For those unfamiliar with the Dunning-Kruger Effect (DKE), it is a psychological phenomenon where certain individuals have a cognitive bias that prompts them to over-estimate their abilities because they can’t grasp what they don’t know. In simple terms, these people think they are smarter than they really are. In mortgage banking, DKE individuals can be […]
Will the Dunning-Kruger Effect Take Down Mortgage Companies? Read More »
After speaking at a conference last week on hiring and recruiting, my general impression of the mood in mortgage banking is that it is subdued and apprehensive. Attendees raised concerns about a number of issues from coping with low revenue and volume to productivity challenges to selecting good originators. Most said that this year will
It’s Time to Make Customer Experience a Top Priority Read More »
I just watched the Oscar and BAFTA award-winning documentary “Free Solo” which follows Alex Honnold as he climbs Yosemite’s El Capitan, a 3,000-foot granite monolith, without ropes. This is an incredible story as Honnold becomes the first person ever to accomplish the feat. The film is breathtaking and gives viewers the feeling that you are
What “Free Solo” Can Teach Mortgage Originators Read More »
Last week, Macy’s and J.C. Penney announced plans to turn around poor performance for their respective businesses. This is not a new issue for either firm. Both former retail giants have been in a downward spiral for many years. Executive management changes and different strategic directions — from everyday low prices to mobile checkout stations
A Legacy of Bad Decisions and Mortgage Banking Read More »
In last week’s blog, I discussed the role of technology in mortgage banking and where the originator position is heading. I believe that in the not-too-distant future, artificial intelligence technology will be integral to the operational side of the business and will usurp functions that originators have traditionally performed. No longer will originators determine product
The Future Role of Originators is Micro-Influencing Read More »
One of the most talked about topics in mortgage banking is whether the industry will evolve into a self-service business. Many managers are speculating whether purchasing a home loan will become a fully automated, point-and-click business similar to booking an airline flight or obtaining concert tickets. A number of high-level executives believe that digital is
Is Self-Service the Future of Mortgage Banking? Read More »
Originators know that their database of closed transactions and referral sources represent a gold mine for future business. Obviously, people with whom you have already done business are easier to sell to than prospects you don’t know. This is not news. In fact, I would argue that originators who have the largest number of people
The Answer to “What Have You Done for Me Lately?” Read More »
Last week on David Lykken’s “Lykken on Lending” podcast, I discussed what it will take for originators and their lenders to succeed in 2019. During the program, a listener asked what to do with employees who refuse to learn new selling techniques. At a time when many companies and originators are struggling, I get this
What Separates Successful Originators from Others: Being a Permanent Beta Read More »
It seems that every time production gets more difficult, originators and their managers request training on how to increase their sales results. While it is reasonable to think that originators simply need to work harder to generate better results, this often isn’t enough to correct a sales slump. In my experience, the real solution is
The Fallacy of Doing More in Origination Read More »
It seems like every mortgage expert is projecting 2019 to be very difficult for our industry with estimates of flat or negative sales results. What is interesting to me is that there are always originators who succeed in a tougher marketplace while others do not. Are these sales professionals lucky or is it something more?
The Secret to Winning in a Tougher Mortgage Origination Marketplace Read More »
