During a recent sales audit for a mortgage lender, I asked originators if they marketed to previous customers. They responded that their company sent out birthday and anniversary cards automatically through a CRM system. Everyone felt this effort was enough to generate referrals. Many of the producers also said they didn’t have time to do […]
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, […]
Not a day passes when I don’t hear from a manager about how difficult mortgage origination has become. Whether it is battling to recruit top producers or pricing wars regarding interest rates and closing fees, there is no question that competition is fierce. As one sales executive said to me recently, “it is hand-to-hand combat […]
Last week I spoke at a conference where the agenda was dominated by technology presentations. This is fairly typical of many industry events. My topic regarding sales personnel and the future sales organization was the next to last session. After my presentation, one attendee lamented, “I don’t know why there is such emphasis on […]
Anyone who has ever managed in mortgage banking has had a discussion with their supervisor regarding employees who are not working out as planned. The conversation usually goes something like “If we invest more time and money into this underperforming salesperson, he or she will turnaround and improve.” The problem with this approach is that […]
Recently, a mortgage executive told me that an originator had asked to use his personal marketing budget to buy leads from third-party vendors. Fortunately, the executive refused the originator’s request. Unfortunately, these requests are becoming more frequent and are indicative of the poor quality of originators at many mortgage lenders today. Before the internet, I […]
This year, a projected 20% reduction in volume is forcing many sales organizations to address difficult issues in order to improve sales results. Traditionally, mortgage firms have attempted to increase production by hiring more originators. Others are counting on technology to make the difference in reducing costs and generating more business. In my opinion, the […]
This year, prospecting for new referral sources or brokers has been one of the most frequently requested topics in my sales training sessions. There is no question that lack of referral sources is directly linked to low volume for originators. Having a handful of referral partners is no longer enough to succeed in the current […]
Recent numbers from the MBA and Stratmor show that the average production per originator has fallen dramatically from the refinance era to a new low of 2.5 units a month. Bank originators have a slightly higher average primarily because they receive leads from the company. These numbers are a wake-up call to lenders that improvements […]