Silly Mistakes #3: Being a “One-Night-Stand Loan Officer” By Brian Sacks Ok, if that title didn’t grab you, you must be asleep at the wheel, which is clearly a huge mistake. It’s also a huge mistake to fall into the trap of being a “OneNight-Stand Loan Officer.” This, the third dumbest mistake that loan officers can make, is easily avoided though, with just a little bit of conscious effort. Read on to learn how to avoid becoming a “One-Night-Stand Loan Officer” and instead learn how to run a successful origination business.
“Dumbest” Mistake# 3: Who is the easiest person to sell a mortgage loan to? Obviously, that would be someone who already knows, trusts, and likes you. But these folks are few and far between. Because, let’s face it, even someone who knows and trusts you only buys a house every five to seven years in a normal market, and when rates go up very few of them are going to refinance. That puts you in the position of constantly looking for new business. But what if your clients could do the selling for you? Everyone you have done a loan for has a family, friends, coworkers, and neighbors. Think of the potential for new business you could realize if you had them all talking about you and referring your services? There are many ways to communicate with all of the people you know. You could do an online e-mail newsletter or a written monthly newsletter; you could (gasp!) call them once a month; you could send them personal e-mails. In fact, not only can you do this, but you must, as I’m about to share a very scary statistic with you For every month that goes by without contacting a former client, you lose 10% of your influence with them. After about ten months, clients aren’t even likely to remember your name. This is, of course, a shame since there are so many effective yet inexpensive ways to stay in touch with them. And by staying in touch with them, you can therefore remind them to refer you to others. But don’t forget all of the other sources of easy repeat business. Take 9
BrokerBanker | Volume 126, 2010
REALTORS®, for example. One of the keys to my success was having a stable of REALTORS® who consistently sent me new business. I know what you’re thinking, “Brian, I’d rather have a root canal without anesthesia then deal with some of the nasty REALTORS® out there.” News flash! The majority of REALTORS® are anything but nasty. In fact, they’re hardworking, just like you, and eager to earn new business, just like you. Consider this for a minute. When a REALTOR® gives you a deal, they are really giving you their hard earned commission check and hoping you don’t screw it up. When you look at it from that perspective, it makes sense when they call you concerned, doesn’t it? Let them know what’s happening on their files. Call them back. Do what you say you are going to do and everything will be just fine. Even though the market has turned really tough, homes are still selling and you must proactively go after and earn your fair share of their business. Remember, you can’t be a “OneNight-Stand Loan Officer.” That means you can’t do one deal for a client or a REALTOR®, never contact them again, and expect to stay afloat. You need to work hard to earn the business of a handful of successful REALTORS®, and you need to be in regular contact with each and every client you’ve ever worked with. In doing so, you’ll solidify your success for many years to come. Don’t forget to do the same with other potential referral partners like insurance agents, financial planners, accountants, and attorneys. The same rules apply for them. Make sure you are regularly staying in touch with them and diligently helping them build their business through sending referrals. This, I guarantee, will prevent you from earning the unfortunate reputation of being a “One-Night-Stand Loan Officer.” Brian Sacks is the CEO of www.loanofficerformula.com. He has been an industry expert for over 24 years, closing over 6000 loans totaling
1 BILLION Dollars. Brian has trained thousands of originators and
company owners in North America, sharing his “FORMULA” for success that will allow you to close LESS loans, Make More Money and Have a Life REGARDLESS OF MARKET CONDITIONS.