During a recent conversation, a manager discussed how his company was handling an underperforming originator. The lender’s solution was to take away the individual’s draw and benefits but compensate the salesperson for any loans brought in. The manager felt that this approach was a great way to reduce the lender’s costs and address the problem […]
The Invisible Killer of Mortgage Sales Groups Read More »
In my opinion, placing an originator in a bank or credit union branch office is a sucker bet. For those unfamiliar with the gambling term, it is a wager in which the expected return is lower than the wager. An example of a sucker bet is the offer of insurance in blackjack. Why is the
The Branch Originator Sucker Bet Read More »
The number one issue every manager and originator is discussing today is how to generate more referral sources and thus close more loans. The research clearly shows that originators with the most referral sources do the most volume. I think this is no surprise to most salespeople and managers. The question is why do so
Growing Referral Sources Starts with a Connection Strategy Read More »
In my consulting practice, I often hear managers complain about originators who are not calling leads when they are assigned to them. The interesting thing is that the amount of leads is not the problem for sales organizations, but the failure to work and close the leads that are available. As I’ve discussed in previous
The Number One Question Underperformers Must Ask Themselves Read More »
Last week, a National Mortgage News article discussed the results of Fannie Mae’s Q1 2018 Mortgage Lender Sentiment Survey which measures lender’s profit-margin outlook. According to NMN, mortgage lenders had the highest level of pessimism recorded since 2014. This is not surprising given the current challenges our industry faces: the decline of the refinance market,
The Four Pillars of Mortgage Sales Success Read More »
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
When Managers Make Poor People Decisions Because of the Sunk Costs Fallacy Read More »
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
Two Sales Metrics that Really Matter in Origination Read More »
When I ask executives about the role of the loan officer, many answer that the originator’s job is to take the loan application and match the customer with the right product that the consumer qualifies for. There is no question that this is an important function but in my view, originators must do more to
Do Your Originators Sell Supply or Create Demand? Read More »
At the MBA conference in Denver this year, Stratmor and the MBA released their most recent performance data on originators: 40% of the industry’s originators generate 80% of the volume and the remaining 60% are once again unproductive. While this may or may not be surprising to some people (I certainly see it first hand
Retail Apocalypse: 60% of LOs are Not Productive! Read More »
In my experience, mortgage lenders fall into two categories when it comes to hiring originators. For one group, hiring is all about enticing producers to join their company without setting any criteria beyond a W-2 and loan reports that show the individual can self-source loans. These lenders view the sales force as hired hands
The $1 Million Decision Read More »
