coffee, tea or bank?
JUNE 2012
KANSAS MORTGAGE PROFESSIONAL MAGAZINE
NationalMortgageProfessional.com
38
continued from page 37
service—especially if those services are tics of the loan officer that will thrive in the local. Have you ever been asked if you organization. Again, this is not just bank verhave “local processing?” sus broker, but is a function of support and environment. For example, is yours a suit You. This is a benefit we often miss and and tie company with regular sales meetings can be the most important element of and sales reports required? Or, do the loan attracting and retaining candidates. officers work out of the home and are pretty They are coming to work for “you.” independent? Again, we tend to think of one What is your background, experience as a bank and another as a smaller mortgage and skill level? How have you helped company or broker—but there are excepthe careers of others in the past? What tions. You can see what type of individual type of manager and leader are you? might fit one environment and what type This is one area that makes you com- might fit the other environment. pletely different from everyone else. Another example might be a street loan officer versus one that services a real estate It is important for every manager to office from the inside. One can be much completely understand the benefits they more independent, while the other is tied have and the benefits they lack. This gives to and part of an office. One can do busithem the opportunity to improve their ben- ness with any one they would like while the efit packages where possible and to come other must service the real estate agents of up with what will call the “Unique selling that office. One is not a better job than the proposition” of the company. The goal is other. There are advantages of either situanot to have every benefit, but to understand tion. But success in these environments why your package is different from others require different skill sets and preferences. and how that makes you unique. If you are Here is the most important point: No the same as your competition, then the matter what the environment or benefits— recruitment task becomes much more diffi- a big bank, an independent net branch or a cult. If you feel your benefit package is lack- small broker—what a loan officer needs to ing, feel free to e-mail me at dave@hersh- do in order to succeed will not change. They mangroup.com with a description, and I must work hard and be a team player. will be happy to make some suggestions. Again, some of these benefits are tied to the Dave Hershman is a top author in the mortgage type of organization you work for and oth- industry with seven books published, as well as ers are completely independent. hundreds of articles. Dave has delivered hunThe other part of the equation is the dreds of keynote speeches, seminars and schools loan officer. In determining what type of for the industry as well. He may be reached by person to “recruit,” your benefit package e-mail at Dave@HershmanGroup.com or visit will give you a great idea of the characteris- OriginationPro.com.
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Taking Your Branch From Good to Great By John Cate the system and putting out You’ve been engaged in their fires? Does your partthe mortgage industry for time staff complain more many years. You’ve than they produce? Is your achieved some notable turnover rate rising? Many successes, but your busimanagers make the misness development has take of hanging on to low stalled. You may feel overproducers to fund a loan or whelmed by rapid changes two every other month. If in the industry, new reguthey amass enough of latory requirements and these employees, the fundjust the competition inhering will create enough revent in today’s economy. enue to pay the bills … so The question then “Creating a unique they think. This short-sightbecomes, “How can you, niche and ed viewpoint impedes creas a mortgage branch differentiation from ation of a successful manager, take your retail your competition branch by retaining inefoperation from good to will reap rewards in fective staff. great?” This article will areas beyond You should continually show how an analysis of customers and staff.” measure “loans per origisome fundamental business processes and structures will help nator” (LPO) and hold your staff accountyou achieve resounding success, both able to a minimum standard per quarter. in the industry as a whole and in your Use LPO as a benchmark to gauge the effilocal environment. Consider the follow- ciency of your operation. A high LPO coming six actions to affect positive change. pared to similar branch models signifies a well-run, professional organization. Set S.M.A.R.T goals for each of your 1. Analyze your business employees (Specific, Measurable, model Are you a purchase shop or refinance Attainable, Relevant, Time-Sensitive). They shop? It is difficult to excel at both. You will produce more and achieve greater job are better off specializing in one, satisfaction as a result. Conduct annual branding your branch accordingly and employment reviews with each employee. recruiting your staff with this focus in Make them thoughtful, timely and honest. mind. Too much time and energy is Consider terminating your lowest producing spent trying to teach loan officers to LO at least annually to establish your branch call on realtors for purchase referrals as a production-oriented shop and push all when their past experience was sitting employees to become more successful. “Thinning out the herd,” a time-proven at a desk waiting for phone calls from a sales strategy, works because mortgage refinance mailer. Become a specialist! Creating a unique niche and differen- customers prefer professional, successful tiation from your competition will reap LOs, and successful LOs want to work at a rewards in areas beyond customers and branch with other successful loan officers. staff. As you become an expert in both Pruning your staff helps to build branding the industry and in your chosen special- and reputation. If you want a best-in-class ty, you will find opportunities for public- branch, you must hire and retain best-inity in trade magazines, business events class staff. You must select quality procesand speaking engagements, and you can sors as well. It will become more difficult maintain your competitive edge through to recruit and retain the best LOs if you settle for a mediocre processor. continual learning.
3. Analyze your commission, bonus and Do you spend most of your time helping rate sheet pricing 2. Analyze your staffing model
the low producers get their loans through
Stay in the middle in your market so you