The Mortgage Cicerone - The Loan Attraction Coach - Con

What Does Your Photo Say About You?

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

Originally posted July 29, 2008.

Many of us, including yours truly, use a personal photo for our marketing.   Perhaps you have one on your business card, website or are using as  part of your email signature.   Have you ever thought what message you are sending to potential clients?   Does your image say "I'm professional" or "I'm sexy or cool"?  A few years ago, I hired a marketing professional who specialized in marketing for real estate agents.   He is the one who had the idea of taking the photo of "the head" (this is what my husband affectionately calls my current photo that I use "professionally").

I'll pick on me as an example.  Here is my one of my old photos (taken maybe 3-6 months prior to the one I currently use)...I had another one taken at the same time in more of a "suit" but I can't seem to find it.  I really don't think that it says "I'm sexy"...I thought it said "I'm friendly, business casual and easy to talk to...I'll help you with your mortgage".   My husband (then fiance) thought it said, "I'm a little flirty--look no wedding ring."  It's kind of funny the different thoughts and judgments people will make from a photograph.  Yes, we are judged and a consumer may select you or not based on a photo on your business card.  It's a first impression.

Here is what my marketing adviser recommended:

• He had me remove my photo from my business card completely.  Why have someone select you  based on how you look?   If they want to know more about you, they can (and should) visit your website/blog and ask the referrer what they like about you.
• Created a new photo (pictured right) that was zoomed in on my face.  It doesn't show that if I have long or short hair (I had actually just donated my hair when that photo was taken)--it's just my big head.  His idea (and mine) is that the photo is very "straight forward"...there is no fluff.   There was no soft lenses used and he did want me to wear my glasses.  I stopped there.  For one, I typically don't wear them.
• We did create a logo too but honestly, I don't think we need logo's or slogans to be successful Mortgage Professionals.

At one point, I did have my photo as part of my email signature, I have since removed that as well in the interest of keeping the size of my emails smaller for me and my clients.

I'm not saying in anyway that my photo is perfect--it's not.  Far from it.  I'm probably due for a new photo.  I had several  people last week at Inman Connect in San Francisco say that they didn't recognize me at all and/or that they think I look younger than my photo (I'll hang onto those words!) which was taken about 6 years ago.  This is what my marketing person was attempting to create with my photo: maturity, professionalism, honesty and knowledge.   However,  I may have to update this photo in order to maintain congruency.  I do think it's important that if you do use a photo in marketing (blog, web, fliers, etc.) that it should really look like you.   You are probably better off having no photo at all in your marketing than something that is not representing you effectively or one that sends out a message you are not intending.

What boils down to is do you really want to work with someone who selects a lender based on what they look like?   Photos evoke emotion and judgment.   Just who (and what) are you trying to attract?

A Must Follow on Twitter and Facebook

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

I was very surprised to discover AllRegs on Twitter!  If you want quick updates (140 characters or less) of what's going on in the mortgage industry, this is a great resource:  http://twitter.com/AllRegs 

While you're at it, check out FHA's profile on Facebook.

It's great to see this use of social media to spread relevant information to our industry.   Are there other examples we should be aware of?

Protecting Yourself from Double Applications

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

I'm seeing a disturbing trend with borrowers: making loan applications with more than one mortgage originator.  Here's a comment from a recent post I wrote at Rain City Guide about Unhonored Rate Locks where a consumer justifies this behaivor:

"In an environment where the consumers have continually taken it on the chin and have been burned by lenders changing terms at the last minute, asking for more money down, and looking for any reason to charge a higher interest rate, why should the consumer not protect themselves from this by running double, if not triple applications?"

To begin with, we must educate consumers who may not realize the potential hazard they may be causing the mortgage company if they suffer higher lock fall-outs, including less competitive rates or worse, termination of the relationship with the lender.  Locking in rates and selecting a mortgage professional has become far too casual.  This is an actual quote from a consumer's email to me:

"To me getting a loan is more like shopping for a car: you go to one dealer and get a quote. You go to another dealer and get another quote (he may even take you for a test ride). If the first dealer calls you back and tells you that she can get you a lower quote, I bet you’d go with the lower quote."

After a few emails back and forth, he asked:

"Can you lock me when rates are at 4.375%. One note: I am also working with another mortgage broker. I'm planning to go with whoever locks me in the rate first."

I have to admit I'm grateful for his honesty.  I think most consumers who do "double aps" would not think of being this upfront.  I politely declined.  Here's my response:

"I don't do "double applications" or locks.  I do appreciate your honesty and being upfront with me.  However, lenders are relying on loan originators to follow through with lock commitments.  If I and the other originator both locked at the same time, then one would be burned with the lender.  I don't encourage nor will I participate in this kind of "strategy".  I commit my time to clients who are also in turn committed to working with me. Good luck with your refinance...."

I have started collecting an upfront lock deposit which is credited towards closing costs and I won't participate in a "dueling" loan officer situation. 

What are you doing to curb double applications? 

See You in Seattle at RE Bar Camp

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

I am really looking forward to RE Bar Camp in Seattle!  It's less than a month away (February 13, 2009) and takes place in my back yard.  Last summer I participated at the RE Bar Camp in San Francisco and I can't say enough about it.  They best way I can describe my experience there is that it's a gathering of real estate professionals who are eager to learn and share their knowledge.  It's an "un-convention".

I especially enjoyed the break out session with my fellow mortgage professionals and I hope we can do that at the Seattle event too. 

Zillow has been kind enough to donate space at their office downtown at 999-3rd Avenue, Floor 41.  For more info and (very important) to RSVP, please click here. 

I'm going--and I hope to see you there too! 

 

I Just Fired a Client...Happy New Year!

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

This market is creating a great opportunity for mortgage originators with record low rates (if the media would just quit talking about 4.5%).  This morning I received this email from a homeowner that I've been providing rate quotes (Good Faith Estimates) to:

"Can you lock me when rates hit 4.375%. One note: I am also working with another mortgage broker. I'm planning to go with whoever locks me in the rate first."

Here's my response: 

"I don't do "double applications" or locks.  I do appreciate your honesty and being upfront with me.  However, lenders are relying on loan originators to follow through with lock commitments.  If I and the other originator both locked at the same time, then one of us would "burn" an investor.  I do not encourage nor will I participate in this kind of "strategy".

I commit my time to clients who are in turn committed to working with me.

Good luck with your refinance.  Please let me know if you have any questions."

It may be tempting to just tell the consumer "Thanks!  I'll lock you in the moment rates hit X%".  But what are we doing to our industry?  Banks do depend on lenders honoring our lock commitments...you don't need me to lecture you about that. 

I do hope during 2009, we originators who have survived 2008, elevate ourselves to not be so "dog eat dog".   Let's educate consumers that we do not operate like mortgage-whores or the advertisements on the boob tube saying that four lenders will drool all over them to offer the "best deal". 

Refuse to do "double applications" and "double locks". 

And have a Happy New Year! 

Why Rhonda Porter Is Having Her Best Year Ever - Yes I'm Talking About 2008

I'm happy to report, 2008 has been a heck of a funding and income year for Rhonda Porter. Fortunately, I have had several opportunities to delve into her secrets of thriving in an economy and market many are faltering in.

What's Rhonda's secret?

The good news - it's NO secret...just a lot of good old fashioned common sense, honesty and hard work!

Notice I noted honesty as one of Rhonda's success strategies? More specifically, I mean being honest with yourself about the questions she asks herself (below).

Now, ask yourself these questions and be honest!

• Do you do what you say your going to do BEFORE you say you are going to do it?
• Do you take a complete application, ask your clients the right questions and get the appropriate information/documentation upfront?
• Do you know your program underwriting guidelines?
• Do your underwriters think you know your underwriting guidelines?
• Do your processors respect you?
• Do the processors in your office refer their family and friends to YOU?
• Do the title/escrow reps think highly of you?
• Do you always put your clients financing needs first or do you put them in a loan that provides more income and less work on your part?
• Do you go ahead and do a loan for a client even though you know it is not the best thing for them?
• Do you make it to ALL your appointments on time?
• Do you make yourself available when it's convenient for your clients?
• Do you return ALL your phone calls?
• Do you return all your emails?
• Do you do the things you least want to do first?
• Do you complete your "things-to-do" list for the next day before going to sleep?
• Do you prioritize your tasks and work on them in their order of importance?
• Do you make it easy for your clients to contact you?
• Do you surf the web when you still have calls or tasks to complete?
• Do you AVERAGE more than 30 minutes of television a day?
• Do you complain about not having enough business?
• Do you keep in contact with all your clients?
• Do you have all your clients, prospects and referral partners in a database (ACT, etc...)?
• Do you mine your customer database?
• Do you make customer acquisition a priority
• Do you have systems in place to optimize your clients mortgage experience?
• Do you implement systems for consistent action and results?
• Do your clients always know where they stand and what they need to close their loan?
• Do you withhold information from your clients and let them know "the real story" towards the end of the transaction?
• Do you read at least one book a month on business development, communication, ethics or the mortgage industry?
• Do your clients want do do business with you again?
• Do your clients refer people to you?
• Do you have a compelling reason for someone to do business with you?
• Do you get out there in a BIG way?
• Do your referral partners and clients think of you as an expert?
• Do your clients think you are ethical?
• Do you work a niche or niches?
• DO YOU HAVE ENOUGH BUSINESS "RIGHT NOW"

Now ask yourself again;

"How hard do you make it to do business with your customers or referral partners?"

I'm happy to report, 2008 has been a heck of a funding and income year for Rhonda Porter. Fortunately, I have had several opportunities to delve into her secrets of thriving in an economy and market many are faltering in.

What's Rhonda's secret?

The good news - it's NO secret...just a lot of good old fashioned common sense, honesty and hard work!

Notice I noted honesty as one of Rhonda's success strategies? More specifically, I mean being honest with yourself about the questions she asks herself (below).

Now, ask yourself these questions and be honest!

• Do you do what you say your going to do BEFORE you say you are going to do it?
• Do you take a complete application, ask your clients the right questions and get the appropriate information/documentation upfront?
• Do you know your program underwriting guidelines?
• Do your underwriters think you know your underwriting guidelines?
• Do your processors respect you?
• Do the processors in your office refer their family and friends to YOU?
• Do the title/escrow reps think highly of you?
• Do you always put your clients financing needs first or do you put them in a loan that provides more income and less work on your part?
• Do you go ahead and do a loan for a client even though you know it is not the best thing for them?
• Do you make it to ALL your appointments on time?
• Do you make yourself available when it's convenient for your clients?
• Do you return ALL your phone calls?
• Do you return all your emails?
• Do you do the things you least want to do first?
• Do you complete your "things-to-do" list for the next day before going to sleep?
• Do you prioritize your tasks and work on them in their order of importance?
• Do you make it easy for your clients to contact you?
• Do you surf the web when you still have calls or tasks to complete?
• Do you AVERAGE more than 30 minutes of television a day?
• Do you complain about not having enough business?
• Do you keep in contact with all your clients?
• Do you have all your clients, prospects and referral partners in a database (ACT, etc...)?
• Do you mine your customer database?
• Do you make customer acquisition a priority
• Do you have systems in place to optimize your clients mortgage experience?
• Do you implement systems for consistent action and results?
• Do your clients always know where they stand and what they need to close their loan?
• Do you withhold information from your clients and let them know "the real story" towards the end of the transaction?
• Do you read at least one book a month on business development, communication, ethics or the mortgage industry?
• Do your clients want do do business with you again?
• Do your clients refer people to you?
• Do you have a compelling reason for someone to do business with you?
• Do you get out there in a BIG way?
• Do your referral partners and clients think of you as an expert?
• Do your clients think you are ethical?
• Do you work a niche or niches?
• DO YOU HAVE ENOUGH BUSINESS "RIGHT NOW"

Now ask yourself again;

"How hard do you make it to do business with your customers or referral partners?"

Quoting rates on the world wide web? Be sure to include the APR.

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

I have a significant disdain for APR.  I believe it's a faulty tool (as it is easily manipulated) for consumers to use when selecting a mortgage originator.  However, if you're quoting mortgage interest rates on your blog, website or like I do, on Twitter, you MUST include APR.  It doesn't matter how big of a pain in the rear it is to calculate the cost, it's the law.  It's Truth in Lending Act basics.

TILA defines advertising as "a commercial message in any medium that promotes, directly or indirectly, a credit transaction".   When Mortgage Professionals have rates on the internet, it's undeniable that we are fishing for business.  It's advertising.  There's no sugar coating this. 

I've heard of Mortgage Professionals stating that their rate quotes are intended for professional use only...good luck with that.  Is it not our intent that our competitive rates land in a consumers hands?  The end result is for the consumer.

It seems to take me FOREVER to do my Friday rate quotes at Rain City Guide and Mortgage Porter...especially if there's been a rate change...because of calculating APR with each rate I'm quoting (and shopping the sources we work with).  If it were up to me, I'd just say  X rate at Y lender closing costs (Section 800 of the former GFE/HUD)--that would be a much more accurate way for consumers to judge rate and costs...but it's not our choice.  We have APR and TILA.

In this day and age of the loan originator witch hunt, do you want to open yourself to this type of risk?   Take the extra time, don't be lazy, CYA on the WWW by including your APR.

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!

Another Piece of Junk...Mail

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

I actually thought this piece of mail was legit...until we opened it.  This piece of junk was threatening of a possible fine and imprisonment OR BOTH if anyone interfered with it's delivery.

Once you open the mailer, you quickly see that it's from a mortgage company that is so desperate, it must utilize trickery to try to obtain new business.

We have good news about your loan originally funded at:

MORTGAGE MASTER SERVICE CORP

After reviewing your account history we are happy to inform you that you have been preapproved for a new mortgage at a lower monthly payment.  This offer makes you eligible for a modified mortgage at a lower monthly payment regardless of credit, mortgage payment history, or other financial hardships.  If you are in an adjustable loan, this offer makes you eligible to convert to our fixed product line.

There is no rate in this promotion...however it actually states that we've been preapproved for a new mortgage with a lower payment.  What a bunch of baloney.

When I receive a piece of junk mail such as this, I forward it to the Department of Financial Intuitions in Olympia.  I hope you'll do the same too.  Misleading advertising in mortgages must stop.  I encourage you to forward your mortgage junk mail (Washington State only) to:

Enforcement Unit, Division of Consumer Service

DFI, P.O. Box 41200, Olympia, WA 98504

Please don't ever select your Mortgage Professional by something you receive in the mail or hear on the radio.  And remember, rates that are advertised in radio and newspaper print are not current.  Rates change constantly (especially these days).

Originally posted at The Mortgage Porter.

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Columbus Day This Monday - Not A Recsission Day

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

Just a quick reminder, Monday, October 13, 2008 is Columbus Day.  Though many of us may be working, (including your local title and escrow companies), the post office will be closed.  This means Monday cannot be counted as a recsission day with refinances.

You, being the savvy mortgage originator you are, all ready know this!

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