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Understanding The Bailout Plan (Part Eight) - Systemic Risk to Market

A New Post By The Mortgage Cicerone
A Guide for Mortgage Professionals
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How banks are inter-connected and what happens when one bank fails.

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Beat the Funk

A New Post by Rhonda Porter
Mortgage Broker/Correspondent Lender.
Read other posts by Rhonda Porter.

This is a re-post from a very small blog where I write to the real estate agents I work with.   This was originally posted on June 20, 2008 (hence the sad reference to the Mariners)...since then Seattle has lost their basketball team too...but we won't talk about Seattle's pro-sports teams or lack thereof.

I'm noticing more loan originators and real estate agents wading knee deep in funk while trying to make a living in this challenging market.  I found myself thinking of this post while on a morning walk with my old pug, Orson...and thought I'd share it with you.  On a bright now, we've had beautiful weather this month to make up for our lack of sun we had this past Spring (yesterday was 60 degrees in Seattle).

Beat the Funk

The M's and our lack of sunshine this Spring (which is officially over as of today!) are enough to have you feeling some blues, not to mention a challenging time in our industries and economy.  Here are a few tips on how I shake it off when I feel a funk starting to creep in (in no particular order):

• Hop on that treadmill for 15 minutes first thing in the morning--no treadmill?  Then get outside--even better!

• Clean your home office...there's a reason I don't have a photo of mine up as an example!

• Make the most of small victories--promote them.  You can do this by writing a short blog post or a real quick "Twitter".  I just did a twitter post the other day that said "Talon Escrow just called me to let me know how happy my client was with my services."

• Contact past clients.   Our past clients need us now more than ever.  Even if you just contacting them to see if they have any questions about their current home value or to put them in touch with a mortgage professional (ah-hem) to help review their mortgage. 

• Associate with positive people.  Misery loves company and it's real easy in this type of market to wallow in the gloom--GET AWAY FROM IT.  Make a conscience effort to spend more time with proactive positive people. 

• "I have time to take on a few clients".  I can't remember which motavational speaker I've heard use this quote, but now could be the time for you to use it.  Maybe while you're contacting your past clients!

• Take your vitamins--don't neglect your health.

• Do a good deed.

• Promote that you're not "unemployed"...use Twitter and blog posts to write about recent transactions (so what if they were a month or two ago).   

What do you do if feel the funk starting to make it's way towards you?  I'd love to hear your thoughts!

Are Your Activities Killing or Driving Your Business?

A New Post By The Mortgage Cicerone
A Guide for Mortgage Professionals.
Read other posts by The Mortgage Cicerone.

"You can have everything in life you want if you'll just help enough other people to get what they want!"  --  Zig Ziglar

The response received from last years post "Is Your Attitude Killing or Driving Your Business," has been both positive and overwhelming. After reading the many emails received regarding this post, I knew a follow-up post was needed; a sequel of sorts.

While it's evident attitude plays a critical role in your real estate or mortgage career, the next question is;

What are you going to do once you have an attitude that is congruent with success?

The answer lies in focusing on the activities that provide the greatest return on your investment (ROI). Interestingly enough, the two most valuable assets a person possesses are their:

1. REPUTATION and
2. TIME

How you allocate your assets is going to be the key determinant in your long term sustainability and success.

Most people are surprised when I don't include money, knowledge, technology, loan programs, formal education or connections as one of the two most important assets. Yet, after careful consideration and thought, I've found along with the appropriate success attitude, a persons personal/professional reputation and time are the most important factors in leveraging a successful real estate or mortgage origination career.

What do reputation and time management have to do with focusing on activities?

Everything, if you are planning on building a sustainable and enriching career as either a mortgage planner or Realtor. Additionally, your reputation and time constraints must be paramount when developing the action steps in your business plan.

In the post "Developing Your Mortgage Business Plan," Mike Baker provides further insight into both the mechanics and importance of developing a business plan. In it, he goes on to explain:

"Any vision can be achieved if it's thought out in advance, and broken down into bite-sized pieces.   You must have a vision first, and then you can break it down into workable parts.  Those workable parts will then be the map that guides you toward your goals."

The bite-sized pieces described above are the actions necessary to fulfill the vision!

Every super-star mortgage planner I've ever met has a written business plan.  They know what goals they are focused on and how they plan on accomplishing them.

Now ask yourself the following questions. Have you:

1. Selected the referral source targets you plan to focus on?
2. Written down the activities you plan to do each day/week/month or quarter that provide the greatest ROI in both accomplishing your goals?
3. Selected goals that are in alignment with both ethical and professional standards (in addition, does it pass the gut check)?

It's extremely important to remember your mortgage plan is a living document and once created you'll need to review it often to make sure you're on target to meet your activity goals and production expectations.

Remember, if you do not go back and accomplish each of these you have no right to advertise. Save your money and your energy and start building your business the right way. It is the ONLY WAY off the proverbial roller coaster and treadmill.

To close, the true litmus test that verifies whether or not your actions are focused on your clients needs is accomplished by asking yourself a simple question - What percentage of your business is referral based?

If you're doing it right, your percentage of referral business will increase as your business develops. If you take any new originator (less than one year in the business), they may have a range of 30% to 50% referral business compared to the superstar originators who have between 80% to 100% referral business. If you're not spending thousands of dollars per month advertising and marketing your loan programs such as sub-prime lenders who have an inside/in-house phone-sales force, then your focus on developing relationships with these referral based clients is critical to your success. Even if you're a sub-prime/in-house loan officer, developing a high-touch campaign and keeping in touch with past clients could double or triple your business with referrals.

"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

A New Post By The Mortgage Cicerone
A Guide for Mortgage Professionals.
Read other posts by The Mortgage Cicerone.

"You can have everything in life you want if you'll just help enough other people to get what they want!"  --  Zig Ziglar

The response received from last years post "Is Your Attitude Killing or Driving Your Business," has been both positive and overwhelming. After reading the many emails received regarding this post, I knew a follow-up post was needed; a sequel of sorts.

While it's evident attitude plays a critical role in your real estate or mortgage career, the next question is;

What are you going to do once you have an attitude that is congruent with success?

The answer lies in focusing on the activities that provide the greatest return on your investment (ROI). Interestingly enough, the two most valuable assets a person possesses are their:

1. REPUTATION and
2. TIME

How you allocate your assets is going to be the key determinant in your long term sustainability and success.

Most people are surprised when I don't include money, knowledge, technology, loan programs, formal education or connections as one of the two most important assets. Yet, after careful consideration and thought, I've found along with the appropriate success attitude, a persons personal/professional reputation and time are the most important factors in leveraging a successful real estate or mortgage origination career.

What do reputation and time management have to do with focusing on activities?

Everything, if you are planning on building a sustainable and enriching career as either a mortgage planner or Realtor. Additionally, your reputation and time constraints must be paramount when developing the action steps in your business plan.

In the post "Developing Your Mortgage Business Plan," Mike Baker provides further insight into both the mechanics and importance of developing a business plan. In it, he goes on to explain:

"Any vision can be achieved if it's thought out in advance, and broken down into bite-sized pieces.   You must have a vision first, and then you can break it down into workable parts.  Those workable parts will then be the map that guides you toward your goals."

The bite-sized pieces described above are the actions necessary to fulfill the vision!

Every super-star mortgage planner I've ever met has a written business plan.  They know what goals they are focused on and how they plan on accomplishing them.

Now ask yourself the following questions. Have you:

1. Selected the referral source targets you plan to focus on?
2. Written down the activities you plan to do each day/week/month or quarter that provide the greatest ROI in both accomplishing your goals?
3. Selected goals that are in alignment with both ethical and professional standards (in addition, does it pass the gut check)?

It's extremely important to remember your mortgage plan is a living document and once created you'll need to review it often to make sure you're on target to meet your activity goals and production expectations.

Remember, if you do not go back and accomplish each of these you have no right to advertise. Save your money and your energy and start building your business the right way. It is the ONLY WAY off the proverbial roller coaster and treadmill.

To close, the true litmus test that verifies whether or not your actions are focused on your clients needs is accomplished by asking yourself a simple question - What percentage of your business is referral based?

If you're doing it right, your percentage of referral business will increase as your business develops. If you take any new originator (less than one year in the business), they may have a range of 30% to 50% referral business compared to the superstar originators who have between 80% to 100% referral business. If you're not spending thousands of dollars per month advertising and marketing your loan programs such as sub-prime lenders who have an inside/in-house phone-sales force, then your focus on developing relationships with these referral based clients is critical to your success. Even if you're a sub-prime/in-house loan officer, developing a high-touch campaign and keeping in touch with past clients could double or triple your business with referrals.

"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

Mortgage Market Tip: Challenging Times Call for Learners

A New Post By Bill Rice
Marketing & Lead Generation Expert
Read other posts by Bill Rice

"In time of change, learners inherit the earth while the learned find themselves beautifully equipped to deal with a world that no longer exists." -Eric Hoffer, 1902-1983

Have the Courage to Learn

It would be hard to find a person willing to quibble over the premise that we are in times of change. Eric Hoffer, a prolific American social writer, understood there was great opportunity in change. Yet, he argues, the opportunity can only be realized with the confidence and self-esteem to ask questions and learn about the change that surrounds you.

The Paradigm Trap

Often, especially in the case of experienced mortgage brokers, we get trapped into paradigms, methods, and frameworks. Granted there is empirical data to support they worked. But, will they work now? This should be the abiding question in your daily routine.

Look here for various case studies in the perils of paradigm traps.

We Are In Change

We are in the midst of an unprecedented market conditions: gas prices are up, mortgage companies are imploding daily, housing prices are plummeting, people are more and broader connected than ever, the Internet gives the average person more data than Einstein had available in a lifetime, millions of consumer inquiries are generated daily on the Internet and 60% are never answered. What does all this mean?

What Should You Do?

It means things have certainly changed. It means old paradigms may not hold. It means you and your company better be learning. The next time you think about your business, ask a few questions:

• What have you learned about your market in the last 3-6 months?
• How will this business plan leverage that learning?
• Do you have a system for learning?
• What is it? And, how do you synthesize it?

In times of change, have the courage to learn. What did you learn today? What will you do with it?

Understanding The Bailout Plan (Part Seven) - Bank Goes Into Bankruptcy

A New Post By The Mortgage Cicerone
A Guide for Mortgage Professionals
Read other posts by The Mortgage Cicerone

What happens when there is no equity infusion and the bank goes in to bankruptcy.

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Are You Referable?

"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

"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

"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

Understanding The Bailout Plan (Part Six) - Getting an Equity Infusion

A New Post By The Mortgage Cicerone
A Guide for Mortgage Professionals
Read other posts by The Mortgage Cicerone

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Mortgage Pricing Report- October 28, 2008

A New Post By The Mortgage Cicerone.
A Guide for Mortgage Professionals.
Read other posts by The Mortgage Cicerone.

If a family member asked my advice and they were scheduled to close on a mortgage purchase or refinance in the time periods noted below, I would recommend...

1-7 Days	8-20 Days	21-45 Days	46 Days Plus
Locking	Locking	Floating	Floating

Check MBS pricing here.

Other sites providing market commentary:

• Daily Market Commentary
• Daily Market Commentary- WesCorp
• Mortgage Rate Commentary - Moving.Com
• Weekly Economic Commentary - Dr. Raymond James |

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Increase Your Loyalty by Increasing Your Value

A New Post By The Mortgage Cicerone
A Guide for Mortgage Professionals.
Read other posts by The Mortgage Cicerone.

We all want to increase our value, yet how does one do it?

I believe it lies with FOCUS and putting the needs of others before yours.

By focusing on the business you want, the people you want to connect with and the behaviors/actions needed to succeed, you are drastically increasing your value and loyalty.

There is a saying:

"If you chase two rabbits, both will escape."

What this means is, you have limited time and resources and by trying to be everything to everyone and not focusing your activities, you become like a rudderless ship in the ocean.

The problem with most loan originators is the marketplace does not see them as special, rather most are viewed as commodities. Actually the real problem is, deep down most originators put their needs first (before their clients) while also viewing themselves as commodities to both their clients and referral partners.

Todd Duncan teaches the need to focus on three things:

1. The right priorities
2. The right relationships
3. Both should be supported by the right purpose

He also teaches the purpose that carries the highest level of influence is:

"Be a giver and not a taker"

One of the greatest ways to change you personal influence is to change your thought process from TAKING to GIVING!

When you know:

• What your doing and the purpose behind what your doing is because you want to make a difference (and)
• You want to give something to a client or referral partner they are not getting from any of your competitors

You are increasing your loyalty by increasing your value.

A New Post By The Mortgage Cicerone
A Guide for Mortgage Professionals.
Read other posts by The Mortgage Cicerone.

We all want to increase our value, yet how does one do it?

I believe it lies with FOCUS and putting the needs of others before yours.

By focusing on the business you want, the people you want to connect with and the behaviors/actions needed to succeed, you are drastically increasing your value and loyalty.

There is a saying:

"If you chase two rabbits, both will escape."

What this means is, you have limited time and resources and by trying to be everything to everyone and not focusing your activities, you become like a rudderless ship in the ocean.

The problem with most loan originators is the marketplace does not see them as special, rather most are viewed as commodities. Actually the real problem is, deep down most originators put their needs first (before their clients) while also viewing themselves as commodities to both their clients and referral partners.

Todd Duncan teaches the need to focus on three things:

1. The right priorities
2. The right relationships
3. Both should be supported by the right purpose

He also teaches the purpose that carries the highest level of influence is:

"Be a giver and not a taker"

One of the greatest ways to change you personal influence is to change your thought process from TAKING to GIVING!

When you know:

• What your doing and the purpose behind what your doing is because you want to make a difference (and)
• You want to give something to a client or referral partner they are not getting from any of your competitors

You are increasing your loyalty by increasing your value.

Understanding The Bailout Plan (Part Five) - How Banks Liquidate Assets

A New Post By The Mortgage Cicerone
A Guide for Mortgage Professionals
Read other posts by The Mortgage Cicerone

How banks liquidate assets to pay off debt that comes due.

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