are the only important factors in deciding an employer. The true mortgage professional realizes that agreement of business philosophy, of how the company values and treats people—employees and customers alike—makes the difference between a short-term and long-term relationship. Finding the right cultural fit should be the overarching goal of the mortgage professional seeking a new future.
must partner with a mortgage banking company that has your similar core values and a platform that will create profitable activities and future opportunities for you as a branch owner. One that will, for example, offer competitive pricing and attractive splits so your loan originators will be happy financially. A good compensation package is equivalent to the right sails for the ship to ensure that you can recruit the best and grow your business.
Whether it’s a bank, a broker, an independent mortgage banker or a credit union, if you are seeking a retail origination platform to associate with, finding the right fit for you is the most important element mortgage professionals must consider for their future. The new compensation rules provide an opportunity for mortgage professionals to be more circumspect than in the past in choosing a lender to work for. Daniel H. Jacobs is president of ProLending Network, a division of Residential Finance Corporation. A recognized mortgage thought leader and entrepreneur, Daniel has a solid track record of building and growing companies that solve industry problems through a delicate combination of technology and systems implementation, smart infrastructure and fostering a culture of hard work, loyalty, service, dedication and pride. Prior to joining Residential Finance Corporation, Daniel grew 1st Metropolitan’s parent company from six offices and $100 million per year in production in 2000 to a 250 branch $4.2 billion production company with a sterling reputation throughout the industry. He may be reached by phone at (614) 255-3929 or e-mail daniel.jacobs@myrfc.com.
Evaluating Your Ship: Questions to Think About When Considering Joining a Larger Company
What should you be asking? The following are some more questions that must be answered and compared before you think about partnering with any company.
Tim Ray
“You are praying that the hard times of today will pay off in the future when only the ‘professionals’ are left.”
What type of support does the company give to the branch and loan originators? An example of this is accounting … are you required to run a P&L with reimbursements out of profits, or are you looking for true support from accounting where you can stop doing that type of work. For example, will a mortgage banker’s branch take over all of your expenses and free you of the day-to-day burden of managing the P&L? Imagine spending your day recruiting, marketing and closing loans.
Is the underwriting fair and responsive? Does underwriting deliver the timeframes promised and are they consistent from underwriting decision to decision. I have heard many “net branch” owners tell me that they now feel like a broker, but now with only one rate sheet. The right mortgage banker will take the opposite approach and the fact that you work for the decision-maker puts more faith in you in the eyes of your referral partners. There are some mortgage bankers who treat managers and loan officers like family, not unwanted and distrusted customers. Ask current branch managers for the mortgage banker you are considering how they feel about them and I they have conducted business with them.
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By Dan Rawitch & Tim Ray
tions is in order
JUNE 2011
The pendulum must come back to the middle … Is executive management in touch with what is going on in the field? right? The problem is, when will this happen? There Do they understand the process of origination to close? Do they understand seems to be many more “dark clouds” ahead of us as what the originator needs? Do they listen to those needs and make changes to we navigate these dangerous seas … as scary and help. Don’t rely on what executive management says about this, you need to anxious as this makes us feel. Congratulations, you speak to the branch managers and loan officers on the street to see if manageare a survivor! More than 40 percent of your industry ment is really in tune with what’s going on out on the street. counterparts are gone … now what? Do you stay put to weather the storm or do you latch onto a bigger ship? The ship that will make it to the shore first is the one that’s priced right, can close If it is the right ship … absolutely, it could be great! But if you make the wrong the fastest and leave smiles on everyone’s faces. Each time I walk into one of our choice, it can take you down and take you down fast! Remember, production is king, and you have it! That precious resource must be protected at all costs. You continued on page 38
MINNESOTA MORTGAGE PROFESSIONAL MAGAZINE
make it to the shore first is the one that’s priced right, can close the fastest and leave smiles on everyone’s faces.”
NationalMortgageProfessional.com
Do loans close on time? So you have a profitable mortgage business and are thinking of joining a larger Can a file run through the underwriting process to closing with project timecompany as a branch. Your business may be small, with four loan originators and lines in mind? When a file hits processing and has a closing date, is it on the a processor, or large, with a full staff with A to Z from origination to closing. Either board and is it treated like project management with that date in mind? Look way, you are a great sales team that lacks the infor a company that is prepared to guarantee a 30 day or less Certificate of house feel of underwriting, closing and funding. Eligibility (COE). Our company’s closing guarantee is 25 days or less, or we Over the past 18 months, you’ve survived the Home assume daily penalties. Look for mortgage bankers who are willing to walk the Valuation Code of Conduct (HVCC), the stall of the plank if they don’t close on time. housing market, the Wall Street lending meltdown, and Washington’s “uneducated” decisions smother- Does operations care about the client as much as the loan originator? ing any chance we have at industry recovery this Does operations understand that moving vans are coming and that lives are in year. You are praying that the hard times of today limbo? Also, do they understand that good operations can create additional will pay off in the future when only the “professionreferral opportunities for the originator, thus going the bottom line? A well-run als” are left. At that time, the housing market will company will not distinguish the difference between sales and operations. If surely regain its strength with reasonable lending you were to sit in an executive meeting at my company, you would be hardprograms finally bringing buyers and sellers together pressed to understand the difference. It should be that way! We are all one famonce again. ily. The mortgage bankers out there who are smooth-sailing through blue Dan Rawitch oceans know they have the same three customers: (1) You, the loan officer; (2) If you are reading this, a congratula“The ship that will your buyer or client; and (3) your real estate agent.