The Mortgage Cicerone

Great Thoughts To Ponder (7/3/2008)

A New Post By The Mortgage Cicerone
A Guide for Mortgage Professionals
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"Customers don't make up stories about your business. It is you who creates them - the customer simply retells them. How the story is told and what the content is, is up to you." -- Jeffrey Gitomer

"The twin killers of success are impatience and greed."  --  Jim Rohn

"There is more treasure in books than in all the pirate's loot on Treasure Island... and best of all; you can enjoy these riches every day of your life." -- Walt Disney

"Read something positive every night and listen to something helpful every morning." -- Tom Hopkins

"Within you right now is the power to do things you never dreamed possible. This power becomes available to you just as soon as you can change your beliefs." -- Dr. Maxwell Maltz

"Striving for perfection is the greatest stopper there is...It's your excuse to yourself for not doing anything. Instead, strive for excellence, doing your best." -- Sir Laurence Olivier

"Telling others is the key to changing your wishes into dreams." -- Chris Widener

"The greater the danger for most of us lies not in setting our aim too high and falling short; but in setting our aim too low, and achieving our mark." -- Michelangelo Buonarroti

"Some people plant in the spring and leave in the summer. If you've signed up for a season, see it through. You don't have to stay forever, but at least stay until you see it through."  --  Jim Rohn

"How different our lives are when we really know what is deeply important to us, and keeping that picture in mind, we manage ourselves each day to be and to do what really matters most."  --  Stephen Covey

"Decide upon your major definite purpose in life and then organize all your activities around it." -- Brian Tracy

"All successful people are people of purpose. They hold fast to an idea, a project, a plan and will not let it go; they cherish it, brood upon it, tend to develop it; and when assailed by difficulties, they refuse to be beguiled into surrender; indeed, the intensity of the purpose increases with the growing magnitude of the obstacles encountered." --  James Allen

Greed, Fraud and Ignorance

A New Post By The Mortgage Cicerone
A Guide for Mortgage Professionals
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A few months ago, Richard Bitner mailed The Mortgage Cicerone his recently finished book, Confessions of a Subprime Lender - An Insider's Tale of Greed, Fraud and Ignorance." Truthfully, I thought it was going to be another pulp-sensationalized Housing Bubble book...boy was I wrong!

The further I got into the book, the more I was struck with Richard's thorough understanding of the subprime mortgage industry and his excellent explanation of how the overly simplistic/optimistic financial models and presumptions of both lenders and investment bankers brought about the current market environment we are now experiencing.

While Confessions of a Subprime Lender - An Insider's Tale of Greed, Fraud and Ignorance." is only 195 pages, Bitner will provide you an in-depth and behind the scenes view of what impacted the real estate and mortgage markets.

Bottom line, this book is well written and a “must read” for those people who really want to understand what is currently happening to the mortgage market and its effect on the national economy. In my humble opinion, if you don't read this book, you are not serious about understanding the industry and market in which you are currently employed.

Why Metaphors Are Such Powerful Sales Tools

A New Post By The Mortgage Cicerone
A Guide for Mortgage Professionals
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What makes the use of metaphors such a powerful communication tool?

In my humble opinion, it's because they simply drive home a point with a short, memorable, and emotional punch that information and logic alone do not have.

I have repeatably witnessed the use of metaphors by some of the top superstar Realtors and mortgage professionals (Mike Mueller is a master)as a teaching tool, or to convey difficult concepts to their clients.

The flood of information coming at our clients daily is increasing, not decreasing.  More information is not the answer.  In this environment, we need new tools and strategies to get our messages heard and remembered.  Metaphors are those tools: they are colorful, memorable shortcuts to understanding.  This post will show you how to use them strategically to get the results you want.

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Passing on Valuable Information - A Call to Action

A New Post By The Mortgage Cicerone
A Guide for Mortgage Professionals
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Fellow Cicerone Bill Rice is fast becoming one of my favorite reads when it comes to effective marketing advice. His blog, Better Closer - Improving Your Sales and Marketing is a definite must read for anyone involved in mortgage sales and marketing (Hint: we all are).

On 6/26/08, Bill made a masterful post titled 5 Ways Listening Can Grow Your Business. In it, he provided advice on how to pass on valuable advice to your clients/prospects, while also getting them to take action.

Here's an excerpt:

"Passing on Valuable Information

You telling a customer to pay attention to [add your industry here] is one thing, and often shrills of self-serving. In contrast, a short simple clip from the Web, a though provoking website link, a forwarded industry email summarizing where you want a customer to focus often inspires action.

The two key points you don’t want to miss in passing on valuable information, even when it is from someone else: add a call to action and ask for the deal.

So often I see people forward an email or website article and maybe they editorialize, but they fail to try to make a sale. It can be as simple as:

This economy is scary. Can you believe mortgage rates have dropped again? If you have any questions about this article from Forbes.com give me a call at 734.782.1177. Take a look at your mortgage statement and see if this affects you–It has a lot of my clients.

Four quick sentences that drive them to read the article, call you with questions, and just in case they miss the hint you tell them to double check their own self-interests. Remember this is ad copy!"

Words of wisdom Bill.

How Do You Stay In Contact with Your Clients?

A New Post by Rhonda Porter
Mortgage Broker/Licensed Originator 510-LO-32047 - Washington
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Please forgive me for being absent from Mortgage Cicerone.  I have been focusing a lot of time and attention trying to help the Real Estate Agents I work with build their business in a challenging market.  One way I've been doing this is by really encouraging them to start blogging.   This is nothing new...I've been preaching the benefits of blogging to them for quite a while, only most have shrugged it off.   Now that Seattle's market has simmered down a bit, they're all ears and eyeballs.  I'm especially proud how one of my agents (actually their a couple) has taken off with their blog.  David and Karen Bell are talented writers with a lot to say...last night, my husband and I joined them for dinner at their beautiful Magnolia home where the topic turned to blogging and marketing.

We were reminiscing on the client who found both of us via the internet; my blog and their website.  I mentioned that I really should give the client a call to thank him for introducing us via his transaction.   Karen then asked me a million dollar question.  The conversation went something like this:

Karen: How do you stay in contact with your clients after closing?

Me:  My clients receive my monthly newsletter via email and a quarterly newsletter via mail. I forgot to mention that I also send out a survey with a thank you after closing and a "Happy Home Anniversary" card after one year...I also send birthday calls.   It doesn't matter that I forgot to mention this bit of marketing...Karen's response would have been the same:

Karen:   You don't call your clients after closing?

Me:  Uhh...no.   

Here I've been thinking I was a blog/marketing coach and here Karen was teaching me.   She was surprised and rightly so that I don't pick up the phone and call my past clients every few months. 

In this day and age, technology is so easy...we push a button and hundreds of people receive an email from us.  And hopefully, most of them read it and find the information useful.   How much more powerful would our relationships be with past clients if we actually picked up the phone and made a simple phone call.   The conversation could go something along the lines of

"Hello Jack and Jill, this is Rhonda Porter, your Mortgage Planner.  I know it's been a while since we've last chatted and I just to follow up with you to see how you're doing...You've probably heard a lot of stuff in the news about the mortgage industry these days and I want you to know that you have any questions about your mortgage, or if there's anything I can do for you, I'm here.   In fact, if you're interested, I would be happy to provide a complimentary review of your mortgage, just let me know.   Also, you're welcome to check out my blog which also has quite a bit of information you may find interesting at www.mortgageporter.com."

Or something like that.   Honestly...I have not called clients after closing.   And I should be.  I should be calling them a day or two after closing to see how things are going and to thank them for their business.   I do talk to clients before their signing to let them know I've reviewed their HUD and that I'm available for questions during their signing...but after that...they are pretty much added to my email and mail list and I wait for them to call me.   Don't get me wrong, I receive a good amount of business from my past clients returning or referring others to me...but how much more of an impact could I make (at no out of pocket cost!) by just picking up the darn phone?

What are you doing to stay in contact with your clients after closing?

Thanks, Karen!

Referral Marketing - Action is Power

Bill Cates, a top Referral Generating Coach teaches financial professionals how to build a successful business with referral marketing. In this segment, Bill talks about the importance of acting on your knowledge - "Knowledge isn't power - Acting on knowledge is."

For more info contact Bill at info@referralcoach.com or visit his website at http://www.referralcoach.com

The Referral Marketing Conversation Made Easy

Bill Cates takes the stage with an audience member to demonstrate the most effective way to generate referrals during client meetings.

Great Advice - Sell Yourself First

A New Post By Tyler Osby
Wealth Creation Specialist - The Big City of West Des Moines, Iowa!
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I've been on a horrible hiatus, I know.  I just wanted to quickly post a great quote I just heard on a conference call.

"Prove it to yourself, then go prove it to someone else." - Jim McMahan, CTX Mortgage & Certified Scripts

Simple, huh?

Here's what he means:
Every time you're working with someone - you're trying to solve a problem.  It may be a super easy concern or it may be a huge problem.  Either way, you're trying to solve it.

If you've got a client that you're about to meet with and you're going to show them the mortgage plan that you've put together (or whatever you call it...), you need to know that you've got the solution.  Would you buy it yourself if you knew nothing about this mortgage stuff?  Does it make sense?  Is it truly the best solution?

This seems really elementary, but seriously - make sure you're doing it.  If you can convince yourself it's a solution you would implement, you'll get the deal done.  No questions asked.

Just a quick test (and example), if you've ever been working on a deal that you weren't exactly sure it was the best deal for your client.. but it helped their cash flow (because you were consolidating debt), but you weren't sure about the break even on the costs of the loan.  Maybe even more importantly you weren't sure that the additional cash flow would go to good use.  How good were you about selling that loan?  If you (deep down) knew that it was not the best deal - you probably weren't as effective.  If you knew all bases were covered - you would have closed it and felt extremely good doing it.

Again, don't make fun that it's so 'busch league'.  Just ask yourself that question.  Trust me, it will change your business.

Referral Marketing - Are You Referrable?

Being "referrable" is the key to starting a successful referral marketing program. Learn a key to measuring your referrability and some steps you can take NOW to increase your referrals in the future.

Attacking the Sales Opportunities Your Competitors Give You

A New Post By Bill Rice
Marketing & Lead Generation Expert
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Are you trashing great opportunities just because they say they are going with the competitor? Sometimes these can be the easiest leads to convert. A frustrated customer or one who's expectations have been dashed are often looking for a quick, painless opportunity--that could be your next sale.

You spent the whole morning attacking the freshest leads in your sales pipeline, and what did you hear? Probably:

• "That sounds great, I am waiting on the other offers..."
• "The Mortgage Emporium has a better rate"
• "Bob's Mortgage Shack said I could close in 10 days"

Fresh leads are just entering the sales/buying cycle and are inherently the toughest ones to convert. These customers know the market is still competitive and the best customers know they should look for the best deal.

All of your competitors are telling them whatever it takes to get the deal into their commission trigger. These factors significantly impact the probability of converting a brand new lead, particularly if you do not have the brand of a Countrywide, Wells Fargo, or Quicken Loans.

So, how can you use this to your advantage? I am going to tell you a little secret...

The easiest customer to close is one that has been disappointed by your competitor. It is like "sticking it to the man," the customer gets satisfaction and you get a sale.

Here's the trick: The next time you hear, "I am going to go with Tina's Mortgage Funding" I want you to put them in your calendar once a week for the next 45 days. I want you to check in on them and ask how their mortgage process is going and if they have any questions, like it was your own customer.

You don't even have to ask for the sale. You will be amazed how many of these deals you will win. They will come to you because:

• If you are this attentive and responsive, what would it be like to be your customer
• The competitor will most probably frustrate the customer when they get into processing
• If you don't get them this time they will call you next time because of your commitment

So, don't ignore the customers you loose lose to the competitor they may be your highest converting lead.

Familiarity, Contempt and Real Estate Agent Presentations.

A New Post By Chris Johnson
Founder, Loan Officer Survival Training
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One of the GIGANTIC mistakes many loan officers make is to think that they need to do an hour presentation to get Realtor business.  In most cases, that's just dead wrong.  Does not need to happen.

Trained and paid professional speakers, world class ones, rarely go past an hour without a break.   They just can't sustain the excitement and enthusiasm that long.  So why the hell would we think we're any different as loan officers?   

The goal of a Realtor presentation is to do what?

Get the next deal that the Realtor has.   It's not to prove that we're experts, it's not to share information, it's to GET THE NEXT $%^&* deal.   Get it?   So, what's more compelling?  15 urgent minutes, or hours of meandering logorrhea?   I think you guys know the answer to that.  

So, when you present over the phone or in person, have a timer.

Ask agents questions.

Get them to talk.

Ask for a deal.

Get them info (like testimonials) in advance. 

Don't sit around brain vomiting every deal you have, program you have, that won't help anyone.  Do them a favor, kill your ego, and keep it brief.  That way you can schedule presentations 3 an hour...and get deals every time.

Oh, yeah.  If you want to really learn this, I'm teaching Realtor Presentations at 12:30 EST today.  To get the whole thing, the specific questions, and how to conduct over the phone (OTP) presentations that get deals for July? 

All you gotta do is join me.   Any program signup gets you in, and the $799 package = 15 months + a free flip cam for recording your progress (and your testimonials).  Oh, yeah. and I do a 'double your money back,' deal.  If you do the homework, which is 1 hour a week, and don't gain closings?  You get double your money back.

See you soon.

Have fun, survive and thrive.

Referral Marketing - The Power of a Referral Mindset

A crucial element in any successful referral program is the Referral Mindset. Learn how to harness the power of a strong referral mindset.

For more information conctact Bill at info@referralcoach.com or visit his website www.referralcoach.com

Have You Mailed Your Fourth of July Cards?

A New Post By The Mortgage Cicerone
A Guide for Mortgage Professionals
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If you haven't, get off your arse and do it now, right away!

When I initially tell mortgage and real estate professionals this, they usually look at me sideways, scratch their head and politely ask, why in the world would or should I send out 4th of July Day cards?

The answer...because you want to be different (in a good way)!

The real problem is 95% of the mortgage originators are BORING and COPY what everyone else is doing!

You want people to remember you! You want to stand-out from the rest of the crowd! You want to present your message at a time and place when people can and will take notice. To do that, you need to think differently than most other people in business.

Heck, I even suggest sending Arbor Day cards too!

Some facts to consider;

• The average family receives anywhere from 10 to 22 Christmas cards
• The average business receives 21 to 42 cards.

The plain and simple fact is, your card probably won't even make it to its rightfully esteemed place...the card display on the family mantle. With that in mind, if your card is competing with Uncle Frank and Grandma for attention and space, guess who's going to lose?

Think about it, how many Fourth of July Day cards did you receive last year? If you're anything like me, probably none, zilch, zero. And, this is what I'm talking about. Here's the perfect opportunity to make a statement and have people take notice of you and your business. Send Labor Day or Home Purchase Anniversary Day cards to your customers, prospects, and contacts instead of the same old traditional year ending Christmas/New Year card.

I even send out Valentine Day cards telling my clients I love and honor the fact they have entrusted the management of their mortgage to me.

Sometimes being different is a good thing.

Are You Ready for the Abundance?

Bill Cates discussed what you need to be ready to open your life to the abundance that awaits you! Don't miss this compelling interview of Bill on Maryland Public Television.

Referral Marketing - Planting Seeds

One simple phrase can improve your referral marketing almost immediately. Learn this and a few other techniques that will boost your referral program NOW!