means that industry suppliers of technology will be more willing to negotiate prices for heretofore unaffordable software programs to boost efficiency, improve customer service, and expand market reach. While larger competitors are laying off employees, closing offices and slashing marketing budgets in efforts to satisfy public shareholders, the dinosaurs of the industry are focusing on how to roll back change to return to the status quo, even as they struggle to adapt to new rules and the changing climate.
the elements of a value proposition to a potential buyer. The brand conveys a marketing message, literally and subliminally, to viewers, and should be consistent in every detail and channel where it appears. The name and logo of your organization, the pictures and copy of your advertising and marketing materials, and the location of your office—as well as the appearance, demeanor, and attitude of your employees—should be scrutinized to ensure conformity with the image you seek to present. According to a May 2013 poll by the Institute of Politics at Harvard, Wall Street was considered less trustworthy than almost every federal and state gov-
ernment, surpassing only the media. Bankers consistently rate below average in trustworthiness and likeability among professions. On the other hand, small, locallyowned businesses are preferred almost universally by consumers to large, national entities. Your message should emphasize your local or regional roots—a down-home, friendly neighborhood business—versus the remote, cold, bureaucratic image of the national mortgage bankers.
tunity to grab significant market share from bigger competitors is unprecedented—the attention of the behemoths focused on Washington and survival, the availability of revolutionary technology at reasonable prices, and the access to multiple marketing channels at low cost are unlikely to repeated when the market stabilizes. The future of the mortgage business is being written today, and regional and local mortgage brokers will be its authors. Now is your time to act.
Final thoughts
Mike Lewis is a retired business executive and personal finance columnist. He may be reached by e-mail at mlewis@moneycrashers.com.
The competitive environment of the mortgage banking industry has been turned on its head. The present oppor-
Institute a customerfocused strategy
Create a reliable brand emphasizing a local or regional presence Despite the overuse of the term, the importance of “branding” cannot be overlooked. A successful brand strategy communicates instantly and viscerally
n Idaho Mortgage Professional Magazine n SEPTEMBER 2013
l Elimination: Stop doing unnecessary tasks that add costs, but do not add value to the customer. l Automation: Much of the form-filling, filing, printing and copying tasks accompanying a mortgage submittal, approval, closing and funding has been automated in recent years. Look for and invest in affordable software that eliminates mistakes, improves communication, and cut costs. l Upgrading: Prioritize, reorganize, and combine tasks that cannot be eliminated or automated. Upgrade your personnel, selecting the best of the thousands who will be released by the big national firms. Invest in training, and incentivize your staff by spreading the wealth.
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NationalMortgageProfessional.com
To capitalize on the opportunity at hand, it is essential to understand your value proposition—in other words, why should a customer buy from you versus your competitor? In most cases, the rates and the mortgage terms you offer are similar, if not identical, to your competitor. As a consequence, you must make the process more convenient, fast, and understandable, and easier for the customer to complete without having to charge a premium for your enhanced value. Breaking down the mortgage process into its various elements— understanding who is responsible, what the desired outcome is, and how the work is performed—will allow to you to improve each element and the process as a whole in the following ways: