Known by many as the founder of modern management, Peter Drucker was one of the most influential thinkers in the business world. Much of what he wrote over the course of 39 books remains relevant in today’s marketplace. Drucker was a genius and reading his work inspired me to open my own consulting business. Drucker […]
Today, many sales training firms advise originators to adopt a “teaching” sales model as a way to win with a more knowledgeable customer. While this seems like a logical, reasonable approach, the sales process can be anything but. Therein likes the rub. Let me explain. Originators who operate as teachers believe that if they simply […]
Recently, I discussed how today’s selling environment requires originators to form a tribe of followers because they are providing important information to improve their customer’s lives. Selling has moved from pushing products to being a valued educator and leader. Smart originators recognize that hawking mortgage products doesn’t create trust; what does is sharing personal passions, […]
Last week at the MBA Annual Convention, the mood was somber. The discussions centered on the industry’s current problems: high costs, tight margins, underperforming originators and negative profitability. Certainly, a dismal litany. It also seems that the grim reality of rising interest rates has thrown everyone for a loop. The number one strategy by most […]
A recent National Mortgage News article, “Ripple Effects,” observed that a new era in mortgage banking has emerged and that conventional wisdom no longer applies. While everyone can cite today’s challenges such as rising interest rates and low housing inventory, it seems management teams are still relying on old strategies that are no longer effective […]
One of the most common complaints that I hear from managers is how Quicken is soliciting borrowers before the lender’s sales staff is able to do so. By reaching out first, Quicken is able to get loans from bank customers before the bank that owns the account! Lenders are frustrated and upset that their […]
A few short years ago, there was no hotter car company than Tesla who was touted as the next great thing in automobile manufacturing. Recently, the company has fallen on difficult times. In Barron’s last week, Bob Lutz, a former Vice Chairman of General Motors, commented on Tesla’s current situation: “It’s an automobile company that […]
The hottest question at the executive level is “When will lenders change their compensation packages for originators?” I’ve heard managers say that if someone will be the first to do it, they will follow but the reality is that no one wants to take the lead on this issue. If compensation metrics don’t change, more […]
In a recent Business Insider article, Mark Abadi discussed the difference between amateurs and experts in Scrabble. He said inexperienced players don’t utilize the option to exchange tiles for new ones, thus losing the opportunity to improve future moves which may have higher point values. In essence, Scrabble experts would rather play the long game […]
It seems like every day I receive emails from lenders that want to hire producing branch managers. The job descriptions are usually similar and require the branch manager to be responsible for P&L, lead management and on-time closings; working with processing and underwriting; recruiting and retaining branch sales and support staff; and generating their own […]