The Mortgage Cicerone - The Loan Attraction Coach - Con

Generate Loans By Adopting Orphans

The market is shifting and it's much harder getting loans the way we have in the past. That's why it's important to adapt to what the market is giving you.

Dave Savage at Mortgage Coach has provided another excellent way of generating more loans.

In Dave's post, he had this to say:

"Every year, whether you realize it or not, there are customers in your office who become orphans…they get lost among the numerous files because their loan officer has left the company and the connection has been severed, never to be communicated with again. Eventually, when they have a new mortgage need, they take it elsewhere because they no longer have a relationship with anyone in your firm.

But you can capture those relationships. Eric Bohn did, and now he’s generating 13 to 15 new loans a month with this strategy! Bohn, with Shore Mortgage of Birmingham, Michigan, generates new mortgages under management by “adopting” the loans of existing clients from loan officers who have left the company. This guy has only been in the business for 2-1/2 years and he did over $52 million in loans in 2006!"

Go and read the rest of Dave's post and take action immediately!

Attention All Salespeople- Listen to the Symptoms

'Doc...I got this cough.'
'Is it a light cough?'
'No Doc it is a deep hacking cough like this....KUUH...KUUH'

'Okay, anything else?'
'Yeah, I got the shivers and this red bumpy rash.'
'Oh, well you have got the jungle hemoglobin neuro-cardio virus. Take these pills for two weeks and you will be as good as new.'

Isn't it amazing how a doctor can listen to the symptoms and then accurately diagnose what is ailing you? Well, if you are in sales you should be able to do the same. Listen to what your customers are telling you and it will tell you where you are going wrong in your presentation.

I recently heard a speaker say, 'Yeah, I didn't sell but one package of CDs – the owner stood up and said he was going to buy one package of CDs for the office library and everyone could share.' The speaker then shook his head as if there was nothing he could have done to sell the group. I never heard that speaker's sales pitch; however, I know exactly what he did wrong by listening to the symptoms. In his sales pitch, he sold the value of his products, which he should have done – however, he did not pitch the value of building your own personal development library. If he would have closed this way, the owner would have never of stood up and said he would buy one for the group to share because he would have been contradicting the value of your own personal library that was just discussed.

I didn't have to hear his sales pitch; listening to his symptoms, the diagnosis was easy.

What about you? What are the objections you are receiving? Listen closely because they are the symptoms that will diagnose your problem:

Those Old Guys and Gals Can Teach You A Thing or Two!

Today Jeff Brown wrote a masterful piece on BloodhoundBlog. While he writes it from a Realtor perspective, the principles also apply to mortgage origination. If you are new to the business and your business is down and your feelings get hurt easily, you might cringe reading Jeff's post, however the lessons he shares are invaluable. If you are a successful veteran, you will be shaking your head in agreement and smiling as you read the post.

If you are serious about your career, click the hyperlink below and read Jeff's sage advice.

Principles of Flight and Real Estate — Getting Off the Ground

Referability

"Call people back immediately. One of the biggest challenges most salespeople have is that they don't want to pick up messages and call people back. Return calls now. It's the only way you can build up a solid clientele." -- Tom Hopkins

"Don't concentrate on making a lot of money, but rather on becoming the type of person people want to do business with." -- Patricia Fripp

"Does he or she know you, like you, and trust you? Does he want to see you succeed? Does she want to help you find new business? If so, then you have yourself a 'Personal Walking Ambassador.'" -- Bob Burg

"Profit in business comes from repeat customers, customers that boast about your project or service, and that bring friends with them." -- W. Edwards Deming

"Getting quality referrals from your clients and centers of influence is not rocket science.  It’s just a matter of learning a system you can trust and then implementing that system."  --  Dennis Geist

"No matter how artful or talented you are, you must follow a specific methodology to be successful in expecting and getting quality referrals." -- Scott Kramnick

"To some, a referral is merely a name. However, a referral is actually much more than this! A referral is the authorization to use the influence attached to that name." -- Barry Graham Monro

Putting A Dollar Value On Your Blogging Activities - Integrating It Into Your Marketing Mix

If I had a dollar for each time I was asked if blogging will help you close more loans or sell more houses...I think you get where I'm going.

Getting to the point, I just listened to one of the best podcasts I have ever heard concerning this subject. In it, Dan Green masterfully articulates how to blog profitably and most importantly, provides critical information on how to integrate and focus all your marketing activities.

One of the things I like about Dan Green is the way he treats his mortgage practice as a professional business. He methodically and purposely engages in activities that maximize both his clients mortgage experience while intelligently building a sustainable long-term mortgage origination career.

You owe it to yourself to take the time to listen to Dan's very sage advice. Click the hyperlink below and you will thank your stars you did!

Monetizing Your Blog

Simple Acts of Kindness and Caring

One day, when I was a freshman in high school, I saw a kid from my class was walking home from school.

His name was Kyle. It looked like he was carrying all of his books. I thought to myself, "Why would anyone bring home all his books on a Friday? He must really be a nerd."

I had quite a weekend planned (parties and a football game with my friends tomorrow afternoon), so I shrugged my shoulders and went on. As I was walking, I saw a bunch of kids running toward him. They ran at him, knocking all his books out of his arms and tripping him so he landed in the dirt. His glasses went flying, and I saw them land in the grass about ten feet from him.

He looked up and I saw this terrible sadness in his eyes and my heart went out to him. So, I jogged over to him as he crawled around looking for his glasses, and I saw a tear in his eye. As I handed him his glasses, I said, "Those guys are jerks. They really should get lives."He looked at me and said, "Hey thanks!"

There was a big smile on his face. It was one of those smiles that showed real gratitude. I helped him pick up his books, and asked him where he lived. As it turned out, he lived near me, so I asked him why I had never seen him before. He said he had gone to private school before now.

I would have never hung out with a private school kid before. We talked all the way home, and I carried some of his books. He turned out to be a pretty cool kid.

I asked him if he wanted to play a little football with my friends and he said yes.

We hung out all weekend and the more I got to know Kyle, the more I liked him, and my friends thought the same of him. Monday morning came, and there was Kyle with the huge stack of books again.

I stopped him and said, "Boy, you are gonna really build some serious muscles with this pile of books everyday!" He just laughed and handed me half the books.

Over the next four years, Kyle and I became best friends.

When we were seniors we began to think about college. Kyle decided on Georgetown and I was going to Duke.I knew that we would always be friends, that the miles would never be a problem.

He was going to be a doctor and I was going for business on a football scholarship.

Kyle was valedictorian of our class. I teased him all the time about being a nerd.

As such, he had to prepare a speech for graduation. I was so glad it wasn't me having to get up there and speak Graduation day.

On the big day, I saw Kyle. He looked great. He was one of those guys that really found himself during high school. He filled out and actually looked pretty cool in glasses.He had more dates than I had and all the girls loved him. Boy, sometimes I was jealous!

Today was one of those days.

I could see that he was nervous about his speech. So, I smacked him on the back and said, "Hey, big guy, you'll be great!" He looked at me with one of those looks (the really grateful one) and smiled. "Thanks," he said.

As he started his speech, he cleared his throat, and began "Graduation is a time to thank those who helped you make it through those tough years. Your parents, your teachers, your siblings, maybe a coach...but mostly your friends...

I am here to tell all of you that being a friend to someone is the best gift you can give them.

I am going to tell you a story"

I just looked at my friend with disbelief as he told the story of the first day we met. He had planned to kill himself over the weekend. He talked of how he had cleaned out his locker so his Mom wouldn't have to do it later and was carrying his stuff home. He looked hard at me and gave me a little smile.

"Thankfully, I was saved. My friend saved me from doing the unspeakable."

I heard the gasp go through the crowd as this handsome, popular boy told us all about his weakest moment. I saw his Mom and dad looking at me and smiling that same grateful smile.

Not until that moment did I realize it's depth.

Never underestimate the power of your actions. With one small gesture you can change a person's life. For better or for worse. God puts us all in each others lives to impact one another in some way. Look for good in others.

You have two choices:

1) Either you can take this story to heart and act upon this concept (or)

2) Ignore it and act like it didn't touch your heart.

Hopefully you will pick choice number 1 and make a difference in the lives of others both professionally and personally.

Hat Tip: My brother Lawrence passed this story on to me.

Mortgage Industry Shake-Up - Be Thankful

It's a fact...the mortgage and real estate industry is going through a major shake-up (or shake-down). Droves are leaving the industry because either they are not making enough money or have been laid off. Fortunately, a good byproduct of many individuals in the first category are those that gave our industry a black eye. Unfortunately, there are many support people in the second category who are honest and hard workers who lost their positions due to their company closing down or staff reductions.

What This Means?

During the fall of 1994 (funny how things never change), a loan officer friend called and informed me he was giving-up and throwing in the towel.  He said he was burnt-out, tired of chasing Realtors, fed up with rising rates, processors, underwriters with bad attitudes, and dealing with customers that play games.  He had had enough!

When asked what lead to his decision, he explained he had been in the industry for about three years and had subsequently learned everything he knew about the mortgage business through trial and error (mostly errors). Additionally, with the refinance market fading fast he was not closing many loans, business had became a lot tougher, more cut-throat and he just couldn't compete with the in-house Realtor/builder loan officers (sound familiar?).

When asked why he had gotten into the mortgage business, he said he did it because he had heard there was "big money to be made" and figured with a few loans under his belt, he would soon be making more money than ever before.  Moreover, he had always had a passing interest in the financial aspect of "real estate."  He quickly found-out how complex and difficult the realities of this business can be.

Truth be said; I had very little sympathy for him.  By chasing the "big money" and choosing to work for a mortgage brokerage (which I had advised him against) that offered high commission splits, yet provided absolutely no training whatsoever, it's no wonder he didn't succeed after the refinance business faded (and boy did it fade in 1994).  Bottom line - he had entered the business for the wrong reason--to chase a golden ticket...not because he was passionate and wanted to help people.

Yes, this business is difficult, but it's a relatively simple (notice I didn't say easy) job once you know what to do. On every deal, by doing the right things upfront and asking the right questions, you know the end result--the loan closes.  How you get there is where the challenge lies, and overcoming the challenge is why certain people thrive in this business!  They love the challenge and the rewards that come every day.  It's exciting!

Over the past few years, mortgage ranks have swollen from 180,000 to over 300,000 (2006) in the industry.  That's a whole lot of people who have only known the golden days of the refi and building boom.  They knew how to be order-takers, not professional mortgage originators.

Originators that have been around 10 years or more know what it means to ORIGINATE a loan.  It means:

1. Marketing yourself aggressively
2. Building a solid and professional reputation (and)
3. Generating a steady stream of referral

They've seen high rates and low rates and know this too will pass.  With rates trending down again, they'll be well prepared to take advantage of the next interest cycle.  Veteran producers aren't giving-up.  Neither should you.  Decide now if you have the determination to stick-it out.  Do you have a passion for what you do?

Be thankful for the shake-up because it means a whole lot of unskilled and unethical loan officers will go the way of the saber tooth tiger and stop ruining the reputation of the industry.  Best of all, it means a whole lot more business for you!

Next BIG question we as an industry have to solve for is:

What are we going to do to prevent the abuses that took place over the previous years?

Are You Mining the “Acres of Diamonds” in Your Database?

While reading an article by David Epps, it reminded me it was time to get back on my annual soapbox message.

Loan Originators, do you have an automated system that consistently keeps your name and services in front of your clients and motivates them to:

• Come back to YOU for their refinance or purchase needs?
• Refer their friends and family to YOU for their refinance or purchase needs

No Loan Originator has a more valuable asset than their customer base 

Customers who have done business with you or your company represent potential gold mines. Unfortunately, most mortgage companies and originators focus their marketing activities on winning new customers. Instead, they should focus on client retention and not leave their treasured past customers unloved and available for the competition to come in and snatch them away.

Acres of Diamonds- Your customer list

Many originators have recognized the need to have a customer or client list. However, very few know how to truly cultivate their customer list into a constant source of new business. Think about the fact that every customer you have has friends and family that can use your service, either now or sometime in the future. On top of that, many of your customers will come back into the mortgage market for a new real estate purchase, to refinance their present mortgage or for a home equity loan. Plus, banks and credit unions have another huge advantage in that they have additional services that they can cross sell.

The National Association of Realtors stated that 27 percent to 32 percent of homeowners will purchase another property within first two to three years after their initial purchase. Additionally, the Mortgage Bankers Association found a homebuyer will average 8.3 first mortgages (purchase & refinance) over the next twenty years.

That is a huge percentage of your customers coming back into the market in a relatively short period of time.

You Have Control of Your Leads

Another obvious advantage to the "customer for life" concept is the control it gives you. Rather than having to rely on the real estate agent base, the mortgage originator is now the front-runner. Most every loan officer would love the opportunity to be able to call his or her real estate agents and tell them that they have a past customer who is back in the real estate market, and ask if the agent would like to work on that customer's next real estate transaction.

Turn satisfied customers into loyal customers and don't let them get away

Are You a True Team Player?

Mortgage sales professionals are responsible for their own success.  While this is very true, there are several people who must also do their part to make you a success.  These people may include your manager, your loan processor, your underwriters, your closer, your receptionist, your appraiser, your title company, and so on.  These are the key people on your "sales team".

I often see and hear about mortgage salespeople being "arrogant" and "self-centered" and caring only about number one.  Is that how your team sees you?  Is that how you want them to see you?  I hope not!  So, what are you doing to make sure that doesn't happen?

They say that this is a people business.  That adage applies to more than your customers...it applies to your team as well.  How you act toward and around your team says a lot about who you are and how much you value them.  If you are interested in building a stronger team, consider a few of these great ideas from other successful salespeople:

• Touch base with them regularly.  Call, visit, or talk to your team...a lot!  Don't just contact them when you need something (or you have a complaint).
• Remember important days like birthdays, anniversaries, holidays, and so on.  Make your relationship personal. 
• Say "thank you" often.  People notice and appreciate the compliment.
• Speaking of compliments, generously give verbal compliments like: "You really know your business" and "I admire your dedication" or "You are a great resources to have."
• Surprise them with small gifts like a lunch certificate, a free car wash coupon, or a Starbucks gift card.  It's not the amount that counts, it's the thought.
• Make their job easier by doing your job better.  Don't dump problems and poorly constructed loans on their laps to fix.  Make working with you a pleasure.

Your team will be as good and as loyal to you as you are to them.  If you want them to have your back, you must also have their back and respect. Never forget that.  Show ‘em some love!

Marketing Idea - Birthday Cards for Kids

Came across this unique marketing idea by Ryan Steinert. As you know from my previous posts, keeping in front of your clients is vital to your long term success in the mortgage business. Even more important is making those contact points memorable.

Click on link below to read full story:

Birthday Cards for Kids