MISSOURI MORTGAGE PROFESSIONAL MAGAZINE
Consider an example from the world of mobile phones and technology. Specifically, consider how Apple and the iPhone survived and thrived during the Hurricane of Change in the mobile phone industry. The interesting thing is not that Apple created the iPhone. The interesting thing is that Apple keeps improving the iPhone. Apple doesn’t stop improving just because they survived and thrived during one or two Great Waves of Change that have flooded the mobile phone industry. It’s not enough to be successful once. It’s not enough to simply ride one or two Great Waves of Change. In order to maintain consistent levels of success in any industry, you must constantly improve and stay on the cutting edge, while anticipating and riding the waves of change. We can learn from this and apply it to how we respond to the Hurricane of Change that constantly floods the mortgage industry. It’s not enough that you survived (and maybe even thrived) during the Great Mortgage Meltdown. The key is to relentlessly focus on improving yourself now and into the future. Improve your Realtor relationships. Improve the way you convert rate shoppers. Improve the way you generate referrals from CPAs and financial advisors. Improve the speed and ease with which you simplify compliance and understand the Hurricane of Change. Your mission, should you choose to accept it, is to constantly improve yourself and ride the dangerous waves of the Hurricane of Change at the same time … all without getting burned out! But how? Consider an example from the world of personal fitness. You work out, you eat, you rest, and then you repeat the process over and over again. The workout cannot always be the same; it must focus on different muscle groups and levels of resistance. The food cannot be filled with processed sugar and fat; it must be nutritious and have varying balances of protein and carbohydrates. The rest cannot be overlooked or short changed; it must be consistent in order to re-energize your body and help you maintain high levels of endurance and strength. This type of cycle is exactly what you need to consistently maintain high levels of success in the mortgage industry. You need to regularly participate in training opportunities that boost your levels of knowledge and equip you with new skills. These are like the workout sessions that constantly challenge you to higher levels of performance. You need to regularly fill your mind and heart with quali-
ty content and strategic insights. These are like the nutritious foods and recovery drinks you take after a good workout. You need to rest and recharge and have a fulfilling personal life in addition to your career in the mortgage industry. This will help you avoid burnout and keep your career situation aligned with your priorities in life. Apple doesn’t stop innovating and improving when it comes out with a killer product like the iPod, the iPhone or the iPad. Apple keeps researching, creating and improving their products in order to remain on the cutting edge. People with nice physiques don’t stop working out or challenging their bodies once they reach a certain level of physical health. They keep challenging themselves to higher levels in order to maintain their health and improve their bodies.
“‘Who controls the future of mortgage banking?’ The future of the mortgage banking is change.” Truly successful mortgage originators do not stop learning and challenging themselves once they survive the Great Mortgage Meltdown. They recommit themselves to excellence every day and remain on the cutting edge. They discipline their minds and take advanced training courses in order to build more business muscle and outperform the competition. They consistently feed themselves quality content and strategic insights that help them improve themselves and better understand the Hurricane of Change all at the same time. Remember, you control your future. Gibran Nicholas is the founder and chairman of the CMPS Institute (CMPSInstitute.org—NMLS Provider ID# 1400384). The CMPS Institute administers the Certified Mortgage Planning Specialist (CMPS) designation and has enrolled more than 5,500 members since 2005. Through CMPS, Gibran empowers mortgage professionals with confidence, unique knowledge, and dynamic marketing resources to simplify compliance, increase their competitive advantage, and generate more business. Visit Gibran’s blog and Web site at http://gibrannicholas.com. Visit author Gibran Nicholas’s blog at http://gibrannicholas.com where he shares his insights on economics, real estate and financial issues, including the current mortgage and credit crises.
A Look Into the Crystal Ball of Mortgage Banking The wild ride continues, but major opportunities lie ahead By Dave Zitting
It has been an amazing opportunity to this flawed strategy is the overreliance live and work in mortgage banking over by many, in recent years, on statistical the last 20 years. But perhaps none of algorithms as a pure replacement for those years have been more exciting case-by-case, experiential-based judgthan the past two. Some may choose a ment. Flawed strategies like these have different adjective to describe it (many left us to adapt to a new and increasnot fit for print), and that anyone with ingly regulated marketplace, spawned this notion is a glutton for punishment. in response to a perceived need to preI disagree! Living in a time when major vent the consequences of these stratehistorical events are playing out around gies to our industry, and their ripple us on a daily basis is nothing less than effect upon the overall economy. In thrilling. Without question, there have this new marketplace we’re left with been some tough days, weeks, months two choices: and quarters, but if you Make opportunities to are still in the game today, create a better busiyou’re tougher, wiser and ness out of the chala bit more humble than lenges of our new marjust a few short years ago. ketplace; or With all this change and Be consumed by those uncertainty, I’m regularly challenges. asked by peers, employees, partners, and cusThe opportunity availtomers, “what will the able to any company that future hold for mortgage desires it lies in the banking?” I think that picacknowledgement of a ture is becoming clearer “The smart leaders new marketplace, and its with each passing week. willingness to lead the The future of private and companies that charge in transforming mortgage banking has invest in renovations their business accordingsome interesting times and technology to ly. Those organizations ahead. Unfortunately, the drive productivity and that do it will own future “wild ride” we’ve been on quality in response to market share. In reading over the last several years is the margin pressures the tea leaves, the overfar from being over. The from a heightened regwhelming consensus is future will include some ulatory environment that there will be potenunknowns, some inevitable issues, some exciting oppor- will succeed in creating tially fewer overall mortgages written, more regutunities, and certainly, a competitive advanlation, fewer secondary some unwanted changes tage that drives both channel options, and a lot that every mortgage banker revenues and profits.” of people throwing in the will simply need to accept. proverbial towel. The end game for those who remain will be “That which is escaped now, is pain to “who gets what’s left?” The smart leadcome.” ers and companies that invest in reno—Proverbs vations and technology to drive producPerhaps this quote from the book of tivity and quality in response to the Proverbs has greater meaning for you margin pressures from a heightened having experienced the last several regulatory environment will succeed in years in mortgage banking. I think it is creating a competitive advantage that fair to say that, for mortgage bankers, drives both revenues and profits. No forecast of the future is complete the last two years has brought more change than the two decades prior to without considering the size and scope it. Most of this change (many would of the overall market for the foreseecall it “pain”) has been forced upon us able future. Currently, the market is in response to businesses within our running at about $1.2 trillion. This is industry who temporarily “escaped” considerably smaller than what has the consequences of failed products and flawed strategies. One example of continued on page 33
7 NMP MEDIA CORP. 1220 WANTAGH AVENUE WANTAGH, NEW YORK 11793 PRESORTED STANDARD U.S. POSTAGE PAID NMP MEDIA CORP.