Recently, I saw the Academy Award-nominated film The Big Short which was based on Michael Lewis’s book about the build-up of the housing and credit bubble that caused the mortgage industry’s collapse in the mid-2000s. This was a terrific movie that took on a difficult and complex topic. The film doesn’t paint a very pretty […]
Mortgage Banking’s Hot Hand Fallacy Read More »
Conventional wisdom is prevalent in the business world. As we all have seen and even experienced in corporate life, conventional wisdom assumes that old ideas always work and that these assumptions should not be challenged. While conventional wisdom may hold true in some circumstances, it does not hold true in changing situations. Eric Romero, Ph.D,
Why Conventional Wisdom isn’t Smart Anymore Read More »
A recent New York Times article discussed the virtual reality technology that Halstead, a leading real estate developer, has invested in to provide a realistic walk around its new building construction. Matthew J. Leone, senior vice president of digital marketing for Terra Holdings, Halstead’s parent company, noted, “We sell based on emotion and attaching that
Have We Reached the End of Open Houses? Read More »
Last week, there was no bigger story than the Powerball lottery and the first drawing to hit a jackpot of over $1 billion. Every media outlet asked people what they would do with a $1.3 billion payout. What is so attractive about an activity in which participants had a 1 in 292.2 million chance
What the Powerball Lottery Can Teach Managers Read More »
In a recent conversation, a retail manager mentioned that his company is paying originators 200 bps for production. I have heard high numbers before on comp plans, but this was an eyebrow –raiser. I asked, “Are they top producers?” He answered, “Not really, they produce $8 million in loans a year.” Why would a
Signs that Mortgage Lending Has Jumped the Shark Read More »
Hope your holiday was great! Last year certainly flew by. Now, 2016 is here and the market challenges are upon us. This is a good time to think about what it takes to be a successful manager in a volatile marketplace and what drives failure. For some insight we can look at the hottest
Three Management Fails that Can Get You Fired! Read More »
Who owns the customer? This question might sound simple but the answer is really the crux of winning in the information age. Of course, sales will say originators own the customers because they are the front-line interface with consumers and referral sources and deliver the quality of the customer’s experience. On the other hand,
How to Thrive in a Customer-Centric Economy Read More »
All is not well in the world of mortgage origination. Managers and executives know this. Even top originators will voice their concerns about the position over cocktails at conferences. It seems that the Emerald City may be fading. Some mortgage consultants will say that the ops side of mortgage companies is getting so much better
Why an Autonomous Originator Model Doesn’t Work Read More »
When I ask senior managers if they think their companies encourage retention of low performers, they respond, “No way! That would be crazy!” But, when I ask why so many branch managers are slow to fire underperformers or why we have so many originators doing less than 2 units a month, senior managers cite a
Why the Producing Manager Sales Model Needs to Change Read More »
In recent conversations with mortgage executives, it is clear that many are concerned about how out of whack compensation has gotten for originators today. One major accounting firm that has tracked compensation over the years has said point blank that two thirds of the cost to originate is originator compensation — not a sustainable rate
What the Cost-to-Originate Numbers Tell Us Read More »
