Originating Mortgage Loans

Every week I come across interviews and articles from top producers across the country. This morning it hit me! I should provide links to these resources immediately so you can get it straight from the horse's mouth.

The link provided below is an interview with Matt Elerding, a top producer with Chase Home Mortgage in Vancouver, WA.

2006 Origination Volume: $75 million
2006 Average Loan Amount: $190,000

Software: ACT
Referral Source Mix: 60% past client referrals, 40% other

Link to Interview

Is the customer always right...no matter what?

My first years in the mortgage business, I believed the answer was emphatically yes. After all, that's what my business professors taught me in college. However, after a few years of dealing with more than a few difficult customers, I seriously began re-thinking the customer service mantra "the customer is always right."

Have you ever had a customer who was impossible to please? No matter what you did, nothing made them happy? I have and below are a few other facts I realized:

• They were typically my lowest profit loans (if they closed at all)
• Allocated three to five times more time/effort/stress on them (at the detriment of my loyal clients)
• Never referred me future business
• I didn't like them
• Shopped you to the very end
• No customer loyalty

No matter how you sliced it, those customers DID NOT excite me. Nor, could I see building a strong business model allocating my limited resources towards them.

We are fortunate the mortgage business is an industry that helps people. One of my greatest satisfactions is knowing I make a difference in my clients lives. However, like most individuals, I also work to earn a living.

It boils down to one simple question: As a loan originator, would you rather work with people who are loyal, profitable and refer you business or with those that are not and make your life difficult?

Duh, that is easy for even me to figure out!

Does this mean we ignore the customer and treat them badly? No way...they are, after all, the reason we are still in business. However, it does mean we place limits on what we will tolerate and whom we work with.

When I fully understood and embraced this concept, my career took off and so did my earnings. I remember the first time I released an extremely difficult client. I simply stood up, stuck out my hand for a handshake and said; "When we first met, I promised I would be honest with you. It's very evident you are not happy with the services and rates I can provide. Based upon that, I believe it would be in your best interest if you worked with another mortgage professional that can better meet your needs."

What is nice is many people will actually apologize after you tell them this and others will leave, both which are fine.

Remember, you do not have to work with everyone, nor should you. Create a target customer profile. Then target only those customers that fit your profile. Do not try to appease everyone. They will still get mad, and you will lose out in the end. This goes for customers, Realtors, title reps, lenders, and every other vendor in your life. If the relationship is not pleasant, find a way to fix it quick or end it. Life is too short and blood pressure rises too easily to deal with unpleasant people.

As an exercise, start going through your past loan files and identify the individuals whom were the most difficult to work with. I bet you will find you:

• Earned the lowest amount per hour.
• Spent more time on their files, on average, for less money.

Note: The time spent with difficult clients, you could have been better serving your good clients (turning them into loyal clients), marketing, networking, being with your family or doing something you enjoy.

"The best time to have planted a tree is twenty years ago, the next best time is now!"

Chinese Proverb

We have all heard the old adage; "If you fail to plan, you are planning to fail." While most originators agree with this statement, how many truly follow through and build a business plan?

January, 2007 is almost over and if you have failed to complete your plan, now is the best time to get started!

Tim Braheem, CEO of LoanToolBox has recorded a great interview regarding "Mortgage Planning for Mortgage Professionals." Tim has a fantastic ability to articulate mortgage issues and solutions. Please take the time to listen to this valuable interview:

Mortgage Planning for Mortgage Professionals

by: Jay Conners

Business cards and greeting cards almost go hand in hand when being used for marketing and business purposes. With a few exceptions. One is bigger than the other, and needs a postage stamp in order to get to it's desired location, as opposed to the business card which is handed directly to a person or dropped into a fish bowl in the hopes of winning an office party.

Here are a few tips on how to use the business card and greeting card as a sales and marketing tool.

The Business Card

This tip is not just about what you can do with your business cards, it's about what you can do with other peoples business cards once you receive them.

A business card is normally exchanged before, during, or after a conversation you have with a person. The next time someone hands you a business card, try to remember something positive about the conversation you had, perhaps something personal the person might have said.

Than write it down on the business card so the next time you call them or see them, you can bring it up again.

I once had a business relationship with a person who is now a friend of mine. We met at a business card exchange, as we stood talking over our coffee and donuts, I mentioned how I loved boston creme donuts. Without my knowing, he wrote that down on the business card I gave him, and every time he and I got together, he made sure to bring along boston creme donuts. It wasn't until later that he told me his secret.

People are impressed with things you remember about them, it makes them feel that the conversation the two of you had was important to you, and it will give you credibility.

This is a great way to strengthen your business relationships in order to obtain referrals.

The Greeting Card

In this day and age of the internet, we seem to have lost the personal touch we once had with one another.

Most of this personal touch has been replaced with e-mails, e-cards, fax machines, and cell phones.

Don't get me wrong. I'm all for progress.

That being said, don't ever underestimate the power of a hand written note or card, it speaks volumes and means a lot to people.

Have you ever heard of someone deleting a Hallmark?

Keep a Rolodex or tickler file handy of all your customers upcoming birthdays, anniversary's, and special occasions. Send them a card with a hand-written message on the inside, they will love the fact that you remembered them at a time that is important to them.

The same goes for holidays, and don't forget Arbor day.

When you send the card leave the business card out, don't give the impression that this is a sales call, at times like these it is important for your customer to understand that they are not just a statistic in your data base.

Also, keep your eye's and ear's open just incase your customer looses a loved one or a pet. Send them a sympathy card. They will appreciate the fact that you have compassion.

The business card and greeting card are two effective ways to build and strengthen the relationships you have with your customers, which will ultimately result in more business for you.

About The Author

Jay Conners has more than fifteen years of experience in the banking and Mortgage Industry. He is the owner of http://www.jconners.com/, a mortgage resource site, he is also the owner of http://www.callprospect.com/, a mortgage lead company.

conn1229@yahoo.com

Just read a mortgage originator blog that had a great idea for Open Houses. While reading the article, I would also add soft drinks and some inexpensive hot dogs...bet that would garner additional interest? Enjoy the article:

Turning Lemonade into Mortgage Leads

Happy Fundings

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