loan shopper visits a mortgage company's website looking for information, she interacts with a machine. The programmed website has no concept of race or gender of the visitor - each visitor is the same, as far as the website is concerned. Visitors may fill out an online application or download an application. A machine dispensing URLA's cannot discriminate.

The argument presented in the Fair Housing Center's suit may eventually be applied to online mortgage sites, but the burden of proof is greater, and most sites are well covered.

Does that mean that online mortgage lenders are off the hook?
Of course not! Site managers should follow this suit closely to see how the courts choose to handle online advertising.

Karen Deis, Publisher

Copyright, 2004, LoanOfficerMagazine.com

Are You Losing Business to Competitors You Don't Even Know About?

Written By: Karen Deis, Editor

Did you know that your past customers - clients who you have done a good job for - people who trust you - are being lured away even as you read this? A more startling fact is that some of your "phantom" competitors are not even in the mortgage business.

Here are some examples:

Real estate companies who own their own
mortgage company:

They are getting wiser! It used to be that Realtors^TM would "suggest" that HOME BUYERS use the in-house mortgage company. Now, when a home is listed for sale, HOME SELLERS are being directed to use the on-site loan officer. After all, these people are the MOST likely candidates to purchase another home and need a mortgage. It makes sense to introduce them to a loan officer (who works for a real estate company) early in the process. Your clients are being solicited for a mortgage at the listing presentation.

Car Dealers:

Because of name recognition, constant radio and TV advertising expenses supplemented by money from the big automakers, car dealers have a huge amount of media exposure. They are familiar with financing and the next big thing for them is to provide 2^nd mortgages or refinance home loans for cash to purchase a car. They make more money doing a mortgage then they would on an auto loan.

Financial Planners:

Not all financial planners are equal - some work for major companies that provide mortgage financing. My husband has an American Express retirement account. He recently received a letter from his financial advisor that they could provide a 1^st and 2^nd mortgage to obtain cash for investment purposes. The rate was 1/4% below the going rate and a flat $1,000 in closing costs. Within the last 6 months, he has received 8 marketing letters.

Home Improvement Stores:

My brother-in-law is a financial planner for PrimeAmerica (which also offers mortgages). They have setup mobile storefronts in the kitchen and bath remodeling centers at Menard's stores. The initial marketing effort was to originate 2^nd mortgages, but an interesting thing happened. They close 3 refinances per week and it had nothing to do with interest rates - and everything to do with people imagining a new kitchen or bathroom addition. Interest rates are not an issue.

Airlines:

If you accumulate frequent flyer miles - you know what I am talking about. I have miles with Northwest airlines and recently received a letter that if I buy, sell AND finance a home with LendingTree.com and use their real estate partners, 100,000 miles will be awarded to my account. That's enough for a family of 4 to fly anywhere in the continental United States, absolutely free.

Credit Card Companies:

MNBA has teamed up with GMAC Mortgage to offer an incentive to use their credit cards. For every $2,500 spent on the credit card, $25 is applied towards the principal balance of a GMAC mortgage loan. The ads claim that if you own a small business and spend $5,000 per month, it will decrease your principal balance by almost $17,000 over a 30 year time period.

My point is that unless you begin to market to your clients - immediately AFTER the closing of their loans (and continue to market to them) you have a good chance of losing your past clients to companies that are sneaking behind your back and dangling irresistible incentives to take out a mortgage with them instead of you.

Kelly McGuinness, United Mortgage of Connecticut, says the best way to "defend" yourself is to constantly remind your past customers that, "...if a deal sounds too good to be true, it probably is." She reminds her clients that if they even THINK about going to another mortgage company, to check with her FIRST for a second opinion. (See a previous article about "Second Opinion Marketing Program".)

At least you have a chance to sell against not only the competition that you DO know, but also against the competitors you DON'T know!

Read this issue's article on building your database and the vital information that you should have access to at the click of a mouse.

At least you will have a fighting chance to KEEP the clients you already have.

Copyright, 2004, LoanOfficerMagazine.com

What Type of Salesperson are You?

Written By: Karen Deis, Publisher

According to the popular book, "Discover Your Sales Strengths" by Benson Smith & Tony Rutigliano, there is NO right or wrong way to sell. The important thing is to discover your selling style and use it to its best advantage.

In this editorial, I paraphrased the 34 sales strengths that Smith has outlined in his book. However, I encourage you to buy the book. (Purchase this book from Amazon.com now!)

You don’t even have to read the whole book, but on page 76 he provides you with a website where you can take a quick sales assessment test which will provide you with your top 5 strengths. On the inside cover of the book, you will find a special access code which allows you to log on to the website and take the test.

Achiever - You start every day at zero and by the end of the day, must achieve something tangible in order to feel good about yourself.

Activator - You are impatient for action - once you have made a decision, you must act upon it and worry about the details later.

Adaptability - You don't see the future as a fixed destination but a place that you get to create choices out of what's happening now. You are a very flexible person going with the flow.

Analytical - You challenge people to "prove it to me". You like data because it's "value-free" and you want to understand how certain things work so you can explain it to others.

Arranger - When faced with complex situations, you analyze them and figure out the best way to get things done.

Belief - You have certain "core values" that cause you to be family oriented, altruistic, spiritual - with high ethics - both with yourself and others.

Command - You are known to "take charge" and you have no fear of imposing your view on others. You face up to problems and know that you have the right solutions.

Communication - You like to explain things, speak in public and write. You bring ideas to life with stories and make them vivid so other people can understand.

Competition - You are aware of other people's performances as compared to yours - which becomes the ultimate yardstick of your goals.

Connectedness - Things happen for a reason and somehow we are all a part of a larger life force. It helps explain mysterious life events and happenings.

Context - You look back to history to understand the present - how something started and how it has evolved into what it is now. Understanding a person's background gives you a better understanding of how you can help them.

Deliberative - You are careful and vigilant and a fairly serious person who approaches life with a certain reserve.

Developer - You see potential in others and everything you do is a work in progress.

Discipline - You see the world as orderly and planned and you self-impose structure into your business and life. You set up systems and routines and focus on deadlines.

Empathy - You can sense emotions around you and intuitively see the world thru their eyes.

Fairness - Balance is important to you and you treat each person the same, no matter what their station in life.

Focus - You need a clear destination so every day, every week, every year, you set goals for yourself and feel frustration if you don't meet them.

Futuristic - The future fascinates you and you see in detail, what the future might hold for you and your clients.

Harmony - You seek to hold conflict to a minimum and with a group of people, you try to find common ground.

Ideation - You are fascinated by an idea and dissect complicated ideas and simplify them for yourself and others.

Includer - You want to include people and make them feel part of the group.

Individualization - You instinctively observe each person's style, how they think and what their individual strengths are.

Input - You collect information, words, facts, and books because it keeps your mind fresh and the data may prove valuable to you or your clients one day.

Intellection - You like to think - think about how to solve a problem, develop an idea, or understand other people's feelings.

Learner - You are drawn to the process of learning and the outcome of learning is less significant than the "getting there".

Maximizer - Transforming something "strong" into something "excellent" thrills you and you want to spend time with people who are as discriminating as you are.

Positivity - You are generous with praise, always on the look out for the positive situation. People want to be around you because of you, your energy and optimism.

Relator - You are pulled towards people you already know and deliberatly try to deepen relationships with a certain circle of friends and clients.

Responsibility - You take ownership of anything you commit to and if for some reason you cannot deliver, you look for ways to make it up to the person.

Restorative - You love to solve problems and enjoy the challenge of analyzing the symptoms; what's wrong and finding the solution.

Self-Assurance - It's deeper than "self-confidence" because you not only have the confidence in your abilities but your judgment as well. No one sees the solution like you do.

Significance - You want to be recognized, be heard, stand out, be known and appreciated for your strengths.

Strategic - You have the ability to sort thru the clutter and find the best solutions by instinct. You see solutions where other people see complexity.

Woo - WOO stands for "Winning Others Over". You enjoy the challenge of meeting other people and getting them to like you. You rarely are at a loss for words and enjoy meeting strangers.

You may see a little of yourself in most of the 34 traits, however, the test provides you with your 5 most dominate strengths. You may not even recognize your 5 strengths because they are second nature to you and you don't even think about it being an asset.

There is no one strength that is better than the other. By recognizing what your traits are, it will give you a better understanding of your niche market, the types of clients you connect with, and it will save you time (and frustration) in trying to work with clients who you will NEVER be able to relate to.

I encourage you to take the test and learn a little more about your sales strengths!

My Top 5 Strengths: Strategic, Maximizer, Relator, Self Assurance, Competition.

Regards ~

Karen Deis

Copyright, 2004, LoanOfficerMagazine.com

Are You Asking For It?

I recently attended a wedding and ran into a financial planner friend of mine who I had not seen in a couple of years. He had struggled for years building his business (like we all do) but now, his business was absolutely phenomenal!

My comment to him was "well, we all have to pay our dues and stick with it".

"No" he said, "My business got a huge jump-start when I learned how to ask for referrals the RIGHT way".

Well, I was stunned because I thought there was only one way to ask for referrals - like you just ask for names right?

He went on to explain that the "timing" of WHEN you ask for the referrals and how you get your clients to participate in the process, has made the critical difference in tripling his business.

Most of us have been told to ask for referrals at some point during the processing of the loan. Others have said to ask for referrals at the closing table. And some have recommended asking for referrals about 30 days after the loan has closed.

Jim asks for referrals, over the phone, at the time he sets up the face-to-face appointment. In addition to bringing in some financial records, he tells them that his business relies on referrals and asks them to think of 3 names of friends who might benefit from his services.

You've heard that one before, right?

However, he tells them that he will not even ask them for the names until they meet with him and they are confident that he has earned their trust and sure that he would be able to help their friends as well. It takes the pressure off of having to come up with some names and sets up the process for some outstanding referrals.

Most of us have done just the opposite. We "suprise" our clients by asking them for referrals without warning. If you are like me, it's difficult to come up with some names right off the top of my head - let alone the addresses and phone numbers - or even who might be interested in getting a mortgage.

What he has done is give them time to THINK - about whom they could refer. And, that's only AFTER he has gained their trust.

Just think about your "script" when you set up an appointment for a loan application. You ask the client to bring in paycheck stubs, W-2's and bank statements. Here are a few sentences you could add when setting up your appointments:

"I also wanted to let you know that my business relies on referrals and if you end up applying for a loan with me, I would like to have you think of 3 people who you think might be looking for a home or want to refinance.

However, I won't even ask you for the names until you feel confident in my services."

First of all, you are letting them know exactly how you do business. You are not asking them to give you referrals prior to developing trust and rapport. You are not suprising them by asking for names and phone numbers without warning.

Probably the best time to ask for the names is at the time of loan approval - however, there is a "twist". My friend asks that prior to giving him the referrals, that the client CALL their friend and tell them that they are referring their names. That way, the referral is first of all "warned" of the impending follow up call, and secondly, pre-screened for you.

Ask for 3 names.

You may only get one.

But what you will end up with are names of people who are truly interested in doing business with you.

It will save you an enormous amount of time and make you lots of money.

Copyright, 2004, LoanOfficerMagazine.com

Protecting Your Clients' Privacy:
How Safe Are Your Records?

The trash is picked up once a week outside your office building.

As the container is dumped, the wind blows away a few pieces of paper.

The first page of the 1003 ends up along the side of the road.

A news reporter picks it up and finds a name, address, social security number and employment information listed on the sheet of paper.

You make the national news.

This story is true. It happened to a mortgage company recently. Someone did not take the time to shred documents.

In fact, it happens all the time - and loan officers, processors and closing agents never even give it a second thought.

Loan officers - Someone calls you on the phone. You offer to run a copy of their credit report for them. You write down their name, address, social security number and pull the report. You throw away the scrap of paper without even thinking that someone could be going thru your trash every evening looking to steal someone's identity.

Processors - A client calls you and wants to change the loan amount. You run a new 1003 and throw away the old one. Not only does it contain their important information, it lists bank account numbers, credit card numbers and assets. A thief looking to steal a classic car or jewelry (assets section) or credit card information only needs to look in the trash bin.

Closing agents - Many states require that the buyer and seller of real estate list their social security number on the purchase agreement. If that document gets into the wrong hands (maybe even the courier service employee), they not only have the buyer's information, but the seller's information as well.

While there are many federal and state laws regarding the customers' Right of Privacy, very few mortgage companies take the time or the necessary steps to insure that their clients' private information is not getting into the wrong hands.

Here are a few suggestions:

Company Policy - While the Gramm-Leach-Bliley Act requires you to provide each of your clients with a Right of Privacy Statement; I suggest that you (or your company attorney) create an additional statement that discloses exactly what you will do with their information. For instance, if you work for a mortgage company owned by a real estate firm and it's your policy to pass on leads to the real estate agents, you might consider disclosing that to your clients. If you have a referral network developed - or belong to a "Leads Club" where you regularly "refer" clients, you may wish to re-think what information you are transferring and if you have the customer's permission to do so.

Company Procedures - Do you have procedures in place so no one outside your company has access to private information? Do you have a paper shredder in your office? Are hand-written notes with your clients' personal information ripped up before being thrown away? Have you held a company meeting to discuss the different ways social security numbers, bank statements or paycheck stubs could inadvertently get into the wrong hands?

Privacy Statements on Your Website - While it's not required by federal law (it maybe required by your state's law) very few mortgage websites contain a "privacy statement" that a customer can click thru to and find out how your mortgage company protects their privacy if they should decide to do business with you. The National Assocation of Realtors^TM (www.realtor.com) has a 10-page "Privacy Policy" that is available to consumers who visit their website. I suggest you print and review their privacy policy. It will provide you with some great ideas on what to include on your website's privacy statement.

Background Checks on Staff Members - Some states' licensing laws require background checks on loan officers. The National Association of Mortgage Brokers is attempting to implement a "national registration" system for all loan originators, which would also require them to re-register if they quit and went to another mortgage company. More and more companies have found employees who have stolen and sold client information (an inside job) and a simple background check and credit report would have revealed past problems.

By taking just a few simple precautions, you could save yourself from being the headline story on the evening news.

Karen Deis, Publisher

Copyright, 2004, LoanOfficerMagazine.com

Is It Just Me - Or Are Lead Generation Companies Changing the Way They Do Business!

A few months ago, I wrote an editorial about my personal experience with making a mortgage refinance inquiry via the Internet. No less than 5 loan orignators called me. (Yes, the EXCLUSIVE lead was sold at least 5 times.) To update the story, this week, I received 2 calls from loan originators who got sucked into buying my lead AGAIN. Yes, my mortgage lead was sold again 3 1/2 months later. (One of the loan officers even told me that he bought my name!)

Within the last few weeks, I received no less than 22 email solicitations with titles ranging from:

However, I have seen a novel trend developing among lead generation companies.

And maybe the trend is a good thing! At least it might be a step in the right direction.

It's the trend towards niche marketing and specialization. Mortgage originators from throughout the country have told me that when they have purchased leads in the past, that it was like a box of chocolates - you never know what you are going to get. It could be A paper; BC credit with a 1^st, 2^nd and 3^rd mortgage; sometimes even a commercial building.

A new approach to lead generation is "market segmentation."

Here are examples of 4, distinct types of e-mail advertising that I received within the last 2 weeks:

• Reverse Mortgage Leads - if your business consists of Reverse Mortgages, they claim to be the #1 provider, with each and every lead "verified".



• Christian Lending Network - you many not know what type of mortgage lead you are buying - but supposedly you will be working with "Christian" homeowners. The ad does not say how they verify their religion.



• Realtor^TM Leads - this is a novel concept where instead of getting mortgage leads, the company guarantees that they will set up one appointment per month with a local Realtor^TM. It's kind of like a dating service - and that could be good or it could be bad. What you don't know is if they are setting up a meeting with a top producer or someone who just graduated from real estate school.

• IRA & Annuity Leads - the concept behind this type of lead is that they identify clients whose retirement assets are "under funded" and you approach them to refinance or take out a second mortgage to fund retirement accounts.

No, I'm not going to give you the website addresses or contact information in this editorial. Do a "Google" search and I'm sure you can find plenty of sources.

If you choose to purchase leads based upon a demographic group, I suggest that you create marketing materials exclusively targeting this group.

One word of caution!

One of the email solicitations gave me the option to call for references - so I did. I was given the names of 2 loan officers who supposedly are current users of the lead service. Of course, each one gave me glowing reports on how great the system was! However, after talking to each of them (individually), I found out that they were the "crash-test dummies" (aka - tested the program), who did not PAY for the service but were friends of the lead generation founder. And, by the way, if I signed up under them, they would earn $50 and I could too. Like an MLM scheme.

Please let me know what your experience has been with market-segmentation leads! Submit your comments or stories to Karen - deis4@aol.com

Karen Deis,
Publisher and Lead Generation Skeptic

Copyright, 2004, LoanOfficerMagazine.com

A Peek Inside the Workings of a Lead Generation Company

Some of you are mad as hell!

We received a slew of comments about your experiences in working with lead generation companies; bogus leads; no refunds as promised; and a laundry list of problems.

One of our readers was kind enough to forward an email received from LeadBull.com about the inner workings of where their leads come from, why a high percentage of THEIR leads are bogus, and that they refund money back for bad leads.

However, and it's a BIG HOWEVER, we have heard from many subscribers that even though the lead generation companies make the "refund guarantee claim", loan officers have not been receiving their money back.

One last note - pay particular attention to the sections highlighted in YELLOW.

Regards,

Karen Deis
Publisher

P.S. Checkout the information for the 2005 Turn On Your Million Dollar Brain Workshops for 2005. Two Locations - Same Top-Notch Speakers - the one and only SHARE & TELL session. www.TurnOnYourMillionDollarBrain.com for more information & request a brochure.

Copyright, 2004, LoanOfficerMagazine.com

Do You Market Only When You Have Nothing Better to Do?

You walk into your office one morning, look at your calendar, find that you have no applications, pre-quals, or meetings and decide that it would be a perfect time to start that new marketing campaign that you always wanted to try.

Then the phone begins to ring; the processor knocks on your door with an underwriting problem; and all of your great intentions go out the window.

Your job description has been changed instantly from a mortgage originator to a fireman - putting out the little fires that start up each day.

Take a minute to think about your title: "mortgage originator". Your responsibility is to bring the loans in the door and an integral part of the job description is "marketing".

Here are 6 tips to help you free up your time - especially when you have to wear a fireman's hat some days!

1. Make Marketing a Priority - set up an "appointment" with YOURSELF and write it down in your calendar. Pick a day and time that is usually slower for you. Wednesday mornings are a pretty good time for loan officers. (You have taken care of the weekend business on Monday and Tuesday and you spend Thursday's getting the loans ready to close Friday's loans.) Without a strong commitment on your part, you will find yourself with plenty of time for marketing because you won't have any business.



2. Plan ahead to diffuse crises - It's impossible to devote time to marketing if you have to constantly deal with problems. Anticipate potential problems. Meet with your processor and closing agent at the beginning of the week. Ask yourself "What are the worst things that could happen this week?" Then come up with a game plan so those deals don't blow up in your face. When you are pro-active in managing your time, you reduce the number of crises and have more time to concentrate on your marketing.



3. Cut the fat - Don't get caught up in "busy work". Only work on tasks that will MAKE YOU MONEY. Greg Frost says that there are only 3 of them that you need to concentrate on day in and day out: Pre-Apps, Apps, and Marketing! Ask yourself which activities are most crucial and ones that ONLY you can handle. Which ones can you delegate?



4. Consolidate your activities - Group your activities together and plan ahead. If you have an application outside the office, cluster it with a visit to a real estate office and one of your affiliate partners. Or better yet, kill two birds with one stone and schedule the loan application IN the Realtors office.



5. No telephone interruptions - You don't NEED to answer the phone each time it rings! RESPECT yourself and your time by letter the call go into voicemail. In fact, some of the superstar loan officers NEVER answer the phone. That way, they can prioritize the calls based upon the voicemails and urgency of the call. Schedule time for marketing. Schedule time for returning phone calls.



6. Think Positively - Frustration, worry and anxiety waste time and cause you to panic. It's down right impossible to concentrate on your marketing efforts. Ask yourself this question: "What is the "worst" thing that could happen if...?" and you can live with, and accept the answer, and then most of your anxiety will dissipate.

It really comes down to Time Management doesn't it?

You deserve to spend quality time with yourself.

Look at your calendar and make the "appointment" right now.

Ask yourself this question daily. "What can I do NOW to make today more successful, despite the setbacks?"

Wishing you marketing success,

Karen Deis
Publisher

Copyright, 2004, LoanOfficerMagazine.com

Is Consumer-Direct Marketing Back?

Are you losing business that you don't even know about? Or maybe you know you are losing business - but don't know the extent of the loss.

As you are reading this article, there is a hurricane of activity around the one-stop shopping concept for homebuyers and sellers.

That's why it's more critical than ever that you look at your business in a whole other light and consider jumping on the "consumer-direct" marketing bandwagon.

Why?

Actually, the "winds" of change and the concept of "one-stop shopping" started in the 1990's with a study by Dr. Weston Edwards & Associates (a private consulting firm studying the housing, finance and insurance industries) when he published "Changes in the Way Homes Are and Will Be Bought and Sold".

They have just released the 2004 study, which updates the last survey (published in 1999). Here are some highlights:

• 70-80% of leading real estate companies will provide one-stop-shopping services including title insurance, closing services, mortgages and homeowner's insurance within the next 5 years.



• Real estate companies, who have on-site loan officers, will capture 30-35% of buy-side transactions within the next 5 years. (Currently 20-25%)



• Home builders who own mortgage companies have a capture ratio of 80%.



• Real estate companies and homebuilders are adding more minority and immigrant sales consultants and loan officers than banks and mortgage banking companies (hoping to capture 1 out of 2 minority homebuyers).



• Because of the one-stop shopping concept, settlement services are expected to be cheaper than going directly to a traditional mortgage company for a mortgage.



• There will be new meaning to "customer for life" because real estate agents will control the entire transaction.

If that were not enough,

• RESPRO (Real Estate Service Providers Council, Inc.) www.respro.org, was created in 1992 and is making huge inroads with real estate companies and homebuilders providing resources to form joint ventures, strategic partnerships and subsidiaries.



• Bank of America has recently created a multiple listing service for real estate companies.



• Some of the top 10 lenders like Wells Fargo and Countrywide have partnered with some of the largest real estate companies and homebuilders in the USA to provide mortgage services thru joint ventures.



• Even Warren Buffett, www.HomeServices.com, has created a one-stop-shopping entity with some of the largest real estate companies in the country.

What does that mean to you?

It means that loan officers; privately owned mortgage banks and broker companies are going to get a smaller piece of the pie. They need to spend their time and their marketing dollars on trying to attract the consumer to call them FIRST - even before anyone has a whiff that they are looking to buy, sell or refinance a home.

Consumer-direct marketing is not new - it's been around for almost 30 years. It started with Jay Abraham and the concept called "free report marketing". It's a time-tested, proven, emotional marketing strategy.

In a nutshell, here's how it works:

1. Highly targeted ads, with unique headlines that will attract the prospects you want to do business with (i.e. second-time homebuyers; sub-prime; investors, etc.)



2. Prospects read the headlines, call you for the free report



3. Before sending out the free report, you "qualify" the leads



4. Send out the free report



5. Follow up calls asking for the appointment



6. If no appointment, a series of follow up calls, letters, postcards until they decide to do business with you.

I know of thousands of loan officers who have said "this type of marketing is not going to work", or "it's simply not the type of marketing that I want to do".

I personally used free report marketing in my mortgage business for almost 10 years )in both the good years and the bad) and here are my statistics (in a city of about 100,000 people).

I received 30 calls per week.

• Out of the 30 calls, 20 of them were "qualified" leads
• Out of the 20 leads, 8-10 would be seriously considering buying a home within the next 3-6 months.
• Out of the 8-10 leads, 1 or 2 would apply for a mortgage right away.
• Out of the 6-8 leads, 1 or 2 would apply for a mortgage in 3 months.
• Out of 5-7 leads left, 1 or 2 would apply for a mortgage in 6 months.
• After 6 months, you pretty much have lost them.

There are two important strategies that will insure your success - and it's especially true with free-report marketing.

• One: The use of scripts to qualify prospects up front. Do not make the mistake of thinking that everyone who calls for your free report is going to be your client.



• Two: Once you have "qualified them", that you consistently follow up with offers of free credit reports, interest rate/program updates, local real estate trends, etc.

My database of future homebuyers averaged 800 leads that I knew were in some process of the home buying stage.

Best of all, it's less expensive than purchasing leads. Advertise in real estate magazines; the yellow pages; your website; email marketing; farm areas with the use of flyers; postcards and even your business cards. There are so many ways to generate leads - it's mind-boggling!

In other words, consumer-direct marketing is the art and science of getting the prospect to call you FIRST - so you can control the lead and the referrals to YOUR preferred Realtors^TM, title companies and insurance agents.

I encourage you to look into it - again!

Karen Deis, Publisher

P.S. Our next online seminar called, "How to Build a Lead Generation Machine with Free Report Marketing," will be held on October 13, or you can purchase the CD replay if you can't attend that day.

Copyright, 2004, LoanOfficerMagazine.com

Apply for Scholarships & Free Coaching: Turn On Your Million Dollar Brain Workshops

Written By: Karen Deis

Being in the mortgage industry for 28 years, I have had many occasions to reflect on my career as a loan officer and mortgage company owner. No one achieves greatness (yep, I think I was great!) alone and I was extremely lucky to associate myself with extremely supportive mentors and coaches who not only advised me along the way - but also pushed me to achieve more than I ever thought possible.

I would like to tell you a story!

I had been a loan officer for about 2 years (when I first started, loan officers were paid a salary of $50 per closed loan) and I wanted to attend a seminar in Chicago. The seminar was expensive and I could not scrape up enough money to attend. The company that I worked for did not believe in reimbursing employees' seminar attendance either. I would have given my first-born child (if I had one at the time) to attend. My mentor literally GAVE me the balance of the $1,000 needed for the seminar and hotel. There was no payback required.

That seminar was a first in a series, which helped me develop the consumer- direct marketing tactics that I used day in and day out to generate leads. Over the years, I was able to sustain a production level of $60M per year and provide a great life for my family and me.

I believe in the old saying "the harder you work, the luckier you get!" and I feel extremely fortunate that I have worked with some extraordinary people - therefore getting some lucky breaks as well.

Apply for one of the 4 scholarships to the General Session and 4 scholarships to the Manager's Session to attend the Turn On Your Million Dollar Brain V Workshops. Scholarship applicant requirements and our sponsors for the scholarships, are listed below.

Here's the deal...

4 loan officers will be choosen - 2 will attend the Delray Beach, Florida event and 2 will attend the Santa Monica, California workshop, which includes 3 days attendance to all sessions, breakfast and lunch, manuals, networking and idea sharing with the best of the best. (The registration fee of $1,095 will be paid by Foundation Marketing and by our sponsors. Travel and hotel expenses are not included.)

4 company owners (or managers) will be choosen - 2 will attend at each location, which includes lunch and all manuals. (The $395 registration fee will be paid by Foundation Marketing and by our sponsors. Travel and hotel expenses are not included.)

Event Sponsors

In addition to the registration fee, each scholarship winner will get free coacing sessions, or mortgage sales tools, from some of the top loan officers and trainers in the country, including...Tim Braheem, Steve Probst, Michael White, Bob Williamson, Mike Moffitt, Tom Ward, Mike Baker, Sue Woodard, Brian Farley, Amy Tierce, David Kuiper and Denny Andrews (for more information on these individuals, visit www.MortgageSpeakersBureau.com). These coaching sessions would be valued at tens of thousands of dollars if you were to hire each coach or purchase each product individually.

Not only that, but the scholarship winners (including loan officers and managers) will receive a complete set of 36 CD Replays of online seminar given by the top loan officers and trainers in the industry on topics ranging from new construction to credit scoring, to FSBO marketing to marketing to Realtors - valued at over $5,000. (View more information at www.LoanOfficerSeminars.com). Also included is a free, one-year subscription to www.LoanOfficerMagazine.com, with access to all archived articles, free download of client newsletters, ads and marketing letter. Value: Priceless!

• Open to loan officers who have been in the mortgage business a minimum of 12 months to a maximum of 24 months.



• Submit a marketing plan detailing how you plan to increase your business (email or attach your business plan here.)



• Submit an essay with a maximum of 1,000 words on why you would like to win the scholarship. (email or attach your essay here.)



• Must have closed an average of 5 loans per month (for the last 6 months).

Do you qualify for this scholarship, and are interested in joining the best of the best at this year's General Session events? Apply now through a sponsor that you are familiar with, or do business with below:

• LoanOfficerMagazine.com


• Loan Toolbox


• MGIC


• National Mortgage News


• Republic Bancorp


• Ellie Mae


• Information Now


• Trade Win Marketing Solutions


• LoanOfficerSeminars.com


• The Majestic Group


• Michael White

The scholarship committee will narrow it down to 16 finalists. If you are one of the 16 finalists, only then will you need to provide proof of the following:

• Proof of employment (minimum of 12 months, maximum of 24 months) must be provided by company owner or branch manager.



• Acceptable verification that you close an average of 5 loans per month must be provided. (Fax or snail mail will be acceptable - no emails).

• Open to company owners or managers who have been in a management position for no less than 3 years and no more than 5 years.



• Must have 4 or more employees.



• Must close an average of 5 loans per month (for the last 12 months).



• Submit a 12-month business plan.



• Submit a 1,000-word essay on why you would like to attend the Management Session.

Do you qualify for this scholarship, and are interested in joining the best of the best at this year's Management event? Apply now through a sponsor that you are familiar with, or do business with below:

• LoanOfficerMagazine.com


• Loan Toolbox


• MGIC


• National Mortgage News


• Republic Bancorp


• Ellie Mae


• Information Now


• Trade Win Marketing Solutions


• LoanOfficerSeminars.com


• The Majestic Group


• Michael White

The scholarship committee will narrow it down to 16 finalists. If you are one of the 16 finalists, only then will you need to provide proof of the following:

• Proof of 4 or more employees.



• Acceptable proof of closing 5 loans per month.

If you would like to attend the 5^th Annual Turn On Your Million Dollar Brain mortgage workshops, and are not applying for a scholarship, please visity the sponsor's websites for special registration discounts. Sponsor discount registration pages can be found by visiting their websites, listed below.

• www.BrokerMagazine.com
• www.EllieMae.com
• www.LoanToolbox.com
• www.MajesticConsulting.com
• www.MGIC.com

See you at the workshops!

Karen Deis

Copyright, 2004, LoanOfficerMagazine.com

Wake Up! You're Broke.

Written By: Karen Deis

As a commissioned salesperson, every morning you wake up - you are BROKE. You literally have to do something each and every day to make money. Just because you have 10 deals in the pipeline doesn't mean that the rates won't change and you lose half of them. Just because you have a closing scheduled - doesn't always mean that the deal will close. Just because your company has been in business for a million years means nothing! It could be sold tomorrow and your whole commission structure changes - or you could be out of a job.

Brian Farley, President of Pride Mortgage, runs his mortgage business with the motto “Wake up—you are broke”. It's especially true for loan originators.

Business has slowed down. There is no one sales and marketing strategy that is any better than any other.

You now have the time to build a solid foundation and here are a couple of ideas on how you can make money in any economic climate.

Family, Friends and Past Acquaintances – Make a list of everyone in your family. These are the people most interested in your success. Get out your old yearbook; holiday card list; church member directory; club member list; teachers, friends and friends of friends. You will be creating a list of at least 100 to 200 people who know you and like you. Let them know you are in the mortgage business and keep asking for their referrals. (A top loan originator once asked his father why he never referred his friends to him for a mortgage. His father replied, “Because you never asked me to.”)

Stake out your territory – What does a new puppy do once you bring it home? Real estate agents do the same thing as puppies do - except they call it a “farm market area”. Consider picking a geographic area and become THE mortgage loan officer in that area. I once lived in a subdivision with 2,000 homes and consistently mailed post cards to my neighbors. Over the years, I was able to provide mortgages to 22% of my “neighbors”.

Pick A Board of Advisors – With time being your most precious resource, it can be difficult to find time to join clubs, organizations or attend business-networking groups. A more personalized approach would be to create your own “board of advisors”. Invite them to join your “board” and ask them if you can periodically consult with them for advice and ideas on how to increase your business. They do not have to be people who will give you leads—but a group of people you respect that will be honest and willing to help insure your success. Small business owners, printers, a marketing consultant, your doctor, your lawyer, would all be a great start to building your board. Don’t ask for leads—ask for their advice!

According to the experts, there are 3 market-share stages you need to be aware of:

1. The “getting to know you” stage—takes about 6 months to a year!
2. The “getting to like you” stage—takes about 1-2 years!
3. The “getting to love you” stage—takes about 2 years!

Realize that it will take you anywhere from 1 to 2 years to build your business to a point where you never have to wake up each morning and wonder where your next paycheck is coming from.

Here’s to your long-term mortgage career!

Karen Deis

Copyright, 2004, LoanOfficerMagazine.com

Is Procrastination a Monkey on Your Back?

By: Karen Deis and excerpts by Robert Boduch, Success Track Communications

According to a recent poll, less than 20 per cent of loan originators (from throughout the country) have actually created a “living and breathing” database. However, the remaining 80 per cent realize and understand how vitally important a database is to the future of their business.

So, WHY don’t more originators take the time to create one?

Often the project seems overwhelming.

You know you have to get it done. Not having one could mean a loss of hundreds of thousands of dollars in future income.

So, what is it that prevents you from getting started on the project?

It’s that 15-letter word called P-R-O-C-R-A-S-T-I-N-A-T-I-O-N! The American Heritage Dictionary of the English Language defines procrastination as: to put off doing something until a future time. 2) to postpone or delay needlessly.

If procrastination is one of the diseases that afflict you, here are some ideas to help you cope and get the job done. And read on for step-by-step ideas on exactly how to start your database-building project.

1. Weigh the consequences—what’s the WORST thing that could happen if you don’t complete your task? Conversely, what is the BEST possible result for getting it done? Answering these questions FIRST will determine whether you should start the project AT ALL.



2. Recognize why you are delaying your project. How many times have you talked yourself out of it because it was too difficult; too inconvenient or unappealing? Could it be a lack of confidence in your ability? Be prepared to overrule your inner voice and take action.



3. Play a little game with yourself. Draw a line down the center of a piece of paper and list the all the reasons for NOT doing the tasks and then list all the reasons FOR getting it done.



4. Break it down into smaller pieces—by dividing the project into sub-components and smaller, easier tasks, it becomes less of a monster.



5. Change your attitude—don’t moan about the job you have to do. You can often spend more time griping about what you have to do—than the time it would take to complete it.



6. Start with the end in mind—visualize the task already completed. Internalize the feeling of success and accomplishment. Feel the joy!



7. Make it fun. Turn it into an adventure, a challenge, a competition. This will move the “perceived pain” into the “perceived pleasure” category.



8. Make a public declaration to reinforce your commitment. Find someone who you’d be embarrassed to let down by not completing the project. Share your timeline and objectives with that person. Ask them to make you accountable—report your progress to them on an ongoing basis—or until you have completed the job.



9. Who can help you? Are there some tasks that an assistant can help you with? Do you know someone you can hire on a temporary basis? Realize that delegating some of the work could bog the project down; so be sure to give them a deadline for completion.

When I realized that a database was the key to my continued mortgage success, I got off my duff and broke the project down into smaller tasks.

First, the most important information, on each and every client, is contained in your closed loan files. I personally had 3 years’ worth of closed loans, but elected to start by only entering those that closed within the last 12 months.

Determine what you want to know about your past customers. Begin with name, address, loan amount, loan type, interest rate, purchase or refinance, name of Realtor, name of appraiser. All of this information can be found on either the 1003 and the HUD 1.

Copy the 1003 and the HUD 1.

Enter the information into an excel spreadsheet. Keep it simple. You can always download the information easily into any database software later.

If you don’t want to do it yourself, hire someone to help you. It may just be the best money you have ever spent.

Set a deadline. I gave myself 45 days to get the job done. It was completed in 30 days!

An amazing thing happened. Once I tackled the first set of files, we were able to enter the remaining 2 years in a record amount of time.

It’s time for you to get started! Just close your door, roll up your sleeves and begin.

Copyright, 2004, LoanOfficerMagazine.com

Is Your Business Card All That It Can Be?

Written By: Karen Deis, Publisher.

Read this article and enter the contest to win free webinars for one year, through www.LoanOfficerSeminars.com, valued at over $1,500. (See full details at the end of this editorial.)

Question: What's a compact, energy-efficient, low-cost, low-tech, and self-contained, need no license to operate, easily carried, requires no batteries and starts working automatically?

Answer: Your Business Card!

It's one of the first impressions that people have of you - and yes, even people you have NOT MET make judgements about you based on your business card. There are only 2 functions of a business card:

• Get business from the person you gave it to.
• Get your name out to the people that the person you gave it to comes in contact with.

Now, I know what you are saying ot yourself (because it happened to me) - my company won't let me change the look of the business card. They want me to use the standard logo and format that some advertising agency created. They want everything to look consistent. And, they are paying for them anyway. There is a lot to be said about "branding" but it all comes down to this important question. Does your business card get you any business? It if does - that's great. If it doesn't, then you need to take the initiative and create your own.

My solution with the company that I worked for was to have 2 business cards - one that they wanted me to use and one I created myself. I passed out both cards when I had the opportunity to do so. That appeased the company and also let me market myself in a more creative way. Here's a sample of my creative business card...

NAR White Paper Gives Agents the Heads Up Sham Referral & Kickback Arrangements! (...and it's about time!)

Written By: Karen Deis

I don't know if there is a polite way to say it - but there are real estate, mortgage, and title companies who are breaking the law right now - getting away with it - and some of them don't even know it's illegal.

What am I talking about? RESPA's Anti-Kickback Rule - more commonly known as the Section 8 provision.

HUD has increased the number of investigators (RESPA police) within the last few years. A record number of companies (almost 1,000) are currently being investigated and some have paid fines as high as $2.5 million. And, in the past, a majority of the fines have been levied against mortgage and title companies.

Not any more! HUD has finally realized that the "mitigating source" of some of the more serious violations are by Realtors and homebuilders, who steer business to mortgage and title companies because they receive "something of value".

In a show of concern, as more and more real estate companies are being reported and investigated by HUD, the National Association of Realtors released a white paper in October, 2004, explaining some of the "sham arrangements" that are in violation of the Anti-Kickback rules.

Yep, the Section 8 provision has been in effect since 1974 and it has taken 30 years for the NAR to be concerned about it! What's up with that?

The name of the report is:

...and it provides 5 different examples of Realtor/Title/Mortgage "arrangements" that are considered illegal. The 11-page report also provides an illustrated chart (from the Federal Register) showing the real estate companies at the top of the food chain.

Now, I'm all for free enterprise and fair competition - but if you are losing business because someone is not playing by the rules and kicking (back) sand in your face - you have nothing to lose by reporting them to HUD!

Here's my suggestion: If you suspect a real estate, mortgage, title company or homebuilder of not playing by the rules, send them a copy of the recent NAR report. You might want to give them a copy or send (to them) anonymously. In either case, it puts them on notice that "someone" is "watching" them and they are violating the law. Maybe they will discontinue the illegal practices voluntarily.

Another suggestion would be to share the report with your fellow loan originators at your association meetings.

Here's some good news! Builders are now on HUD's radar screen for requiring consumers to use their preferred lender. Even though this is a NAR white paper, give them a copy too.

My purpose in writing this editorial is to level the playing field for all loan originators and for everyone reading this editorial by giving you a free copy of the white paper as ammunition if you think someone in your area is violating Section 8 of RESPA.

Money is being taken out of your pocket because some people are cheating the system.

You have nothing to lose and everything to gain.

Let's level the playing field and see if we can get everyone to play by the rules.

Regards, Karen Deis

P.S. To report violations, write to: Director, Interstate Land Sales/RESPA Division, Office of Consumer and Regulatory Affairs, U.S. Department of Housing and Urban Development, Room 9146, 451 7th St. S.W., Washington, DC 50410.

You don't have to disclose your identity but you will need to refer to Section 8 (the section of the law being broken), and send in some sort of proof of the violation. When it comes to builders, nothing is better than a letter from a consumer.

Copyright, 2005, LoanOfficerMagazine.com

Kickback Violations - A Few Examples!

We were astounded by the response we received on the editorial in our last issue about Section 8 of the Real Estate Settlement and Procedures Act (RESPA).

In addition to over 500 emails requesting copies of the NAR White Paper, we were amazed at the number of phone calls from loan originators from all over the country telling us about some of the alleged kickbacks happening in their own backyards.

There were a couple of reoccurring "issues" that seemed to be mentioned over and over again:

• Home builder incentive (buyers had to use their mortgage company or pay thousands of dollars more for the home).



• Incentives paid by loan officers (paying for Realtors' ads or something as simple as a gift certificate) in exchange for referrals.

The National Association of Realtors^TM had released a white paper called "How HUD Determines Whether a Mortgage Company or Title Company is a Sham". Good for them!

However, in my research, telephone calls and emails to the National Association of Home Builders, it does not seem that they have even addressed this issue (RESPA Section 8) with their members.

Many of you has asked for examples of some of the best-known settlements. Well, we found some using a quick Google search.

We are also providing you with examples of what HUD feels are questionable activities (as outlined by Kirkpatrick & Lockhart) in a newsletter issued to mortgage companies.

Here is an example of a settlement where a homebuilder charged consumers more money if they did not use their affiliated company. (This seems to fall under the same category as a builder charging a homebuyer more money for the home if they don't use their mortgage company.)

ARVIDA: HUD negotiated a settlement with ARVIDA/JMB Partners, a large builder and realty services company in Florida. The settlement resolved allegations of violations of RESPA Sections 8(b) and 9, in the Weston Community in Broward County, Florida. The Section 8(b) allegation addressed ARVIDA's practice of charging a percentage of the house sales price for closing costs, a portion of which was paid for certain closing costs and a portion of which was retained by ARVIDA and not specifically accounted for. The Section 9 allegation involved an added $300 fee to buyers who opted to use their own title agent rather than ARVIDA's affiliate. The Settlement Agreement provides for the cessation of these practices and for the refund of $45,750, most of the additional fee that ARVIDA charged for buyers' using their own title agents.

Example of Loan Officer "Referral Program".

Brian Sacks, branch manager of Integrity Home Funding, Owings Mills, MD was accused of RESPA violations for his "Refer a Friend" program under which former clients, who sent referrals, were entered into a raffle to receive tickets to sporting events, theatre productions and other prizes. One winner per month was announced and their name was distributed in his monthly newsletter. (See the full details at www.RespaReform.com, although you must be a paid subscriber to access the article.) He also sold materials through his website instructing loan officers to pay referral fees. Sacks agreed to pay $1,500 in fines to the US Department of Treasury and send a notice to anyone who has purchased or received his materials.

Example of Free Virtual Home Tours.

Two Coldwell Banker offices in Austin, Texas accepted free, virtual home tours from title companies. HUD stated that they received the free tours in exchange for referral business and in violation of Section 8 of RESPA. Combined, they agreed to pay the US Treasury $19,200.

Within the last year, HUD has tripled their RESPA police force, which is now called R.E.D. (RESPA Enforcement Division) for short. Here are a few of the "RED" flags (according to Kirkpatrick & Lockhart LLC) that will bring them knocking on your door. www.KL.com

• Providing virtual tours or placing their information on your website in exchange for referral business.
• Charging homebuyers a percentage or flat fee of the purchase price to cover fees without regard to what the "actual" fees really are.
• Imposing an additional fee on homebuyers who elect not to use an affiliated company.
• Setting up "sham" employment arrangements with real estate agents for the purpose of paying fees for referrals under HUD's employer-employee exception.
• Failing to disclose affiliated business arrangements to consumers.
• Providing ANYTHING of value for the referral of business; including money, discounts, free rent, sharing fees, reduction in credit, gifts, vacations, use of office space or office equipment of anything of value.

You are losing loans and money to those bullies who are not playing fair! I urge you to take action and report violations to:

Regards ~ Karen Deis

Copyright, 2005, LoanOfficerMagazine.com

No Brag - Just Fact!

Who are the most powerful people on your sales and marketing team?

It’s your past customers!

Don’t you wish they could sit on your shoulder and tell everyone how great you are; how you helped them with their mortgage; how you changed their lives!

The single, most powerful method of subtle endorsement is the all-important testimonial.

Every time I see a testimonial, I read it for 2 reasons: First of all to see what it says and the second is to test the “so what” factor. Have you ever read a testimonial and said to yourself “So what?”

When you say something about yourself—it’s bragging. When other people say it about you, it’s proof. That is the essence of the testimonial.

Before you read any further, take a moment to look at the written testimonials you are using. Would it make someone want to pick up the phone and do business with you? Or do they say things like “she is a wonderful person to do business with” or “I really like the way he helped me”. These are passive statements that really sound nice but do not have any do-business-with-me impact.

What should a written testimonial say?

A written testimonial should be phrased in a way that takes away risk or neutralizes fear. But there is one word of caution. They must be used in the proper manner or they lose their power. Often times we use them to get our foot in the door. But the true power lies in the “proof” they offer the prospect at the time they are ready to “decide” to do business with you.

Testimonial Secrets

Another mistake that we make is that we are so hell-bent on getting testimonials that we get the wrong kind. Most of them fail to capture the most important element: Why should someone do business with you.

• A testimonial should show action—and make a call to action.
• “I have used a competitor for my last mortgage but I switched to ABC Mortgage and you should too.”
• A testimonial should overcome an objection.
• “I first thought their closing costs were too high but I closed my loan with Karen Deis after she showed me how to save thousands of dollars over the life of the loan.”
• A testimonial should reinforce a claim.
• “When I refinanced my home, I was able to get the money I needed to pay for my kid’s college tuition.”
• A testimonial should have a happy ending.
• “I needed to close on the purchase of my new home in a hurry and Karen Deis was the one who pulled it off for me.”

How do you get them?

The unspoken secret of getting testimonials is the same as it is for referrals—YOU HAVE TO EARN THEM. After you earned their business—you have to ASK for them. It’s even OK to prompt the customer as to what you want them to say.

List 10 customers who love you the most. Call them and tell them what you need. Take them out to breakfast or lunch. If you feel awkward asking customers for this favor, then your relationship with them is weak to begin with.

Where to “advertise” your testimonials

1. On the back of your business card


2. In a book in your lobby


3. On your website


4. Record the testimonial and distribute on Audio CD


5. Videotape your testimonials


6. In your advertising

According to Jeffrey Gitomer, your customer can overcome any objection. Your customer can dispel any disbelief. Your customer can explain why people should do business with you.

In short, your customer is better at marketing you—than you are!

Make it a point to start accumulating testimonials and watch your business soar.

Karen Deis

Copyright, 2005, LoanOfficerMagazine.com

The Spam Scan and Lead Generation Connection

Written By: Karen Deis

If you are one of the thousands of loan originators who purchase mortgage leads - listen up!

Recently, a FOX news anchor (in the Minneapolis area) decided to do a report on spam and junk e-mail. They started with a "clean" new computer (no cookies), a fake email address. They answered junk and spam emails, and traced where their name ended up.

You will be shocked and appalled where their e-mail journey took them - and you may never buy another lead again.

It all started with a click to a link that took them to a webpage offering to sell a list of Minnesota women who wanted to cheat on their husbands: Paying $1 (via a credit card) for the list - no list was received.

The website was traced to an island in the Caribbean. Immediately, they began to get solicitations for mortgages. Upon filling out a "mini" loan application, the so-called mortgage site was traced to a website registered in Istanbul, Turkey. They received an instant message that said, "Congratulations - your mortgage loan has been approved".

Within a day (yes, less than 24 hours), the reporter received no fewer than 13 phone calls from mortgage companies offering to refinance. Now remember, they answered spam which started in Turkey.

Upon further investigation, one of the loan officers admitted that she purchased the name from a lead generation company in Maryland. Calling the company in Maryland, they claimed they purchased the lead from a wholesale name broker in California.

Of the 13 loan officers who called, 2 of them were willing to talk. One L.O. paid $500 for 20 leads and another said she paid $5 per name. (Doesn't it make you wonder that the less you pay for the lead, the lower you are on the food chain?)

From the Caribbean to Turkey, from Maryland to California - my point is before you spend your hard-earned dollars to purchase leads - investigate the source of the leads yourself. Just don't take their word for it.

Or better yet, develop your own niche market and generate your own leads. There are literally thousands of ways to get business - as evidenced at the recent Share and Tell Session at the Turn On Your Million Dollar Brain Workshop held in Florida. Check out the Santa Monica, CA workshop being held March 2-5, 2005.

Here are just a few of the ideas shared (which we will write about in greater detail in future issues):

• Home Inventory Reduction Sale
• Free Report on 33 Ways to Sell Your Home Fast
• Marketing to companies who sell supplies to the handicapped
• Video Business Cards
• Magnetic Dining Guides

On second thought, maybe a list of women who WANT to cheat on their husbands means that they need to refinance to get money to buy new clothes and afford to go out on the town. Or maybe they are thinking about divorce. Or maybe...you could speculate on the so-called "connection" for days. It's a stretch (on my part) trying to determine how the "cheating" list has anything to do with "mortgage leads".

Karen Deis

Copyright, 2005, LoanOfficerMagazine.com