Not too long ago, producers who originated a couple loans a month could make a decent living in mortgage banking. During the subprime years, it wasn’t unusual for originators to work part-time and generate substantial income due to high payouts. Those days have been over for a while but the industry still has many originators […]
In Charles Duhigg’s great book, The Power of Habit, he recounts the story of Alcoa’s CEO Paul O’Neill who stood up before investors and declared that the company would focus its entire strategy on bringing workplace injuries to zero. The investors were stunned to say the least with his announcement. O’Neill did not discuss profits […]
One of the hottest topics in mortgage banking today is how to implement a great sales culture. While senior managers are talking about sales culture, not many understand what a great sales culture looks like or what is required to create one. Unfortunately, many managers mistakenly believe that a great culture is based on having […]
Recently, Ford Motor Company abruptly terminated its CEO, Mark Fields — a move that surprised many people in the financial sector. Apparently, the board of directors and chairman Bill Ford, Jr. believed that Fields had not done enough to put the company ahead of the curve regarding future technology in its industry, specifically in the […]
During my recent training session with regional managers, attendees discussed the fatal flaw of micromanaging and cited it as a primary reason originators leave. By letting top producers “do their own thing,” managers felt they were able to spend more time trying to get another loan out of underperformers. While many managers believe that it is […]
In Tom Friedman’s latest book “Thank You for Being Late: An Optimist’s Guide to Thriving in the Age of Accelerations,” he calls climate change a “black elephant” phenomenon. A black elephant is a cross between a black swan (a rare, low-probability, unanticipated event with enormous ramifications) and the elephant in the room (a problem that […]
Retail stores are closing in record numbers. According to a research report by brokerage firm Credit Suisse, it’s possible that more than 8,600 brick-and-mortar stores will close their doors by the end of 2017. Many well-known brands such as Macys, Sears and JC Penny are not doing well in today’s marketplace. By comparison, the Credit […]
As we move further into the second quarter of the year, it is a good time to reflect on changes needed to kick-start sales performance. Certainly, rising interest rates, changing regulations and new technology can seem overwhelming at times. While these external factors can pre-occupy originators and their managers, the truth is that change needs […]
It is no secret that top producers have long dominated loan production at mortgage companies. In previous blogs, I have discussed the fact that a minority of producers originate a majority of total volume at most mortgage firms. In the past, the top 20% of the sales force produced approximately 80% of the total volume […]
Too often, I see originators selling to every prospect in the same way. It might be that these originators were taught a sales method a long time ago and haven’t updated their skills or have simply become complacent in their selling techniques. Whatever the reason, originators who use a “one-size-fits-all” approach are making a fatal […]