Expanding Realtor Relationships By Stephen A. Marrs
A key part of my success as a loan originator (LO) has been the development of strategic partnerships with Realtors. Of course, it has taken years to establish this valuable niche, but the result is evident. Approximately 95 percent of my annual business is referral-based, primarily from real estate agents. Our overall focus on Realtor relationships highlights three main areas:
MAY 2011
TEXAS MORTGAGE PROFESSIONAL MAGAZINE
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in the office. These are strong endorsements that often lead to new associations with agents with whom we haven’t worked before. It seems so simple, but gaining entry to these additional agents has helped further expand my referral-based business. In addition, we send weekly e-mail updates that help agents better understand new loan programs, guideline changes and other hot topics. When the Federal Housing Education; Administration (FHA) increased its monthly Value-added support; mortgage insurance premiand ums, we were able to pro Accessibility. vide them with advance notice of the upcoming While the specific stratechanges and how they might gies aren’t necessarily new, impact their clients. Our ethey are effective because bulletins usually include scewe are consistent in their narios of actual borrower sitapplication and because uations, such as how a spemany of our competitors cific loan program can offer don’t go out of their way to customers more purchasing create long-term associapower. One of our objections with agents. tives is to prompt the “Because agents freRealtors to ask questions Education quently work evenings after reading one of these It’s no secret that real e-mail updates, offering and weekends, estate agents are hungry another opportunity to Realtors appreciate for information, especially LOs who can adapt to demonstrate our expertise. in the current, more chalWhen appropriate, we their schedules. I lenging marketplace. They also extend this educationwant to be informed of make sure that myself al approach to the agents’ the latest developments in or an assistant return borrowers. For instance, I real estate finance and calls and provide necwill suggest to Realtors that how specific loan pro- essary support whenwe can contact their buyers grams can help their borwho are currently looking ever they need it.” rowers, thereby leading to for homes to see if we can more home sales. One of our most effec- answer any of their questions regarding tive strategies has been quarterly educa- loan amounts, qualifying and other tion seminars in Realtor’s offices. We issues. We will do this even though anothmake sure these programs highlight rel- er lender already may have pre-approved evant topics that will help them be more them. Even if these discussions do not successful. For example, condos are a big result in new clients for us, we have furmarket in our area, so one of our pre- ther shown our commitment to helping sentations features a comprehensive agents grow their business. review of guideline changes for condo purchases. We also organize mini-semi- Value-added support nars for smaller groups of agents at a cof- As we developed mutually beneficial relafee shop or other convenient location. tionships with Realtors, we saw the opporA special benefit of these presenta- tunity to offer other support that helped tions is that it affords me another set us apart from the competition. A good chance to be on-site and ask the pri- example of this is our coaching of select mary agent for introductions to others agents in the preparation of their pur-
chase contracts. We review the contract to identify possible issues, such as additional buyer costs, seller credits, etc. We then suggest language that can minimize legal issues or other potential problem areas and ensure that any concerns are identified as early as possible. For example, with some condo purchases, we suggest that the purchase agreement include a condo checklist contingency, which speeds up receipt of the information necessary to approve the loan. The seller is responsible for providing the information from the Homeowners Association or their management company. This may save the borrower money since they won’t have to pay for the information and it can also pinpoint issues resulting in a loan denial, prior to the borrower paying for an appraisal. Experienced agents are not necessarily interested in this coaching, but newer ones have told us that our proactive approach is beneficial; saving time for them and their borrowers. Our telemarketing leads assistance has been especially popular. Many of our agents have a group of “C” leads, those prospects who aren’t quite ready to go house hunting. I explain that we will stay in contact with these long-term prospects on the agent’s behalf. We meet with the agents to develop an overall plan, which includes periodic calls or e-mails to their prospects. We want to answer questions about homeownership, financing, credit scoring and anything else that will establish rapport with these future homeowners. When they are ready to purchase or want to know specific information about the area or a particular home, we advise the Realtor who then follows up with them. Of course, this isn’t an overnight process; it can take weeks and months before a “C” lead becomes an “A” or “B” prospect. We give agents weekly phone reports and have regular status meetings to make sure that everyone is on the same page. In addition, some of those “not ready to buy yet” prospects have credit challenges and we are able to further assist agents by preparing their future clients for homeownership. Sometimes it is an easy fix, as we suggest basic tactics to help borrowers improve their credit situation. In other instances, it may take a more involved approach, in which case our Credit Repair Division might be instru-
mental in enhancing the borrower’s credit profile. Either way, we are helping to rescue customers that the Realtor might otherwise lose.
Accessibility We know how important availability is to Realtors and this is something that I continually stress. Because agents frequently work evenings and weekends, Realtors appreciate LOs who can adapt to their schedules. I make sure that myself or an assistant return calls and provide necessary support whenever they need it. We’re able to write and deliver pre-approval letters in a short time-frame, which is significant advantage for those who have interested buyers on a Saturday or Sunday. Our agent partners know this same availability exists when I’m away from the office for a day or longer on vacation or business travel. If I’m not in the office or immediately accessible, they can reach my experienced assistant who is then able to handle critical situations. Should the need arise, I also work with a senior loan officer who can provide advanced support during my absence. The fact that I am available 24/7 can be a major factor in an agent’s decision to use me. Realtors also are impressed that we don’t ignore them during busy refinance periods. Throughout my career, I have focused on purchase business. I have always been careful to pay attention to agents during hectic refi markets, when other originators seem too busy to return calls or offer other support. Agents know that I have their best interests in mind at all times. Of course, I don’t avoid refi business, but rather, have an assistant who coordinates the majority of this activity. I monitor my strategic partner relationships on an ongoing basis, always looking for new opportunities to enhance them. I never assume that because we have worked together in the past, real estate agents will automatically give me their future business. I continue to make an effort to deserve their trust and referrals. Stephen A. Marrs is vice president of sales for Gold Star Financial Group in Ann Arbor, Mich. He may be reached by phone at (866) 249-2192 or e-mail smarrs@goldstarfinancial.com.