As LOs scramble to hit production goals in a challenging market, many lenders are searching for answers in all the wrong places. While adopting new technology or holding a big sales rally might seem like a logical next step, these options are not enough to generate loan demand long-term.
In my experience, the only way for lenders to achieve better sales results is to double down on training that makes sure LOs can execute sales fundamentals like prospecting, influencing and closing well.
Why it matters:
• According to the Mortgage Bankers Association’s (MBA) Annual Mortgage Bankers Performance Report, 2022 productivity dropped to an average 1.5 loans per LO a month – down from 2.5 loans per month in 2021. The report also found that total loan production expenses skyrocketed to $10,624 per loan in 2022 – up from $8,664 in 2021.
• Onboarding LOs usually consists of training on products and processes, not on sales training and development. If LOs already have a book of business, most managers falsely assume that they know how to sell. Our dismal industry average of less than 2 loans a month tells a very different story.
• Training LOs on prospecting and relationship-building skills needed to connect with borrowers and referral sources is a strategy that pays off in the long run IF managers are willing to hold their sales teams accountable for results.
For additional insights, check out this Mortgage Women magazine article by
Megan Marsh, owner, Keystone Mortgage Alliance: “Why Do Loan Officers Play Musical Chairs: Sales Training Makes Them Less Likely to Jump.”