the new age of mortgage banking business philosophy. And of course, since the LO compensation rules changed in 2011, we have seen more disparity in compensation plans than ever before. So, it’s important to fully understand and feel comfortable with the compensation plan once you find narrow the choices of companies that are otherwise a good fit. This is an important decision and will drive the career and success of the astute originator or branch manager. Where do you see the market going in the next three years? Habib: This is a highly uncertain time in the marketing place, which creates enormous opportunities for informed, educated professionals, as clients will need more guidance and wisdom than ever before.
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Events such as the upcoming election, the tax cliff, chaos in Europe, potential QE3, the debt ceiling debate and, most importantly, the deficit will cause economic gyrations. I feel there is a strong possibility rates will decline even further and originators need to be able to maximize this opportunity. That said, there appears to be a “bang moment” on the horizon, which is when interest rates may rise rapidly as a result of the bond market losing its tolerance for deficit spending. This is exactly what is transpired in parts of Europe where interest rates have risen dramatically over short periods of time. Originators need to examine their personal business model as well as that of their company to make sure they can weather the storm and seize the opportunities.
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So You Want to Start a Branch? Questions That FHA Originators Need to Answer
JUNE 2012
SOUTH CAROLINA MORTGAGE PROFESSIONAL MAGAZINE
NationalMortgageProfessional.com
By Jeff Mifsud Back in the early- to mid-2000s, virtually every marginally competent loan officer (LO) could open up an office … what we used to refer to as a “trunk of your car” mortgage company. Unfortunately, for these folks, compliance wasn’t as important as getting deals closed. Thankfully, in today’s era of compliance, the bar has been raised very high and only a small percentage of LOs will be able or even willing to try to clear that bar. For good reason, branch companies are very cautious about accepting new branch managers.
What does it take to start a branch office? To answer this question, you have to ask yourself another question first: Why do you want to have a branch? The “WHY” fueling your motivation will tell you whether you have a chance of succeeding or not. The answer will be different from person to person, but this much is critical: Your answer to “WHY” must be inspiring enough to get you over, around, and through the many obstacles that will come your way. It must be inspiring enough to enable you to create a work space that will attract
top talent in your area. Once you have your “WHY,” and it’s strong enough to keep you focused on your goal, you need to take inventory of your existing skill set to determine whether or not you have the requisite skills to successfully manage a branch. If you don’t, you’ll need to find ways of acquiring the skills you currently lack, or hiring someone who has the skills you need.
So what are some of the skills that make an effective branch manager? Having worked with companies all across America, I have observed some of the traits that make an effective manager. Here are just a few: Humility: Managers that display humility are able to establish a bond with their employees that is sincere and long lasting. Arrogance, on the other hand, will produce animosity and create a difficult work environment for all. Integrity: Managers who walk their talk and display true integrity are
able to gain their employees’ confidence and influence them to have greater integrity themselves. The greater the integrity of the manager, the greater the integrity of the whole branch becomes. The manager earns the respect of his employers and their customers.
flexibility with responsibility, financial considerations are all part of the picture. Managers that grow from each challenge and create positive change for the future are in a much better position to move their branch closer to their goals.
“If you are
Is starting a branch the right business move for you?
The ability to Empower: considering opening Great managers are a branch but have Once you’ve determined able to implement never managed that you have what it management principles people, it is critical takes in the way of the that help their employthat you begin ees feel empowered in educating yourself in leadership qualities mentioned above, you need their jobs. By empowerthe best practices in ing employees, man- people management.” to then assess whether you possess the practical managers are able to tap into the creativity and ingenuity of agement skills necessary to be a successful their employees, which in turn creates branch manager. The most successful a culture of growth and keeps the branch managers are those who understand how to create and implement workenergy in the office high. able business systems that move a busi The ability to Empathize: The greater ness forward and will attain the growth the manager’s ability to empathize required to thrive. You must clearly understand that being with their employees, the stronger the manager-employee relationship. a top producer does not always translate Everyone has challenges in their into a successful branch manager! In fact, lives, and when employees feel this often becomes a scenario of “promotunderstood by their manager, they ing to the highest level of incompetence!” feel more compelled to perform at a Top producers will often fail as branch higher level. While, of course, no managers because each position requires a manager wants to be taken advan- very different skill set—while some skills tage of, the manager who has hired certainly overlap, and many individuals quality people and can cease from have both skill sets, not many do. Many top penalizing employees for being producers have never developed the skills human or having lives outside the needed to manage people—or simply office will have loyal and grateful don’t have the talent, patience or desire to employees who are eager to please. do so! Top producers are often very cavalier The ability to Share Your Vision: and strong individualists. They do very Managers who work with their well as MLOs because their job matches employees to create a shared vision their personality and/or skill set. But if top for the branch are able to create a producers then decide they want to be culture where everyone feels respon- their own boss and open a branch, withsible for the success of the branch. out first evaluating the implications thereManagers who don’t get their of and determining that they really have employees to buy into and to feel what it takes to succeed in this role, they like an integral part of the realiza- may well find that they have no clue how tion of that vision will have a very to deal with disputes among employees. difficult time actualizing that vision. They have no patience for teaching others, or how to create a team spirit among Tenacity: Managers must be tena- employees. They have no clue how to crecious in their pursuit of the desired ate an office culture that people are result. Many peaks and valleys come attracted to and look forward to coming about when running a branch. to be a part of every day. They may watch Hiring and firing, maintaining a bal- longingly as their employees head out to ance between comfort and respect, land the deals while he needs to stay at the