Here is a portion of the article(s) that relate to Personal Development, if you would information on how to
gain access to the full article, click the "Read More" button at the
bottom of the page, and you will be taken to the Loan Officer Magazine website.
Do You Stand Out From The Herd?
By Mike Baker (Mike Baker is CEO of The Mortgage Coach as well as a mortgage industry speaker and author. He has two published books, Mortgage Power and Loan Officer Recruiting. Purchase his
books online at www.MortgageSpeakersBureau.com. He can be reached at 800-499-2242 or email him at mbaker@mortgagecoach.com.)
A potential borrower asks, "Why should I do business with you?" A potential referral based client asks, "Why should I refer business to you?" What's your answer? Separating yourself from the average loan officer will make a huge difference in how they view you and it's the difference between you getting the business or not.
How are you different? What have you done to make yourself more authoritative, credible, and compelling than all those other lenders out there? When a borrower calls you shopping interest rates for a new loan, how are you different from the other calls that they made to other lenders?
Written By: Mike Baker
The Difference Between a Personal Brochure and a PERSONAL BROCHURE
To stand out in the mortgage business, you need to be a little better and a little different than your competition. How do you separate yourself from the rest of the loan officers out there?
Loan officers and real estate agents are (for the most part) "personal brochure junkies." I have seen some absolutely wonderful personal brochures—but then again, I have seen some truly awful ones as well. The good ones show clients the "benefits" of why they should be doing business with you. The awful ones tell the client how wonderful and great you are, how many millions of dollars you have closed and then go on to list every loan program available to mankind.
Ralph Roberts (who claims to be the number one real estate agent in the world www.ralphroberts.com) in his book called 52 Weeks Of Sales Success says that one of his most effective marketing tools is his "presentation folder" (I call it a brag book). This is a crucial step in becoming your clients trusted financial advisor—with the MOST important word in that title being the word "trusted".
Written By: Karen Deis
A Cure For The Common "Hold"!
Written By: Barry Weiss, President On-Hold Production, Inc.Being in business for 17 years, he specializes in message programs and professional voice mail for mortgage companies. You can listen to sample messages by visiting their website at www.OnHoldProd.com or call 1-800-233-6356.
If you're in the mortgage business, you're busy! The phone is ringing and you may have two lines on-hold. What are your callers hearing while on-hold? Music from a mix-tuned radio? An offensive song or risque DJ? Dead air? Or perhaps, another mortgage company's radio commercial.
The average number of calls received by a mortgage company and placed on-hold is approximately 21,600 calls per year. The average hold-time is 17 seconds. This equates to 6,120 minutes of valuable time that could be used to tell your company story, and to convince your caller that is on hold, to do business with you.
What if your callers could hear timely information that would help them make buying decisions, answer questions, inform them of your products and services and assist them in doing business with your company? Isn't this the image of a state-of-the-art mortgage company that you want to project?
Written By: Barry Weiss
How To Create A Cohesive Marketing Plan
Written By: Karen Deis
Is there such a thing as a "fill-in-the-blanks" marketing plan?
After some exhausting research we think we have hit upon a marketing plan that you can use as the basis for each and every client segment you wish to market to.
However, there are a couple of basics that are absolutely essential to ANY plan.
First of all, you need to identify who you want your customer to be! And, we're here to tell you that it's not EVERYONE! This is the first, and most crucial step in any marketing plan. (To read an archived article entitled, "Know Your Clients, Know Yourself", CLICK HERE. This is an entire article dedicated to helping you identify your ideal customers.)
The second most important decision you are going to make is "geographic territory". Are you licensed to do loans all over the US? Or do you want to contain your geographic area to one little corner of the city? Making this decision has a huge impact on where you are going to place your ads, TV or radio advertising and even the search engines on your website.
And third, what types of mortgages YOU specialize in. Don't decide to market to first time homebuyers if you don't have a clue about FHA loans or 103% financing. By identifying your strengths and mortgage expertise, it will be easier to determine "who your ideal customer will be" and systemize your marketing plan.
Let's assume that you identified your ideal customer, staked your territory and honestly determined what you are really good at. The next step is to figure out how and where you are going to advertise - and exactly what you are going to say to potential clients so they will do business with you.
For subscribers to the magazine, we are also providing a printable version of a fill-in-the-blanks marketing plan (located at the end of the article). The form also allows you to determine the cost for each market tactic. You don't have to implement each leg of this marketing plan, but be ready to do so when you are able to afford it. You will also have the ability to read a previous article entitled, "Know Your Clients, Know Yourself." If you would like to subscribe to the magazine to take advantage of all the free marketing materials that we provide throughout various articles and issues, CLICK HERE.
Here's an example of a FIRST-TIME HOMEBUYER'S MARKETING PLAN:
Written By: Karen Deis
Listen Up! - The Best Salespeople Are Great Listeners.
By Mike Moffitt (Mike is a Senior Loan Officer with US Bank Home Mortgage, Minneapolis, MN. He specializes in the first time homebuyer market. Mike has created an excellent product entitled, "Recession Proof Your Business." This product contains a book, along with an audio CD and a PowerPoint presentation on a CD. It is a detailed, and has step-by-step instructions on seminar preparation and registration; sample of seminar forms, marketing materials, follow up letters and scripts; database management techniques and the first-time home buyer seminar "speech." CLICK HERE FOR MORE INFO. If you have questions about his system, please email us.)
Mike will also be one of the featured speakers at Turn On Your Million Dollar Brain IV Workshop, in February, 2004. CLICK HERE for more details about this year's incredible lineup of speakers .
Listening is one skill than can improve careers, relationships, wealth and happiness more than any other. Ineffective listening, however, remains a liability many of us choose to ignore. We are a society of talkers, yet in everyday life, the most charismatic people are often the best listeners.
Research has consistently demonstrated that ineffective listening habits present the most common barriers to success in relationships and careers. The greatest "listening" paradox is that most of us admit we don't listen effectively and yet do little to improve.
One of the quickest ways to improve your effectiveness as a loan officer is to start listening - I mean really listening to your clients. We have two ears and one mouth. We should listen at least twice as much as we talk, yet most of us don't. My wife saw a t-shirt the other day that said, "I'm talking and I can't shut up!" I bet everyone of you reading this article knows someone you immediately think of when you read that phrase. Would someone reading that phrase think of you? I hope not!
It's rare to meet a listener and even rarer to meet a listening salesperson. If you believe that to sell is to serve, listening is the right thing to do. Most of us got into the mortgage business because we felt we could make a good living by helping people obtain the best financing for them. How can you help someone make the right decision if you don't know what's good for them?
Want to have some FUN with everyone in your office? Visit a website called "Randall's ESL Cyber Listening Lab" at www.esl-lab.com. This is an online "listening quiz" where you listen to a conversation and then answer questions about what you have heard. If you would like to obtain a copy of a "written" quiz, go to www.esl-lab.com.
The scope of this topic is too large to do justice in an article. What I can offer you, however, is to tell you what not to do when you're with a client, and tell you how to make a quick, decisive beginning to being regarded as a good listener.
Let's start with what not to do:
Written By: Mike Moffitt
Half-Empty or Half-Full?
By: Roxanne Andler
Roxanne Andler is a Loan Officer with Fairway Independent Mortgage, Madison, WI. Over the past 7 years, Roxanne was closing enough loans to make a living. She hired a personal coach, sought out a mentor, and transformed her thinking to "abundance mentality." Instead of making a living - she now has a life - doubling her business in 2002 and is on track to double it again in 2003. Email Roxanne at roxannea@fairwayindependentmc.com.
Have you ever lowered a mortgage rate for a client because you were afraid to lose a sale? Do you find yourself wanting a bigger piece of the commission pie? With the recent surge in mortgage rates, many originators are questioning where their next sale is coming from and specifically - when the next client will appear.
Scarcity may be what best describes the mortgage business right now. There are less people out there that need to purchase or refinance - right? If you are thinking this very thought, you may be experiencing "scarcity mentality."
People with scarcity mentality view a glass of water as being half empty, rather than half full. They also consider that there is only one pie from which everyone must divide the slices. One would think that if you get a larger piece of the "one" pie, someone else would be left with a smaller piece. This is a description of scarcity mentality.
With 18 years of sales experience, I have come to the conclusion that the sales profession breeds this scarcity mentality.
Written By: Roxanne Andler
Internet Security Essentials: What Would Someone Know About You If Your Laptop Was Stolen Today?
Written By: Jillayne Schlicke
Jillayne Schlicke is the Washington State Director of Education and Technology Specialists for First American Title and Escrow in Seattle. She writes and presents technology education for the real estate and mortgage industries on topics ranging from Emerging Technologies, Internet Privacy, Internet Security, Contact Management Systems, PDA's, and Wireless Technologies. The author is not a reseller of any product referred to in this article. Any software mentioned can be purchased from your favorite online or retail software vendor, or directly from the software developer. Jillayne can be reached at www.Schlicke.com.
Three frequently used advertising themes are: sex, death, and fear. Of these, "fear" sells more products. Forrester Consumer Research reports that consumers fear the cost, change, and obsolesence associated with technology. It's not a coincidence that attention-getting headlines on your favorite magazines are designed to invoke fear.
Look at the topic of "Internet Security" from a different perspective. Publishers want you to buy their magazines because they've sold lots of advertising space. Advertisers reinforce the consumer's fear of technology, which builds demand for security products. So we buy the magazines, become overwhelmed and do nothing.
Written By: Jillayne Schlicke
Earning What You're Worth
Written By: Mike Baker
Mike Baker is CEO of the Mortgage Coach, as well as an industry speaker and author of "Mortgage Power" and "Loan Officer Recruiting." He can be reached at (949) 608-3006 or visit his website at www.MortgageCoach.com.
They seem to do the impossible...Year after year top producers in this country create staggering levels of production and commission income.
Some of these master originators generate 60, 90, 100 and even several hundred million dollars a year in personal production. That means that they are generating personal commissions ranging anywhere from $300,000 to $2 million a year or more! If you are like me, you have three reactions to those numbers...
Wow, how do they do that, or
No thanks, or
They must have a bunch of assistants working for them.
A common perception is that these lenders are working horrific hours, have no life and probably are destroying their families. Yet, a five-year study into the practices and strategies of these loan officers reveals some fascinating facts. For example, our research uncovered the following discoveries:
FACT: These top pros actually close 9 out of 10 rate-shoppers.
FACT: On average, these mortgage pros earn at least a 10% higher commission on each loan.
FACT: They receive far more referrals than the industry average.
FACT: They have more professional referral sources so that they do more loans with fewer people referring them leads.
Most importantly, master originators accomplish these strategies and still spend less time and effort working on each loan than the average loan officer. Simply put, these top producers are working less and earning more - far more - than the average lender.
Think about it.
What are you worth? What value have you placed on your time? How much do you currently make an hour? Some loan officers are barely making minimum wage while top originators are making hundreds and even thousands of dollars per hour!
So what's going on here?
Written By: Mike Baker
Whatcha Gonna Do When They DON'T Come To You?
Written By: Steve Probst
Steve Probst is Managing Partner with HomeKey Mortgage in Ronkonkoma, NY, and is a speaker and author for the mortgage industry. He can be reached at sprobst@homekeymb.com.
I have attended several national and local mortgage industry seminars this year and have had the opportunity to speak to many mortgage originators. You can see and hear the concern in many of them as they try to determine what the next year will be like in a substantially declining market. The refinance boom has ended and loan officers will be clawing for a limited amount of purchase business. The competition will be fierce!
So what is a mortgage originator to do? Quit? Run and hide? Stand and fight?
In my opinion, in order to survive and grow your business in a changing market, there are some BASIC PRINCIPLES and DAILY DISCIPLINES that must become a part of any quality, mortgage originator's life.
There are 3 basic principles that are important for success.
Written By: Steve Probst
Automobile University
This month's featured audio book is:
"The Strangest Secret" by Earl Nightingale
Like the book Think & Grow Rich (another AutoU recommendation), Earl's book was first published in 1956 and the tape (or CD) was one of the first personal development training series that has become the basis for ALL the training programs available today.
Ken Pederson, Aarrow Mortgage, has recommended the audio, and said, "Earl Nightingale was one of the world's leading motivators with his message being that you "become what you THINK you are." Other reviews from Amazon say:
"I viewed the video 2 years ago...and have never been able to get it out of my head. It has positively changed my life forever."
"...this expert with a heightened level of knowledge was almost like a gift from God."
"Earl Nightingale spent years researching what every wise man, woman, sage, teacher, philosopher and guru ever wrote or spoke regarding the conduct of life. The result? The one thread that ties together these oftentimes - divergent voices over many different times and places. The "secret" reveals the one thing upon which these people were in total agreement".
Purchase a set of 6 CD's for $79.95 or a set of 6 Audio Tapes for $69.95 at www.Nightingale.com.
Copyright, 2003, LoanOfficerMagazine.com
Written By: Karen Deis
How To Make Money With Second Mortgages!
Written By: Karen Deis
FACT: According to the FNMA, over 80% of the mortgages in the US are at an interest rate of 6.75% or less.
If you are still thinking that there are plenty of mortgages to refinance out there, reality is that you (and a million other loan officers) are chasing a 20% refinance market.
Mortgage rates have increased. The other 80% are not going to refinance. They will be staying in their homes longer. Home improvement will be huge. They still need cash.
Second mortgages and home equity lines of credit may just be the next best alternative for loan originators. Not only in the short term—but as a long-term client- retention strategy as well.
Let me explain:
Short Term: There is money to be made in home equity lending. Long Term: You have a chance to refinance a 1st and 2nd mortgage when rates change again.
Why do you think the banks are advertising the heck out of home equity loans? Because there’s money in it! And, by the way, not only will the bank try to sell them services when the time comes; they will solicit them to refinance their mortgage too. A lost client! Moral of the story: Don’t refer them to a bank!
Hey, the client already knows you right? The bankers are pretty impersonal, right? Why not take advantage of the information in your loan files (or database) and start dialing for dollars!
We interviewed quite a few loan originators and wholesale reps for this article, and have featured 4 originators who had some great insights—and were willing to share their unique ideas on how they make money with the home equity niche.
Written By: Karen Deis
Financial Education for Children
Written By: Karen Deis
...teach your children well...
(Lyrics By: Crosby, Stills, Nash & Young)
Pregnancies are at an all time high-so schools introduced sex education into the classrooms.
Drug and alcohol addiction is a major problem so D.A.R.E. clubs have been formed.
Credit problems and bankruptcies are thru the roof—but schools have yet to provide students with the financial education they need to understand money and to use credit wisely. Between the ages of 17 to 21, college-aged students are offered over 12 opportunities to take out a credit card—in hopes that their parents will bail them out if they get into financial trouble.
As a loan originator, there is a huge opportunity to provide your clients, with children, the tools to teach their offspring how to become financially responsible and productive members of society.
O.K., I’m not suggesting that you set out to change the world here—but if you can make just a small difference in the lives of children (and assist parents with their financial education), you have an enormous opportunity to set yourself apart from the rest of the LO’s out there. You can use your network of financial planners to reinforce your message.
If you haven’t already done so, I recommend that you add the “ages of children” as an important field in your database management system you currently use.
There are a number of ways to help parents teach their children about money and in this article, we will provide a plethora of ideas for you to research. Some are as easy as sending a series of articles and some are as complicated as holding seminars.
Written By: Karen Deis
Shopping for a Mortgage - My First-Person Account!
Written By: Jenna Bennett, Assistant Editor
I am getting married this September, and my fiance and I have been talking about buying a home. I asked Karen Deis' advice about getting pre-approved for a mortgage.
To kill two birds with one stone, I decided to not only shop around for my personal use, but also write an article about my experience in calling loan originators in the Minneapolis area.
I thought, "How hard can this be?"
My "control" outline (with each company) was:
I called mortgage companies from the yellow pages.
I was purchasing my first home.
I did not want to put any money down.
I wanted to purchase a townhome or a condo.
I could afford a home priced around $150,000.
I asked each company to send me information in the mail.
I left my phone number for each loan officer to call me back.
I chose 6 mortgage companies (randomly) and started out by telling the receptionist that I was buying my first home and wanted to talk to a loan officer about 1st-time homebuyer programs.
What I found during my shopping expedition was both surprising - and a little unsettling. I speak with loan originators all day long who I would consider extremely professional - and I could not believe how my inquires were handled.
Written By: Jenna Bennett
Why Hire An Assistant?
John Santorinoes is a mortgage originator with American Home Mortgage in the Chicagoland area. This article is the first in a series of 3 articles on hiring assistants. He has been ranked within the top 200 loan officers in the U.S. and is a member of the Mortgage Speakers Bureau (www.MortgageSpeakersBureau.com). John can be reached via email at john.santorineos@americanhm.com.
I began working in the mortgage business back in the fall of 1992. In 1993 I closed about $10 million in loans. I was very pleased with that amount and very happy with my income. For the next 3 years, my production was between $10-$13 million. It seemed like I was stuck there forever. I was working about 50 hours per week, which included Saturdays and an occassional hour or two on Sunday. I had a pager that would go off during the evenings and even worse, on Sunday, while I was with my family. I was often frustrated or even angry when the pager would go off, instead of being happy that it meant new business.
Have you been there? I would hear of a few loan officers producing more than $20 million per year and I thought, no thanks. I am giving this job too many hours as it is.
So what happened?
Written By: John Santorineos
Going Into Business For Yourself? Don't Make These 7 Deadly Mistakes!
Written By: Don Lanman
Don Lanman is the President of Integrated Marketing Communications specializing in mortgage company marketing and advertising. Don can be reached at 561-845-1295 or imc4u1@aol.com.
How hard can it be to start your own mortgage company? After all, you’re a great loan originator right?
The answer is — not very hard at all! Apply for a license. Install QuickBooks and an LOS system. Line up a few banks and investors and you are on your way.
Well, not so fast!
I’m sure you realize that there is MUCH MORE TO IT than that. However, I want to share with you some of the deadly mistakes I have seen people make that signal the failure of their business—even before it gets off the ground.
Your Number 1 Rival? Over Confidence!
Lack of research is a leading cause of premature death among new company owners. It's all too easy to underestimate the other players in the mortgage industry; but more important your local market.
Personally research the competition to identify their strengths and weaknesses. (CLICK HERE to read editorial about Ditech.com) Identify your very own USP, that special product, service or offer that clearly makes you perceived as different--or better--than the competition.
Read Sun Tsu’s “The Art of War” for some great advice on how to run a business! Specifically you’ll learn to “never” underestimate the enemy (competitors) or to assume that your business platform is better. Do your homework.
Once you understand the enemy, (sorry I mean your competition) adjust your business and marketing strategy to address their strengths, leverage weaknesses and develop your unique position that provides prospective customers a clear and compelling choice…You!
Field of Dreams Illness! No Business Concept Testing!
Written By: Don Lanman
When to Hire an Assistant?
Written By: John Santorineos
John Santorineos is a mortgage originator with American Home Mortgage in the Chicagoland area. He has been ranked within the top 200 loan officers in the U.S. and is a member of the Mortgage Speakers Bureau (www.MortgageSpeakersBureau.com). John can be reached via email at john.santorineos@americanhm.com.
This is part 2 in a 3 part series. The 3rd and final installment will be on "How to hire the perfect assistant".
As a subscriber, you can read the 1st article in this 3-part series NOW. If you are not a subscriber, but would like to read the 1st portion of this series, and take advantage of all the free newsletters, etc. available to subscribers, as well as receive a free CD Replay valued at $169, CLICK HERE and subscribe today!
As discussed in the last issue, hiring an assistant is a must if you want your business to grow, enjoy more time off and give better customer service.
The big question now is:
When should a Loan Officer consider hiring an assistant?
Let me answer this question by using an illustration. If you wanted to open up a fast food restaurant, when would you hire your first assistant? Would you decide you first need to get your business up and running and then hire an assistant? Would you run the restaurant by yourself? Take the customer's order, be the cashier, then run in the back to put a couple of burgers on the grill and then run back up to help the next hungry customer. Would you consider doing that? How profitable would you be? How many customers could you serve? What quality of customer service would you give? How many burgers would you burn? How many customers would come back again or refer you to their friends? Do you see a correlation?
Of course, things are not exactly the same in the loan originating business, but this illustration helps make a point.
You the Loan Officer, can either go at it alone or decide to run a real business. The earlier in your career that you hire your first assistant, the faster your business will grow. The first step you need to take before deciding when to hire an assistant, is to do the following exercise.
Written By: John Santorineos
How To Hire An Assistant?
Written By: John Santorineos
John Santorineos is a mortgage originator with American Home Mortgage in the Chicagoland area. He has been ranked within the top 200 loan officers in the U.S. and is a member of the www.MortgageSpeakersBureau.com. John can be reached via email at john.santorineos@americanhm.com.
This is the 3rd and final article in this series.
The last two articles have dealt with why and when you need to hire an assistant. This article deals with how to find the ideal person to help you grow your business.
I will discuss three things:
Where to find candidates?
What to look for in an assistant?
What NOT to promise to an assistant.
Hiring your first assistant!
Once you have decided to hire your first assistant, your next step is to create a job description.
Written By: John Santorineos
Automobile University
Written By: Karen Deis
Automobile University is all about learning while you drive.
If you don't think you are achieving success in all areas of your life, these tapes can help you pinpoint your innermost desires by making a list of them and assigning a number value next to each. Zufelt says that there is a "Conquering Force" within each and every one of us.
Tom Ward, President of Majestic Mortgage, and an Advisory Board Member for www.LoanOfficerMagazine.com, personally recommends this tape series. They made him flashback to the times in his life when he really, really wanted something and went about figuring out how to get it - even if it meant sacrificing something to get it!
These programs will serve as a "how to" manual to develop unlimited financial growth, a richer family life, more meaningful relations with family, friends and business partners and your spiritual well being.
You can listen to 3 short, 5-minute audio clips and purchase these tapes and CD's at www.Nightingale.com.
Copyright, 2004, LoanOfficerMagazine.com
Written By: Karen Deis
Assistant Compensation: Pay Good Money For Good People
Written By: Tim Braheem
Tim Braheem is President of First Rate Financial Group and CEO of LoanToolbox.com. Tim has ranked as a top producing Loan Executive for more than a decade. He has appeared on CNNfn as an authority on the subject of mortgage market trends, and provides seminars in the United States and abroad, to motivate mortgage professionals to higher levels of success. To learn more about the topics Tim includes in www.LoanToolbox.com, send an email to timb@firstratefinancialgp.com.
Tim Braheem's article is one of the most revealing that you will ever read, called: Assistant Compensation: Pay good money for good people. An attorney friend of Tim's figured out that it costs him $850 per week to make a 23-minute round trip (daily) to pick up his favorite coffee at Starbucks.
Figure how much you make per hour. You make money only when a loan closes. You don't make money stuffing envelopes or creating a marketing piece. Tim reveals his thoughts on how you can utilize an assistant and also provide fair compensation based on net profits and not a bonus-per-file basis.
Whether you realize it or not, all of us have some sort of "personal assistant". Take the cleaners for instance. Would you rather wash, starch, and iron your own shirts? Or would you
rather pay $5 per shirt for someone to do it for you? Unless you truly enjoy ironing...well, you get my drift!
(Editor's Note: In the next issue of www.LoanOfficerMagazine.com, we have interviewed 3 loan originators who will share how each one pays their assistants.)
You have heard the hype on how hiring an assistant will take your business to the next level. Finding an assistant is probably the easiest part - it's how to structure their income & duties that is the most challenging.
In this article, we have interviewed 3 loan originators who have taken the plunge and have hired assistants. They represent the East Coast, West Coast and Midwest. They represent a company owner (and a mortgage broker), an LO who works for a bank and one who works at a mortgage banking company. They have asked to remain anonymous. Who they are is not as important as the ideas they will share with you in this interview.
Since each mortgage shop is structured differently, we will share with you how they have internally set up their operations, job descriptions and how they have structured their assistant's income.
It wasn't easy for them to make the leap and hire assistants. However, it is the first step in thinking like a CEO of your own business. When you read this article, we hope it will give you some ideas on how you too might work with assistants, how they are paid, the job descriptions and incentives.
Written By: Karen Deis & 3 Loan Originators
The Power of First Impressions
Written By: David Kuiper
David Kuiper, Republic Bank has been consistently listed as one of the top 200 loan originators in the country. He is known as the "Expert of First Impressions" and personal branding which he will share with you in this article. He attributes his success not only to building a database but delighting his clients and past customers. Contact david at dkuiper@republicbk.com.
David will share his innovative approach to providing an ultimate customer experience at the Turn On Your Million Dollar Brain V Workshops in Delray Beach, Florida and Santa Monica, California in 2005.
David Kuiper has created one of the best systems I have ever seen, in giving clients an ultimate customer experience that even exceeds Nordstrom's. This article is so descriptive; you can literally imagine what his customers' experience and see when they walk into his office and the impressions he and his staff make on his referral partners as well. - Karen Deis
Remember the saying "your first impression is your last impression"?
Well, I've been giving serious thought recently about the first impression that my mortgage practice has on potential clients. In seeking to clarify the terminology, I went to the dictionary.
According to Webster's, first means "before all others", "earliest", "before anything else" and impressions means "to imprint", "to strongly affect the mind or emotions" or "to fix in the memory".
I realized that when people view my practice, their earliest experience is going to be fixed in their memory and strongly affect their emotions! This has serious implications for me, and it does for you too. I needed to look at every point of contact I had with clients, to ensure not only that clients were having a positive first impression, but also the experience far outweighs any experience they may have had with the competition. I also wanted to ensure that all future points of contact furthered that first impression.
Written By: David Kuiper
The Lion's View of Mortgage Production!
Written By: Steve Probst, Vice President of Sales, HomeKey Mortgage, New York, and a national speaker for the mortgage industry with presentations about Time Management and Business Planning (www.MortgageSpeakersBureau.com). Steve can be reached at sprobst@homekeymb.com.
Storytelling has been around for centuries! This article by Steve Probst tells a poignant story and makes a comparison between being a loan originator who is a “lion” and loan officers who are “scavengers”. There are only a few lions in the jungle; yet there are many scavengers!
Which type of loan originator are you?
In the current mortgage business environment, all the pleasantries will be dropped and the dog-eat-dog mentality will kick in.
Many loan officers today are so new to the industry that they are unaware of how a seriously declining market will affect them. They are scared and unsure of the proper way to behave and survive the next year. And, they SHOULD be concerned. The loss of a significant percentage of the refinance market will likely take away anywhere from fifty to ninety percent of some originators' income. I am sure even the seasoned veterans have some concerns!
Recently I addressed my team of loan officers, to try to give them a competent view of the future of the mortgage industry, and what they should expect as far as production. I am a visual learner and thereby have become a visual teacher. So the analogy I used was the King of the Jungle - The Lion!
Written By: Steve Probst
Websites That Instantly Translate Languages!
Written By: Karen Deis
Have you ever wanted to place an ad in your local homes magazines - and market to Spanish-speaking prospects?
How about creating a free report in Spanish - or choose from Chinese "simplified" or Chinese "traditional" dialects?
Or what kind of impact do you think you would make if you email your foreign-speaking clients and your e-mail message is automatically translated into their language?
We have found some killer websites that will do all of the above for you - and more!
For subscribers of Loan Officer Magazine.com, download both an English and Spanish Version of a Free Report you can provide to your clients. (Or become a subscriber NOW, and download the reports today!)
If you were to pay to have the free report translated yourself, it would cost you roughly $300.
If you are NOT a subscriber, but would like to purchase both the English and Spanish Versions of the free report, for only $49.95, Order Now. These reports come to you via email, in Word format.
Written By: Karen Deis
5 Notes a Day... Keeps the Comeptitors Away
Written By: Karen Deis
Do you open your mail up over the trashcan, throwing away the junk mail, but keeping the bills and handwritten notes?
Most people do and guess what? It's the handwritten note that usually gets opened first!
"Little things can make the big difference" and in this article, we will share with you how just 5 handwritten notes per day can make not only a big, but a huge impact on your business.
Written By: Karen Deis
Five Ways to Sabotage Your Business
Written By: Nancy Friedman, Telephone Doctor.
Nancy Friedman is scheduled to be the featured speaker at the Manager's Session at the www.TurnOnYourMillionDollarBrain.com 5th Annual Workshops in Florida in February of 2005 and California in March of 2005.
She has appeared on the Today Show, Good Morning America, CBS Morning News, CNN and Oprah! She is an expert on the topic of customer service and communication skills. Visit her website at www.TelephoneDoctor.com.
Believe it or not, there are many, many ways to sabotage your business. And, chances are, without your even knowing it. And worse yet, you've probably even heard some of these phrases uttered, and someone on your staff might be doing it right now, ouch!
That's the bad news.
The good news is, through our many Telephone DoctorTM surveys, we're able to bring to you the top five sabotage practices and then show you how to neutralize the effects. So, get ready. You and your staff are about to be in a much better position to handle:
The Five Top Ways to Sabotage Your Business Today:
RANDOM NOTE:
Hold an office meeting with assistants and staff and review the top 5 phrases that sabotage your business. Provide copies of this article to everyone. In fact, this would be a great topic to present to your real estate agents, financial planners and CPA's that you work with.
Written By: Nancy Friedman
Random Notes - Brand Identification and Name Recognition
Random notes is a feature providing you some quick marketing tips - that may not warrant a full-blown article on the subject.
Here are two tips by Dave Kuiper, Republic Bank, Holland, Michigan, that are easy to implement, yet create loan officer "brand identification and name recognition".
(Dave goes into more detail with his online seminar entitled, "Building a Brand Called You: The Power of the First Impression", which is available on CD Replay format (just pop in your computer and view the PowerPoint presentation, as well as listen to Dave talk about the subject.) If you're interested in reading more about Dave's online seminar, please visit us at www.LoanOfficerSeminars.com.
Written By: Karen Deis
Become Famous! 10 Steps to More Powerful Speeches
Written By: Karen Deis
Many loan officers have asked for advice on what they need to do to take their business to the next level—and one of my big suggestions is to “become famous”. One of the ways to do this is to give seminars, public speeches, and appear on radio and TV programs.
However, the greatest fear for most human beings—is public speaking! It ranks higher than a person’s fear of death.
Pick up any real estate magazine; read the real estate section of the newspaper. You don’t see a whole lot of loan officers offering home buying seminars to the general public. Oh, you’ll see where they have assembled a “group of speakers” such as a real estate agent, and title rep and maybe an appraiser or home inspector—but the loan officer is generally not the main attraction, right?
The first question you should ask yourself is: “Do you really want to become famous?”
Because with a little work and the right attitude—you can!
This article is written to give you and idea of some of key points in becoming a credible speaker and an outline for creating a great seminar.
The secret is in the preparation—the actual time you spend on developing your speech. Compare it to an iceberg—3/4 of the success of your speech is done before you even get behind the microphone.
In a nutshell, these are the 3 things that you need to do to get started:
Get the audience to listen to you attentively
Be clear on what you want your audience to learn
Outline the most important ideas you are trying to convey
Here is a simple, 10-step formula that I would like to share with you on how to power-up your next presentation:
Written By: Karen Deis
What It Takes to Succeed in Sales
Written By: Bob Williamson
Bob Williamson is a trainer and personal coach whose clients include some of the mortgage industry’s top producers. He can be reached at 505-292-4318. If you are considering hiring a coach and would like a free, one-hour coaching session, you can email Bob at coach.bob.williamson-fundamarketing@worldnet.att.net.
Of all the qualities and skills necessary for a successful career in mortgage lending, the ability to sell – to communicate persuasively – is certainly one of the most essential.
But what does it take to be a great salesperson?
One of my first jobs was selling encyclopedias door-to-door in the summer of 1967, at the age of 18. That experience taught me one of the most important lessons I've ever learned.
I had just graduated from high school, and was ready to enter college in September. I needed a summer job, and saw an ad in the newspaper looking for students to conduct a “survey”.
The P.F. Collier Corp. was doing pretty well using young people to sell their encyclopedias door-to-door in those days. I was hired along with a group of others my age, and we were all trained to deliver a canned presentation, the essence of which was that Collier was looking for a limited number of homes where we could place our fine set of encyclopedias free of charge - in exchange for the family's agreement to do two things: 1) write us a testimonial which we could use in our advertising; and 2) protect our “investment” in them by purchasing a set of 10 yearbooks, which would keep the encyclopedias up-to-date for the next ten years. (The yearbooks, of course, cost about $600 – the actual market value of the encyclopedias.)
To paraphrase President Bush, when I was young and naïve, I was young and naïve. I believed every single word of that presentation. As far as I was concerned, the encyclopedias were being given to these families free of charge, and it was only fair that we ask people to care enough about them to keep them current!
I did very well. I "placed" far more encyclopedias than anyone else in our office, and for most of June and all of July, I was ranked #3 out of the thousands of PF Collier salespeople in the country.
One day in early August, I knocked on the door of a man who let me in and listened patiently to my entire presentation. I knew there was something different about him, because he seemed very amused by it all - not the typical reaction I would get to my presentation. He proceeded to tell me that he had sold encyclopedias a few years back, and that he had invited me in because he wanted to see if anything in the “pitch” had changed. (He said it hadn't.)
I was shocked. Looking back, it's a little hard to imagine how I could have been that naive, but I was. I didn’t even know what he meant by the word pitch – but he explained it to me.
The next day I confronted my sales manager with my new-found worldliness.
"Is it true that we're really selling these encyclopedias, and this whole thing about placing them free is just a way to get people to think they're getting something for nothing?"
My manager's answer was spoken like a true salesman (always answer a direct question with another question): "What do you think, kid?"
Written By: Bob Williamson
Basic Principles Make You a Smarter Negotiator
By: Roger Dawson, Power Negotiating Institute
Roger Dawson is one of the country's top experts in the art of negotiating and will be a featured speaker at the Turn On Your Million Dollar Brain V Workshops in 2005. Isn't that what we do all day? Negotiate with clients, underwriters and title company reps?
Mark your calendar for Wednesday, December 8, 2004.
Free conference call with Roger Dawson at 1pm EST, noon CST, 11am MST and 10am PST. Call (405) 244-5061 and enter code 3348. Email us if you're interested in attending this free seminar. It doesnt' cost you a dime to listen to one of the top negotiators in the country!
The way that you conduct yourself in a negotiation can dramatically affect the outcome. I've been teaching negotiating to business leaders throughout North America since 1982 and I've distilled this down to five essential principles (of which this article will cover 3 of them, and the December 5th issue will conclude with the final 2 principles). These principles are always at work for you and will help you smoothly get what you want:
1.) Get the Other Side to Commit First
Power Negotiators know that you're usually better off if you can get the other side to commit to a position first. Several reasons are obvious:
Their first offer may be much better than you expected.
It gives you information about them before you have to tell them anything.
The less you know about the other side or the proposition that you're negotiating, the more important the principle of not going first becomes. If the Beatles' manager Brian Epstein had understood this principle he could have made the Fab Four millions more on their first movie. United Artists wanted to cash in on the popularity of the singing group but was reluctant to go out on a limb because they didn't know how long the Beatles would stay popular. They could have been a fleeting success that fizzled out long before their movie hit the screens. So United Artists planned it as an inexpensively made exploitation movie and budgeted only $300,000 to make it. This was clearly not enough to pay the Beatles a high salary. So, United Artists planned to offer the Beatles as much as 25 percent of the profits. The Beatles were such a worldwide sensation in 1963 that the producer was very reluctant to ask them to name their price first, but he had the courage to stay with the rule. He offered Epstein $25,000 up front and asked him what percentage of the profits he thought would be fair.
Brian Epstein didn't know the movie business and should have been smart enough to play Reluctant Buyer. He should have said, "I don't think they'd be interested in taking the time to make a movie, but if you'll give me your very best offer, I'll take it to them and see what I can do for you with them." Instead, his ego wouldn't let him play dumb, so he assertively stated that they would have to get 7.5 percent of the profits or they wouldn't do it. This slight tactical error cost the group millions when the director, Richard Lester, to everyone's suprise, created a brilliantly humorous portrait of a day in the group's life that became a worldwide success. If both sides have learned that they shouldn't go first, you can't sit there forever with both sides refusing to put a number on the table, but as a rule you should always find out what the other side wants to do first.
2.) Act Dumb, Not Smart
Written By: Roger Dawson
How to Write a Great Thank You Note
Written By: Karen Deis
It has been said that one of the reasons people don't write thank you notes more often (among other things) is that they don't feel they can find the "right words" to express their appreciation.
Some of the most successful loan originators that I know make it a point to send out 5 thank you cards, each and every day. They simply make an "appointment" with themselves and the entry in the calendar says "write thank you notes". The more you tell people how much you appreciate what they have done for you, the more they will do for you. (Yes, you can quote me on that!)
Read this article and you will learn exactly what "supplies" you need to have on hand; the basic outline for writing great thank you notes, sample thank you notes and suggestions on who you can send them to. Yes, I believe that you CAN find 5 people who have helped you each and everyday. (If not, start with just one person and work your way up to 5 people.)
Suggestions on who to write thank you notes to:
Wholesale reps
Underwriters
Appraisers
Home Inspectors
Real Estate Agents
Builders
Title Reps
Closing Attorneys
Anyone who referred you a prospect
CPA's
Financial Planners
Closed loans
Pre-quals
Six-Point formula to write a great thank you note - that will never fail you:
Written By: Karen Deis
Basic Principles Make You a Smarter Negotiator (Part 2)
By: Roger Dawson, Power Negotiating Institute
Roger Dawson is one of the country's top experts in the art of negotiating and will be a featured speaker at the Turn On Your Million Dollar Brain V Workshops in 2005. Isn't that what we do all day? Negotiate with clients, underwriters and title company reps?
Mark your calendar for Wednesday, December 8, 2004.
Did you miss our free conference call with Roger Dawson on Wednesday, December 8. You can now listen to it via the computer by visiting this link! It doesn't cost you a dime to listen to one of the top negotiators in the country!
This is part 2 of Roger's article. Read Part 1 now! Roger discussed the first 3 basic principles in Part 1.
Written By: Roger Dawson
Success in the Key of "E"
Written By: Terri Murphy
Terri Murphy is one of the industry's leading consultants on the integration of traditional marketing and communication with today's Web and Internet tools. She has a 24+ year career in the sales and consulting industry, and is one of the featured speakers for the 5th Annual Turn On Your Million Dollar Brain mortgage workshops, and will be speaking on the topic of, "How to Bridge the Gap Between Realtors and Originators!" Email terri@terrimurphy.com with your questions.
If there are buzzwords that fit today's sales professional, they all begin with the letter "E".
The "E" stands for Economy of time, Energy, Efficiency, and Effectiveness.
The ONLY way to meet and exceed the consumer's demands for information and service in real time is to use systems and products that offer immediate response, and to capture and track leads that convert to sales and profits. Successful marketing today requires that we re-think what we have done in the past, how we have done it and enjoy results for our investments of time, dollars and precious energies. Insanity is doing the same things and expecting different results.
Today's consumer is no longer willing to settle for sloppy communication, careless service and inconsistent responses. In order to win the consumer of today, it is time to buckle up and begin implementing the toools and systems that help us create a WOW experience for our clients and customers.
The winners will attend the General Session or for the Management Session and had to meet certain criteria (including annual production, years in the business, and a detailed marketing plan for 2005 ).
Scholarship winners are as follows:
Delray Beach, Florida (February 10-12, 2005)
Greg Daniels, Access Bank & Mortgage, Fort Walton Beach, FL
Kris Cedillo, United Mortgage, North Haven, CT
Santa Monica, California(March 2-5, 2005)
Geof McLaughlin, Navigator Mortgage, Boston, MA
Brian McKeighen, Gold Key Mortgage, Phoenix, AZ
The Management Session Scholarship was awarded to:
Rosemarie Gallego, Viva Financial, San Jose, California
In addition to the registration fee, each scholarship winner will be receiving 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, Mike White, 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 be receiving a complete set of 25+ 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!
Learn More About this Upcoming Event!
If you were ever going to invest in the future of your mortgage business - the Turn On Your Million Dollar Brain V workshop is your ticket to the next level.
It's the PREMIER event in the business today.
Turn On Your Million Dollar Brain V is NOT a seminar. Some seminars are like Chinese food - an hour after eating it, you are hungry again.
It's the only one in the industry where you truly get to PARTICIPATE in each and every workshop. You get to network with a brain trust of some of the best and brightest originators from throughout the country.
This is completely different...
than anything you have ever attended!
In just 3 magical days, learn more than you ever have learned in your life:
Participate in the Brain's exclusive, one-and-only, Share & Tell Session, where loan officers share their best (proven) Sales & Marketing ideas that have worked for them.
Recieve a $200 discount on your registration for this FABULOUS event. (Discount offer expires on January 21, 2005.) Choose your location now, and receive the discount. Click on the photo below.
Delray Beach, Florida (February 10-12, 2005)
Santa Monica, California (March 3-5, 2005)
Hope to see you at one of the fabulous locations in early 2005!
Regards ~ Karen Deis
Copyright, 2005, LoanOfficerMagazine.com
Written By: Karen Deis
Take the Quiz and See if You Need a Coach!
Written By: Karen Deis
Close your eyes!
Do you imagine yourself with a perfect life? Do you want to be rich? Sail around the world? Own an expensive car or home? Create a balance life for you and your family?
Many people are able to create a better life for themselves—professionally and personally—because they have found outside help!
Have you thought about hiring a coach?
But, is it right for you! Here are some questions to ask yourself and some of the good, bad and the ugly of coaching before you decide.
Take this short quiz
Is there something holding you back from what you want most in life?
Are you under constant stress?
Do you want to bring about change in your life?
Are you currently "tolerating" things in your life that you wish would be different?
Do you procrastinate about things?
Would you like to feel a greater sense of satisfaction and fulfillment?
Are you living the life others want you to live rather than living the life you want?
Are you realizing your full potential?
Do you have positive relationships?
Do you feel challenged with your work/life balance?
If you answered YES to 4 or more questions, you might be a candidate to hire a coach.
Who are these people?
Written By: Karen Deis
Last Chance to Register for BRAIN workshop - Santa Monica March 2-5, 2005!
This is your LAST CHANCE to hear from some of the industries top-speakers, and learn the secrets of Power Negotiating with Roger Dawson, how to tactfully and "shamlessly" self-promote yourself with Debbie Allen, and the list goes on.
The line-up of speakers and their topics include:
Tim Braheem: Critical Laws of the Purchase Market
Roger Dawson: The Secrets of Power Negotiating
Debbie Allen: Shameless Self-Promotion!
Terri Murphy: Bridging the Gap Between RealtorsTM and Originators
David Kuiper: You Never Get a Second Chance to Make a First Impression
Danielle Kennedy: Grow Your Life...Grow Your 7-Figure Income
Denny Andrews: One-2-One Marketing
Through Friday, February 25, 2005, Affiliates and Subscribers of LoanOfficerMagazine.com, are entitled to a $200 discount off the registration fee. Visit the website now for details on the speakers and their presentations, to view the agenda, and to receive the $200 discount.
Written By: Karen Deis
Nine Secrets to Earning What You Deserve!
Written By: Karen Deis
Top loan officers earn what they think they are worth. Other loan officers try to get their commission by being the cheapest on the streets. Still others try to see how much commission they can get away with.
Personally, I set my "Value" at a minimum of $1,000 (per loan) and an average of 2 points per closing. If I could not earn a $1,000 commission on the loan, I had one more filter--and that was to look at past business or the potential for future business from the client. While my competitors' averaged 1 to 1-1/2 points per deal, I consistently averaged 2 to 2-1/4% because I felt my expertise and counseling were "worth it.
You might be saying to yourself that that "you could never get away with that in your area of the country." Determine what your bottom line commission will be--in other words--what are you worth?--and stick to it.
What separates the top mortgage originators versus other loan officers who reduce their commission just to get the deal? There seems to be 9 strategies and clear-cut ways that they are different than everyone else.
They are confident.
Top producers who earn full commissions are confident that they provide the best value to their clients. They sincerely believe they are worth their full commission. Furthermore, they are not shy about telling them why they are the best at what they do.
They have a plan.
Those loan officers who have risen to the top, educate their clients about how they will help them save money, save time and become their financial resource for just about everything. They have the unique ability to articulate exactly why they are different than all the other loan officers in their community.
They focus on 2 or 3 key differences.
Average producers provide exactly the same services that top producers do. However, an important difference is how they elevate these services as the core part of their consultation. While most customers ask about one or maybe two different loan programs, the top producer's core service may be to provide a side-by-side comparison of 3 programs, with different down payment amounts. My personal core belief was providing side-by-side comparisons of the 25-year versus the 30-year fixed rate mortgage and showed them , that for a few dollars more per month, how they could save almost $30,000 on their mortgage repayment.
They are unwilling to compromise their integrity.
When asked to reduce their commission or were asked to do something that conflicted with their belief system, they thanked the client and advised them that maybe they need to call another loan officer. Basically, they would rather NOT work with clients who did not respect their knowledge and integrity.
They create credibility with unique services.
It cannot be over-emphasized - find a unique niche market. Specialization is what has helped them get their foot in the door - and because they know everything there is to know about that niche, they don't have to compromise their commissions. Become an expert on condo lending; golf course or vacation homes; divorce attorneys. Become your local media expert or radio personality. Specialization opens many doors - a practice working thru sticky divorce buyouts may lead to referrals from probate or estate-planning attorneys.
They are early adopters.
Clients expect their loan officers to be fairly sophisticated when it comes to their ability to use technology. But more importantly, how they use technology to get loans approved; to communicate with them; to track the progress of their loan applications and closings. Even though technology tools are available to everyone, the top producing loan officers figure out a way to use them in their businesses. David Kuiper uses audio email to communicate with clients who he cannot meet with face-to-face.
The value of face-to-face meetings.
Also every top originator loves to meet face-to-face with clients. While it may not be at the time of loan application because of time management issues (it's easier over the phone, fax or email), it's still important for them to meet at the closing table or hold client appreciation parties. They hire assistants to do the paperwork so they have more "face time" with clients and affinity partners.
They love to negotiate and overcome objections.
Instead of back pedaling when someone asks them to reduce their rate or fees, they explain how their services are different. They intimately know about their competitors and their weaknesses. They can articulate those differences without making any disparaging remarks. You simply MUST know your competitor's strengths and weaknesses and be willing to demonstrate the differences.
No emotional attachment.
When the client says they can get a better rate or lower fees down the street, originators politely tell the client that they are "probably not the loan officer for them". They leave the door open that if things don't work out with the other mortgage company, that they will be there for them. It's true that "you get what you pay for" and in many cases, they obtain the deal if it falls thru or they experience problems.
Think about the 9 traits.
Are you willing to use technology in your business?
Do you feel you are the best within your niche market?
The mortgage business is one of the few businesses where only you can determine exactly what you are worth.
What do you believe you are worth?
Here's to earning a great living!
Karen Deis
Copyright, 2005, LoanOfficerMagazine.com
Written By: Karen Deis
Seven Seconds to Mortgage Fame!
Written By: Karen Deis and David Kuiper
Within the first few seconds of meeting you, people have formed an opinion that cannot be reversed.
In fact, the new, best selling book by Malcolm Gladwell (Author of The Tipping Point) called "Blink", is all about "how we think - without thinking" and how your instincts, past experiences and referral sources influence your behavior on many different levels.
When I lived in Indiana, I did business with a top travel agency. Waiting in the lobby, I had a choice of candies (with labels) from different parts of the world. Around the perimeter of the space, were offices that featured different areas of "expertise". One had a palm tree outside the door. One had a set of skis mounted to the wall. Another had a European flavor and still another, the Asian theme going. The impression was that they have traveled the world. Regardless of your final destination, you would find an "expert" among the group.
Then I walked into a travel agency in Wisconsin. Imagine my surprise when I found 2 desks in the middle of the room, with travel posters mounted to the wall. The lobby contained 2 chairs with tattered travel magazines. Both agents where on the phone. One of them nodded in acknowledgement. I walked out never to return.
Your prospects form opinions even BEFORE meeting you. It’s based upon their experiences and their imagination. They even have an idea of what they THINK the mortgage process should be like for them.
David Kuiper is considered the “master of the first impression” and in this article, view pictures of his office; the free-give-aways to both prospects and clients and post closing thank you gifts.
Also learn what you can do if you meet your clients outside your office or over the telephone—and how you can still make a great, first impression.
If you were to visit the first agency in this story, all the other travel agencies would pale in comparison—until someone else comes along, and raises the bar to a new experience level.
Which travel agent—I mean loan officer—would you like to be?
(Subscribers view 17 pictures with comments on how to make a huge impact with each idea.)
What's the Buzz about Customer Relationship Management Systems?
Written By: Dan Itkis, CEO of BNTouch, Inc.
Dan has over 12 years in the hi-tech industry of sales, marketing and engineering roles. He is currently the CEO of Portland, OR based BNTouch, Inc that provides the mortgage industry with first-rate CRM solution that makes mortgage companies and individual originators more competitive and efficient while allowing them to turn clients into assets through a sales & marketing system implementation. Contact Dan at Dan@BNTouchMortgage.com.
CRM has been embraced by businesses in practically all industries as the new miracle tool. Billions of dollars have been spent, some successfullly, some not, on creating and implementing these systems. A new multi-billion dollar industry has sprung up offering a multitude of solutions, both generic and industry specific. At the same time a lot of enterprises have built their own, in-house systems. The mortgage industry has been slow to see the benefits and how it will help you compete with the big boys!
So what is a CRM?
Customer Relationship Management. The term embodies the convergence of sales, marketing and service into one, cohesive system. In large organizations, sales, marketing and service functions don't communicate with each other very well. Each with their own processes, systems and databases, they are each driven by different objectives. In the age of super short production and closing cycles, you don't have the time it takes to build long-term relationships. CRM is on of the methods that will help you create the "client-for-life" relationship.
Being able to tie each department and system together is paramount as marketing campaigns are measured by not only the number of closings, but closed deals from REPEAT customers. A good CRM not only solves those problems, but it often becomes a strategic advantage and a revenue generator for small and large mortgage companies alike.
So how does this all relate to the mortgage industry or more specifically mortgage originators?
Mortgage originator offices are run as small businesses. You typically perform all functions under one roof: sales, marketing, service/support and accounting. Over the years a variety of tools have emerged to cover different aspects of a loan originator's job: ACT for contact management, Outlook for calendaring and email, MortgageQuest for marketing, LOS for number crunching and mortgage forms, 3rd
party services for client follow up. Add to this, websites for client communication and traffic generation, paper notes for lead/prospect follow up, some kind of a system for lender rep tracking and you really have your hands full with a bunch of tools that work individually - but not together.
The truth is without having a very talented person whose up to speed with technology and 60 hours per week to spend, it's a challenge to make all those pieces work together.
Let's say you wanted to implement a system that goes something like this:
A new lead/prospect appears.
You send them an introduction letter.
If they are a purchase, you set them up on an informational drip campaign until they are ready for underwriting.
You want to send the referral source an email/fax/letter thanking them for the referral.
At the pre-approval stage you want to send your lender account reps loan-specific scenarios.
Create client status reports and email/fax to the realtors and/or builders involved.
After the closing, you want to thank everyone involved in the transaction and ask for referrals.
You want to send your client a newsletter once a month and congratulate them with major holidays and birthdays.
At the same time you want to monitor for opportunity to refinance their loan.
A good CRM system will be able to help you execute this strategy.
A good CRM system should also be able to prevent the highs and lows in your business by creating a predictable stream of income while alleviating the time constraints of constant coordination and administration tasks we all know and "love".
Sidebar: George Coronado, MGM Loans (George@MGMLoans.com) calls his CRM system the "Assistant-in-a-Box". He personally has attributed additional leads to just one small, but significant tool called the "Birthday Tab". About 10 days prior to his client's birthday, the BNTouch system can print Birthday cards. He includes 2 lottery tickets. On the birthday, he calls to see if they had won anything - and asks about any changes they are about to make - along with asking for referrals.
Is there a need for a change?
The answer to this question, like most anything in this world, is "it depends". It depends on your goals, business model, human resources, etc. The questions you need to ask yourself are:
Written By: Dan Itkis
10 Timely Tips for Making the Outgoing Call
Written By: Nancy Friedman
Nancy Friedman, president of Telephone Doctor Customer Serice Training, is a KEYNOTE speaker at association conferences and corporate gatherings. For more information on Telephone Doctor Customer Service Training, call 314-291-1012 or visit the website at www.TelephoneDoctor.com. There's a lot of information on that site.
#1 - Smile BEFORE You Dial
You suspected this one, right? I can't say it any stronger than your mother did. Yes, a smile CAN be heard. People tell me, "Oh, I always smile when I'm talking with the customer." Well, that's nice. But that's NOT what I said. Read Point #1 again. It says smile BEFORE you dial. The big grin must be in your voice before you dial up. We're talking about good positive attitude. Bottom line, your voice reflects how you feel. And if it's not feeling happy, enthusiastic, energetic, and motivational, the first few seconds of your opening message or introduction...it'll fall flat on its face. And believe me; you only get a few seconds to make that great impression on the phone. That's all. About 6 to 8 seconds for the introduction. If your introduction doesn't sound as though you're smiling (unless you're reporting the death of someone) you're starting off behind the 8 ball.
#2 - End the Day Ready to Begin
That always reminds me of: "Up the street, the soldiers are marching down." It's a little convoluted. Hopefully, you get the gist. At the end of the day, you should have your "tomorrow calls" already set up. It's a time waster to come in and then start looking for who you should be calling. Take 10 or 15 minutes at the end of your day, to make time for tomorrow.
#3 - Avoid Being Screened
Written By: Nancy Friedman
What Would You Say: Stop Closing Dialogue
Have you ever attended a seminar or read a book on the 150 ways to close a sale? While most of the techniques are fine, what you don't normally learn is exactly, and in what situations, you should use each technique - or when to STOP closing!
I am sure you have experienced situations where you have explained everything in detail; you know in your heart that it's exactly the right loan for them; that they will thank you forever; yet for some reason they just don't want to sign their names and commit to doing business with you.
According to Danielle Kennedy, in her book called "Seven-Figure Selling", the telltale sign that your "sale" is not going the way you want it to go - is the objections are all different! For example, your prospect says they can't afford it. They have to talk to their spouse (or family). They have to have time to think about the numbers. They have to leave to pick up the kids. In other words, if they give you multiple objections - you are not going to get anywhere with them. So quit selling and closing.
Trying to "defend" every objection can be fruitless - because what you have here is NOT a closing problem - but a TRUTH problem.
According to Kennedy, use this "Stop Closing Dialogue" to get to the truth. Here's what to say:
Written By: Danielle Kennedy
The Science of Shameless Self-Promotion - How and Why it Works to Build Success
Written By: Debbie Allen
Debbie Allen is an international business speaker and best selling author of Confessions of Shameless Self-Promoters, which is publiched in five countries. As a sales and marketing expert, Debbie has presented to thousands of people in nine countries. Sign up for her valuable free online newsletter Shameless Marketing News today, and learn about her powerful sales and marketing success tools at www.DebbieAllen.com. Hire Debbie Allen to speak at your next meeting by visiting www.MortgageSpeakersBureau.com.
Receive the following giveaways when you register for a new, 2-year subscription to LoanOfficerMagazine.com:
Debbie Allen's book, "Confessions of Shameless Self-Promoters," a CD Replay from a superstar originator, and the DVD by acclaimed business author Harry Beckwith, entitled, "Ordinary Miracles: The Four Keys to an Extraordinary Mortgage Career".
When a friend of mine, Larry James, first stated, "I'm a shameless self-promoter," I laughed. Then I thought for a moment, and I realized that I'm a shameless self-promoter, too. I had never thought of my marketing approach as being shameless before. I would have described myself more like the Energizer Bunny. I just keep on marketing and marketing and doing whatever it takes to make it happen. I had never thought of this as shameful, unless it's shameful to believe in something so much that you want to tell everyone you meet. I call it good marketing!
Growing up in a family of entrepreneurs, I learned early that you must self-promote on a daily basis if you want your business to succeed. Since my family had many different businesses, we were always promoting something new. Most of our businesses started out with little or no investment; therefore self-promotion was essential to getting those businesses from idea to success.
My father taught me that the first step in marketing success is to have a strong belief in yourself and your ideas. No matter how crazy other people may think your ideas are, you must believe strongly enough to never give up.
How can you be successful if you don't believe in yourself and what you have to offer to your customers? You can't. Therefore, the first step in shameless self-promotion is to have a strong belief system.
After writing my award winning book, Confessions of Shameless Self Promoters, I began to survey my audiences to see how many believe in promoting themselves. It amazed me to discover that 87% or more do not feel comfortable nor believe in the concept of self-promotion. Now this goes against the grain of all sales and marketing success!
Here is why effective self-promotion works and why you should believe in it:
Written By: Debbie Allen
The Power of Guarantees
Written By: Chad Weber, is the owner/operator of the Loan Officer Marketing Lab at www.LoanOfficerMarketingLab.com. The Loan Officer Marketing Lab is a powerful membership site designed to grow your business quickly and
efficiently.
New stuff!
Excuse the vague and incomplete sentence there, but when I think about the billions upon billions spent each year on consumer goods, it seems that most of these purchases can be lumped into the category of "new stuff".
What does this have to do with originating loans?
Give me just another moment here, and you will see how powerful this is.
In America alone, consumers spend hundreds of billions of dollars buying new cars, recreational vehicles, appliances, computers and about 3 dozen other major categories of items. Are all of these "things" essential for our survival or happiness? Of course not.
However, many of these items are purchased for peace of mind. In other words, when the warranty expires on your vehicle, how many times does that vehicle have to break down before you either buy a new one, or purchase an extended warranty? How many times does your washer or dryer have to fail to do its job before you break down and purchase a newer model, regardless of how much of a hassle it is?
There are hundreds of examples I could give here, but I am ready to bring you to the point of this article. We as a society want peach of mind! The question you have to ask yourself is "Do I give peace of mind to my customers?"
When a borrower lands into your pipeline, what have you done to make him or her feel secure that you will perform as promised? Do your clients have to take your word for it? If so, then you may be missing an opportunity here.
(Subscribers can view and download the Customer Communication Guarantee.)
There are two primary ways (Yes, I realize there are other ways to earn trust, but we're going to focus on these two for now) to build trust and credibility.
Written By: Chad Weber
Brand Your Image by Letting the "Real You" Shine Through.
Written By: Tim Braheem
Tim Braheem, President, First Rate Financial Group, and CEO, Loan Toolbox, has ranked as one of the top producing Loan Executives in the nation for more than a decade. He has appeared on CNNfn as an authority on the subject of mortgage market trends, and provides seminars in the United States and abroad to motivate mortgage professionals to higher levels of success. More information on Loan Toolbox can be found at www.LoanToolbox.com.
I have been through two major refinance cycles in my career. Each time rates drop considerably, I see an influx of new Loan Officers to the industry. Likewise, when rates go up and the phones stop ringing off the hook, many of the newer Loan Officers fade out of the picture, unable to survive in a more competitive market. Knowing the cyclical nature of our industry, serious mortgage professionals continually plan ahead to secure future business. An important part of a successful business strategy includes marketing your persona, and not just the service you provide. I call this "exposure marketing."
While building strong referral relationships with professionals in other industries is a key factor in sustaining long-term success in a non-refi market, it is equally important to make sure your existing client database does not forget who you are. Your past clients are your foot soldiers out in the world, spreading the good word about your exceptional service and generating referrals.
Ultimately, I prefer my clients to remember me as, "My friend Tim Braheem, who just happens to be a Loan Executive."
I becamse acutely aware of the importance of this idea prior to the birth of my first child. I put out a quarterly newsletter that has a section titled, "Did You Know?" In most cases, this section has information pertaining to new loan programs or current rates. However, one month I was at a loss for information to fill this section of my newsletter, and my personal assistant suggested I go with, "Did you know Tim and Anna are having a baby boy?"
My wife had just had an ultrasound, and we knew we were destined to have a boy. I thought, "Let's run with it," and we sent that issue off to the printer.
I was astounded when I received 37 phone calls from past clients over the next few weeks, congratulating me on the good news! Honestly, I really had no idea my clients were that interested in my personal affairs. Since then, I've made a point to send out marketing materials from time to time that have absolutely nothing to do with rates, loans, refinancing, etc., for the sole purpose of promoting commonality between myself and my client base or prospects.
Here are some areas where you should be letting your personality shine through:
Written By: Tim Braheem
7 Keys to Having a Positive Mental Attitude - Not Everyone Likes Broccoli
Written By: Nancy Friedman
Nancy Friedman, president of Telephone Doctor Customer Serivce Training, is a KEYNOTE speaker at association conferences and corporate gatherings. For more information on Telephone Doctor Customer Service Training, call 314-291-1012 or visit the website at www.TelephoneDoctor.com. There's a lot of information on that site.
There's an old joke about a little girl who always had such a great attitude. She was always so happy and upbeat. Her brother was just the opposite. One holiday, just to aggravate her and test her, her mean brother gave her a box filled with horse manure. He was tired of his sister always having a positive attitude. He thought surely this would "fix" her. Christmas day, when she opened the box and saw the manure she exclaimed, "Whoopee...where's the pony?"
Ok, Ok...maybe you had to be there; but what a great attitude! The topic of our monthly email for May is ATTITUDE. Taken from our new Telephone Doctor video program, "The 7 Keys to a Positive Mental Attitude." We'll list some of the ways you can have a positive mental attitude despite the challenges life may bring you.
Why do some people have such a great attitude and others a negative one? Well, we wondered the same thing; and through our research, we found 7 "keys" that those with a positive mental attitude all share. See how you rate.
Key #1: Choose your attitude in advance
When you wake up...you have a choice. You can be in a good mood or a bad mood. You also choose your attitude. You can wake up and mutter to yourself "this is gonna be a cruddy day" or you can tell yourself "this is gonna be a great day!" That immediate choice is the start of a great attitude. You've already decided it's going to be a good one.
Written By: Nancy Friedman
What does a Wedding Rehearsal have to do with your Mortgage Business?
Part one of a two-part series by Tom Ward, President, Majestic Mortgage from his new book entitled, "The Empathy Effect". It's all about his real-life experiences in the mortgage business and how he built a successful company with "empathy" as the cornerstone. Purchase his book at www.TheEmpathyEffect.com.
Stayed tuned for Part II, "The Autopsy of a Loan".
Rehearsal (re-hur-sel): 1) the act or process of practicing in preparation for a performance, especially for a public performance. 2) verbal repetition or recital.
One Friday evening, I'm getting ready to leave the office for the wedding of an employee, when the latest batch of surveys lands on my desk.
"I'll just read these before I go," I tell myself, slicing open the first envelope.
In response to the question "What would you recommend that we improve?" the first card reads, "everything was great, if only we could have received our closing figures earlier. We had to rush to get cashiers check at the last minute and it was a little bit stressful. But other than that, we would still recommend you."
I make a mental note of the comment and then open the second envelope. This one is from another customer, about a different loan officer, but it says almost exactly the same thing. The customer's experience was great for the most part, "But we wish we would have received the closing figures earlier. We got them at nine o'clock in the morning for an eleven o'clock closing and had to scramble to get the cashiers check on time. We would suggest that you do something to improve that part of the process.
Ouch, two in a row. I open the third envelope. And, I'll be damned if it doesn't say the same thing as the first two. That's three customers in a row complaining about the stress we cause them by not being more empathetic to their situations.
The easy solution would be to simply say, "Oh, well, last-minute closing figures are the norm in this industry and there's nothing I can do about it." But I can't just sit back and accept the status quo. The last thing I want to do is create stress for my customers. I'm feeling ashamed, like I've done something morally wrong. The problem is still vexing my mind as I pack up and go home to change for the wedding.
I drive alone to a neighborhood church that sits among the houses on a quite residential street in Winnetka, one of Chicago's affluent North Shore suburbs. As I walk in and find a seat in the pews, the quandary of the closing figures is still wearing on my mind. How can I solve this problem?
The wedding starts. A young woman from the Chicago Symphony Orchestra begins singing, accompanied by a man playing the piano. Right on cue, a couple of kids come down the aisle, dropping rose petals on the silk floor runner. The ceremony is proceeding flawlessly. The groom appears through a side door, followed by the bridesmaids. Then, to the chords of "Here Comes the Bride," the bride walks doen the aisle at exactly the right moment. Her dad lifts her veil and shakes the groom's hand. It's a perfectly executed performance.
I'm thinking to myself, "How can these people orchestrate this wedding so well, but we can't pull off a simple thing like getting customers their documents sooner before closing?"
And then the answer hit me like a line drive: "Wait a minute - they practiced the wedding the night before, at the rehearsal!" Everyone walked through their roles in advance. The singer had probably been practicing for weeks.
As I sat there in the little church, it finally dawned on me that we were sending our customers to the single, largest transaction of their lives without rehearsing it beforehand. As a company, we had not stopped to think about what the customers' experience would be like under the conditions that we were creating for them. There was no "empathy". At the last minute, we were telling customers to go get a cashiers check for a huge amount of money - a figure that we couldn't explain to them until the closing had already started and the atmosphere had become heated and stressful. The pressure during a closing is intense. You're in a frantic race to resolve any disagreements and sign all the documents within the alloted time, as if an hourglass has been flipped over and the sand is quickly running out. How would I feel if I were the customer in that situation and my mortgage company hadn't given me the right numbers until the last minute?
Not too happy!
We weren't the only company dropping this fly ball - no one in the mortgage business rehearsed closings or provided early figures. I wanted to reduce the customer's stress and give them a better experience. So just as the wedding party had practiced the ceremony, I was determined to make it company policy that we would rehearse every closing with the customer three business days before the closing.
In direct response to our customers' suggestions, we worked our rear ends off to give the title company the figures three days before the closing. But we soon heard them blaming us for their own procrastination. When the customer would be asking for the figures - the title company would tell them "Sorry, but your mortgage company hasn't given us those numbers yet." The aggravated customer would call us next, asking why we were late with this crucial information. After all, we "rehearsed" with them, told them what was going to happen, and of course we knew we had sent them the figures, but they just hadn't prepared the HUD-1 yet. That was how their system operated.
Stuck in inertia, the title companies weren't going to change. If we wanted to improve our customers' experience, we would have to do something different ourselves...so here's what he did!
Subscribers can continue this article now and read what Tom did to solve the customers' problem and how he got the whole company behind his innovative idea! (If you are not already subscribed, click here to subscribe now, and begin taking advantage of 300+ articles of sales & marketing ideas for today's top loan originators - and receive your free gift(s)!)
Written By: Tom Ward
The Autopsy of a Loan File
Part two of a two-part series by Tom Ward, President, Majestic Mortgage from his new book entitled, "The Empathy Effect". It's all about his real-life experiences in the mortgage business and how he built a successful company with "empathy" as the cornerstone. Purchase his book at www.TheEmpathyEffect.com.
Autopsy (au-top-sey): 1) an examination to determine the cause of death/
In order to be a part of a successful mortgage company or origination team, communication channels have to stay open to ensure smooth operations and minimal misunderstanding.
When something goes wrong with one of our loans, we conduct an "autopsy" of the loan file. If the loan caused a breakdown or bottleneck in the system, we "examine" its history to determine what caused the problem. That way, we can learn from the mistake and not repeat it.
What we have usually found was that the loan file started off wrong.
Written By: Tom Ward
Self-Assessment Strategies - Something to Think About
Did you ever wonder why History was a required subject in school? After all, what's past is past and there is nothing you can do about it.
However, in order to make incremental improvements in your business (and your life), it's important to think about what you have done in the past and build upon your successes - and forget about your failures.
If you are dissatisfied with your business, it's only natural to feel that EVERYTHING needs to be overhauled. Before you do that, figure out what's WORKING for you. List 4 things that are working for you in your business that are fine just the way they are. Jot down the reason each is going well and remind yourself of the good job you are doing.
It might be that you have a great team within your office; you have developed a good relationship with your wholesale reps; you are second-to-none when it comes to networking, etc.
Wherever you are going, start where you are right now.
Change begins with self-awareness and over the next 5 issues, we will provide some important questions to ask yourself to help you assess your business future. The only requirement is that you find about 15-minutes of quiet time to reflect upon your answers.
Print this page and complete as soon as you have the time. Involve other people (if you have to) to remind you - because we tend to focus on the negatives and not the positives.
How to Turn Negative Self-Talk into Positive Thinking!
I never watch TV during the day but recently, while on vacation, I clicked the remote and took in an episode of the Oprah Show. Her topic? "Negative Self-Talk".
Now, I consider myself a really (and I mean really) positive-type person, but found myself enthralled because I discovered that I am not as "positive" as I could be.
An average of 50,000 thoughts go through our head on an average day. Things like "I have to pick up the cleaning", "I need to call my mother", or "I need to send a thank you card to my friend". The danger comes into play when you start saying to yourself, "I'm so stupid - I wish I would have thought of that sooner," or "I will never ever be able to close $3 million per month." Or, "I tried everything and just can't seem to lose weight." We often make these statements without giving it a second thought.
Understanding the reasons for your negative self-talk is the first step in recognizing that you are making deprecating statements to yourself - without even knowing it.
Become aware of negative statements - as it's happening.
Interrupt the "automatic" statements. (When you hear yourself saying negative words, say to yourself, "STOP".)
Forgive yourself for saying it.
Replace the negative statement with a positive one.
Rehearse and visualize positive statements or behavior.
If you can squeeze about 10 minutes out of your day, try this exercise. Even the best of us say ugly things to ourselves or have nagging, self-doubts.
List one negative statement that you say to yourself regularly. _______________________________________________________________________
_______________________________________________________________________
What was the origin of the thought (family, peers, teachers, others, circumstance)?
_______________________________________________________________________
_______________________________________________________________________
How does this belief interfere with what you do, what you get out of life and how you affect family, friends and co-workers?
_______________________________________________________________________
_______________________________________________________________________
Write down the evidence that would dispute this negative self-statement.
_______________________________________________________________________
_______________________________________________________________________
Write down a positive, self-statement that you can use as an alternative each time you find yourself saying this statement.
_______________________________________________________________________
_______________________________________________________________________
When you begin to understand the reasons for negative self-talk, you'll find yourself recognizing it more and more quickly after it occurs.
Practicing positive thinking will remind yourself that you are a worthwhile person. Constantly tell yourself that you are making small, positive changes. Visualize yourself as "confident, happy and capable".
Have more than one negative statement you constantly say to yourself? Copy this form and try to eliminate and let go of one per month.
You owe it to yourself to be the best that you can be!
Positively yours,
Karen Deis
Copyright, 2005, LoanOfficerMagazine.com
Written By: Karen Deis
Easy Ways to Use Your Phone as Your Personal Marketing Assistant.
Written By: Bliss Sawyer, a 14 year mortgage veteran, industry speaker and author, gives lender associations, businesses and mortgage events exciting, informative seminars designed to assist originators at any stage of their business. Bliss can be reached at Bliss@MortgageMarketingStrategies.com or visit her website at www.MortgageMarketingStrategies.com.
As with most consumers, I am grateful for the Government do-not-call registry. Getting a phone call Sunday at 9 p.m. from an unknown mortgage lender made me question the professionalism of my career choice (though I am usually a very kind person on the phone, I had to admit this time I wasn't).
During my 14 years in the mortgage business, I never met an originator that loved to make cold calls. There were some that were good at it, some that even made money at it; but none that wanted to make a career out of calling people they didn't know and asking for business.
Because of the negative feelings towards the telemarketing industry, I think we too often ignore the fantastic business potential of using the phone effectively. I want to share a few ideas to help you get more business just by utilizing the phone in different ways.
Your phone can assist you in your goal to build relationships. In this article, I will share with you how to leave an effective voice message; what to say on your personal recorded voice mail message; and unique scripts for your on-hold messages.
Leaving Voice Messages
Embrace it, use it, increase production with it. Yes, it's that simple. I actually prefer to leave voice mail mesages because they take up less of my time. A great time to make calls is between 8 and 9 a.m. each day. Most Realtors® are not at their desk, but will appreciate the information when they do start their day. You are also emphasizing your work ethic by being on the job early.
Structure calls with the following four items:
Written By: Bliss Sawyer
6 Questions Trump Asks Everyday!
Written By: Karen Deis
I recently read an article by Donald Trump called "Knowledge is Power". In the article, he professes that while he is forever a "student", studying real estate, the market, financials, etc., he has learned to ask himself six important questions that have never let him down and helped him to create the financial empire he has today.
Originally attributed to a poem by Rudyard Kipling, the quote goes something like this:
"I keep 6 honest men - who taught me all I knew - their names are What and Why and When - and How and Where and Who."
While Trump answers these important questions when deciding on multi-million dollar deals, why not ask yourself these 6 questions when deciding on spending your hard-earned dollars on your sales and marketing efforts.
Let's talk about advertising that we are all familiar with - Mortgage Ads in Homes (Real Estate) Magazines. I receive tons of calls and emails from loan originators saying that while they spend thousands of dollars on 1/2 and full-page ads, they cannot attribute one single deal as coming from the marketing source.
The problem I see with most ads is that we try to be all things to all people. We have every program known to mankind (and we use technical jargon which consumers don't understand anyway), and of course what great service we provide. To the consumer, the ad looks the same - other than the picture of the loan officer and the company logo.
I believe that Kipling used the order of the questions for rhyming purposes and I think they should be re-arranged in this order when creating a sales or marketing initiative:
Who
Why
What
How
Where
When
The bottom line is that each marketing piece that you create - to be effective - must have a specific, niche market in mind.
Since 40% of all purchase transactions (for the last 10 years) have been made by 1st time homebuyers, let's tak a few minutes to answer each question above, using the 1st time homebuyers as the target market.
Who? First-time homebuyers!
Written By: Karen Deis
Storytelling & Marketing! What's Your Story?
Written By:Karen Deis with excerpts from Seth Godin's book All Marketers are Liars (Reprinted with permission) www.AllMarketersAreLiars.com
Have you ever seen the A & E television show called "Dog the Bounty Hunter"?
Take a look at the picture.
Dog's real name is Duane Chapman and he is an ex-con - turned bounty hunter - who tracks down "bail jumpers" for a living. If you have never watched the show, it can be pretty rough around the edges but that's not what it's all about - it's about telling his story and how he went from prison to helping people strike a balance with family life, spirituality and comedy for good measure.
The plain truth is that storytelling is an integral part of marketing. Dog's TV show and his picture tell a story, right?
We all grew up with stories - from "The Little Engine That Could" to "The Polar Express" to Aesop's Fables to the Bible. In fact, we learn a lot about life from stories.
Do you see the "story" in this billboard?
In Seth Godin's book, All Marketers Are Liars, he talks about the power of telling the truth (in marketing) in a low-trust world. Successful markets don't talk about features and benefits. Instead, they tell a story. A story consumers want to believe.
That's why "Free Report" marketing is successful. A well-written, authentic, free report tells a story about how you have helped past clients with their problems; it reveals the solution and tells people that you are the only one in the world who can help them. Read The "Secrets" of Free Report Marketing by Karen Deis. Subscribers can download a free, 2-page copy of a sample "free" report.
You may also want to consider learning more about the "Free Report Marketing System", where you can purchase a free report for only $19.95.
Do you have a story to tell your clients?
Read Seth Godin's outline on how to tell a great story. After you read about the basics, read the story about how one loan originator's passion (story) allowed him to close 89 loans in his rookie year.
Written By: Karen Deis with excerpts from Seth Godin's book All Marketers Are Liars.
Networking: Somebody You Know - Knows Somebody You WANT to Know!
Written By: Karen Deis
Rumor has it that you are only 6 people away from meeting ANYONE you want to meet in the world. Every person on Earth is separated from every other person by 6 degrees. In fact, there is a board game called 6 Degrees of Kevin Bacon (the actor) and the premise is that because Kevin has appeared in so many films, that he is connected to every single actor (within 6 degrees).
Just the other day, I was on the phone with someone who personally knows Mary-Kate and Ashley Olsen. When I decided to start my corporate benefits program, I wanted to meet the president of a large company that had just moved to town. I knew the commercial real estate agent who leased the building to the new company and asked if she would make an introduction. They ended up being my best corporate account - where I closed at least one to two loans from employees of that company every month.
Your friend's brother's nephew's wife could know Donald Trump, Tony Blair or Jennifer Aniston or Bill Gates - or better yet, they may know someone who needs a $1M N.I.V. loan.
You've heard all about the importance of networking and maybe you're even getting tired of hearing about it. However, it's THAT important, if you want a living-and-breathing mortgage business.
Here are six action steps you can take to get your 6-degree network up and running - now.
Written By: Karen Deis
Educate Yourself: The Key to Success in the Mortgage Business!
Written By: Karen Deis
Have you ever heard these words - "Come to work for us - we provide training"?
Or, maybe you went to work for a mortgage company during the refi boom - but there was never enough time to get the training you needed to survive in a non-refi market!
I get hundreds of calls - and thousands of emails - from loan officers who want to buy marketing materials - but don't have the basic knowledge it takes to become an expert in the eyes of their clients. In most cases, I won't even sell them a marketing kit unless they can tell me about other training they have taken and what they know about their local mortgage and real estate business.
Regardless of what you were promised - or when you got into the business - you need to take control of your own training and education. When you read this article, we will give you some tips on how to find great "basic training" resources that will cost you nothing, take less than 1 hour for each session and best of all, are available in your own backyard.
If you are a manager or company owner, print a copy of this article for your loan reps and incorporate some of these suggestions into your company training program.
Here are 8 ideas - Just pick up the phone, ask the right questions and consider these field trips to enhance your career!
Written By: Karen Deis
Top Ten Hottest 2005 Articles
Written By: Karen Deis
We would like to share with you the top 10 most widely-read and most-commented upon articles covering practical advice on topics like RESPA, detailed sales and marketing strategies and simple ideas to get more leads and close more loans.
Here are the Top Ten Hottest Topics as tracked by the number of click-thrus for each article published in 2005.
Use the "Save an Article" feature where you can retrieve your favorite article for future reference without having to remember the author, the title or date. It's your very own personal, private folder that you can access at any time.
If you have a topic you would like to learn more about, please email us right now! Thanks to all of our subscribers for your input, comments and support.
Karen Deis,
...when in-house training is not enough!
Copyright, 2006, LoanOfficerMagazine.com
Written By: Karen Deis
Prepare Yourself for War in 2006!
Written By: Steve Probst, Sales Manager of a Long Island, NY mortgage banking firm. He teaches time management and business planning to loan originators and real estate agents and has created Loan Officer BizPlanInaCan that takes you thru a step-by-step process on how to write a basic loan officer Business Plan. More information on Steve's system can be found at www.LoanOfficerTraining.com.
The competition is going to heat up during 2006. Loan Officers will be out in full force trying to compete for deals and more importantly, relationships! You know, your relationships! The ones you thought you owned beyond a doubt. When the competition heats up all bets are off as to who will win the relationship! The competition will fight dirty and prove to be unfair.
You don't want to compete...you want to dominate! The way Microsoft does in the computer software business! In order to dominate let's take some lessons from true warriors, the men and women who serve in our armed forces and go to battle everyday. The stakes are a lot higher in their battles.
During 2006, trying to compete in the mortgage business will be much like war and Loan Officers will have to react to the competition as if they were a soldier at war. Originators have got to develop comprehensive business plans to combat the competition and stop them from stealing relationships and transactions. They must have strategies and tactics that will out gun their competitors. Loan Officers will need very well thought-out time management schedules to ensure they are working proactively and productively. Too many originators appear to be busy but when we observe a little closer we see they are just doing busy non-productive work that does not pay the bills.
Here's a brief description on how a soldier prepares for battle - and how you can adapt a soldier's training to your mortgage business.
Written By: Steve Probst
Tips on How to Handle Objections with Confidence
Written By: Debbie Allen, Award-winning Author of the book entitled, "Shameless Self-Promotion" and her new book called "Skyrocketing Sales". Debbie was a featured speaker at the Turn On Your Million Dollar Brain 2005 workshop and her sales expertise has been featured in dozens of business publications including Sales & Marketing Excellence and Entrepreneur magazines.
Objections are simply expressions of interest!
Sales professionals deal with objections in almost every sale. The reason some of the objectsion occur in the first place is because of poor sales presentations, so to reduce the risk of objections, be sure to practice and give a more thurough one. The more complete the presentation, the more clearly the buyer will understand your offer, which in turn will provide them with more reasons to make a positive buying decision.
One objection that frustrates most salespeople is, "I want to think it over".
Introduction by Karen Deis - The ultimate outcome, and how we make our money, is by closing loans. When you read this article, think about how "debriefing sessions" could work in your office where everyone learns where things started to break down and what your team can do to correct internal problems to provide "flawless execution" at each and every closing.
Advertising executives on Madison Avenue often use an interesting document called a Call Report. A Call Report (or a Conference Report) is the official summary of an important meeting between a client and the agency, and it details the next steps that have to be taken, as well as the various approvals and changes that were agreed to in the meeting.
The Call Report is an outstanding way to summarize a meeting. You have the minutes of the meeting, some important notes, key decisions recorded, and a roadmap of what to do next. It's all there in black-and-white. But step back. What's really going on here? It may be an excellent way to summarize a meeting, but by what process does a Call Report get created? More to the point - how do you end a meeting? Do you have someone issue a Call Report, or do you end a meeting by having an equally important meeting called a Debrief.
Written By: Jim Murphy
How Do You Measure Up? 40 Question Sales Habits Quiz!
Written By: Debbie Allen, Award-winning author and speaker, whose first book called Shameless Self-Promotion was on the business best seller list. Visit www.SkyRocketingSales.com for her new book, Skyrocketing Sales and listen to a bonus audio interview.
We all have behaviors and habits we have developed over the years.The first step to "changing" some of the less desirable ones is to recognize what they are in the first place. The more limiting the behavior, the more it prevents your success. On the other hand, the most successful sales people in the world learn how to overcome some of the habits holding them back and that have sabotaged their opportunities in the past.
Let's focus on the habits that you have already formed. To evaluate yourself, read the 40 questions and as you read along, place a "check mark" in front of the ones you can easily and honestly answer YES.
Be completely honest with yourself - because this is the only way you can change the ones that are holding you back.
(NOTE: Sales Managers and Company owners - this is a great quiz to help you work with your loan originators to increase their production numbers too.)
I was reading a book a few nights ago that was recounting the importance of maintaining the proper mindset to accomplish your goals in marketing and sales.
One illustration really caught my attention. The author, Robert Allen, compared marketing to popcorn. On the surface I'm sure this sounds borderline crazy. But the way he described the scenario really stood out in my head. He stated that when popping corn, you have to first raise the temperature to a certain degree. Up until this point, it may seem as if you are wasting time, because absolutely nothing is happening. However, once you surpass a certain temperature, the kernel will pop.
In the same way, our marketing efforts as loan officers may seem to go unnoticed. Does this mean that we are wasting time and should just quit?
Well, let's return to our bag of "popcorn" again.
Written By: Chad Weber
How to Become a Revenue Driver
Written By: Steve Harney, President, Steve Harney, Inc. As a real estate company owner with over 1,000 agents and 30 loan originators, he currently coaches agents and LO's on how they can work together. Email: SteveHarney@RealtorSpeaker.com.
Has your local real estate magazine doubled in size?
Are the sales prices of homes "tanking" in your area of the country?
Homeowners cannot use their home as an ATM anymore - so, there goes your refinance business!
Consequently, a loan officer's relationship with key Realtors® is growing in significance.
Let us talk about how you can enhance those relationships without becoming a slave to their every whim.
A Realtor's® business is no different from any other, i.e. earn a profit by increasing revenue and controlling expenses. The realtor might misunderstand the value of the loan officer, who they see as someone who controls expenses. You are an expense controller if you bring breakfast to the office meeting, supply lunch for the broker's open house, pay for ads, or receive pressure for other financial assistance. Most loan officers are on the expense side of the equation where deep pockets (not mortgage expertise) influence the realtor.
The loan officer's true value to the realtor is as an advisor - that is, helping the realtor maintain or even increase the number of transactions he/she can close on an annual basis, thus, increasing revenue. The success of your relationships with your realtors will be determined by your ability to be seen as a revenue driver not an expense controller.
Which one are you?
The expense side of any business is never fun. It is where bills arrive and "bean counters" (accountants, spouses, companies) crush creative ideas. If you want to be a valuable partner in the realtor's business, consider switching to the revenue side.
How do you show the realtor that you are a valuable partner? As a real estate agent for over 20 years, I would like to share with you five ideas that I observed when working with my loan officer partners.
Manage expectations
It never ceases to amaze me what salespeople are willing to say when they are trying to create a relationship. I hear so many loan officers (and realtors) say that they will be available 24/7/365. No you won't!
Written By: Steve Harney
Your Personal Shopper: NAMB 2006 Convention Vendors Recommendations!
Written By: Karen Deis
Let me save you some time!
I have attended NAMB conventions at least every other year for the last 16 years. It’s part of my on going quest to find new, innovative sales and marketing products for my mortgage company (when I owned one).
About 2/3 of the exhibitors were lenders, but my purpose was to search for you—our readers--for the most current, unique and inexpensive tools you can use to help you increase your business.
So, I’ve done the shopping for you.
There are 9 products with website links and a short description of how the product works. I want to stress that I have no affiliation with any of the vendors and it’s my own biased opinion…
…so let’s start with the number one recommendation on our list—The Nest!
Written By: Karen Deis
Tips on How to Market Yourself with a CMPS Designation.
Written By:Gibran Nicholas, Chairman and founder of the CMPS Institute, a national training and certifying organization created to help mortgage professionals integrate financial planning concepts into the mortgage process and add value to financial planning professionals. View Gibran's product - Certified Mortgage Planning SpecialistTM. Email Gibran at Gibran@CMPSInstitute.org.
The Certified Mortgage Planning Specialist (CMPS) designation is the first and most widely recognized mortgage planning certification program in the history of our industry. Over 1,600 of America's loan originators are being transformed into Certified Mortgage Planning Specialists through the ongoing training and certification offered by the CMPS Institute.
With this in mind, how do you turn your CMPS certification into increased income?
Well, the first key is to see yourself differently.
No longer are you competing with all the other loan officers out there for the next mortgage deal. You are in fact a financial expert who specializes in mortgage planning - just like a CFP is a financial expert that may specialize in retirement planning or a CPA is a financial expert that specializes in tax planning.
Therefore, instead of hanging out with all the other "loan hacks" at Realtor meetings, go hang out with other financial experts at financial association meetings.
While other loan officers are doing the same old things over and over again, here are some tips on what you can do that will guarantee a network of affinity partner referrals...these tips will guarantee that you will be preceived as a horse of a different color!
Written By: Gibran Nicholas
Smile if You're a Type E
Written By: Alex Giorgio, a practicing Psychotherapist and consultant who uncovered the TypeE Personality after working with more than 10,000 highly successful individuals. Alex works with top executives from Fortune 100 companies to dotcom start ups as well as noted actors and athletes to help hone their personal and professional life skills. Email Alex at Alex@TypeE.com. Subscribers can download a free e-Book entitled Introduction to the TypeE Personality using a unique link provided in this article.
Do you know someone like this? He’s a high-energy achiever who lives at the center of a successful loan origination business whirlwind, yet he's rarely stressed out and almost always smiling. He has built specialized support systems that deal with the details of his many transactions while he dashes on ahead to the next prospect, the next loan, the next settlement.
But man or woman, newcomer or seasoned pro, all this activity is not the reason this loan officer is smiling. He's smiling because he has a TypeE personality®. You're probably smiling if you have a TypeE Personality®, too.
TypeE's love being on the edge of life and living for extremes. They are built for speed and their energy seems limitless. They are frequently drawn to exciting, non-routine careers that demand creativity and personal charisma, and are almost always successful.
But it's not all sunshine. The same passion that makes for creativity and success can also send the TypeE Personality over the edge, taking family and business along for the ride. The key is understanding this personality type and watching for the pitfalls.
What is TypeE?
TypeE's are usually entrepreneurs, top executives, leaders, and innovators. Only an estimated 5 to 10 percent of the population has successfully harnessed the TypeE personality, but it is far from an elite group that believes itself to be better than those around it. In fact, TypeE's typically reach out to reawaken others' creative genius.
They understand that everyone has a limitless potential that can only be reined in by the limits they place on themselves. They refuse to be beaten down or discouraged when they fail or when someone laughs at their dreams and aspirations.
Are you a TypeE?
Having a TypeE personality as a loan originator can put you on the fast track to success. Taking the TypeE Quiz is a fun and easy way to learn if you are this special type. While this quiz isn't meant to be a definitive measure of whether or not you have a TypeE personality, it will give you a reference point from which to compare your TypeE tendencies with other professional loan originators.
Subscribers, continue this article and download 2 freebies:
Alex Giorgio's 19-page e-book entitled Introduction to the TypeE Personality.
Did you hear the one about the guy who prayed to God every day "Please let me win the lottery, please let me win the lottery!"? One day God's voice booms down from the heavens and says "You have to work with me on this one - you need to buy a ticket"!
Translation: In order to be successful in the mortgage business - you need to invest in yourself!
How do you insure that you win the mortgage lottery? By honestly assessing your skills, current business and opportunities.
I receive calls and emails that go something like this: "Help! I've been in the mortgage business for a few years now and since business is down, I need a quick fix that will keep money coming in the door. What should I do now to generate leads?"
Based on this limited information - it would be like a doctor diagnosing an illness without interviewing (or seeing) the patient.
However, the real answer is a question - did you buy a ticket? Which seminars have you attended lately? Have you read any mortgage magazines? What associations or clubs do you belong to? Do you have a database?
In 1991, I made the conscience decision that my mortgage practice would consist of A-paper, conventional loans. I would spend my money marketing directly to the consumer. I wanted to be in control, close the easy deals and have more time with my children who would be teenagers within a few years.
I referred out the sub-prime deals to my competitors.
I did not call on real estate agents.
It was as difficult - and as simple - as that!
Sure, I lost some business by not doing sub-prime loans but I closed twice as many A-paper deals in the same amount of time. Sure, I lost real estate agent referrals - but I generated enough leads on my own to refer clients to real estate agents that I chose to do business with.
The self-assessment process has to start with YOU.
Which types of clients do you enjoy working with the most? (1st time homebuyers, refi's, luxury home market, new construction - for example)
What loan programs do you know inside and out?
Why do you think you could be successful if you choose this niche?
How will your choice of niche markets affect your personal life?
How much do you plan to invest in yourself?
Let's start with attending seminars - either live or online! An excuse I hear over and over again is, "I don't go to any of those seminars because all they want to do is sell me something."
Superstar loan originators are doing you a favor by offering to share their systems with you so you don't have to reinvent the wheel. You don't have to buy anything but even if you walk away with one or two tips, it's more than you had before you attended. (Beware of people who don't walk their talk or speakers who you can't trace their backgrounds. There are plenty of them out there who claim to know the mortgage business but have never closed a loan.)
Subscribe to mortgage publications, both online and printed versions. Swipe ideas and make them your own. If the authors did not want to share the ideas with you, they would not have written the article in the first place.
Do you attend your local mortgage association conventions? Take time to visit sponsors' booths and see what's new or improved.
What have you done to invest in technology? Building your website? Creating a database? Voicemail mortgage alerts?
Read business books or download the audio versions to your MP3 Player. A few of my favorites are:
Think & Grow Rich - Napoleon Hill
What Clients Love - Harry Beckwith
Purple Cow - Seth Godin
The Big Moo - Seth Godin
Marketing Warfare - Trout & Ries
Walk Like a Giant - Sell Like a Mad Man - Ralph Roberts
You can find free audio interviews, free newsletters and free reports with a quick Google search with the key words "loan officer training".
Who are your favorite business authors? Visit their websites and subscribe to their e-newsletters. Participate in their blogs.
Attend seminars that have nothing to do with mortgages. Some of your best ideas will come from outside the mortgage industry! I recently attended an email-marketing seminar and learned how the Ebay pros use auto responders to create more referrals.
To subscribe to free newsletters and marketing tips, checkout:
Psychologically, when you spend money, you commit yourself to getting value out of what you spend in both dollars and time.
While free marketing materials will help you decide which niche market is right for you, "free" is still no substitute for investing in yourself!
Copyright - 2006 - LoanOfficerMagazine.com
Written By: Karen Deis
Not Planning the Work - Not Working the Plan
Written By: Ralph R. Roberts, CRS, GRI. Ralph is the author of the forthcoming book Flipping Houses for Dummies (John Wiley & Sons, November, 2006), co-authored with Joe Kraynak. Visit www.TagTeamTactics.com for a seminar coming to an area near you and download free marketing materials.
I have been in the real estate business since I was 18 years old. I worked for a bunch of different companies since then. I now own my own company.
When did I write my first business plan? What do you think? 20 years ago? You would think that 20 years ago I had a plan to sell over 600 homes a year? Not even close!
I wrote my first business plan only 5 years ago - on a pad of yellow paper - it ended up as 10 sheets of paper with handwritten notes.
On yellow sheets of paper...I run a business doing in excess of $50M a year in real estate sales and my business plan is on a yellow sheet of paper? It really hit me between the eyes when I went to the bank for a line of credit to buy some investment properties. The banker said, "Let me ses a copy of your business plan." I gave it to him. He said, "well, it's good but is this how you keep your business plan?" I said, "well, that's the written copy, but we keep the typed one back at the office with the staff."
I didn't have a typed copy. My assistans had no idea of what I was going to do and where we were going. Just repeating this story makes me shutter.
Stanley changed my life...Superstar agent, Stanley Mills from Memphis, Tennessee, visited me. We spent a week writing a business plan. That week changed my life forever.
Written By: Ralph Roberts
How Everything Can Be Used to Your Advantage
Written By: Cary Mullen, Olympian, World Cup Champion & Author of HOW to Win. (More information about Cary can be found at www.MortgageSpeakersBureau.com.)
Winning Tips:
Manage your anger and you will manage your success. Know that there are as many ways to experience an event as there are people. Ask yourself: is my anger serving me or is it just serving to defeat me? Then choose your reaction.
Realize that all events can be used to your advantage. You just need to remind yourself that "this is to my advantage if I can figure out how to use it to my advantage" and you will be on your way. This winning mindset will help catapult you ahead of your competitors.
Train yourself to quickly counter limiting beliefs. Once you accept that some things are out of your control, you spend less time struggling against the inevitable and more time focused on winning.
As the clock ticked down to the start of the World Cup Downhill Ski Race in Sierra Nevada, Spain, I knew I was ready. Not ready in the sense of "I've got my skis and goggles on, I'm not carrying any injuries". No, I mean ready - I'd never been so ready for anything in my entire life.
All year I'd trained for this race. I was at the peak of my form. I got the perfect amount of sleep the night before, I ate the perfect meal at the perfect time. My muscles were limber, I was psyched-up. By the time I was heading for the start line, only 100ft. away, I was in the zone, primed to dive down those slopes when the clock counted down.
Then the announcement came over the loudspeaker that stopped me dead in my tracks: "All downhill race competitors please return to the lodge."
What?
"The race has been delayed due to a heavy tailwind."
Delayed?
"We'll update you in two hours time whether the race will go ahead or not."
Hey, whoa, hold on a second! I trained all year for this and now you're telling me it might not even go ahead? Now, with less than a minute away from start-time? What the heck is going on?
You could see the steam of my breath up there in the mountains, but I swear, right then, you could probably see steam coming out of my ears too. I was rumbling like a volcano. And when I got back to the lodge, I saw I wasn't along - a lot of my competitors were slamming their helmets on the ground and pounding their fists on the table. Everyone was furious, complaining out loud - and I was right in there with them.
Written By: Cary Mullen
Present Like a Pro...Tips for Your Next Stellar Sales Meeting
Written By: Cyndi Maxey, CSP and Rob Maxey,
Revere Mortgage
Cyndi Maxey, CSP (Certified Speaking Professional) is a seasoned professional speaker and presentations coach. This article is adapted from her latest book (co-authored by Kevin E. O’Connor), Present Like a Pro: Mastering the Art of Business, Professional, and Public Speaking). Rob Maxey is a mortgage consultant with Revere Mortgage, Northbrook, Illinois, who also writes and MCs corporate meetings. Contact them at RobMaxey@RevereMortgage.com or CMaxey@CyndiMaxey.com.
You’ve been asked to make a speech!
First, be happy you have been asked. Many of your colleagues in the industry would love to be in your position; it’s one of power…the power and privilege of the platform. If you are presenting, Realtors, builders, clients and other industry experts will give you more credibility simply because you’re in front of the room. Keep in mind what every professional speaker knows - that your audience wants it to be a positive experience and ultimately, they are on your side. They want you to succeed.
The following are some tips from the pros, before, during and after your next presentation. With these, you will gain even more support and respect from the audience and beyond. Remember, nobody cares as much as you do about this meeting – before, during, and after it.
BEFORE: Realize that Nobody Really Wants to Be There
You, as a mortgage consultant, will need to promote your talk and why it is the best use of Realtors®’ time. Realtors and builders are very time conscious – knowing that they have a choice of spending time with you learning something or spending time trying to get that next deal. They get many invitations by many mortgage companies; you need to help them sort through the pile and why they should be there – with you and nobody else.
Look for opportunities to speak and challenge your comfort zone! Rotary or Kiwanis Clubs, Chamber of Commerce meetings, Future Leader Conferences, Insurance agents, CPA's - the list is unlimited.
1. Build interest with your potential audience. Contact them at least four times in different ways prior to the event – but in ways that show you respect them and want to inspire them. Here are some ways successful consultants perk interest:
Written By: Cyndi Maxey and Rob Maxey
FINANCIAL FITNESS BOOT CAMP: How to Make a Difference in the Lives of Your Clients!
...An interview with Renee Spears (facilitated by Karen Deis), Rose City Mortgage, one of the nation's first socially responsible mortgage brokers who donates $100 from every closing and whose donations have topped $100,000 in 2006.
What if you could offer financial seminars that none of your competitors have even thought about doing?
What if the topics covered will really make a difference in the lives of your clients?
What if you could get your affinity partners to participate and invite their clients too?
Meet Renee Spears, President of Rose City Mortgage, Portland, OR who is providing Financial Fitness Boot Camps for her past clients. Read how she’s created an 8-week seminar series and how she gets her affinity partners involved. She shares her boot camp curriculum and other seminar suggestions—and it’s an exclusive event only for your past clients!
Why past clients? These are the people who know you, had a good mortgage experience with you, and best of all, you know where to find them.
Karen: I wanted to write an article on outside-the-box-type seminars and found a short article about you and your seminars and visited your website. Before we get into the discussion about the seminars you offer past clients, I LOVE your website. It is the most awesome, unique and client-friendly mortgage website I have ever seen.
Renee: We wanted to do something different and the website homepage is an animated picture of my office. When you click your mouse, the office “comes to life” including a steaming cup of coffee, my dog lying under the desk, pictures of our staff and my laptop. Just pass the mouse over the telephone, pictures, the coffee cup, etc. to view pop-up captions that give people more info about our company without having to visit each and every website page.
Our goal was to convey our client-centric philosophy. Some people think the site is hokey—but we don’t want to do business with those types of people so they basically screen themselves out of doing business with us.
Karen: Before we talk about your Financial Fitness Boot Camp, what is your website address?
Written By: Karen Deis & Renee Spears
True Confessions From a TelePhobic Originator
Written By: Larry Bettag, Production Manager for Cherry Creek Mortgage, St. Charles, IL. He is a member of the Mortgage Speakers Bureau, has a Master’s Degree in Clinical Psychology, Doctorate of Jurisprudence (Attorney) and past marketing director for a nationally-known surgery center. Contact him at LBettag@ccmc-net.com.
Why are WORDS the most powerful weapon you have?
Words alone have been the precipitating factor to many wars. As a result, many have died from wars that have been started by the words of others. Additionally, as we’ve recently seen, careers have been crippled by the failure to control a person’s words. Although it’s not known as to the extent of permanent damage that words have hurt their careers, Mel Gibson and Michael Richards have said things that have had a negative monetary impact on their careers and livelihood.
So what’s the fuss about words? If used properly, words can have an amazing impact on the things that we do day to day. Specifically, words can be used to create our destination in our lending careers.
A slip of the foot and you may soon recover, but a slip of the tongue you may never recover. ~ Benjamin Franklin
For those who believe the Bible, the world and everything in it was created from the words of God alone. In Genesis, God said, “…let there be light,” and light was created. All seven days of creation occurred this way. God spoke - it was.
What do words have to do with lending? Everything! Market reports for 2007 indicate that mortgage origination will be down between fifteen and twenty percent. I believe that those who are verbally or orally connecting with their clients, in a diligent and purposed manner, will not only survive in 2007, but gain market share as well.
Intentional, verbal communication with your clients will drive your business to new levels. Many people ask what do you say to your clients when you call them? First, if you’re like me, you may be reluctant in calling clients whom you may not have spoken to for a long time. You may have closed their loan last year, promised to call them up and then not done anything other than send them a thank you note and your monthly mailers. While that’s all good and well, referrals will grow by the deepening of a relationship with your clients.
A friend of mine averages twenty closings per month.
When I asked him the secret to his success, he said that he does two hours of outbound calls every day to his past clients. He told me something that relates back to the “excuses” part of this article. He said that he has so many interruptions and so much interference in his office each day. Most importantly, he said that those distractions would exist whether he makes the outbound phone calls or not. Basically, the non-negotiable boundary that he has built around his business is the two hours per day of outbound calls. He said that a bad month is fifteen closings. Wouldn’t you feel better if fifteen closings were a bad month for you? For those of you who average fifteen a month now, imagine what it’d do for your business.
The purpose of this exercise is to attempt to create and deepen relationships with your clients. The first time you call your database is the most difficult. Overcoming your call reluctance is the most difficult for the majority of people. I have a law degree and a Master’s in Clinical Psychology (I know what you’re saying…what a freak). Because of what I learned in Psych-101, I can tell you that there are two primary reasons why the calls never get made.
First, people paralyze themselves with fear. The greatest fear is the fear of the unknown. People build up irrational fears in order to prevent themselves from making calls. A common irrational thought is something like this….
“I haven’t spoken to this person in over a year. They’re going to think that I’m being weird.”
I haven’t spoken to this person in over a year. They’re going to think that my business stinks and that I’m only
calling them now because I want something.”
Or the worst fear yet...
“I haven’t spoken to my clients in over a year, I don’t think that they’ll even remember who I am.”
How about one final one…
“I screwed up their loan so bad that there’s no way that they’d ever want to talk to me again.”
I’d love to say that I haven’t had one of these thoughts. Not me. I’m perfect. This article is becoming a bit of my personal confession. The truth of the matter is that I’ve mastered my own excuses better than anyone I know. So rather than making what I know is a positive change for the better, I’d rely on my weak excuses that I’ve mastered, so that I don’t have to get out of my comfort zone. You know, the fear of the unknown. Frankly, that’s pretty stupid.
Written By: Larry Bettag
The Dr. Phil Rule of Market Evaluations!
Introduction by Karen Deis – I recently read an article by Will Dylan on how real estate agents can market themselves more effectively using Dr. Phil as the role model on how to be considered an EXPERT. (Mr. Dylan has given us permission to reprint his article for you!)
Will Dylan’s advice to real estate agents is to become the Dr. Phil in their local real estate market by unconditionally providing the public with real estate trends in their local community.
Wait! Don't quit reading quite yet! Hear me out on this idea!
What if you, as a loan officer, provided local real estate AND interest rate trends—and became the one resource the public goes to for both trends? Would that make a difference in your business?
Read your competitors’ mortgage ads! Now, compare yours to theirs? Does it look like a “me too” ad? Do you hawk every loan known to mankind? Why would someone call you?
Do any of your competitors offer a local real estate trends report? Why not you?
Read this article only if you want a bigger share of the real estate sales in your area.
No, you don’t have to be a real estate agent to provide market trends. Most of the info can be obtained from your local MLS, websites, and state and national reports. You can even “quote” the real estate agents you do business with.
Will Dylan, is a corporate marketing manager and Author of “Marketing Like the Pros-Real Estate Edition” a 2-CD audio presentation designed to adapt the successful marketing and advertising strategies of major name companies and put them in the hands of real estate agents and loan officers to help them build their business. Visit www.MarketingLikeThePros.com.
For years, loan officers and real estate agents have offered free stuff—free credit reports, pre-approvals, free appraisals, free market analysis! However, most of the free info is “one-on-one” lead generation.
What if you, as a loan originator, could provide local real estate information (just like real estate agents do) and turn it into a “one-to-many” lead generation tool?
You can, if you follow what I call the “Dr. Phil Rule”.
Building Business Using a "One-To-Many" Model
Dr. Phil McGraw is, by most accounts, a pretty good therapist. He also happens to have achieved celebrity status and a remarkable level of professional success in his field.
If Dr. Phil were like most loan officers, you might expect him to run an ad that might read something like “Free Family Therapy Consultation by calling my toll-free number.” He’d be using the old ‘One-to-one” model — that is trying to generate one phone call from one prospect at a time.
Of course, that’s not at all what Dr. Phil does. Part of his success can be attributed to the fact that he uses the “one-to-many” model. As early as the mid-80’s, long before he was a celebrity, Dr. Phil is reported to have been giving group seminars and making all kinds of public speaking appearances, spreading information about family therapy to many people at once, as opposed to one at a time.
The Information Does Not Need to Be Special
It is worth noting that Dr. Phil wasn’t giving away top-secret information as he built his profile. There are hundreds or maybe thousands of therapists with similar training and a similar ability to help people—all armed with similar information. He simply took the same information that other people wanted to dispense on a “one-to-one” basis and gave it away on a “one-to-many” basis—on stage, in group forums, and eventually on radio and TV. (Of course, it helps that he has packaged that information up using an appealing delivery and style.)
The result is that millions upon millions of people regard Dr. Phil as an expert—even though most of those people have never met him.
If the Market Perceives You as the EXPERT -
You ARE the EXPERT
Why don’t you provide useful information, market statistics about the local real estate market, housing prices, etc and combine that with interest rate trends? Why aren’t you using the “one-to-many” model by proactively spreading the information as far and wide as you can, and gaining recognition as THE expert in the process?
Written By: Will Dylan
Make Yourself Instantly Remarkable
Written By: Brett Grendhal, CEO and Founder of Tidalwave Capital, a boutique mortgage planning firm in Minnesota, where he originates over $30 million annually over his 8 years in the business. He is a honors graduate of the Carlson School of Management (University of Minnesota). With a passion for marketing, Brett is relentless in making sure all of his marketing efforts have high impact. Email Brett at BrettG@TidalWaveCapital.com.
In Seth Godin’s best-selling book, he is driving down the road and mile upon mile, there were nothing but cows munching grass in the fields. After a few miles, getting bored, he spots another herd, but a purple-colored cow stands out from all the rest.
Are you a purple cow in huge field of mortgage loan originators? What steps do you take to make sure that your first contact with a new prospect is remarkable?
The first step to being remarkable is to WOW at First Contact.
How can this be done? I’d like to share some of the “nuts and bolts” of what I do to be remarkable to my prospects. I have a confession: I became lazy during the refinance boom and found myself challenged to keep my volume at the level I desired when the boom ended. So, I decided to map out a plan for how I was going to develop prospects into customers and then into customers-for-life. This plan starts with the first contact I have with a prospect.
Could there be a more important place to start?
Before we jump into some of the specific things I say and do, I’d like to quickly review my objectives. First and foremost, I want each and every encounter to stick out. My objective is simple as that. If I hit this objective, then every day I know that my business will flourish.
Building on my laser-focused objective, I’d like to share with you:
What I say in person, or on the phone, to a new prospect.
What I write in email or snail mail correspondence.
What "unexpected extras" I send or provide.
Written By: Brett Grendahl
How to Answer the Most Common Mortgage Questions (Part 1 of 3)
Written By: Tim Davis. Tim has been in the mortgage business since 1993 but since owning his own company since 2001 he has funded over $150 million in mortgage loans. He was the winner of the Great Ideas Contest 2006 with Loan Tool Box. More Information about Tim can be found at www.MortgageSpeakersBureau.com or view an online seminar by Tim entitled, "How to Answer the 9 Most Common Mortgage Questions".
One of the most effective ways to communicate and have people actually remember what you have said is thru the use of storytelling.
Stories have been around forever – hieroglyphs in pyramid tombs, the Bible, Will Rogers and even graffiti is a form of storytelling.
People do business with people they understand. Communicate more effectively by using relevant stories to create a picture in their mind of exactly what you want them to remember. Most people are visual thinkers and react to visual stimulation. So if you can create that visual image in their mind, it will simplify the mortgage process—and allow you to stand out from the other loan officers. More importantly, it will help you get the appointment.
I have identified the 9 most common questions that prospects ask loan officers all the time. This is a 3-part article with stories on how to effectively answer each question.
The first set of the most common client questions are:
What is your interest rate?
Where are interest rates headed?
Should I lock or float?
Since it’s the number one question is what are your interest rates, here’s a script that I use to help them make a decision to do business with me.
Written By: Tim Davis
How to Answer the Most Common Mortgage Questions (Part 2 of 3)
Written By: Tim Davis. Tim has been in the mortgage business since 1993 but since owning his own company since 2001 he has funded over $150 million in mortgage loans. He was the winner of the Great Ideas Contest 2006 with Loan Tool Box. More Information about Tim can be found at www.MortgageSpeakersBureau.com or view an online seminar by Tim entitled, "How to Answer the 9 Most Common Mortgage Questions".
Prospects and clients do business with people they understand. In part 1, I provided story answers to the following questions:
What is your interest rate?
Where are interest rates headed?
Should I lock or float?
My clients refer their friends to me and just the other day, a person called and said “My friend referred me to you because you make it simple and easy to understand.” If you can communicate visual analogies, with things that they can relate to in everyday life, they are going to tell everyone about you.
This article will cover how to answer the following questions:
What does my credit score mean?
How long will it take to increase my credit score?
Do you think I’ll get approved for the loan?
Since most of us work with some type of automated underwriting/approval system, we need to know the credit score to determine the loan-to-value, program and interest rate. While we are geared to looking at credit scores, it’s still a big mystery to the customer. Does 680 mean I’m a bad person? Am I worthy?
Question: What does my credit score mean?
Written By: Tim Davis
How to Answer the Most Common Mortgage Questions (Part 3 of 3)
Written By: Tim Davis. Tim has been in the mortgage business since 1993 but since owning his own company since 2001 he has funded over $150 million in mortgage loans. He was the winner of the Great Ideas Contest 2006 with Loan Tool Box. More Information about Tim can be found at www.MortgageSpeakersBureau.com or view an online seminar by Tim entitled, "How to Answer the 9 Most Common Mortgage Questions".
Just to recap — in Part 2 - we provided stories for the following questions:
What does my credit score mean?
How long will it take to increase my credit score?
Do you think I’ll get approved for the loan?
This one will address the follow questions:
What happens after I apply for the loan?
Can you explain the appraisal report to me?
How long does it take to get my loan application approved?
OK! You’ve filled out the application. They have spilled their guts to you. Social security numbers. Ages of children. The messy divorce. The name of their dog.
Question: What happens after I apply for the loan?
Most of us might say, “Well, it may take a few days after we receive the documents and I’ll get back to you.” You know what happens. The minute they walk out of your office, they talk to their family and friends and ask THEM questions. The worst thing that could happen to you, if they don’t understand the process, is to get mortgage advice from their butcher.
I propose that there is a better way to explain the process in the form of a story.
They look at you and say, “What’s next?”
Written By: Tim Davis
How to Write the Perfect Email Message!
Written By: Karen Deis
Emails have ruined the careers of many people and companies:
Michael Brown (FEMA) – When all hell was breaking loose after Hurricane Katrina, he emailed his staff asking if anyone knew a “good dog-sitter” for his dog.
Enron: “Did we get this illegal stuff about withholding expenses and retirement money worked out?”
Britney Spears dumped Kevin with a message from her Blackberry.
Or, the subject line of an email that was considered the “smoking gun” in court. It said: DELETE THIS EMAIL!
In a new book called Send: The Essential Guide to Email for Office and Home (by David Shipley and Will Schwable), it’s a comprehensive guide to:
When should you email and when should you call, fax or just show up?
What is crucial—and the most often overlooked line in an email?
When is the best strategy when you send a potentially career-ending electronic bombshell?
The acronym for the word SEND means:
S stands for Simple - If it isn’t simple, it will create confusion.
E stands for Effective – If it isn’t effective if people don’t pay attention to your message and tone.
N stands for Necessary — If it isn’t necessary, it should be deleted.
D stands for Done – If your email requires someone to respond (or take action), you need to figure out how you are going to follow up before you hit the send button. Just because you “asked” does not mean that it’s going to happen.
As a loan officer, emails can be one of the best ways to effectively communicate with prospects, past clients, real estate agents, underwriters and processors. However, it also has the potential of people misunderstanding your message with delayed closing dates when it could have closed on time; or loans being rejected when they could have been approved.
The authors provide tips on how to create the PERFECT email message and some of the big mistakes you could make too.
Subscribers - listen to an audio interview with author David Shipley, on the 8 Deadly Sins of Email.
Written By: Karen Deis
How to Take a Loan Application Like a Salesperson
Written By: Terry Weiss - Terry has more than 11 yeas in the mortgage industry as an originator, branch manager and national sales trainer. He has trained hundreds of successful loan officers across the country. He is currently Director of Sales for pitchSIMPLE, a loan proposal builder software. He can be reached at TWeiss@PitchSimple.com.
Did you know that the 1003 was originally designed as an underwriter’s tool, not a salesperson’s tool?
However, you’re a salesperson, not an underwriter.
The 1003 is, as you know, critical for qualifying a customer. After all, before you can offer the best loan advice, you must first learn the facts regarding your borrower’s equity, income and credit.
So, before we go any further, it’s really important to shake off those underwriter tendencies. Go ahead—close your eyes and imagine getting rid of them right now. You can no longer sound like an FBI agent shining the proverbial bright light in your customer’s eyes and interrogating them with a barrage of questions.
From now on, you must treat the application phase as a relationship building exercise rather than a fact-finding mission. Be warm, personable and enthusiastic. Here’s how to build the rapport needed to make the final sale.
Written By: Terry Weiss
Benefits of a Personal URL
Written By: Chip Cummings, Northwind International, www.ChipCummings.com and Karen Deis.
Think about it...if you want to find information on a BMW car, where do you go? www.BMW.com, right? Well, if you have a business built around you (regardless if you are a business owner or an individual loan officer), I would guess that you are spending a lot of time and money branding yourself in display ads, unique business cards, marketing pieces, etc.
If people want (or need) to find you, they will naturally start to search for you by your name.
Here are some tips on what you need to do, to personally brand yourself on the Internet:
Written By: Chip Cummings
Do You Know Where You Are Going (With Your Marketing)?
Written By: Karen Deis, Publisher
Yogi Berra, famous Yankees baseball coach once said, "When you come to a fork in the road, take it".
Well, I went hiking last weekend and pondered the sign in front of me - which path should I take? It dawned on me that this sign is representative of some of the disconnected sales and marketing strategies that plague mortgage companies and loan originators.
I consider myself a student of sales and marketing - I'm probably one of the few people in the world that reads all of my junk mail and e-mails - hoping to find a marketing nugget. However, as I travel throughout the country, I find that loan officers are confusing the hell out of prospects and clients (and losing business) - because they are not consistent with their sales message.
Are you guilty of these marketing misdirections and mistakes?
The Wrong Message - Recently, I saw an ad where a loan officer was advertising the fact that he was a Certified Mortgage Planning Specialist (CMPS) and yet the same ad said, "call me for the lowest rates". What's wrong with that picture?
Not doing what you say you are going to do! As most of you know, I was instrumental in introducing the Free Report Marketing concept to the mortgage industry in the early 1990's. As I travel throughout the country, I see ads asking prospects to call for a free report on the mistakes people make shopping for a mortgage. I call each and every one of them and leave my contact info. What I have found is that if I call 10 mortgage companies, I might get one report immediately, another one 30 days later and from the other 8 companies - nothing! (One time I got a report 6 months after I called.)
Asking people to visit your website - and there's nothing worth viewing! Almost everyone has a website these days and I spend a couple of hours a week, just visiting sites that loan officers provide in their email signature. You go thru the trouble of including your site within your emails, business cards, and print ads and there is not a shred of useful or unique information. It looks just like a thousand other sites out there! (View a clip from a 50-minute online presentation called How to Get Leads from Your Website now.)
Trying to be all things to all people! The ad (or website) contains a laundry list of all the loan programs known to mankind - including sub-prime and credit repair issues. First of all, the consumer usually doesn't have a clue what an 80-10-10 loan is all about. Secondly, a consumer who does not understand you (or if given too many choices) will not do business with you. Even if you offer ALL of these programs, create marketing strategies for each type of loan or category of consumer (i.e. 1st time homebuyer, real estate investor, commercial loans, etc.) and even if you place 4 ads, it's better than one ad with mixed messages.
Lousy customer service - Most marketing contains the phrase...we have great customer service! Yet, voice messages and emails go unanswered for days! Sometimes the reason is that you don't have the answer to their question. However, it's better to respond immediately even if you don't have the answer and provide a time frame when you plan to get back to them with an answer. (See the article in this issue pertaining to the Customer Communication Guarantee.)
Unmemorable business cards - While most of us are required to use the business card provided by the company, I would almost bet that you have the ability to print your unique message on the back of your card! Here's a sample of Brett Grendahl's card that's simple yet lets everyone know how he can help them.
Reflect on the sign again...are you walking one way - and talking another way?
Copyright - 2007 - LoanOfficerMagazine.com
Written By: Karen Deis
Tips to Add More Hours Into Your Day!
Written By: Karen Deis, Publisher
Are you over-scheduled, over stressed and want more time to work on your business?
Stop me if you've heard this one before: But all of us have one thing in common - we each get 24 hours in a day!
Here are a few tips on how to add more time into your day—so you also have more time for your family, friends, and more importantly, yourself!
Handle Tasks Once – (Saves 15 minutes) Read, answer or delete emails, voice mails or paperwork so you don’t have to come back to it. Handle it and forget about it!
Don’t Listen to the News in the Morning – (Saves 30 minutes) – Sensational and depressing news is what you normally find when listening to the TV reporters and can distract you from mentally preparing for a great day. If you really want to watch the morning news, TiVO it and watch it later.
Make Use of “Waiting” Time - (Saves 30 minutes) – Don’t go to an appointment without brining something to do – paperwork, reading materials or write personal notes to your clients and friends!
Give Yourself a Time Limit – (up to 60 minutes) – Rather than spending 2 hours researching a loan product or even purchasing a round trip airline ticket, give yourself 45 minutes to comparison shop and then just make a decision!
Write it Down (Saves 60 minutes) – Trying to “remember” a “To Do List” hinders productivity and creativity. Carry around a small spiral notebook or your BlackBerry and jot it down. Also include a date or time when you need to accomplish the task.
Turn Off Your Technology - (Saves 90 Minutes) – During your High-Energy time of day, and remove all distractions by letting calls go into voice mail or not checking you email for at least 90 minutes. You will be much more productive. Work on your task list (see above) without interruption. Finish up the details of your next marketing plan.
Monitor Your Addictions to TV or Video Games – (saves 60 minutes) The average American spends 2.6 hours watching TV or playing video games per day. If you just reduce your time by 1 hour, you will save 5 hours per week, or add 11 extra days per year. Also set a time limit for surfing the web (if that is your addiction instead).
Get the Low Down on the Society of Certified Senior AdvisorsTM
Written By: Karen Deis
(Listen to an audio interview with Founder, Ed Pittock.)
Click the Play Button to Start the Audio
If you were going to do business in another country, Ed Pittock, Founder of the Society of Certified Senior Advisors, says you'd be smart to learn the language and culture.
The same applies to working with seniors. You need to know their language and as much as you can about how they act and why.
Every day, 10,000 people turn age 60. People aged 55 and older control over 75% of America's wealth and spend an average of $30 billion per year. Since we are talking statistics, here are a few more:
81% of persons 65+ own their own homes.
Only 10% have saved 100,000 or more towards retirement.
Median net worth 65+ is $108,885
Florida & Pennsylvania have the highest popultation of 65+
What does that mean to you? An opportunity to work with the largest niche market in the U.S. today.
If part of your business plan is to work with seniors, reverse mortgages or HELOC's to build wealth, here are some marketing tips on working with them and information about a special designation you can earn that will set you apart from other loan officers.
Written By: Karen Deis
Goodbye Chicken Little...Don't Let the Door Hit You in the Feathers!
Written By: Cindi Gardner
August 2 was the day I became Chicken Little. Midway through the day, an email came in from my manager:
Seconds later, I was a werewolf morphing in the rising moonlight - only for me it was yellow feathers, a pointy beak and beady black FRIGHTENED EYES! And, I stayed that way all thru the next day and through the weekend...Chicken Little waiting for the entire mortgage sky to fall in.
My state of mind spilled out of me at client meetings and talking to prospects at open houses. I felt so out of control. It took my breath away. My voice came out in a high pitchy squeal. My contacts dried out from my eyelids being constantly opened far past their normal wrinkle lock.
What I really felt like is someone who lived in London during the bombing in World War II and my entire neighborhood is gone, just shells of buildings left - but I get up and go to the non-existent store, take my kids to the bombed out non-existent school, etc., walking around in a world that no longer exists.
I read and watched the media for anything out there that correlated to the hundred emails I received from lenders, which reinforced my fears! I broke down over the phone to my coach - waiting for him to confirm the end of the world. He didn't. Everywhere, voices were whispering this is history...I felt like a chicken in a cage with no future but the proverbial chopping block (if you know what I mean).
It was a dark and stormy night in my mortgage career.
And then it was over - just like that.
Or just like this:
Written By: Cindi Gardner
Ten Myths About Multicultural Real Estate Clients
Written By: Michael Soon Lee, MBA, CRS, GRI, has been a real estate professional for over thirty years. He is also a multicultural expert and author of “OPENING DOORS: Selling to Multicultural Real Estate Clients” and the brand new book “Black Belt Negotiating.” Michael is often called as an Expert Witness in court cases where culture is an issue. Over the past 15 years some of his clients have included: CTX Mortgage, Coldwell Banker Real Estate, Fidelity National Title Company, the National Association of Realtors® and hundreds of others. Michael’s website is www.EthnoConnect.com and for your questions, http://multiculturalsales.blogspot.com.
Over 60% of all first-time homebuyers in America today are minorities according to the National Association of REALTORS®. There are over one million people from overseas coming into the United States every year and they all want to show friends and family they are successful by buying an American home. In addition, there are 80 million multicultural Americans already here. As a result, minorities are currently one-third of the population and by 2038 will be half. This is a huge market for lenders all across the country – if you know how to meet the unique needs of the fastest-growing group of homebuyers.
"PEOPLE FROM OTHER CULTURES ONLY WANT TO WORK WITH A LOAN OFFICER FROM THEIR OWN CULTURE."
Nothing could be further from the truth. Most of the loan officers who complain about having trouble with multicultural people are European American.
In fact, many cultural groups would prefer to work with a loan officer from outside their own culture. Asians, for example, are very private about their financial affairs and many are afraid that if they use an Asian loan officer that person might disclose their income and real estate holdings with others in the community. Hispanics are also extremely sensitive about sharing their finances with others from their culture for the same reason.
9 more myths revealed when you continue the article.
Written By: Michael Soon Lee
The R.D. & T. Method? What the heck is that?
Written By: Karen Deis
…the R.D. & T method? What the heck is that?
It stands for RIP OFF, DUPLICATE and TWEAK.
It’s thinking outside the box using ideas from other industries and using the ideas to market yourself and your mortgage practice.
Here are 3 examples of ideas of RD & T from a TV program, a dentist and the owner of a self-storage unit facility.
Written By: Karen Deis
Increase Your Income Just By What You Wear!
Written By: Karen Deis
Did you know that the color of your clothes could determine your income?
One of the keys to a successful business and making more money has to do with how you look.
From the moment you walk in the door, your prospect is going to decide whether or not you are someone who they will do business with. First impressions are crucial. As a loan officer, you are in competition with the other mortgage originators and you must earn your prospect's trust and respect as soon as possible. By paying close attention to your appearance and the vehicle you drive, you can build credibility with potential borrowers within seconds of them meeting you.
Physical appearance is important in sales. According to Joel Bauer, author of How to Persuade People Who Don't Want to be Persuaded: Get What You Want - Every Time (published by John Wiley & Sons, Inc.), you are taken more seriously and make your job easier when you consciously think about the way you look.
After 30 years of research, Bauer has concluded what colors and styles work best for men and women. He states that individuals should wear black suits and blazers. Men should wear a white shirt and women should wear a shirt that has a high collar. The focus should be on your face and your hands when presenting to a client, which is achieved with this look for both men and women.
There are five effective colors that Bauer recommends people incorporate into their outfit. The colors are listed below starting with the least effective and ending with the most effective color.
#5 - Blue: You should only wear electric or royal blue. Those shades of blue are used to communicate new ideas and concepts.
#4 - White: This color should be accompanied with the black suit when you are giving a formal presentation.
#3 - Red: Red is the color of passion and intensity. Whenever you have an emotional message to present, include an article of red in your clothing.
#2 - Yellow: When paired with black, this is a very effective marketing combination. Yellow and black stand out.
#1 - Pink: The most effective color you can wear with black is pink, even for men. When you wear pink inside black, you are showing that you want the money. Pink is powerful and displays confidence. Bauer has found that when he wears this color combination, he sees a 20% increase in his closing ratio. Have you noticed that Donald Trump is most often seen wearing a pink tie? Bill Clinton and John Kerry have also sported pink ties. If you don't own pink, bright purple and fuchsia are close seconds.
I recently met a loan officer who had been in the business for a long period of time. He wore a double-breasted suit and yellow ascot - or a 1950's look. Really, he did not look like he kept up with current state of the mortgage industry.
Cable TV carries at least 5 shows on how to dress and what to wear for which occasions.
When dressing for a meeting with your clients, carefully select your attire. Make sure your clothes do not look worn out (i.e. no holes, tears, stains, hanging threads, etc.) or out of style. Your clothing should always be cleaned and pressed, no exceptions. You may consider storing a portable steamer in your desk to take the wrinkles out of your clothes before seeing a client or purchase a bottle of wrinkle-free spray.
Bauer believes that you can increase your income just by choosing appropriate clothing, including cut, fabric, and colors. For men and women, a blazer is a must. It is suggested that women wear skirts instead of pants. The reason for the recommendation is that women who wear skirts have been found to be more successful in sales than women who wear pants.
Regardless if you are tall or short, there are a couple of fashion rules to follow when wearing a suit. When your arms are by your side, your sleeves should be a little past your wristbone, but not too long. As far as the pants, there should be a nice break at your shoe (where the cuff meets the foot). Use the services of a tailor. Most people have a hard time finding a suit that fits perfectly without any type of alteration.
Bauer also recommends that you focus on the details. For example, invest in a high quality wallet and briefcase. Jewelry should be elegant, but simple. Clients will notice these details, so be purposeful when choosing your accessories.
While you should have high quality garments, don't get caught up in designer labels. If you are covered from head to toe in designer apparel, there is the possibility that your clients may think you are making too much money off of their loan!
Once you have determined your clothing, you need to focus on the rest of your appearance. Be conservative in your hairstyle and color. Keep your nails manicured. When you are helping your borrowers complete the loan application and paperwork, believe it or not, they will notice your hands.
Now that you have mastered your physical appearance, it is time to think about your vehicle. A clean vehicle sends the message that you are a professional. Even though you may not be driving your clients around, there is a strong chance that they will see you in your car. You want to come across as someone who pays attention to detail.
When you take the time to enhance your professional look, not only are you able to make a great first impression, you will boost your confidence and therefore your sales.
In the mortgage industry, a confident, well-dressed loan officer translates into a successful business and making more money.
Copyright - 2007 - LoanOfficerMagazine.com
Written By: Karen Deis
I Gave a Seminar...And No One Showed Up!
Written By: Karen Deis
Do you remember your favorite teacher? Mine was Mr. Claus, who taught world government. Since I grew up in a small town, world government was the farthest thing from my mind at the time, but he made it interesting and I wanted to learn more, even being involved in a state-wide “mock United Nations” debate.
By holding seminars, that are so interesting and packed with content, prospects will think of you as their favorite teacher—only you would be their teacher and the subject would be how to buy real estate and apply for a mortgage.
People want education and information on buying real estate.
They want to avoid mistakes.
They want you to make it easy for them to purchase a home or investment property.
One of the best ways to get leads and turn them into buyers is by holding seminars.
I’ve heard it before…”I tried to give a seminar and no one showed up”. Just placing an ad in the local homes magazine is not a game plan.
Here are some mistakes and some tips on how to get more people to attend your seminars. But more importantly, how to turn them into clients!
The first one is trying to cover everything in one seminar, which leads to the second mistake of having too many speakers. I have seen ads where there is a title rep, appraiser, inspector, loan officer, escrow and real estate agent…virtually everyone who has anything to do with a real estate transaction. It’s overwhelming and you could end up with more presenters than attendees.
Another mistake is NOT holding seminars on a regular basis. Consider setting up at least 3 seminar dates in advance. If people can’t make it to one of your seminars, they have options to attend other ones. You’ve heard the excuse, I can’t make it but would love to attend…this is your opportunity to get them signed up for a future event.
Written By: Karen Deis
Hot Articles and Topics for 2007
This year's (2007) Top 10 Most Widely-Read Articles run the gambit of FSBO marketing to sales and marketing strategies to clothing choices. They are in no particular order...other than the date published...with the most recent article listed first.
In addition to the articles, subscribers have downloaded the free client and Realtor® newsletters and flyers by the tens-of-thousands and they are NOT listed here because they're a huge part of the benefits of being a subscriber.
Here are the Top 10 Most Popular Articles for 2007
Story Selling: 5 Steps to Creating Awesome Business Stories
Written By: Karen Deis
An elevator speech does not cut it anymore. Your unique selling proposition (USP) is so yesterday. Everyone is rattling off features and benefits to anyone who will listen.
Instead, consider creating success stories for each product or service that you provide as a mortgage lender.
Why? People love listening to stories. Stories have been around since the cavemen chiseled out a series of pictures on cave walls. The Bible is a series of stories. How about the stories you listened to as a child sitting on your parent’s lap?
According to author Annette Simmons, Whoever Tells the Best Story Wins, the definition of a story is a reimagined experience narrated with enough detail and feeling to cause your listeners’ imaginations to experience it as real.
5 Types of Stories
Who I Am Story - What qualities earn you the right to influence someone?
Why I Am Here Story - What are your values?
Teaching Story - What experience can you share to help clients make a decision?
Vision Story - How will the future look if they choose you as their lender?
I Know What You Are Thinking Story - How you will create trust by validating your client's objections.
Whether you realize it or not, you are already telling stories about yourself...why you got into the mortgage business, how you have helped others, etc. But are they effective in convincing people to do business with you?
There are 5 key elements in developing any story. I also share my stories (based on the 5 types listed above) of what I used in my mortgage practice. Subscribers can download worksheets to assist in creating their own version of the 5 stories that sell!
Utilize the 5 downloadable worksheets (download at the end of the article) to create your stories.
Written By: Karen Deis
Get Serious or Get Out - Survival Skills in a Downturned Market
Written By: Lea Haben, has been in Corporate America for 20+ years in sales roles within various industries. She was extremely successful in building her own sales career and often mentored new account executives. After years of helping companies meet their goals she decided to create and pursue a few goals of her own. She began her own company, Lasting Impressions, in April 2005 and it took off. She had MASSIVE success in such a short amount of time as a dating/relationship coach. She had a successful radio show called "Looking for Love with Lea" and has now signed to do a TV show with the same theme.
The economy and the market has got a lot of people running scared. What a lot of people don't realize is the fact that this is an excellent time to capitalize on your skills and define yourself as an expert. The economy has gotten rid of the low hanging fruit and the easy street mentality and now it is a playground for a professional. How many times have you lost a deal in the past to a supposed brother- in-law or a friend of a friend? (Those days aren't going to be happening again ANY time soon). The key to staying in business is simple--relationships. Isn't it great to know that this market doesn't require you to work any harder-- only to work smarter and to strategize a little more. Consumer confidence is at an all time low and the only way to instill trust once again is to get back to basics. People no longer trust big companies and what they represent. (Which means they want to work with people that they trust).
If you want to stay in the game than it is time to get serious and follow through with a good game plan. Here are a few tips to help you regain some traction.
Reconnect with old relationships - Reconnecting and educating previous clients and customers is a great way to assist them with possible refi's or home equity loans. This is also a great way to guide them and assure them that this too shall pass. They will refer you if you can reassure them.
New relationships -
Written By: Lea Haben
How to Stop Procrastinating!
Written By: Karen Deis
If there is one thing you need to know about PROCRASTINATION, it’s that you always have something planned for tomorrow!
Dr. Piers Steel, Professor at the University of Calgary, says that procrastinators have less confidence in themselves that they can actually COMPLETE a task. Some of the mindsets are:
Task Aversion
Impulsiveness
Distractibility
Lack of Motivation to Achieve
Based upon his studies (by the way it took HIM 10 years to complete them), it’s estimated that 15 to 20 percent of the general public are procrastinators. Sticking to a diet. Checking our emails 10 times before (or during) a project. Failed New Year’s Resolutions.
Not all delays are considered procrastination. The key is that the person must BELIEVE it would be better to start working on a project right away, but will elect not to start because something better might come along.
Read 6 tips on how to better manage you time and just get started.
Take the 82-question quiz and get feedback on exactly where you stand when it comes to this work-related disease.
Written By: Karen Deis
Unclog Your Brain: Is It Worth Your Time?
Written By: Denny Andrews, www.LoanOfficerAmmo.com and President and CEO of The Denny Andrews Team, Seattle, Washington.
Have you ever heard of the “vacation exercise”?
Everything you have been putting off somehow gets done just before you go on vacation. What if you were to take just a few minutes every morning and pretend you are leaving tomorrow on a 3-week vacation.
Here it comes! You know you’ve screwed up and your client is on the phone (or in your office) complaining.
Maybe you are one of the fortunate ones who never get complaints! But if you do, regardless if their gripe is legitimate or not, there IS a systematic way to handle all complaints.
Say you are sorry! Those should be the first words out of your mouth. It costs nothing. It isn’t admitting fault. You’re just sorry they are feeling that way. These are the most powerful words you can say to a complaining client.
Honor their perspective.
Written By: Joseph Lukacs
Making Up Your To-Don't List!
Written By: Karen Deis
In a previous article by Denny Andrews, one of his suggestions was to create a TO DON’T LIST. This article is a follow up, with 7 time-wasters, to eliminate time-wasters from your life.
Every successful loan officer has a To-Do List. But, consider what your life and your income would be like if you write down the things you will STOP doing--that waste your time and costs you money.
Don’t work with unmotivated clients – Don’t fret about the deals you didn’t get. Don’t worry about the pre-quals you’ve done. Save time by creating a system of emails, postcards and phone calls to keep in touch, spend your time and marketing money on people who have already committed to work with you.
Don’t work with people who waste your time - You know who these people are…they call you, ask a million questions, ask for favors and never give you anything in return. This advice is especially true of real estate agents who ask you questions but don’t refer their clients to you.
Don’t work with clients you dislike –
Written By: Karen Deis
If You Are Frozen with Fear about the Marketing Meltdown...It's Time to De-Ice!
Written By: Debbie Allen, is one of the world’s leading authorities on sales and marketing. She is the author of five books including Confessions of Shameless Self Promoters and Skyrocketing Sales. Debbie has helped thousands of people around the world attract customers like crazy with her innovative, no-cost marketing strategies and secrets to sales success. Sign up for her FREE 6-week e-Course Business Success Secrets Revealed and marketing audio ($100 value) at www.DebbieAllen.com and www.SalesandMarketingSuccess.com.
Foreclosures, falling prices, failed loans … Oh MY! Is it a mortgage meltdown? Or is the greatest threat simply inflation taking its course? It doesn’t really matter what the news reports … what does matter is how you deal with the news you hear and what belief system you take about your own success.
Are you buying into the negative media reports and cutting back on your marketing because of self-imposed fears by a few hard hits in the industry? If so, its time to put on your “big boy pants” and deal with it!
Fear is simply an emotion. Emotions and feelings can be changed but it’s up to you. Why would you ever allow fear to control you? You can remove fear from your mind instantly by focusing on a positive outcome with everything you do. Staying stuck or doing less won’t serve you or give you the outcome you desire.
Every time there is a down turn in the economy its time to weed out the market. Weeding out the competition can be good. Too much competition can often be a bigger threat than having fewer leads to work with. During harder times you need to become more creative and work harder at marketing yourself and standing out. There are a lot of innovative ways to market without spending thousands of dollars in advertising.
Written By: Debbie Allen
Recalculating Your Course
Written By: Louise Thaxton, Certified Mortgage Planner with Fairway Independent Mortgage Corp., Many, Louisiana.
“Recalculating course…..recalculating course…” screamed the vehicle’s GPS system. It was Friday night and several of us from the “Mortgage Girlfriends Mastermind Retreat” had decided we would check out the local cuisine. Now we were unsure if we had the right address. To make matters worse, another vehicle of fellow mortgage professionals was following us, and every wrong turn we took, they also took. After a call to the restaurant, we verified the address, “recalculated our course” and called our friends in the other car to coordinate our locations, we finally made it.
It struck me later how our excursion to the restaurant is much like the journey many mortgage professionals are on right now in this business. Many have lost hope, lost their vision, and lost their way in these turbulent times. Your internal GPS system may be screaming “recalculating course” right now. The definition of the word recalculating is “…to calculate again, especially to eliminate error or to incorporate additional factors or data”.
Now is the time to reexamine your business model, your systems, your leadership and management skills and your heart, to make absolutely sure that you “eliminate error” not only in your systems and actions, but also in your thinking habits. You might be doing the right things but have a negative, “doom and gloom” attitude that permeates your company, your team and your community. You may also need to “incorporate additional factors or data” into your business plan and vision for 2008.
Written By: Louise Thaxton
Spouses Doing Mortgages! An Interview with Gary & Jamie Lau
Written By: Karen Deis (an interview with Gary & Jamie Lau)
In most sectors of the economy, business is down; unemployment is high; the fear of losing a job due to the economy is real.
I keep hearing this comment, "My husband lost his job and I am thinking of asking him to work in my mortgage business with me!" Or, "My wife is thinking of getting back into the job market and I think the mortgage business would be a perfect fit for her!"
Not so fast! While you and your spouse may be the perfect couple, it takes a lot more than love to team up and work together.
Read this article with Jamie & Gary Lau, West America Mortgage, a mortgage couple who teamed up in 1998 and have created a successful family-managed mortgage practiced together.
Karen: How did you two end up working together?
Gary: My mother was a loan officer, living in Arizona, and we lived in Chicago. I was in the food products industry, but my mom would periodically call me and ask me to come to work with her because the market was doing great and she needed help. I quit my job in 1993 and that was my first taste of "family" working together (even though it was my mom). My mom is semi-retired but still taking loan applications and my sister works for my company's corporate office near Chicago.
Jamie: I was in the health care industry doing training and performance reviews before I got laid off in 1998. Gary had the opportunity to run a mortgage branch in Phoenix and we have worked together ever since.
Karen: When you made the decision to work together, how did you go about defining your job descriptions?
Jamie: Gary's job is working with customers and Realtors® face-to-face, knowing the products, rates, pre-quals and applications. My job is to handle the database, follow-up on new prospects, newsletters and anything marketing related. We also did a DISC profile test. I was more Dominant (and Social) and Gary was more Social (and Analytical).
Karen: Do you have a niche market?
Gary: Over 50% of my clients are Hispanic and I have a guy who translates for me. A majority of our business is the purchase market and working with Realtors®.
Karen: What database system do you use?
Jamie: We use ACT! and a template for the mortgage industry created by Cindy Douglas. Our database has 1,300 clients in it.
Written By: Karen Deis
Is Now the Time to Buy?
Written By: Brian T. Larrabee, Founder, www.EstateofMindInc.com, provider of The Home Economics 2008 Wall Chart: The complete visual guide to the market, what drives it and clear evidence why housing has always been one of the best investments available.
Today’s housing market reminds me of a boxer whose face is covered in blood. At the root of the problem, there is a far less than life threatening cut. Yet the sweat of his efforts and the pounding from his opponent’s gloves serve to sensationalize the damage. The crowd’s attention is zeroed in; the announcer is at full tilt and fanning the flames of perceived demise. The gasps and horrified looks are evident all around and there are precious few in the room that would sport the desire to step into the ring. They are indeed, just there to watch.
Post 9/11, our market enjoyed robust appreciation--referred to as the “bubble”. This buzzword soon found its media target and caught on like stated income HELOCs and flat screen TVs.
New found wealth in the form of home equity loans, bought “Beemer’s” to the driveways where once, only Chevrolets dripped oil. We saw and assisted thousands of first time and trade up buyers seeking their new slice of the American pie. In some cases, these were folks whose credit had gone a few rounds in the ring and bore the bruises and scarred FICO scores to prove it.
Speculation reached new heights and new shows like “Flip this House” or late night infomercials propelled the notion that anyone with a tool belt and a cell phone could be the next Donald Trump (no camera crew or hairdresser required).
Even experienced developers reached ever higher and more luxuriously to create enclaves for the denizens of prosperity to buy virtual options by contract with nothing but their signature and a small deposit. These new investors watched as the value of their future condos reached for the sky right along with the cranes and steel frames. Earn thousands without even making payments--why not buy a few more?
So yes, you can see how one might refer to this activity as a “bubble.” Especially as we see underwriting guidelines go back in time by about fifteen years. Especially as we witness the knee jerk reaction in the MBS market add artificial premiums to Jumbo money and especially as we have to say sorry to those unable to refinance despite the fact that they are not amongst the five percent minority unable to meet their obligations.
So, what can we do, as loan officers, to combat the negative news?
Written By: Brian Larrabee
It's 1998 All Over Again!
Written By: Brett Grendahl is a ten-year veteran mortgage originator who now works by referral only. He also is the co-founder of Tidalwave Trader, a living textbook for those that want to learn how to buy & sell stocks and make money doing it. (www.BrettGrendahl.com, www.TidalWaveTrader.com)
Originating mortgages in 2008 in many ways seems like 1998 to me. If you’ve been in the business ten years or more you might feel the same. As I evaluate what’s happening in my mortgage practice and what steps I need to act on to generate business, in so many ways, it’s back to the basics!
One of the basics from the way I originated ten years ago was the fact that you’d find me hammering the phone all day long. I was responding to new calls and culling the stacks of paper (prospects) that I had spoken to in the past. If I wasn’t one the phone, I didn’t feel productive. If my phone wasn’t ringing I was ringing someone else’s!
Over the years and after the spoiling of the refinance boom, I have to admit that I got lax and a little rusty. So many years with high volume of new prospects calling had the effect of getting me out of practice with one of the pillars of my early success in the mortgage business. Throw in the growing ease of communicating by email and there were more reasons those skills were gathering dust.
Well, the market for originating mortgages today has reverted back to one that rewards the hustler with the energy & drive to make it happen. You need to wake up each day and make business happen—another way of saying it — every day you wake up—you’re broke!
Written By: Brett Grendahl
Are Women Better Loan Officers Than Men - In the Mortgage Biz?
Written By: Karen Deis
I know what you might be saying to yourself – I’m not going to read this story because I know that no one is better or worse—men and women are just different!
While you think that I might be biased (because I am a woman), based on the analysis by two top Gender Study Researchers, Michael Gurian and Barbara Annis, my 28 years in the mortgage business and 8 years training loan officers, I would like to share what I have observed within the lending business.
So, how do these differences manifest themselves in the mortgage industry? This article will point out the differences between negotiating skills, communication, emotional traits, competitiveness and memory.
Let's Start with Memory
Women and men remember things differently when it comes to the loan transaction. Men will remember the financial details more easily— women will remember emotional details – why the client bought the home they did; what issues caused their credit scores to go down; if one of their children will be going to college within the next few years. In fact, Gurian says that both men and women will remember that they have read this story—but women will remember exactly which publication they read it in and are more likely to find it again.
Conclusion?That’s why a database is so important – it’s your memory!
Next - Negotiation Skills
Written By: Karen Deis
How to Interview Like Barbara Walters!
Written By: Karen Deis
In Audition, A Memoir, Barbara Walters shares some fascinating stories on how she was able to get interviews with celebrities, kings and queens, world leaders, including Fidel Castro, Margaret Thatcher and even Richard Nixon, months after he resigned his presidency.
What was more fascinating to me was HOW she was able to get the interviews and WHAT questions she asked to get them to spill their guts!
Back in 1970, she wrote her first book called How to Talk With Practically Anybody About Practically Anything (I was able to buy an old copy thru Amazon resellers).
What is apparent in reading both books is that she has a “formula” she uses with each interview. Then I started to think that this could be a great formula for loan officers who are struggling to get real estate agents, financial planners, attorneys, company presidents…you name it…to open up and talk about themselves, with the possibility of them doing business with you in the future.
Want to know the formula? It all starts with the research.
Written By: Karen Deis
Mortgage Planners: Why They May Need a Reality Check
Written By: Craig Flaherty, MBA and President, CondoBanking.com - a Condo Hotel Co-coordinator and financing consultant, who has coordinated the funding of projects in 14 states. See Random Notes in this issue for info on his new book.
If you don't know who Steven Marshall is, let me tell you very quickly about him. Steven Marshall, and a few others in the same school of thought, came out with a very simple, but revolutionary idea about ten years ago. They found a way to teach mortgage professionals how to maximize their income by doing two major things: (1)learn how to originate more mortgages per customer, and a much less revolutionary idea (2)how to maximize the amount of commission you can make off the client for each transaction.
First off, I want to make it clear that I have a great deal of respect for Mr. Marshall. I think he's a brilliant man and an excellent entrepreneur. Having said that, I am concerned about his courses and seminars. But I'll let you decide. I should also point out that he does not "own" the mortgage planning industry, however, in my opinion, he is the most successful at it, and that's why I'm pointing him out by name.
I'm obviously not at all concerned about the second idea, every commission based sales consultant for the past 200 years has been working on that one. But that first concept should have jumped out at you. That concept is something that Seth Godin might describe as an Ideavirus; a truly powerful, revolutionary idea that can change how we think. If it didn't jump out at you, imagine if someone in the auto industry figured out a way to teach salespeople the best ways to convince us that we need to buy more cars for ourselves? I think car salespeople would be pretty excited about the idea. On a side note, if someone in the auto industry recently figured that one out, all I can say is, sorry. That global warming thing really killed your business idea. After all, timing is everything. But let's assume for a moment that someone did figure out a way to do that; in a pre-global warming hysteria era. Car salespeople across the world would pay that consultant for their books, pay to attend their seminars, and pay the person even more for their subscription services. And that's exactly what Mr. Marshall has accomplished. He's created a mini army of disciples. And he has bestowed the title of "Mortgage Planner" on them. And to some, he has bestowed the title of Certified Mortgage Planner®.
All I can do is tip my hat to him. It's an excellent concept. The teachings behind his concept are also impressive, and complex. It used to be that we as mortgage professionals would focus on providing excellent service whenever we originated a mortgage. If we did that, the next time that customer required mortgage financing, they would come back to us. Marshall flipped that idea on its head and took it to a completely new level. He redefined what a mortgage professional should be. His contention is the following: we should not simply be mortgage experts, advising our clients on different mortgage programs and their pros and cons. Marshall says that if we do that, we are simply falling into the interest rate and closing cost competition trap. He contends that what we should do is delve deeper into our customer's overall financial picture, figure out their goals and dreams, and then "wow" them with ways they can achieve those goals, by using a concept he calls "Strategic Equity".
The concept is exactly what it sounds like, teaching borrowers about home equity and mortgage concepts that enable them to buy more real estate, and thus build greater wealth. And of course this concept bodes well for us. If they are buying more real estate, we get to originate more mortgages, and make more commissions. And in exchange for the Strategic Equity education we give to our borrowers, we get to charge a premium for our services and max out our commissions on every transaction. He wants mortgage professionals to become quasi finance advisors. And he'll provide you the education (for a good chunk of money) to become one.
I first learned about the Strategic Equity concept a couple of years back. I was a Loan Officer at a bank at the time and I attended one of Mr. Marshall's seminars in Las Vegas. I think the seminar was around $600 bucks at the time. Right now, Mr. Marshall's seminars range anywhere from around $500 bucks to around $1,500 bucks per person. Depending on what type of an admission pass you want. I was plenty busy with my current loan volume and had no desire to learn about leveraging home equity for my clients. But it was a completely free trip to Vegas and I could learn something new. Do you really think I was going to turn that down? Gambling and learning are two of my favorite hobbies.
I got to the seminar and after about three minutes I knew this guy was not messing around. You could tell immediately he was a seasoned student of marketing and had been working with the best people in the business. For a marketing geek like me, I appreciated the seminar in the same way a sports fan appreciates a good game. It was everything a seminar should be; part rock concert, part sales event, part educational junket and it had all the motivational components a good seminar should have. He had folks like Chris Gardner, Tony Robbins, and Todd Duncan as speakers. All amazing people that you should hear speak if you have the chance.
As the seminar went on and I listened to the ideas, I was wowed just like everyone else. I had my notepad out and every time an idea came along that I thought was noteworthy, I write it down. But after awhile I actually began to feel a little queasy. I started asking myself, "should mortgage professionals really be doing this?", "Are we qualified to do this?" - "Is this the real role for mortgage professionals?" I certainly didn't think his ideas were bad. And I saw the potential to make more money and help my clients. But it just didn't feel right for some reason. I went back home and was undecided as to whether I would pursue these strategies. I then read one of his books, The Millionaire Mortgage Planner, and I knew this wasn't right for me. I was very impressed with his ideas on personal finance and leveraging home equity. I was also impressed at the complexity of the ideas.
What troubled me a bit was this: the topics he wanted me to discuss with my borrowers fell right into the backyards of licensed realtors, Certified Financial Planners, Series 7 licensed stock brokers, Certified Public Accountants, and tax attorneys who had passed a Bar (BAR) exam. And I'm not any of those things. I have an MBA from a top business school, and I thought I had a strong grasp on his concepts. But ultimately I felt I was unqualified to do mortgage planning. So this is the first question we should think about, "what is the true role of the mortgage professional?" We can all debate that. And based on everything I have said thus far about Mr. Marshall, I have no problem with what he is doing. Let me tell you where I take issue with him, and where you should, too. And most importantly, why his Mortgage Planners should take issue with him. Big time.
Over the past 10 years, Steven Marshall has transformed himself from a person that provides wealth building advice, to a person that teaches people to teach other people about wealth building. That makes him an educator one place removed. And those types of educators have responsibilities. In fact, Mr. Marshall created something called Mortgage Planner University®, a place where you can get a top notch mortgage planner education for about 60 bucks a month. Everyone gives personal finance advice from one end of the spectrum to the other: from Carleton Sheets to Suze Orman to Jim Cramer. And if people listen to those folks, and then lose money on their investments, that's the way it goes. But it's very important to see the distinction between what they are doing and what Mr. Marshall is doing. He in fact is educating the educators.
I'm sure that he provides guidance to his students about what they can and cannot say to their clients. And part of his plan does involve the inclusion of experts. He advises his students to create relationships with experts such as CPAs. Together, they can help the client build more wealth. In fact, it's part of his marketing strategy. He wants Mortgage Planners to work directly with people like CPAs so they can build referral partnerships, thus increasing profits for each of them. However, whether his students take that advice is up to them. If they choose to go it alone and advise their clients, who is to stop them? He has armed his students with an array of complex wealth building strategies they can use to not only help the client, but assist themselves originate more mortgages.
The conflicts of interest inherent in such a system are obvious. Some of his students can go into the market place and really help their clients, as I know many have. But some of his other students can misconstrue his ideas and completely destroy their client's net worth. That hurts you, me, and most of all, his other Mortgage Planners. He has spent an enormous amount of money, and made an enormous amount of money, selling his ideas to mortgage professionals. However, he has spent very little time and money instituting evaluation, testing, quality control and accountability mechanisms for his students. And that's what an educator of educators is required to do. And that is what his good students should demand of him.
If you spend money to acquire his educational information, you get to call yourself a Mortgage Planner. I suppose we can all start calling ourselves Mortgage Planners without any education at all? But if you are willing to spend about $500 more at one of his seminars, Mr. Marshall can designate you with a specific title: Certified Mortgage Planner®. The term seems to be registered and trademarked by someone. I don't know if Steven Marshall trademarked it or someone else. The term "Mortgage Planner" has been thrown around in one way or another by many organizations for the past 15 years. People can certainly get other Mortgage Planner certifications from other organizations. So Mr. Marshall is certainly not unique in using the term "mortgage planning". But he is handing out his own certifications.
So what is Mr. Marshall's certification process like? How long do you think it takes to complete the certification process and possess the ability to use the designation Certified Mortgage Planner®? A week, a month, three months? Well, not exactly. It takes one day by attending a conference. And if you look at how he advertises the one day conference (certification process), he specifically uses the term "earn" in reference to obtaining the designation. He indicates attendees will be earning their designation. He also refers to those that complete the one day conference, as graduates. But no where in his literature does he mention any of the following terms: exam, pass, fail, application process, evaluation process, accreditation, compliance procedures, re-certification, course completion, etc. He does however advertise that if you purchase the VIP attendance package, and I am quoting here, you "Get Certified for Free!" There are other organizations, such as The CMPS® Institute, which also provides a mortgage planner certification. The CMPS Institute® provides a designation known as Certified Mortgage Planning SpecialistTM to qualified mortgage professionals. The CMPS Institute can be located at www.CMPInstitute.org. If you take a look at the CMPS® site, you will immediately see some differences from Mr. Marshall's site. The CMPS Institute® is clearly making strides to educate and regulate their members. On their homepage, they have items such as "Code of Ethics" and an "Advisory Board". They also clearly state that the CMPS® designation is something obtained through an educational and testing process. They also don't emphasize increased commissions. That should make all of us feel more comfortable.
So why is this important to all of us? The mortgage industry as we all know is in some turmoil right now. Senator Obama has been criss-crossing the country pounding the idea into everyone's head that the mortgage meltdown was largely our fault. We certainly share blame, no doubt about it. Federal and state agencies are clamoring to re-legislate and re-regulate our entire industry. And maybe that's a very good thing. And it certainly seems there may be a place for "mortgage planning" in that mix. But the mortgage planning phenomenon may very well cause unforeseen legislation and regulation that hurts all of us. We may be dealing with a situation where state and federal agencies start re-defining our "boundaries" as well as "what and how we charge our clients". I don't know what any of that means, but it sounds like it might be painful? We have already seen steps taken by the state of Minnesota "outlawing" yield spread.
There are certainly mortgage professionals who would never want to become "Mortgage Planners". It would simply not be conducive to their business operations. When I was originating mortgages, if I had taken the extra time with each of my clients to solve their entire financial future and plan for their retirement, instead of just getting them the best mortgage, it would have destroyed my entire mortgage operation. I simply would not have been able to operate.
Over the past couple of years, I have spoken to Certified Mortgage Planners® who are absolutely amazing. They're doing great things for their bottom line and are assisting their clients at the same time. I have also spoken to other CMP® that I wouldn't trust to coordinate my morning bathing ritual, much less my mortgage planning. A few months ago, I ran across a Blog written by a man who purchased three separate properties in the past four years. He is upside down on all of them and facing bankruptcy. He specifically wrote that he was operating under the advice of a "Mortgage Planner" and didn't really know what he was doing. Is this Mr. Marshall's fault? Absolutely not. Was this even one of his students? Who knows? And it shouldn't matter.
But this is exactly the type of situation that should make Mr. Marshall's really good students, those that are taking his ideas and helping people, feel a bit short-changed about the money they've spent on their education, and the certification they have received.
Why should their reputation suffer at the expense of others? And why should we all suffer because people took Mr. Marshall's ideas (and the ideas of other paid consultants), messed those ideas all up, and hurt their clients? Can Mr. Marshall and the others that have profited off the mortgage planner idea, actually fix this overnight? No. But let me suggest what I think they should do. And what I think they owe their students. And more importantly, what I think their students should demand they do...
They should re-invest some of the large profits they've made off their students, to help legitimize their students, regulate them, and weed out the bad ones. Instead of having a one day certification conference managed by high paid consultants, which costs students a lot of money, why not have an actual educator teach them, test them and actually certify them? Why not put quality control procedures in place? Why not require CMPs® to provide disclosures to their customers that explain what they actually do for a living? Why doesn't Mr. Marshall send out mystery shoppers to test the capabilities of his mortgage planners and then take action on what he learns? Why not provide a website or forum for borrowers to provide feedback and grievances about individual Mortgage Planners? Why not provide an encrypted seal of approval for Mortgage Planners to use on their email signatures and websites, which he has the ability to take away if they don't meet expectations? Perhaps he is engaging in these activities? But he is certainly not telling anyone about them, that's for sure.
All I know is that if I spent money on an education to become an electrician, successfully completed the course curriculum, and the university told me that instead of issuing me a state accredited degree, they were choosing not to issue any degrees, but rather, they were choosing to pat me on the back, along with all of my fellow students (who may be complete idiots), and then send us all on our way with congratulations, I think I would be a bit disgruntled!
Mr. Marshall is attempting to completely redefine what mortgage professionals do for a living. And I admire him for that bold idea. I admire all people with bold ideas. But the potential impacts to borrowers are extraordinary, both positive and negative. He's invested enormous amounts of time and energy to market his ideas to mortgage professionals: as quickly, strongly, and suavely as any mortgage marketer I have seen. And he's profited from it big time. At the same time, he has done little to control the flow of his ideas or regulate those that have received his ideas. I think that's reckless, and yes, possibly dangerous. To all of us.
Perhaps this segment gave you a new idea about how to operate your business. Perhaps you may want to look into mortgage planning? Again, if you are thinking, that's always a good thing. There is also a very high level business concept that revolved around Steven Marshall and his mortgage planning system. And it's this: If you ever land your big idea, the idea that can change your life and the lives of others. Think carefully about how you will unleash it in the marketplace. Who will you provide it to? How will it impact every day people? And can you control the idea? This is of course especially important if you discover a cheaper, easier, way to build a nuclear bomb...or send Cher on another comeback tour. (I'm just saying.)
Copyright - 2008 - LoanOfficerMagazine.com
Written By: Craig Flaherty
Monday Blues or Make Money Monday?
Written By: Tom Ninness, Vice President/Regional Production Manager for Cherry Creek Mortgage in Denver, CO. He is also the President of Summit Champions, Inc. and creator of "The 90 Day Journey to Your Sales Success", a powerful 90 day action plan for the sales professional. To learn more about The Journey and all that Summit Champions has to offer, go to www.90DayJourney.com.
Mondays - love them or hate them. Do you look at Mondays as the exciting opening to a productive week? Hold high expectations coupled with a brilliantly executed plan? Or are your Mondays a slap in the face reality, back to the grind, mark time to the next weekend?
Success doesn't just "happen"; it is a culmination of expectations, planning and actions. Creating a brilliant plan means utilizing the weekend to its fullest so that you're out of the gate prepared and ready to go, expecting great results first thing Monday morning. Weekends need to include your hobbies and family. They are the grounding factor that will help keep you focused the rest of the week. Turning great expectations into powerful results can only happen when you take the actions necessary to achieve it.
Use the weekend to organize your thoughts, actions and time blocks for the upcoming week. Take 45 minutes to catch up on business reading, reviewing the calendar and writing notes and thank you cards to those you met within the last week. Organize whatever you will need for the week and have it ready to go at a moments notice. Then, spend the rest of the time enjoying your family and friends and rejuvenating for the new week!
The number one dollar productive activity for any sales professional is prospecting. If prospecting is number one, then following up on leads is number two. In order to keep this activity flow consistent, time-block each activity or it will never get done. Eliminate all the disruptions, distractions and time robbers that can happen on Mondays. Listening to fellow associates telling all the details of their lives that happened over the weekend may be fun but it is a distraction to your goals. Give yourself 10 minutes to join in the office repartee. Create a daily time-block that allows you to do the important tasks necessary to run your business. There are only so many hours in a given work day and time blocking will provide the organization to accomplish everything. Review the following sample of a time-blocking schedule that could work for you on Mondays and throughout the week:
6-7am - As the old saying goes, "the early bird catches the worm"! Catch up on emails, review who you will be prospecting, write out thank you cards to those that you met throughout the weekend. Review your goals for the week and finalizing the 4 to 7 most important tasks that will greatly improve your operation systems.
Written By: Tom Ninness
How Do You Explain APR? Your Comments Please!
Written By: Karen Deis
One of the readers wanted us to write an article about the best way to explain APR to clients. Here's what she asked:
Although I have been in business a long time, I always get flustered when explaining the APR. Do you have a way to explain it both thoroughly AND simply? I would love to know how others explain APR to their clients!
So, I did a quick Google search and, of course, found hundreds of ways the loan officers explain it. However, I would like to ASK YOU if you would share what you say. I will publish your explanations in the next issue.
Everyone can view and participate, including non-subscribers.
Copyright - 2008 - LoanOfficerMagazine.com
Written By: Karen Deis
New Latte Flavors Exclusively for Loan Officers - Cartoon
Make mine a double???
Written By: Karen Deis
9 Ways to Survive and Prosper in a Down Mortgage Market
Written By: Rob Lawrence, CEO of BattleCall.com, a free mortgage community for real estate professionals to network, get referrals and grown their business. Visit BattleCall.com for his free "Sink or Swim" weekly newsletter.
With the stock market and interest rates bouncing around like a bouncy ball, and the refinance market now nothing but tumbleweeds, you must take immediate steps now if you want to survive in this industry.
Here are 9 immediate action steps you can take now. And, I emphasize the word “ACTION”:
"If I walk away with just one good idea, the seminar would have been worth it."
But, if you are like many of us, I'm sure you have attended seminars and conferences where it was simply a waste of your time. Even if it was free, it still costs you money to get there - not to mention the time away from your business.
I have to confess, I'm a seminar junkie. I've been to both great and awful events and wanted to share my tips on how I determine if it's worth it to attend.
Written By: Lisa Moriello
Interview: Loan Officer Buys Homes Thru Real Estate Auctions!
Written By: Karen Deis with Toni Honer
There has been a lot of talk about real estate investment clubs, why loan officers should get involved, and seminars on how to start a club yourself. What I’ve found is that those LO’s who are involved in investment clubs, don’t practice what they preach--they don’t buy real estate—they just talk about buying it!
Okay! Maybe the right deal just hasn’t come along, but with HUD Home offerings and thousands of foreclosed properties auctioned every day, you’d think….
If you are looking to diversify your income and not rely soley on commissions as your sole source or revenue, read this interview on how one loan officer took advantage of knowing the local real estate market, and created an investment club that only buys homes at real estate auctions.
What makes this interview especially worth reading is that this investment group, with a loan officer taking the lead, has participated in an estate auction; a mega-foreclosure auction and the phone-in-a-bid auction. They share both their successes and mistakes.
Written By: Karen Deis with Toni Honer
A Survey: Commission Splits Earned by Other Loan Officers
Written By: Karen Deis - Thanks to all the loan officers who shared their unique commission split structures. If you want to keep the conversation going, please email me your commission structure - Karen@LoanOfficerMagazine.com.
I recently read an article about a “network” of people (within the same industries) who consistently share their income, negotiating strategies, bonuses, benefits, incentives, and commission splits with each other.
But here’s the astounding part…one of the groups (whose income was earned thru commissions) earned an average of $200,000 (each) more in income (over a 2-year time period) just by comparing notes and negotiating tactics.
So, I conducted an informal survey with loan officers and company owners, who shared how they got paid.
Just a quick personal story here about what I mean:One of the benefits with the company that I worked for was reimbursement of seminar fees and expenses. I had to pay for the seminar out of my pocket and then the company would reimburse me. BUT – and here’s where the rub came in—I found out that some of the other loan officers DID NOT HAVE TO PAY for the seminar upfront (and be reimbursed later). The company issued a company check. While my money was tied up for several months (waiting to be reimbursed), their money was not! Yep, sharing just this one “inequity” made me hundreds in interest income because I did not have to advance my own funds or any credit card interest!!
Some are complicated—others are really simple. Some have huge commission splits—others do not. For example, I compared 2 commission structures, using $500,000 in dollar volume, representing just 2 closed loans, and there was a difference of $3,050 MORE (in commission) with one versus the other. However, one had company paid benefits, the other did not!
And here’s your challenge. Take a look at last year’s income. Using some of these commission models, figure out how much more you could have made by knowing what others are getting paid. You could give yourself a raise, based on exactly the same production level, if you only knew how others are getting paid!
Written By: Karen Deis
First-Time Homebuyers: Realtors® Survey 2008
Written By: Karen Deis
The Chinese New Year says it’s the Year of the Ox.
In real estate and mortgage lending, it’s the Year Of The First Time Home Buyer!
Every year, LoanOfficerMagazine.com not only gives you all the survey stats for the NAR’s Profile of Home Buyers & Home Sellers, but interprets them for you so you can identify trends and more importantly, where you should spend your time and your money—if one of your niche markets are first-time home buyers!
Overall, FTHB represent 41% of all home purchases. This is an increase of 2% over last year’s survey. But what has really changed is the method being used to find their first home, their first real estate agent and their lender! Yep, you guessed it — it's online and social networking sites.
FTHB are 20% MORE likely to purchase a foreclosure than repeat buyers. They also move an average distance of 13 miles from their previous residence. So if you are marketing to apartment complexes, consider the location of the complex and compare it to the surrounding (affordable) homes as a guide in choosing the complexes to market to.
This article compares 2007 to 2008. After reading this article, share this information with real estate agents (and builders) by downloading the white paper called: What You Need to Know About First-Time Home Buyers (2008 NAR Survey Results). You can print and distribute or cut and past and send as an email!
With rates low, housing prices falling and more lenders offering FHA loans, it’s the PERFECT STORM for you to get your share of the FTHB purchase market.
Written By: Karen Deis
How to Work with Introverts and Extroverts!
Written By:Karen Deis
Often times, loan officers mistake “silence” on the other end of the phone as someone who is not interested in what you are saying. But it could be that you are talking with an introvert.
How do you know if you are dealing with an introvert or an extrovert client?
Introversion doesn’t mean that your client is shy or uneducated. It means that then gain their energy from internal contemplation, centering and quiet time.
Extroversion does not mean that your client is bold and overbearing. It means they gain their energy from talking to other people.
So, as a mortgage loan officer, do you know the differences and do you know how to effectively “sell” to each type? Here are some ways to immediately know who you are dealing with and how your website can appeal to both.
Written By: Karen Deis
Tightening & Tweaking an Attention-Getting USP
Written By: Susan Ross, Certified Business Coach, BlueOceanCoaching.com (mention Loan Officer Magazine and get a free 30-minute coaching session).
Now more than ever, to stay competitive, you must be able to clearly and compellingly articulate:
What you do,
How you do it,
Why you are the answer to every past and future client or partner's needs, including needs they don't know they have!
But before you even begin to clearly define your Unique Selling Proposition, it all begins with your deeply personal and compelling reason for why you do what you do - making the work of creating a compelling USP less daunting.
The "how" of it will unfold when you are connected with your vision and your Why-You-Do-It at an emotional level. When people ask, "What's Your Why?" they are referring to your conviction and passion about your work. Once you connect with that, (or re-connect if necessary), your USP will flow because you are not thinking them up, you are bringing them forth from your heart and soul. People know immediately when they are dealing with a passionate person who is truly on a mission. They sparkle. They're compelling, authentic and confident. That's the feeling we want to convey to prospects and partners.
But first we have to believe it ourselves - that's the challenge of the USP for some. If you don't feel it, you can't sell it! It may take time and persistence to come up with a really authentic "you statement". But when you get it, you'll know it, because you'll feel it and you will use it.
The idea is to identify a problem or challenge that you can solve in a unique or creative way - then clearly, compellingly and briefly explain how you do that. The shortest formula to begin with is to think: WHO + WHAT equals your USP. The HOW equals your Elevator Pitch (USP).
Written By: Susan Ross
Do You Have an Exit Strategy? Tips on Establishing Value & Selling Your Book of Mortgage Business.
Written By: Karen Deis
What if something happened to you tomorrow? What if someone made you a job offer you couldn’t refuse? What if you decided it’s time to retire? Or just can’t take it any more?
Ask yourself these questions:
Does your "book of business" have any value?
Do you really have anything to sell?
I can assure you that it DOES have value — or it will - if you start to develop an exit strategy right now!
So what makes your business valuable and what’s a good exit strategy?
First, let me begin with my very personal story about selling my mortgage company…
After being a loan officer for 18 years, my sister Becky and I decided to start our own mortgage company. Becky and I were the perfect match. Her previous jobs included selling office equipment to large companies—moving on to selling accounting software and ultimately was hired by a major accounting firm to show accountants how to use the software and automate their accounts. Her expertise was in administration and mine was sales.
After 3 years into starting the first successful mortgage broker company in our area, Becky was diagnosed with Stage 3 Breast Cancer and her prognosis was about 6 months to live.
After the initial shock and grief, we had a heart-to-heart on what is the “value” of our little operation and what would we have to do to create an exit strategy!
Becky did live for another 7 years and passed on in 2002, but the moral of the story is that we did sell our business—and for lot of money.
This article is about what we did and a compilation of what other loan officers have done to create an exit strategy!By the way, when Tim Braheem started Loan Tool Box, he told me from the very start—that he already had an exit strategy in place to sell it somewhere down the road! Do you?
What Makes Your Business Valuable?
Written By: Karen Deis
Are Your Weekly Team Meetings Weak?
Written By: Victoria DelFrate, President, www.ICanPlan.Biz. The easiest online business planning system you will ever use! vdelfrate@icancoaching.net. Phone: 805-527-2980.
Do you ever find yourself at the head of that same oblong table in front of the same 10, 20 or more pair of glazed-over eyes, listening to yourself drone on about sales stats and production levels, asking if anyone has a topic that they’d like to discuss, knowing no one is likely to even hiccup?
Do you find yourself using worn out clichés like “At the end of the day…” “There’s no ‘I’ in ‘team,’” or my personal favorite, “I think it's important that we remember to look at the big picture?” Or have you long since given up on the vision of facilitating energetic, creative, engaging and productive team meetings and have opted to simply bring in donuts and coffee every Tuesday instead?
I don’t know about you, but I’ve never met a Krispy Kreme I didn’t like, however, they’ve never wielded the power to inspire me to be more productive, brainstorm system efficiencies, or motivate me to set a stretch goal for myself.
The following are ideas and activities that some of my clients have implemented with their teams that have reported having boosted morale, strengthened the team bond, and increased productivity.
So what does a leader have to do to get his team to show up consistently to weekly team meetings and actually participate?
Written By: Victoria DelFrate
Right to Rescind - 5 Situations Where You DON'T Need It!
Written By: Karen Deis
The 3-day Right of Rescission Notice is probably the most misunderstood of all the rules when it comes to refinance transactions. Your clients wonder why they have to pay 4 extra days of interest when their current mortgage is being paid off? Do Saturdays count? (Yes, they do!)
Other situations that LOs need to know:
All fees must be refunded if the clients cancel – even if you have it in writing that it’s NOT refundable! This includes credit report and appraisal fees, even if paid directly to the appraiser.
Refis where title is “other than” a “natural person” are exempt—however, if the loan is in “a trust”, the documents are signed “personally” so it DOES apply!
If you have two or more people on the refi transaction, and one of them cancels, the refi is considered “cancelled”
If the client sends the Right to Rescind in the mail and it’s marked on the 3rd day, the loan is considered CANCELLED—even if you receive it 30 days later!
There are 5 circumstances where you DO NOT need a Right to Rescind
Written By: Karen Deis
Knock Out Technologies for Loan Officers, Business Owners and Sales Teams
Written By: Denny Andrews, Sound Mortgage and Author of "Confessions of a Mortgage Insider" - These are the best and most current, from free (to almost free) internet business technologies available. If you need help with implementation or strategic planning on how to use them, email Denny@DennyA.com.
A techie geek by nature, Denny Andrews has compiled a list of 93 websites that are either free (or almost free) that you can use to run your business more effectively. Categories are:
Communications
Presenting
Customer Appreciation
Research
Contact Management
Task & List Management
Project Management & Collaboration
Networking/Online Self Promotion
Outsourcing
Office Tools
Marketing
Business Functions
Creativity/Wordsmithing
Written By: Denny Andrews
How to Become an Information Entrepreneur
Written By: Karen Deis
You don’t need me to tell you that you are going thru the biggest shake up in mortgage history (and yes, that includes the Great Depression). Warehouse lines are drying up. MI companies and wholesalers are cherry-picking clients and companies. Fannie and Freddie are making “updates” to their “updates” every other day.
Cavemen were the very first entrepreneurs! If they didn’t hustle their butts off, they would starve and die! They had to be resilient and cunning; always thinking ahead; where their next meal would be coming from!
Then came the industrial revolution. The labor unions. On the mortgage side of things, it started with mortgage banking companies. We were working for “someone else and wanted to be taken care of.” Then, loan officers left the “company nest” to become mortgage brokers. Some have done phenomenally well independently. Others joined net branches “as the best of both worlds”.
Okay, enough of the history lesson and back to the caveman! It’s more critical than ever to become self-reliant by using all that 21st century technology has to offer—and re-invent yourself as an “information entrepreneur”.
Written By: Karen Deis
Helping Your Clients Make Decisions: The 10-10-10 Rule
Written By: Karen Deis
Should I buy that home?
Should I lock or float?
Should I refinance?
Should I pay points to buy down the rate?
What type of mortgage should I get?
These and many other decisions that clients have to make are the stuff that makes loan officers (and real estate agents) crazy.
Sure, you’ve presented all of the facts—printed the charts and graphs—showed the comparisons—and yet, your clients can’t pull the trigger and make the decision that will affect their financial future.
I just read a book by Suzy Welch called “10-10-10: A Life-Transforming Idea”.
You could also use the formula I’m about to share with you to make decisions. This is a method where you can walk your clients thru the process of helping them make proactive, well thought out decisions.
I have also given you an example of how you become your client’s 10-10-10 coach! Best of all, you can teach this unique, decision-making method to your real estate agents.
Written By: Karen Deis
The Death of a Loan Officer: 5 Silent Killers!
Written By: Karen Deis
The government has not been kind to the mortgage industry lately! It fact, it seems like there is downright contempt—blaming you for all (and I mean all) the problems in the economy today.
While there are a lot of things outside your control - Fannie and Freddie updates, Reg Z revisions, and warehouse line issues — I could go on and on…
…But there are things you CAN control.
This article is about the customer service side of the business—and what can happen if you let these “silent killers” creep into your business. I don’t want to scare you, but I can assure you that if you don’t watch out for these symptoms, you might want to start looking for another career.
Dishonesty – it starts with a small lie…”sure, we’ll be able to close your loan on time—GUARANTEED!” Or the famous “no problem…” Now, more than ever, consumers are looking for loan officers who they can trust—and not just superficially, but IMPLICITLY! With the economy getting tighter, each financial decision has a huge impact and consumers need an ADVOCATE, and not just someone to tell them what they want to hear—especially if it’s a little white lie!
Lack of Professionalism – Every month, I pick up the phone and randomly call loan officers (throughout the country) that I find with a quick Google search. It still amazes me how unprofessional some of them have been. Your career will go down the tubes if you are guilty of any of these:
Written By: Karen Deis
Tips from the Experts (Part 1) - What You Can Do Right Now to Build Your Business!
Written By: Karen Deis
To quote Malcolm Forbes...”The smart ones ask when they don’t know. And sometimes when they do!”
So we asked some of the top minds this question...”What is the smartest thing you can do right now to build your business in today’s market?”...and they answered us.
Since we had received so many responses, this is Part One with 6 of ideas from our experts:
The best idea in today’s market would be to position you as a first time homebuyer expert. Here is a game plan:
Written By: Karen Deis
Tips from the Experts (Part 2 of 2): What is the Smartest Thing You Can Do Right Now to Build Your Business?
Written By: Karen Deis
We asked the top loan officers, trainers and mortgage speakers what they are doing right now to get business. Here’s a list of speakers and their suggestions.
Contributing Loan Officers, Authors and Speakers:
Connecting with Orphaned Agents – Tom Ninness
Get Smart on Social Networking Sites – Danielle Kennedy
If you haven’t had a chance to do so, read Part 1 for more ideas from Tim Davis, Linda Ferrari, Debbie Allen, Mike Baker, Cindy Douglas and Francis Phillips.
A Realtor called me a few weeks ago and was surprised by how quickly I returned her call. I told the agent that I’m neurotic about returning calls quickly and that when someone doesn’t return my call in a timely manner, I consider it unprofessional. This Realtor asked to set up an appointment with me — she had put in a call to her loan officer 3 days before and still hadn’t heard from him.
Because of all the refinance business. Because of all the loan officers who have left the business. Because of all the LOs who think they are too busy to return calls on a timely basis, there is a tremendous amount of orphaned builders, realtors, buyers, sellers and professional referral sources waiting for you to call them.
Written By: Karen Deis
Do You Have the Guts to Say What You Really Mean?
Written By: Karen Deis
Stop me if you’ve heard this one...
A real estate agent is sitting in a bar. He decides to call you to find out why it’s taking so long to close the loan. He says that he has just talked to another loan officer (who, by the way, is in the bar with him) who says he can close it in 10 days. He wants to transfer the file.
Do you start to explain WHY it’s taking so long? Do you apologize?
Do you have the GUTS to say,
Let’s set up a conference call between you, me and the “other” loan officer so he can explain exactly what he knows about the loan file, why he can get it closed in 10 days and at what interest rate he can give the client, and I’ll be happy to transfer the file.
Chances are that the loan officer making the stupid comment won’t agree to the conference call. Ask the real estate agent “Why not?” And then wait for the answer.
However, if the clueless loan officer agrees to the conference call, take control and YOU ask all the questions. Don’t volunteer one itty bit of information. Make him tell you how he plans to close the loan so quickly. Make him tell you the details of the file. Ask for a rate lock letter to be faxed to you.
Read about other stupid comments made by real estate agents AND customers and ask yourself if YOU have the GUTS to answer them the way we suggest!
Stop me if you’ve heard this one…
A client calls asking about interest rates and makes the comment that he talked to another loan officer who said…”call me back after you have called the other mortgage companies and I’ll guarantee that I’ll meet or beat their interest rates".
Do you quote a rate anyway? Do you justify why your rate is a little higher?
Do you have the GUTS to say…
Written By: Karen Deis
If You Don't Toot Your Own Horn - Who Will? How to Become Famous in the Mortgage Industry!
Everyone can read this entire article.
Written By: Karen Deis
Is it better to call attention to yourself?
Or wait and have someone discover how wonderful and great you really are?
We tend to look down upon people who brag, boast and toot their own horn (so to speak).
We also tend to admire the quiet heroes. Those who work for years, hoping to get some type of recognition; a pat on the back; a mention in the local newspaper.
Kevin Skinner (check out his video on YouTube) is a Chicken Catcher from Kentucky who wears his baseball cap backwards, has a southern accent you can barely understand, and who has written over 30 original songs.
Kari Callin (check out her video on YouTube) is a Radiology Tech with a cleft lip/pallet, in dirty jeans and tennis shoes, who tried out for a job as a singer on a cruise ship and was told, “she didn’t look the part”.
Susan Boyle (check out her video on YouTube) is a Church Basement Lady from Scotland who recorded a demo tape of her voice in 1999 and gave copies of it only to a few friends.
Right now, combined, they have had over 100 million hits on YouTube (and counting).
What does each of they have in common?
Each of them has spent “wasted” years waiting to be discovered!
And each has been “discovered” on the TV shows Britain’s Got Talent and America’s Got Talent.
When I was in the mortgage business I created marketing systems within my own team, which we used to market directly to consumers. Up until that time, the battle cry was that you HAD to call on Realtors® in order to be successful. I knew I was on to something because one of my best closing years was $60M in fundings, with almost 80% of the leads coming from my marketing efforts.
I also attended seminars and talked about my marketing systems for years. No one took me seriously. That is, until I entered and won the Mortgage Originator Magazine’s $1000 prize for the best marketing idea of the year.
How stupid of me. It took me years to create a step-by-step system that others could duplicate, but I became a shameless self-promoter and the systems I created have been tweaked and updated and are still being used by originators all over the world (yes, the world). Consumer-Direct-Marketing.com
So, what are YOU waiting for?
Are you a whole lot better than you think you are? Are you reluctant to promote yourself or let others know how good you really are?
If you have a marketing system or a unique way of creating business, I’d love to hear about it. Maybe it’s something you can turn into a “product” that other loans officers would like to buy from you. Email me at Karen@LoanOfficerMagazine.com. All your info will be kept confidential!
Can you overdo it?
I don’t think so, as long as what you do is worth promoting! Think about the “stars” in sports, business, government, show business, in the mortgage industry ~ You know who they are and they are not quiet! They let everyone know how awesome they are. Even Paris Hilton has the “famous for being famous thing” down pat.
According to one expert: Anyone that says your success should be “quiet” has never achieved anything worth shouting about!
What are you good at?
Copyright - 2009 - LoanOfficerMagazine.com
Written By: Karen Deis
How Virtual Social Networking Can Turn Into a Successful Meet Up Event
It was Tuesday afternoon and all of a sudden, my evening freed up so I jumped online to see what was happening. There were approximately 40 different networking and business meetings going on—all within 25 miles of my city. I found these by going to my iGoogle page and clicking around my different links.
I decided to attend the event that was titled the “Recession-Friendly Networking Event”. It was BYOB and it was free to attend. I decided on that one because in reviewing the website, there were over 160 people that had already signed up for it and in quickly look through their profiles, there were lots of people I was interested in meeting.
My cost was the price of the gas to get there and meeting people that were there for the same reason I was.
I attended an event in the “real world” but the real reason for writing this article is to show you how powerful attending an event from a networking site can be.
Written By: Denny Andrews
What Do You Wish You Would Have Known Early in Your Mortgage Career?
Written By: Karen Deis
Even as a small child, I can remember my grandmother telling me to always wear clean underwear—my mother telling me to always stand up for what you believe in (BTW, she was a 70s Activist)—my father showing me how to fix a flat tire—my mentor telling me that this business never gets boring!
It’s human nature to pass on the lessons learned, words of wisdom and experiences we encountered in business and in life.
Admit it! You’ve done it! Telling a co-worker how you’ve solved a problem. The moral to the story. What you learned along the way.
I recently asked the loan officer members of MortgageGirlfriends.com this question—
What’s the one thing you wish someone would have told you when you started in the mortgage business?
Mine? I wish I had created a detailed database earlier in my career. Yep, I’ll admit it. A new manager—oil-and-water personalities, fired me so to speak! I had been closing about 100 loans per year and while I had a spreadsheet with basic information, I did not have any loan details. Even if you are new in the biz and have not closed one single loan, start a database with the names of family, friends, church and club members! Unless you’ve been living in a cave, you can probably add 25 names to your database the minute you stop reading this article.
Here’s what others have said:
Written By: Karen Deis
Confessions of a Seminar Junkie: How I Increased My Income By Restructuring My Business
Written By: Elise Groves, Loan Originator, First Priority Financial, CA
I went down the erroneous path of mortgage planning and strategic equity for 3 years and that almost buried me. Don’t get me wrong. It was fascinating, but took my eye completely off the ball of what my true business should be about—originating loans.
I tried to make more connections with financial advisors and CPAs. That was a basic big dry hole. I used Mortgage Coach™ spreadsheets and got blank stares and just couldn’t seem to crack into that referral stream.
I also coached with Building Champions for 2 years. More than anything, it opened my eyes as to how I was honestly running my business and how much it would take to sustain that level—ridiculous in this economy.
I stopped all of my subscriptions to Loan Tool Box, MMG, Todd Duncan, Jim McMahon’s stuff, Strategic Equity, By Referral Only, etc. In fact, I did a conference call, entitled “Confessions of a Seminar Junkie”, got a great response and other loan officers have told me that it helped them make better decisions.
I was spending a huge amount of time, basically being a “mortgage expert” voyeur (Definition: A person who gets satisfaction from the actions of others) and reading what others were doing instead of just plugging a phone into my ear and reconnecting with my large database and establishing Realtor® relationships. It works. Simple and effective.
I have simplified tremendously and want to share with you what I have done.
Written By: Elise Groves
6 Mindset Marketing Truths
Written By: Karen Deis
The blogger’s post said, “I hate marketing—especially when it comes to marketing and talking about myself. I hate talking about myself—but most of all, I don’t think people are interested in what I have to say.”
What thoughts conjure up in your mind when you hear the word “marketing”?
Do you think of the used-car salesman on TV hawking cars in a gorilla suit?
Do you get a feeling in your stomach and want to throw up?
A recent survey revealed that salespeople think of marketing as a painful task; that marketing is phony; that marketing is begging; that marketing is pushy; that marketing ranks just below public speaking!
It’s all about mindset! Marketing is an authentic expression of who you are! If you love what you do, then EXPRESSING it is the “authentic you”.
What you may not realize is that your clients REALLY do want to hear from you…that is, if you have something interesting to say. They want to read your marketing…that is, if you educate them.
The 6 reasons why people will read your marketing—and really want to hear from you are:
Written By: Karen Deis
7 Tips to Keep Your Mastermind Group Alive & Kickin'
Written By: Victoria DelFrate, Mortgage Business Coach, and creator of ICanPlan.biz, an inexpensive online business planning tool!
Do you remember—not so long ago—sitting in a room with 2,000 of your closest loan officer friends (not!) and having someone preach to you on how THEY get a million leads and HOW you can too—if only you buy their fool-proof systems?
Those “mega seminars" are gone (for now) and it has ushered in a new era of idea sharing called MASTERMIND GROUPS.
Mastermind groups are formed by professionals for a number of reasons—with the top three being:
To generate new ideas and share best practices in an effort to increase revenue and create efficiencies in each member's businesses.
To establish a space for accountability, goal setting and encouragement amongst entrepreneurs who are not necessarily reporting up to or being pushed by a Manager. (They are the captain of their own ship.)
To network and cultivate possible referral relationships with other professionals.
Professionals generally enter into mastermind groups with great enthusiasm and high expectations. However, after six months to a year of meeting, many groups find that the excitement has a tendency to wane and unfortunately, the attendance then follows suit.
Here are 7 helpful tips to help keep your Mastermind group engaged, consistently attended and growing...
Written By: Victoria DelFrate
Adapting to Change: An Interview with Jonathan Corr, Ellie Mae/Encompass Chief Strategy Officer
Written By: Karen Deis
Check out www.elliemae.com/solutions/encompass360_overview.asp. It’s a rich page that outlines the key benefits and core value props for Ellie Mae’s new Encompass360, plus has jump links to the brochure, the interactive globe, case studies, etc.
The Boy Scout’s Motto? Be Prepared!
With the new GFE, TILA and HUD1 changes just around the corner, it’s critical that you be prepared—because once the New Year’s baby rings in January 1, 2010, your mortgage life, as you know it, will be changed forever.
The analogy would be planning for a wedding (a life changing event to say the least). The invitations, the food, the witnesses, the practice sessions, the clothes and the vows. Only you don’t have the option to back out at the altar!
Jonathan Corr, Chief Strategy Officer, Ellie Mae (Encompass Software) has been thru many of the major changes over the past several years!
This interview is about what he has seen in the past, how these changes will affect you and what he thinks you need to do to be prepared so when “it happens” it will be a seamless transition for you and your company.
Written By: Karen Deis
Pre-Business Planning Guide for Loan Originators & Your Real Estate Agents
Written By: Pat Earnhardt, Director of Marketing, The Mortgage Rewards Team of Hearthstone Mortgage, NC. Pat also coaches loan originators and real estate agents—including low-cost and no-cost marketing ideas to increase their business. Visit her website at MoveYourBucket.Weebly.com.
Before you know where you are going, you’ve got to know where you’ve been!
It won’t do you any good to create a business plan for 2010 and try to figure out how you are going to increase your income—unless you know where you are in your business RIGHT NOW—and seriously THINK about what has happened in your business during the past year.
It’s easy—and yet it’s also hard in some ways! Practical planning for next year can be hard-- especially if you don’t know some of “this year’s” answers! It’s critical that you find the answers or you’ll be like a sailboat without wind!
Here’s my handy form with 13 questions that I have used for years—and not only for myself—but I use this when meeting with my real estate agents—because each question sheds light on where you are and where you need to go. Some of the questions make you look at issues that you have been avoiding but NEED to address for your future success. It works best when you and/or your agent complete it beforehand and then meet to compare notes. In fact, you can use this year after year to track your progress, too.
Subscribers can download 2 forms. Oh, and it’s an awesome way for owners and managers to counsel your LOs, too!
Pre-Business Planning Guide For Loan Originators
Pre-Business Planning Guide For Real Estate Agents
Just a couple of words of warning when completing this guide…
Written By: Pat Earnhardt
The Moth Story: Timing is Everything!
Written By: Karen Deis
It was a warm day in the middle of December—almost 70-some degrees—a record temp for Wisconsin. My children and I decided to sit in the hot tub to catch up on the day’s adventures--before homework and dinner took over for the evening.
We noticed a large moth flying around our heads! Remember, this was December in Wisconsin!
Moths aren’t supposed to be out and about yet! The warm weather apparently was the signal for the cocoon to hatch.
However, the sad part of the moth’s entry into the world meant that when the temps returned to normal winter weather, the moth would not survive.
The moral of the story is that “timing is everything”. If it could have waited until spring, it would have had a long life span. I’m sure it only lived a few days.
So, what does that have to do with your business? With the extension and enhancements to the homebuyer tax credit—in the next four months or so, you’ll have a huge opportunity to earn a good chunk of change!
Here’s a Five-Step plan to review your database, meet with your real estate agents and get your favorite tax advisor involved—because—TIMING IS EVERYTHING!
Written By: Karen Deis
Why Not Put Your Mouth Where Your Money Is?
Written By: Pat Earnhardt, Director of Marketing, The Mortgage Rewards Team of Hearthstone Mortgage, NC. Pat also coaches loan originators and real estate agents—including low-cost and no-cost marketing ideas to increase their business. Visit her website at MoveYourBucket.Weebly.com.
No one has to tell most of us that 2009 has been a hard year financially.
When you are looking at marketing and lead generation plans for 2010 chances are your budget is a bit smaller than in previous years. Small businesses and loan originators are jumping on the bandwagon - taking advantage of a leading edge trend called “Word of Mouth” Marketing.
It’s a fact - just about everyone likes to talk. You are simply going to give them something positive to talk about! Get people talking about you and your services. Get others to spread the news about you. The one big “catch” to this is, in order for this to happen in the way you want it to happen, YOU have to start the conversation.
Here are five low cost ideas to help you jump-start your “Word of Mouth” marketing and lead generation campaign. In each, use letters, mailed and/or posted flyers, the Internet (i.e. your personal website and your blog, the social networking sites and Craigslist), and email. If you want to follow up with phone calls your results could be even better.
Written By: Pat Earnhardt
Top 10 Articles of 2009
We don't mean to brag (but we're going to). LoanOfficerMagazine.com published 92 articles, 6 Client Newsletters and 6 Realtor® Newsletters in 2009!
We also track thousands and thousands of click thrus! If you've missed reading - or want to revisit some of the top articles, here's the most-read, top 10 articles of 2009.
Just to get an idea of the sales and marketing strategies that are provided on the 5th and 20th of the month, non-subscribers can view 3 articles and a Realtor® Newsletter for free.
Client & Realtor® Newsletters are written and designed to be more generic with the content - which means most of the articles are NOT time sensitive - but can be used at any time. The newsletters are created in a Word document format - easy to edit - easy to add your picture and personal message. They are also easy to cut and paste each article - and send an article every other week by email.
Written By: Doug Smith, a 26-year mortgage industry veteran who teaches loan originators the art and science of selling. For books, CD and coaching program, please visit DougSmithOnline.com or to hire Doug for your next event, visit MortgageSpeakersBureau.com to view a short video clip of Doug's presentation.
Estimates are that we as an industry will fund around $1.7 trillion in loans this year. That’s expected to be down 20% from 2009. The demand for mortgages will shrink as lenders and loan originators prepare for a competitive year ahead. There are only so many loans to go around in your market every month, and it’s my guess that you want to get your fair share, maybe even more than your share. How are you going to make that happen?
To compete in this tighter marketplace you are going to have to get aggressive, perhaps more aggressive than you are used to. These are tough times, and wimpy mortgage originators won’t last through them. You know what they say: “When the going gets tough…”
Here are five ways you can beat your competitors to the business this year:
Get on the street and talk with your referral targets on a weekly basis. Most mortgage salespeople, even the experienced ones, don’t get out much. They lose touch with their clients and their relationships grow stale. Showing a Realtor, builder, or other referral partner some extra attention by stopping in once a week for a brief visit can mean a shot at a loan your competition will never see.
Counter-offer. If a borrower says he is already talking with, considering, or has applied with another lender, don’t give up just yet. Say to the borrower: “This is a big transaction and a lot of money on the line. Give me 15 minutes and let me see what I can do for you. I might be able to save you some money now or in the long run.” Every loan is fair game until it is officially closed and funded. Ask for these opportunities. You have nothing to lose. Read Article: Wait, Don’t Hang Up (Joe Gross).
Power up your marketing. Take advantage of the fact that many of your competitors do no consumer direct marketing or are pulling back. Now is the time to increase your activities and frequency! More letters, more first-time buyer seminars, more marketing to apartment complexes advertising and more community networking will generate more leads and loans over the coming months.
Be in first place. Timing is critical to who gets the loan. It’s often the one with the fastest response or the one who can set up the appointment first. Work with a sense of urgency in returning phone calls, following up on leads and setting up appointments. Leave reading your emails and file work for later. It’s a race to the customer, and there are no prizes for coming in second.
Outwork your competitors. By simply putting in more hours every week than the next originator, by getting to work sooner and staying a little later, you give yourself opportunities at loans you might have never had. Many originators today work only five or six hours a day. More hours at work means more time available for prospecting, and that allows you to land more loans.
Copyright - 2010 - LoanOfficerMagazine.com
Written By: Doug Smith
Consumer Brochures Free From the Federal Reserve
Written By: Karen Deis
Did you know that the Federal Reserve has 28 different consumer financial brochures - and you can get 100 copies free? If you want more than 100 copies, they are only 25 cents each.
This article will review which of the 28 brochures you should consider ordering, how you can use them, and the website link to view the content AND place your order.
Also read the 9 suggestions on how to use the brochures with your clients, real estate agents, and sales and marketing efforts.
Let's keep those government printing presses running!
Written By: Karen Deis
If You Survived 2009 - You CAN Thrive in 2010!
Written By: Francis Phillips, Speaker for www.MortgageSpeakersBureau.com and Director of Business Development for Brightgreen Home Loans. His Santa Fe, NM branch (formerly 1st Metropolitan Mortgage) was listed in Forbes and Southwest Airlines Magazines. Hire him to speak at your next meeting.
The lending markets certainly changed in 2009 as lending restrictions increased even more causing mortgage brokers and bankers to reconsider their survival game plans. Shifts in lending, back to basics marketing and automation are the key to an increase of market share this year.
Shifts in Lending: I see more brokers aligning with a Mortgage Banker! Not a camouflage mortgage banker who does not underwrite their own paper but rather a real mortgage-banking platform that allows your company to underwrite their own loans! The shift is happening as we speak.
Written By: Francis Phillips
Are You Memorable?
Written By: Christine K. Clifford, CSP, CEO/President of Christine Clifford Enterprises and The Cancer Club. She speaks on sales, marketing, product development and the use of humor to get through life's adversities. She can be reached through MortgageSpeakersBureau.com, calling 715-426-3647 or emailing Karen@LoanOfficerTraining.com.
Think about the Lone Ranger.
Isn’t it significant that the person whose name suggests solitude was never without his partner? Tonto did things the Lone Ranger couldn’t, and knew things kemosabe didn’t. Together, each was better than either could be alone.
Everywhere we look, two heads are better than one. Mortgage banking is a forum where partnerships flower, where tips and hints can be shared, where advice and counsel are appreciated, and on and on.
I can name my mortgage banker: Hugh Gustafson, Burnet Home Loans, perhaps because I purchased my home two years ago. One month after I purchased my previous home, I couldn’t have told you who my loan officer was.
Why?
Because they weren’t memorable.
Hugh picked up that I collected rabbits. With over 3,000, I have the world’s largest collection, or they multiply as most suspect. After my closing, FedEx knocked. I love FedEx—Santa Claus in shorts. This delivery was Hugh’s gift: a rabbit for my new home.
Hugh hasn’t stayed memorable by just sending me a rabbit. He sends postcards, and calendars of our city’s major events. He emails and stays in touch. Hugh knows the value of relationships. It’s easier to keep an old one alive than to start a new one from scratch.
Have you ever thought about attending a networking event ALONE? Where you don’t know anybody?
Does it sound stimulating or terrifying to you?
Well, that’s just what I did recently - a breakfast networking event sponsored by a convention bureau at a downtown nightclub venue. The two-hour event included a hearty brunch buffet, mimosas, coffee, and a sampling of the club’s musical entertainment. It was different from most events I attend, but I was intrigued by how people navigated it.
The event was heavily attended - a crowd of about 130 people. But I wanted to share with you what I noticed the best networkers were doing.
Keys to networking a large crowd when you’re alone.
As you strive to see your current situation from every angle, read the following story, which shows the futility of creating life the "normal" way - trying to base happiness and fulfillment only on superficial achievement. I started to look at life differently, from my values rather than from petty outcomes, after encountering the drunk in Vail.
In 1995, I was wandering through a convention festival one evening in Vail, Colorado, watching the embarassing antics of the drunken business folk away from home. I was alone and just making an appearance before returning to my room to prepare for the next morning's meetings.
As I walked past an outlying table, a friend hailed me. She sat with an elderly gentlemen who had six empty scotch glasses lined up like little crystal soldiers before their captain. He barely acknowledged me. Anne was clearly happy to see a friend. It wasn't clear whether the older fellow would last ten more minutes before collapsing into the empty little glass brigade lined up before him.
Anne asked me about my company's recent merger. I answered in detail, filling her in on the ups and downs of a newly merged company with four partners. She listened politely and nodded appropriately, each of us doing the same social dance that would have been entirely in place at court in France 300 years ago. It was a therapeutic conversation for me. I spewed out my concerns, fears, hopes and problems while Anne absorbed the words like a mind-wandering queen with a boring diplomat.
After my overview, which I naturally felt was the perfect balance of insight and conclusion, the old fellow at the end of the table finally stirred.
"Young man, do you mind if I give you some advice?" he slurred.
I looked him up and down.
"Absolutely, I'd love it," I lied as convincingly as I could. This ought to be good, I thought to myself with the snide self-righteousness of an egoist who feels he knows it all, but must allow things to simply play out.
He looked at me with a discerning, if bleary, eye.
"I've listened to you explain to Anne about your company and I would like to give you a great secret to life," he explained. "But before I do, I should tell you that I have successfully used this secret to start, build up, and sell three different mortgage companies to Wall Street, including the one that your young friend here now works for."
He started looking a lot less drunk to me, and a lot more interesting.
He went on. "By using this secret, I've created great wealth and now have a house in Aspen, another in Naples, and more money than I can spend in this lifetime. However, I deeply regret not using this secret in my health or relationships, as I have two ex-wives I send a lot of alimony to, three kids who won't speak to me, and a stomach full of ulcers."
By now he had my rapt attention.
"What is it?" I asked.
He told me.
"Young man, I see you making the same basic mistake that most people do. We wake up in the morning and face a solid wall of problems. The problems are like little red lights embedded in the wall. We push on each light to put it out. All the while, we worry about all the other lights. After we put them out, some light up again. At day's end, we look at our wall of worry and although two-thirds of the lights are out, some still burn brightly. We collapse into bed and wake up the next morning with the wall all lit up again - solid lights."
He continued with the solution.
"The great secret to the wall of worry is to turn it into glass and see through it. Look through it into your imagined future three years forward and see exactly what you dream for your life. See it clearly. You don't have to know exactly how you're going to get there, but you do have to see it clearly and keep it in focus.
"If you leave the wall glass and continue to focus three years out, something magic happens. Little threads of solutions come back from that vision of the future and those threads put out the lights in the wall before you. I don't know who or what solves today's problems by creating tomorrow's dreams, or even how it happens, but I can sincerely promise you that this secret will change your life."
After thanking him, I returned to the condo to think about what I wanted for my future three years out, and what would inspire me to take action toward that future.
He was right. His secret changed my life. This is what happened:
Within a few days, I created my three year dream: to find my great purpose in life by helping other people find theirs.
I decided to sell my mortgage company and find a better venue for discovering and practicing my great purpose in life.
I considered how I could make my company unique and develop a special expression of its value to differentiate it from other companies.
Over the next several months, while still keeping my dream before me on a constant basis, a random article, a random conversation with an employee, and dozens of other influences ultimately helped me figure out how to sell my company. I would create an entirely new program for small and medium sized companies to offer their employees that would create huge revenues for our company and be a win/win for all of us.
I approached my business partners with my idea and they cautiously let me proceed with it. The results? This program, which I called "Shared Dream," allowed my company to develop strategic alliances with 93 different companies and add 35,000 employees to our preferred customer program. Those new customers created $300 million dollars in new loans for our company in just three years and attracted a buyer for our company!
My partners and I split the small profits when we sold the company. I found my current passion and started a new company of my own design, through which I can live my life's purpose to help other people find and live theirs!
It took me five years instead of three, but the Drunk in Vail's great secret literally changed my life, and it can change yours, as well, if you are simply willing to try it.
You will create your vision of the future in Step 3. For now, turn your wall of worry into glass and use your objective assessment of your current reality to start drawing to it the threads from your future. This will happen on its own as you continue to embody your values.
Copyright - 2010 - Al Killeen, Soul Proprietorship
Written By: Al Killeen
Pass or Fail: What Every Mortgage Broker Should Know About SAFE Act Testing
Unless you’ve been selling real estate on Mars for the past few years, you’ve heard about the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (called the SAFE Mortgage Licensing Act of 2008).
The SAFE Act mandates increased federal regulation of the mortgage lending industry, enhanced licensing requirements, and professional liability for mortgage loan originators (MLOs) who fail to comply. So if digging your way out of the recession were not challenging enough, now you have additional federal and state hurdles to clear.
How did this happen? In response to the foreclosure epidemic and the global economic crisis that erupted in 2008, devastating the real estate markets and forcing banking institutions to cut lending or even close their doors, Congress passed legislation to establish more government oversight of individual mortgage loan originators, with the outcome of increased consumer protection. Primarily, the law set forth objectives for a Nationwide Mortgage Licensing System (NMLS) for the residential mortgage industry.
The SAFE Act requires that all residential mortgage loan originators must be either federally registered or state-licensed. A mortgage loan originator employed by a federally insured depository institution or any credit union or an owned and controlled subsidiary that is federally supervised must be federally registered. All other mortgage loan originators, without exception, must be state licensed.
At the time of the law's passage, state systems varied greatly. The SAFE Act required the states to have a licensing and registration system in place by either July 31, 2009 (for states whose legislatures meet annually) or July 31, 2010 (for states whose legislatures meet biennially). For either of these deadlines, the U.S. Department of Housing and Urban Development (HUD) offered to extend the deadline if HUD determined that a state is making a good faith effort to establish a state licensing law that meets the minimum requirements of the SAFE Act.
By January 2010, 43 states, the District of Columbia, and Puerto Rico had adopted NMLS. But HUD recognizes that in many states, individuals currently performing loan originations may not be able to meet the educational, testing, and background check requirements by the time required regulations become effective. In addition, HUD is aware that some states already require licensure of loan originators.
In those states that have adopted NMLS all individuals acting as a residential mortgage loan originator (RMLO) must create an account in NMLS, and have filed or file a Form MU42 through NMLS with the state regulatory agency. Filing deadlines depend on the type of license required.
NMLS Requirements and Your Responsibilities
What do you have to do? In addition to certain other requirements, all MLOs need to file a Form MU4 through NMLS with the their state’s Division of Banking. The applicant, as a state-licensed loan originator, must furnish certain information to the NMLS including fingerprints for a criminal background check and personal history and experience. Minimum standards for license issuance includes:
Never having had a revocation of loan originator license;
Never having had a felony conviction involving an act of fraud, dishonesty, or a breach of trust, or money laundering (no other types of felonies seven years prior to application);
Demonstration of financial responsibility;
Completing pre-licensing education reviewed, and approved by the NMLS (at least 20 hours);
Passing a written test developed and administered by the NMLS (at least 75% correct answers out of minimum 100 questions).
States must include a minimum net worth requirement or surety bond requirement for applicants, or have had the applicant pay into a state fund.
The SAFE Mortgage Loan Originator Test
Some requirements (such as no felony conviction and no license revocation) are straightforward: either you can comply, or you can’t. What’s bringing fear and trembling to the hearts of MLOs nationwide is the SAFE Mortgage Loan Originator Test. All MLOs must pass the test, which is comprised of two components: a state component and a national component. MLOs must pass each component with a score of 75% or higher prior to renewal for 2011. The SAFE Act exam covers topics including federal law and regulation, fair lending issues, consumer protection, instruction on fraud, ethics, and the nontraditional marketplace.
To date, industry sources place the failure rate at anywhere from 30% to a whopping 70% for first-time takers. As part of the SAFE Act licensing requirements, the Act requires that all new mortgage loan originator applicants must complete 20 hours of NMLS-approved Pre-licensure Education (PE) and annual Continuing Education (CE). You’d think that 20 hours of instruction should make the test a breeze. Apparently results depend upon the quality of the program.
Getting the Training You Need
Too many loan officers are unprepared for this new and added challenge to their professional lives. I’ve put our twenty years’ of experience to work and created a program that can give the MLO confidence and knowledge. I can’t guarantee that everyone will pass the test, but we don’t think that a better program exists.” Click here to find a SAFE Act Prep Test near you!
I am also a member of the advisory board of industry leader www.MortgageCurrentcy.com, and LoanOfficerSchool.com is gearing up for extensive rollout of program venues. “I encourage every loan officer who is facing SAFE Act licensure to check out the program in a city or town near you. With the right training, you’ll have confidence and peace of mind when you sit down to take the SAFE act test.”
The other day, I was loading groceries into the saddlebags of my Harley when one of the grocery store clerks who was out gathering carts, walked up to me. Not just to fully set the stage on this one, he was a handsome looking young man who looked to be about 25. He came up and complimented me on my bike and said, "I would love to have one of those, but I'm too poor."
I immediately asked him, "Well, what are you going to do about that?" to which he responded, "What do you mean?"
Now here was a guy that had the energy of youth, a "clean cut" handsome face, and seemed to have no obvious "handicap". However, with all that in his favor, he had made the decision to be a bag boy. Worse, he didn't have a clue what it meant to have a plan, even when he knew that he wanted the finer things in life. He was content to just "want" and not "do".
How did I know he was content? Because he had no plan.
So my question for you is what is your plan? What specific action are you going to take to massively increase your business?
This question is certainly easier to answer for our Mortgage Marketing Animals members than for non-members, as they have a lot of very specific strategies to draw from. These are strategies that top producing loan officers are actually getting results with in today's market.
Our members' biggest problem is, with so many strategies to pick from, which one do you do first?
First of all, it's critical to understand the need to pick one strategy. Then:
Implement it
Make it better
Automate it
Delegate it
Go pick another strategy
It is better to have one completed and automated strategy, rather than five (5) "80% done" strategies. This is because one completed and automated strategy will make infinitely more money than five "80% done" strategies. Partially done strategies make no money - only completed ones do.
Also, completing a strategy will give you a feeling of accomplishment as well as provide some income, and it will motivate you to do the next thing.
Now, as far as which one to do first, I ask myself three questions.
Question #1: "Self, which of these strategies will generate one closing faster than any other strategy?"
Question #2: "How likely is it that I will be able to complete this marketing project?"
Question #3: "Can I delegate it?"
Corporate Benefits Marketing - Instant Business
Why market to one person at a time when you can market to hundreds - using just one marketing strategy.
One of the fastest ways to generate leads and new business is by marketing discounted mortgage services to companies, factories, church groups, associations, clubs and community heroes.
By offering a "bundled package" and other benefits, it's a system that gets employers (and others) to endorse you as their mortgage lender of choice.
So, it's not the strategy that will generate the most closings, it's the one that will generate the fastest closing. Here's why: once it's up and going, I'm going to delegate it out anyway, and the faster I can go on to the next, the better.
Also, being brutally honest about Question #2, it will save me the frustration of working on something that won't get finished. This would kill my production and motivation faster than anything.
And then with Question #3, if I can't delegate, then I've done nothing more than created myself a job. I'm not looking to create a job; I'm looking to create a wealth growing business that helps as many people as possible.
So now you members have 3 solid steps for your plan.
How long have you been saying that you’re going to update your image?
Just like the “refresh button” on your computer, I’m here to suggest that you refresh your image and your brand—at least once a year.
However, so you don’t “shock” your clients and Realtors, and to make it easy on yourself, too, you may want to make one change at a time—like every two months.
Read 5 recommended updates—the first one being your picture.
Written By: Karen Deis
How to Get What You Really Want In Your Business!
Written By: Karen Deis
Yeah, times are tough and you get deals where you can get them, right?
But, ask yourself this question — does it take any more work to get a $150,000 deal closed—than it takes to get a $450,000 deal closed?
Correct me if I’m wrong, but usually, the lower-priced homes are harder to get approved and closed. And let’s say, just for giggles, that you make 1% on the loan - that’s a difference of $3,000 in income.
So, why not ask for what you really want—higher loan amount transactions?
I know that asking for what types of loans you really want sounds simple! You might fear that people think you are greedy (only wanting the higher priced deals). Or that there aren’t that many higher-priced ones out there. Even if there aren’t that many in your community, you might as well get the ones that are out there.
Now, don’t get me wrong, you should still take a look at the lower loan amount and the credit-challenged borrowers, but do so with the both eyes open and ask yourself this question:
“Should I work on this deal that might take me 20 hours of my time to get approved, versus marketing for higher-priced loans and taking 10 hours to close (with more commissions)?”
Chris Vinson, Prairie Commerce Bank in South Dakota has created a brand called the “Second-Time Home Buyer Program”. It’s just a 25-year fixed rate mortgage where he shows them how to save $30,000 by reducing the term of the loan. It’s just branding! (Read previous article, Super Saver 25, for how to brand this loan product.)
I had a “mortgage division” in my company called “Executive Mortgage Division”, which implied that it was for the higher-priced homes. I also had a first-time buyer division, a corporate benefits division and a new-construction division.
This is exactly what big corporations do—they set up divisions or departments within the company.
So think about setting up “departments/divisions” within your mortgage practice that target the larger loan amounts.
Even if it’s only one branded division name—like Executive Mortgage Division.
Then learn all you can about the type of buyer, real estate agent, loan program and they go ahead—take a chance and ask for the business—niche by niche!
Copyright - 2010 - LoanOfficerMagazine.com
Written By: Karen Deis
The Pain of Disconnect: A Powerful Tool
Written By: Scott Hudspeth, Loan Officer, AmeriFirst Mortgage, Kalamazoo, MI
Take away the oxygen mask from a scuba diver - and you have the ultimate "pain of disconnect".
What's the pain of disconnect?
"It's when you take something away from someone that they're used to having."
Okay, so how does this idea work when marketing to real estate agents?
Well, let's say that, as a loan officer, you provide your real estate agents with the "latest and greatest" in social networking tools in order to attract listings.
Those agents then show these tools (websites, virtual tours, etc.) to their sellers and buyers. Then these customers love the technology and get used to having it available. In fact, they demand it!
So, if you take the Internet technology away from your agents, the sellers will protest, and the realtors will definitely feel the pain of being disconnected because they'll get less business and earn less money. Worse, they'll incur the risk of getting run over by the competition!
You can see where I'm going with this, can't you? By offering your agents a lightning-fast and attractive Internet marketing package, you're in the driver's seat because you'll produce profitable results for them.
Not a bad place to be, huh?
Okay, now it's time to reveal Scott's "Secrets" of using the Internet and the tools available on it!
Secret #1: Totally Unfair Advantage
There is a system out there where you can provide a totally unfair advantage to your agents (and yourself) by implementing single property websites that showcase each one of the agent's properties.
And, boy, does the system showcase those homes!
First, buyers can view a photo gallery of the specific home. All the photos are in beautiful high definition. Of course, sellers will love how the agent has presented their properties.
Second, buyers can take virtual tours of the properties. With the system, you can tell agents that you'll provide a virtual tour of each of their properties!
Third, you can provide gorgeous panoramic views of the properties. This service often costs $300-$500; with this system, it's included.
When the agent uploads still photos, the system will automatically put them into panoramic view. It takes approximately 5 minutes.
Fourth, training your Realtors in another way to keep in touch. It's an easy, step-by-step process. Tip: Hold a live Q&A every Friday to discuss ideas and come up with new stuff. It's another way to keep in touch.
Fifth, you can add tabs to the sites on such topics as local info, seminars, home financing tips...the customer clicks and gets a free report, and you capture their information.
Sixth, you can use Google Maps at no cost. Visitors can get an aerial view of the property or a street view.
They can also click on the "What's Nearby" tab and actually cruise down the street to see what the neighborhood looks like, what shops are nearby, etc.
It's all automated with no extra cost!
Seventh, you can submit to Craigslist at the click of a button!
Eighth, with one click, you can submit the listings to all the social media sites (Facebook, YouTube, Twitter, etc.).
Ninth, you can offer a Mortgage Calculator on the site that downloads onto cell phones. When visitors download the calculator, you capture their information!
Tenth, you can offer a Text Function so visitors can download information from the site.
In short, you have Call Capture Galore! with www.KarensUnFairAdvantage.com system. Your agents get leads in a whole variety of ways:
Every time visitors click in payment information and download that mortgage calculator, the agents (and you) get their phone numbers.
Agents can call sellers.
When a showing is requested.
When the system posts to dozens of websites automatically.
When visitors ask for a text message.
The net result of all this - agents refer more business to you because they're afraid the leads will go away!
You've brought something valuable to the table and let your realtors know that it's about them, not you. In other words, you want to help them grown their business!
Key Point #1: The Unfair Advantage system is one huge leverage tool for you as a loan officer.
Key Point #2: You don't have to be an expert to put the program in place. All you need to do is implement a great, easy system that causes the pain of disconnect for your agents.
Key Point #3: You can sell your agents on the program by saying, in effect, "With Unfair Advantage, I'm going to be giving you more business and more paychecks. And, at the same time, I'm helping everybody get what they want - you, buyers, sellers and myself."
Secret #2: The Coolest Technology Around!
One of the coolest and most effective features of the system is that it offers a "Live Chat" function on each and every website the agent has.
When a visitor clicks on the link, it rings somewhat like a phone. You click "Accept" and talk directly with that visitor. In short, you convert chats to dollars!
Now there are two versions of Live Chat. One is free and works just fine.
Frankly, I prefer the paid version (about $10 a month). Why? Because every time a visitor goes to one of the websites, you get notified that they're looking at a particular property, and you can push information immediately to them.
My recommendation: Farm out the Live Chat function to an assistant or a virtual assistant. Their job will be to setup a home consultation with the agent.
Secret #3: How to Pitch the Program to Real Estate Agents
It provides a 20-minute introduction to the system so agents can learn about the system quickly and easily.
This system also provides agents with their own websites as well as a website for you, where you can send agents to sign-up for the program.
Secret #4: Work Less & Earn More!
Try the system using the $1 Trial for 15 Days. All you have to do is click "Try It Now!" and fill out information in order to get a screen name and password. You can cancel on the 14th day with no hard feelings, no contracts and no questions asked. After the trial period, the fee is $249.00 per month.
A workshop on "How to Do a Webinar Like Scotty and Carl"
A class on "How to Write Money-Making Emails as a Loan Officer"
Weekly Q&A sessions
Full Access to the Training Site
Webinars to Your Realtors
Summary
I don't have to tell you that one of the surest ways to success is to find successful people and copy what they're doing! Well, that's what our Unfair Advantage system does for you. All you have to gain is less stress by increasing your income and, at the same time, reducing your agents' stress by increasing their income!
My final advice: Take action, stay current, and stay ahead of the competition by making the most of the Internet with Karen's Unfair Advantage!
Copyright - 2010 - LoanOfficerMagazine.com
Written By: Scott Hudspeth
Lessons that Loan Officers Can Learn From Farmers
Written By: Kate Wilson, Branch Manager, Fairway Independent Mortgage, MN
It’s 6:30 a.m. I woke up this morning at 4:14 a.m., my circadian rhythm interrupted by this constant humming noise that comes every Spring.
My neighbors (who are farmers) are out in full force, fertilizing, plowing and seeding their fields. Farmers are a sturdy, practical lot. They are forced to abandon their beds early in Spring and Fall because as the saying goes, “they must make hay while the sun shines”.
There is a window of opportunity where the soil warms to the right temperature and the fields are dry enough to get in and get the crop planted. Two weeks either side of a deadline and it could spell disaster for this year’s crop. Any day now, we could get torrential rains and wet fields make for difficult planting. My farm neighbors will remain hard at it until the clouds burst and the rains coming pouring down, even if it means working around the clock for days at a time. Once the crop is in the ground, there will be time enough to rest.
They have been preparing all winter for this busy season. They know exactly what is required of them right now.
The real estate they farm produces food.
The real estate we farm produces money.
It’s a little easier to determine your personal limits and boundaries when you’re producing food than it is when you’re producing money. I suspect that’s why 3 out of 4 people I talked to this week in coaching sessions said they were either already burned out or on the verge.
Lessons we might learn from farmers:
To make a living, your farm has to be big enough to feed your family but it still has to be manageable. No matter how much land you could rent, you can only plow, fertilize, plant and harvest a finite number of acres. Trying to do more will have disastrous results.
Written By: Kate Wilson
Knowing the Value of Your Customers Influences How Much You Can Spend To Get A New One - Or Keep An Existing One
Written By: Jim Hogle, President, US Consumer Credit Restoration Association & Author, “The Serious Business Owner’s Guide to Creating Customers For Life”. www.JimHogle.com
How much can you afford to spend, and
How much are you willing to spend to attract new business?
You may find that you can, and are willing to spend five or six times what your competitors spend. And if they’re not willing to keep up with you, your business may just explode and leave them in the dust.
Just knowing what your margins are, and that you could, if you had to, spend up to that $2,000 amount and still break even, gives you a tremendous edge over your competition.
Here’s a real-life example: My wife and I have a favorite restaurant we like to go to about twice a month. And our meals typically come to about $30. So $30 times 24 meals adds up to $720 in gross sales for the year.
Let’s suppose that we continue to patronize that restaurant for, say, 10 years. That’s our buying lifetime with that particular restaurant. That gives the restaurant a total of $7,200 in sales.
If over that 10-year period, we refer 10 people, 5 of whom become regular customers (and that’s not very many in 10 years), who have spending patters similar to ours, they’ll spend an additional $36,000. (That’s 5 people, times $7,200 a year.)
Add that to the $7,200 that we spent, and we’ve been responsible for generating $43,200 for that restaurant. Even after deducting expenses for overhead, salaries and food costs, the restaurant still realizes a pretty substantial number of profit dollars from the efforts of just one couple.
Now, here’s a question: Could that restaurant afford to give away a free meal to attract a new customer? Keep in mind that two of us are spending $30, so one meal costs $15, and out of that, about a third of it (or, maybe $5) is profit.
So, the meal really only costs the restaurant $10 for the two meals, and only part of that $10 goes to cover the cost of the food.
The rest of the expense is in overhead, which would have to be paid whether or not a meal was served.
The answer is yes, they can afford to give away a free meal. Not only that, but they can afford to do a number of other things to not only attract new customers, but more important, make their existing customers feel more appreciated and more special. And you know, when someone feels noticed and important, appreciated and special, it’s just natural that they’ll want to return.
Let’s imagine, for a minute, that you are a long-time, faithful customer of a certain restaurant. And you brought your family, your clients or your business associates with you to eat there on a regular basis.
How would you feel, if sometime, the manager of the restaurant were to offer you and your party a free dessert as a special appreciation gift for your loyalty and for the extra business you brought them? Do you think that little display of appreciation would cause you to want to return again? I think it’s pretty safe to say that it probably would.
And what about the people who were with you? How do you think they would feel? Do you think they would want to go back to that restaurant? Sure they would. What do you think the restaurant’s hard costs of those desserts would be? Do you think the restaurant would lose any money on that gesture?
Well, it’s not likely. You see, once you know how much profit your customers are worth to you, long term, then, and only then, can you determine how much you can afford to give away, or to spend, to get new customers, or to keep your existing customers coming back. And you can begin to experiment with different offers to see which ones work best.
Now, here’s another thought. Let’s say that the owner of that restaurant runs an ad, or does a mailing to attract new customers.
And let’s say he spends $1,000 for the ad or the mailing, and two couples come in for dinner, and each spend $30.
Well, he’s taken in a total of $60. But the ad costs were $1,000. So what does he do? What would his competition do?
Does he consider the ad or mail campaign a loser...a total bust...and stop running it? That’s what most business people do.
But what about you? What would you do? Well, if you understand the concept of Lifetime Profit Value and Marginal Net Worth, you’ll probably think differently.
When you consider the Lifetime Value of those customers and realize that with the proper care and attention those customers could be responsible for $43,200 each, or $86,400 for the tow of them, it changes the picture.
Of course, those numbers are gross revenue figures, and you have to deduct for expenses. And it’s over a 10-year period. But, still, that represents a significant amount of money. And all from a $1,000 ad. An ad that most business owners would have given up on.
Now, I’m not saying that you have to settle for, and be happy with low response rates for your ads. Certainly, you don’t. You should always try to improve your ads, your letters, your offers… and give good, compelling reasons and benefits for someone to do business with you.
That’s an entire subject, itself, and one we don’t have time to discuss in great detail here. But one we take very seriously, and spend considerable time on in our workshops and coaching programs.
Let’s go back and think about our restaurant example for a minute. Did this idea of stopping an ad just because it didn’t break even, or produce a profit for you sound unusual? Different? Strange? Well, maybe to some people, in some businesses.
But, supermarkets and department stores use their own adaptation of this technique all the time. You’ve probably heard it referred to as a “loss leader.”
What they do is advertise a few products at, or below cost to bring new customers in to their store, knowing that the customer will usually buy more products once they’re in the store.
And also, knowing that unless they get someone to visit their store in the first place, they could never stand a chance of making additional or repeat sales, or getting referrals from them. And additional and repeat sales to existing customers are generally easier to make, and usually always bring higher profit margins.
Just remember this important point:
The first sale means nothing… unless you’re planning on going out of business next week. You’ve go to consider the Lifetime Profit Value… what your customer is worth to you, if you really want to be success.
Now, what about you, in your business? How can you apply this concept of Lifetime Profit Value?
Well, the first thing you can do is determine what the amount of your average income per sale is. The Lifetime Profit Value Calculator below is provided for you to use in calculating the Lifetime Profit Value of your own customers. Fill out with your current figures to get an idea of how much your customers are worth to you.
The calculator below is provided so you can calculate what kind of a difference it will make to your business if you increased each of the areas by 10 percent.
Keep in mind as you do these calculations, that this is a very simplified calculation. In our consulting sessions we get very detailed and take into consideration many more areas. So the results you’ll see in actuality will be dramatically increased. But for a simple and easy to demonstrate way to determine your customers’ value to you, these basic calculators will do quite nicely.
Contact Jim Hogle at info@usccra.com or call 727-480-3400 to find out how you can be the “credit expert” and
attend our free, weekly webinars.
"Life doesn't have MUCH to do with living in the land of CERTAINTY, but it does have MUCH to do with living in the land of HOPE."
I hastily scribbled these words in my program during a church service. After the pastor repeated this same phrase three times I noted he was using two great speaking devices: EMPHASIS and REPETITION - the perfect choice for the Easter sermon, which is normally attended by “less than regular” churchgoers.
He continued…
“And the tomb was rolled away. And they said,” (PAUSE) “SHHHH!” (Finger to lips) “Let’s not tell anyone,” (PAUSE) and they didn’t. (KNOCKING ON PULPIT) (SHARP HAND CLAP) “Peter’s out the door.”
He was also a master of SOUND EFFECT, GESTURE, AND PAUSE.
And he knew how to BEGIN.
He had begun with a joke about a retiring pastor whose secretary was valiantly seeking his title for the Easter sermon to type in the program. Finally he turned to her and quipped, “Oh just call it…Another Easter Sermon.
And he knew how to END:
“Let me share one more story with ‘ya and then I’m gonna quit.”
And that’s exactly what he did. He made many very good presentation choices for a crowd of “sometimes” churchgoers. He grabbed the large audience that he had and pulled them in.
And here’s what great preachers know and all speakers can learn: no matter the content you must deliver, there are three keys to getting the audience to listen:
Written By: Cyndi Maxey
My $100K Marathon: Starting from Scratch!
Written By: Kelly McGuinness, President, United Mortgage
I was curled up recently in my favorite chair reading my favorite magazine and came across two articles dealing with transformation. One was about a woman who had committed to a daily rigorous yoga class conducted in high temperature; the other was a member of the magazine staff who had agreed to diet and have her progress followed each month.
I started thinking: Our industry is wrought with people who have been forced to transform themselves and their business models. Wouldn’t it be interesting if Loan Officer Magazine had a monthly column dedicated to the development of a new loan officer’s business from the ground up? What is working? What’s not? A fresh perspective during a turbulent time!
There are two reasons this idea developed traction. First, Karen Deis has had to reinvent herself on several occasions. Karen had moved with her husband to two different markets (specifically …two different states) and both times had to build a loan officer business with no contacts!
Secondly, as a leader in training in the mortgage industry, Karen is exposed to many different marketing and sales ideas and programs. Wouldn’t it be valuable to road test them with a committed loan originator who could work the program; evaluate lead and loan opportunities and report back on successes?
And I’m just the person for the job! I have owned my mortgage company for over 23 years and have always been a non-producing manager. At this point in my career, based on market conditions, I decided I wanted to develop my own production. This poses some logistical issues for me as I have always handed referral partners and personal loans to my loan origination staff. So I need to start from scratch.
Karen and I are dear friends and I thought who better to write a marketing blueprint for me than Karen? So I proposed the project to Karen and here we are.
Each month we will launch a production initiative; I will dedicate myself to the implementation and management of the campaign and then report back on the successes, pitfalls and lessons. My goal? At the end of 12 months to have produced a six-figure loan officer income with practices anyone can duplicate!
We are launching the program, which we have aptly titled $100k Marathon, June 20, 2010.
During the first 30 days I will be launching a corporate benefits program and a program for credit repair. I think the corporate benefits program allows me to go into an arena that most loan officers ignore and will reap the most number of leads the quickest.
Credit repair is a program that is of great interest to consumers and will “bank” leads that can be developed over a period of time. Next month I will chronicle the steps I took to launch the programs as well as an accounting of lead development and any expenses I incur.
I am using the following assumptions for business planning and lead to closing conversion:
The $100K paycheck!
Developing Loans!
Now, we are ramping from scratch so we know we can’t come out of the box with these numbers…each month we’ll chronicle how many leads; applications; loans and fundings actually occurred as I train for this exciting professional marathon!
Wish me luck!
Copyright - 2010 - LoanOfficerMagazine.com
Written By: Kelly McGuinness
5.5 Things to Do if You're in a Slump!
Written By: Karen Deis
Are you experiencing withdrawal symptoms because the homebuyer tax credit incentives have come and gone?
Think of this as your mid-year business planning session. You’ve got to keep the momentum going because you can’t always rely on “the next big thing” to boost your business.
Here are 5.5 things you can do right now to get back on track so your 2nd half of the year won’t suck.
Written By: Karen Deis
$100k Marathon: My First 30 Days! (Choosing Running Shoes)
Written By: Kelly McGuinness, President, United Mortgage
I am reporting back to you on the first “leg” of my marathon! I have been busy since I launched the $100k production initiative. BUT, before I report back to you on my specific progress I want to share with you the very first thing on my “to do” list as I began this campaign.
No doubt, if you are interested in my article, you have been in the mortgage business. Just like me, you may be looking for ways to transform your business and re-capture income that has been compromised by today’s lending changes or perhaps you simply want to do more business. Me, too! Remember I’ve spent 25 plus years in this business as a non-producing owner/manager. (I do a handful of loans each year.) It is essential to my success as a new “loan officer” that I maintain enthusiasm and determination in the face of some challenging obstacles and time traps.
I found myself straying from my goal. It was easy to get distracted with the 6/30 closing date for tax credit; studying to take the CT state exam and a quick trip to Wisconsin with my Mortgage Mastermind Girlfriends!
My first priority was to develop a daily ritual that would keep me focused on the most important aspect of the $100k Marathon: Business Development.
I have adopted a plan that I call “One A Day”. I have determined that I can NOT leave my office or end my work day unless I reach out and connect with at least one of the following source opportunities each day: Corporation, Local Hero, previous customer (can be substituted with personal contact), Realtor, affinity source (defined as an attorney, financial planner, builder). That’s 25 new places to get loans each week!
I write, email, phone, call and even cold call on five new sources per day. I’m using this simple plan to keep me from becoming distracted by other responsibilities. And it’s working. I may change the numbers as the month progresses and certainly will have a lot of follow up required to get the connections solidified but it’s keeping me motivated.
So I ask you, what daily ritual can you adopt that’s going to keep you humming in business development and not get bogged down by loan problems and other handy distractions…excuses, really?
Okay, let’s look at my progress in the last two weeks:
Corporate program:
I adapted the letters and presentation in Karen’s corporate benefit kit.
I created a package of savings by identifying three Realtors who are willing to contribute discounts toward closing costs. I also identified two financial planners and accountants who would provide one-hour complimentary reviews.
I included credit repair as a benefit in the corporate package.
I have reached out to friends and previous clients to identify quick sign ups to get “referrals”. I have identified 5 companies from this search and will have intro letters mailed just before I return from my vacation.
In addition, Karen suggests targeting 5 new corporations each month.
As a sub-group of the corporate benefit program, I have created a local hero program that targets firefighters, teachers, police officers, health care workers and veterans. My goal is to drop my “Local Hero” information in at least 5 places a month. I plan to walk into firehouses, police stations, VFW halls, etc. and get them to display the brochures I created!
Credit Repair:
Per Karen’s instructions, I signed up for the USCCRA system. Since a large majority of consumers have lower credit scores…it’s a way to help them improve their credit and build a pipeline of future home buyers.
The next step is to:
Create a series of 3 emails for your real estate agents to be sent out once a week and swipe the credit repair articles/info from the USCCRA website site.
Post info (same type of stuff) about credit repair on your Facebook page.
Email your database of past clients (2 times within the next month) asking if they know of anyone OR if they simply want to INCREASE their scores.
Delve into the USCCRA website and system.
Finally let’s talk leads and loans:
I have not received any leads from the corporate program yet BUT I did receive 3 leads when reaching out to my friends/previous customers when identifying corporations. Two were refinances that became loan apps totaling $850,000 and one is a pre-approval pending acceptance of an offer!
I’m off to Ireland for 10 days but am excited to really ramp up and hit the street when I return.
