Written By: Karen Deis
Top loan officers earn what they think they are worth. Other loan officers try to get their commission by being the cheapest on the streets. Still others try to see how much commission they can get away with.
Personally, I set my "Value" at a minimum of $1,000 (per loan) and an average of 2 points per closing. If I could not earn a $1,000 commission on the loan, I had one more filter--and that was to look at past business or the potential for future business from the client. While my competitors' averaged 1 to 1-1/2 points per deal, I consistently averaged 2 to 2-1/4% because I felt my expertise and counseling were "worth it.
You might be saying to yourself that that "you could never get away with that in your area of the country." Determine what your bottom line commission will be--in other words--what are you worth?--and stick to it.
What separates the top mortgage originators versus other loan officers who reduce their commission just to get the deal? There seems to be 9 strategies and clear-cut ways that they are different than everyone else.
- They are confident.
- Top producers who earn full commissions are confident that they provide the best value to their clients. They sincerely believe they are worth their full commission. Furthermore, they are not shy about telling them why they are the best at what they do.
- They have a plan.
- Those loan officers who have risen to the top, educate their clients about how they will help them save money, save time and become their financial resource for just about everything. They have the unique ability to articulate exactly why they are different than all the other loan officers in their community.
- They focus on 2 or 3 key differences.
- Average producers provide exactly the same services that top producers do. However, an important difference is how they elevate these services as the core part of their consultation. While most customers ask about one or maybe two different loan programs, the top producer's core service may be to provide a side-by-side comparison of 3 programs, with different down payment amounts. My personal core belief was providing side-by-side comparisons of the 25-year versus the 30-year fixed rate mortgage and showed them , that for a few dollars more per month, how they could save almost $30,000 on their mortgage repayment.
- They are unwilling to compromise their integrity.
- When asked to reduce their commission or were asked to do something that conflicted with their belief system, they thanked the client and advised them that maybe they need to call another loan officer. Basically, they would rather NOT work with clients who did not respect their knowledge and integrity.
- They create credibility with unique services.
- It cannot be over-emphasized - find a unique niche market. Specialization is what has helped them get their foot in the door - and because they know everything there is to know about that niche, they don't have to compromise their commissions. Become an expert on condo lending; golf course or vacation homes; divorce attorneys. Become your local media expert or radio personality. Specialization opens many doors - a practice working thru sticky divorce buyouts may lead to referrals from probate or estate-planning attorneys.
- They are early adopters.
- Clients expect their loan officers to be fairly sophisticated when it comes to their ability to use technology. But more importantly, how they use technology to get loans approved; to communicate with them; to track the progress of their loan applications and closings. Even though technology tools are available to everyone, the top producing loan officers figure out a way to use them in their businesses. David Kuiper uses audio email to communicate with clients who he cannot meet with face-to-face.
- The value of face-to-face meetings.
- Also every top originator loves to meet face-to-face with clients. While it may not be at the time of loan application because of time management issues (it's easier over the phone, fax or email), it's still important for them to meet at the closing table or hold client appreciation parties. They hire assistants to do the paperwork so they have more "face time" with clients and affinity partners.
- They love to negotiate and overcome objections.
- Instead of back pedaling when someone asks them to reduce their rate or fees, they explain how their services are different. They intimately know about their competitors and their weaknesses. They can articulate those differences without making any disparaging remarks. You simply MUST know your competitor's strengths and weaknesses and be willing to demonstrate the differences.
- No emotional attachment.
- When the client says they can get a better rate or lower fees down the street, originators politely tell the client that they are "probably not the loan officer for them". They leave the door open that if things don't work out with the other mortgage company, that they will be there for them. It's true that "you get what you pay for" and in many cases, they obtain the deal if it falls thru or they experience problems.
Think about the 9 traits.
Are you willing to use technology in your business?
Do you feel you are the best within your niche market?
The mortgage business is one of the few businesses where only you can determine exactly what you are worth.
What do you believe you are worth?
Here's to earning a great living!
Karen Deis
Copyright, 2005, LoanOfficerMagazine.com
