Last week, I wrote about the alarming performance of today’s originators in mortgage banking. The post hit home for many managers who admitted that 2.5 units per month per originator is not enough for their companies to make a profit. In fact, some even lamented that they have originators who are not even producing at this […]
The Death of Sacred Cows in Sales Read More »
Every manager knows the truism that “what gets measured gets managed.” In the past, analyzing performance metrics with any accuracy was difficult at best. To determine whether an originator was good or not, managers have traditionally relied on month-end loan volume as an indicator. Today, with CRMs and other sales technologies, senior management can
Leading Indicators Provide Real-time Feedback for Success Read More »
For managers, there is no challenge more frustrating than working with originators who have sales talent but are inconsistent producers. In my consulting practice, I often hear senior managers share their personal torment regarding these individuals. Managers feel these producers could be great and have been known to spend countless hours attempting to develop their
How to Manage Inconsistent Originators Read More »
Not too long ago, producers who originated a couple loans a month could make a decent living in mortgage banking. During the subprime years, it wasn’t unusual for originators to work part-time and generate substantial income due to high payouts. Those days have been over for a while but the industry still has many originators
The Rise and Fall of the Two-Unit-a-Month LO Read More »
A recent analysis of loan officer performance for a mid-Atlantic state in 2016 revealed shockingly low production numbers. According to the data, the state had approximately 9,000 originators but only 300 originators produced $10 million in annual volume. In the past, $10 million in annual volume was not considered exemplary performance but in a refinance-driven
The Hard Reality of Low Production Numbers Read More »
In the current marketplace, companies are recruiting like crazy in an attempt to improve sales performance. The problem is that hiring top producers is difficult because they are not easily pried loose from a competitor. As a result, companies end up recruiting and hiring middle-of-the-road originators, hoping that CRM systems and marketing will transform
The Impact of Hiring Average Originators Read More »
At the recent annual MBA conference in Boston, Stratmor shared statistics on a shocking mortgage banking trend: sales productivity has dropped from 10.0 closed loans per retail LO in 2003 to 4.8 closed loans per retail LO in 2015. This is a dramatic decrease that has continued for years. Many managers will point to increased
Poor Sales Productivity in the Era of Distraction Read More »
Next week, the annual MBA conference starts in Boston. Approximately 5,000 industry members are expected to attend. The conference has an impressive roster of speakers —from Fox News anchor Megyn Kelly to NASA Commander Captain Mark Kelly and his brother — sharing their inspiring stories on how to run a mortgage banking firm in today’s
The Topic Not Often Discussed: Viability of Variable Compensation Read More »
Conventional wisdom in mortgage banking contends that it is a smart bet to hire experienced originators because they will be able to ramp up quickly; are already trained; and have a book of business. Hiring inexperienced salespeople who need to be trained is viewed as a more risky investment. While this strategy may hold true
Why Conventional Wisdom on Experienced LOs is Wrong Read More »
Back in December, the MBA reported that net profit for lenders had declined to $1,238 per loan in the third quarter of 2015 with the cost to originate roughly at $7,100 per loan. The first quarter of this year looks to be even worse with the implementation of TRID regulations. I have even heard
Time to Retool LO Job Descriptions Read More »
