The Eagles Gather, Learn, Share and Adapt by Jeremy Conaway, contributing editor It was the 26th iteration of the Gathering of Eagles. The conference, a REAL Trends by invitation only conclave, is generally recognized as the premiere learning and networking event for those within the top 500 North American real estate brokerages. Sherry Chris, president & CEO of Better Homes and Gardens Real Estate (BHGRE), built on that theme with a creative facilitation of a panel of brokers from Atlanta, Houston, Boulder and Austin on the “Next Generation Brokerage Business Model.” The room was packed as Sherry, using the “Are You an Alpha or a Beta Brokerage?” title, carefully wove the comments of both the panel members and a number of brokers in the audience into a profile of what the new business model was going to look like. The discussion provided information regarding cultures that work in the new era, space allocations, the use of new media, branch staffing levels, emerging technologies, orchestrating company growth and leading edge customer service practices. The panel included both BHGRE brokers and non-BHGRE brokers. The industry should appreciate the fact that Sherry and BHGRE uses sponsorship resources to bring valuable information and learning experiences to everyone in the industry regardless of franchise or brand. The program next journeyed into what might best be called the uncharted waters of today’s mortgage industry. Representatives from Wells Fargo Home Mortgage, Citi Mortgage, and Shelter Mortgage painted a picture of a mortgage industry caught between legislative imperatives and regulatory unknowns. The situation is simple, but its ramifications are complex. The marketplace is still in the process of responding to the mortgage crisis of 2007 and 2008. Congress has responded with what it believes is an acceptable solution in the Dodd-Frank Act. But, as is the fate of all legislation, the implementation of the new law through a regulatory scheme is now in the hands of a bureaucracy known as the Consumer Financial Protection Bureau (CFPB). History tells us that in all likelihood the CFPB will swing the regulatory pendulum too far in its initial efforts and 6
that at some undetermined point in the future these initial response steps will be ameliorated by experience and that a more realistic regulatory process will emerge. In the meantime, two undesirable results could and might well occur. If the initial mortgage eligibility rules are too strenuous the consumer’s current lack of comfort in the housing market will be validated and the housing situation could, once again, stall the greater economy. The second dilemma arises from the fact that during the interim period many mortgage firms, brokerages, loan officers and/or agents could be using policies, procedures and practices that will be ultimately found illegal under the new law or regulations. The advice of the panel members was clear. At the present time there are adequate mortgage funds available for properly qualified borrowers. However, the current lack of clarity regarding what is a legitimate procedure under the Dodd-Frank Act is far from clear. All involved in this situation should default to very conservative practices. Compliance will be the ultimate skill set over the near term future. Beware of the regulators need to pursue high profile cases in order to make their point and establish their reputation. You don’t want to be the poster child for the new mortgage reality. Tommy Spaulding a renowned speaker, New York Times bestselling author, executive coach, entrepreneur, and leadership consultant shared with the attendees the value of building lasting, genuine business (and personal) relationships through his motivational and real world experiences. John Ikard, president of FirstBank Holding Company shared with the attendees the amazing details of what may well be the ultimate corporate culture. The bank, one of the most successful in the country, is owned by the employees of the bank and led by a combination of 46 officers and directors each of whom has spent virtually their entire career with the bank working their way up the organization from one position to another. The insight he offered provided a glimpse into the unique role that a fully developed culture can play in determining a business’s strengths and weaknesses.