In a recent Inman article, a Keller Williams executive discussed the challenges facing the company in 2021, noting that like other large legacy firms, “while we have a profitable business, it takes time and effort to adapt to some of the industry’s big changes such as compressing commissions and increased competition pushing agent splits
The Hidden Challenges in 2021 for Mortgage Lenders Read More »
Once LOs reach a certain level of success, they will inevitably face the decision of whether to form a team or operate as an individual contributor in their lender’s organization. What success looks like for each originator is different. For some, it is generating over $20 million in annual loan volume. For others, it
The Hardest Career Decision a Loan Officer Will Ever Make Read More »
A senior executive at an independent mortgage firm recently confided how hard it is to interest branch managers in taking executive-level positions. What he hears most frequently from branch managers is, “I wouldn’t want your job! Too many headaches!” I have heard similar remarks from other executives who believe employees are no longer interested
Is Anyone Interested in Executive Management Anymore? Read More »
Last week, Warner Bros. announced that all of its 2021 movie releases —17 in all – will be available on HBO Max (a streaming service) on the same day they debut in movie theatres. This is a major break from previous practices that had given movie theatres a competitive advantage by delaying a film’s
Mortgage Origination and the Digital Revolution Read More »
In my 25+ years in mortgage banking, one thing that has remained constant is that most lenders recruit sales professionals who are experienced in mortgage origination instead of hiring rookies. These companies hire experienced “C” players rather than potential “A” producers who need to be trained and developed. There are two main beliefs that
Are You Evaluating Sales Candidates for Willingness to Learn? Read More »
Last week, Quicken shared its third quarter 2020 results with analysts, reporting record volume. While this is not surprising considering our recent historically low interest rates, Quicken’s numbers are truly extraordinary. The company is closing $1 billion in mortgage loans a day! This is impressive by any standard but there were a few revelations
Quicken and its 25% Market Share Goal Read More »
Recently, Zillow announced that it was hiring its own employees to be real estate agents. While Redfin pioneered this approach, other firms such as Opendoor and Offerpad are also hiring agents for their new brokerage services. Mike DelPrete, a well-known real estate tech strategist, observed, “All the largest real estate disruptors are moving in
Zillow’s Move to Salaried Real Estate Agents Read More »
As we approach the end of the year, it is a good time to reflect on strategic challenges facing mortgage sales groups. While the housing finance industry has had a terrific year in terms of volume, it is clear that the consumer’s home loan buying journey has forever changed. In my view, if lenders
What Mortgage Bankers Can Learn from Netflix Read More »
Last week, I spoke to a leading sales group in mortgage banking on what it will take for lenders and originators to succeed in 2025. I realize that it is hard to focus on the future when the present is so hectic in mortgage origination but, 2025 is only 1,500 days from now. It will
Four Keys to Working Smarter Read More »
The 100% commission pay structure has long been considered the gold standard in mortgage lending as the best way to motivate originators to generate more volume. Implicit in a 100% commission pay structure is that a large reward is available for sales professionals who do well. Lenders assume that originators who fail to perform will
The Flaws of 100% Commission Pay Plans Read More »
