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By Dale Vermillion
president and Ceo
Vermillion Consulting inc.
Separate yourself from the competition and ensure your future survival
Today’s mortgage environment is different than it was in 2006, but when I travel the country training
thousands of mortgage professionals, I
see a failure to adapt to the new mortgage environment. this problem is particularly prevalent among more-veteran
loan officers and managers.
the air is thick with feelings of entitlement. too many people want to
make the money they used to make
for the number of loans they used to
close and with the shortcuts they used
to take and still maintain the freedoms
they used to enjoy. Continuing to do the
same old things is a sure-fire formula
for failure in the midst of today’s massive regulatory and economic changes.
today, we have to work harder and
smarter if we want to succeed.
So what will it take to succeed in
this changing and evolving market?
there are five strategies you can implement now to thrive today and survive in the future.
1. Diversify your marketing
We have been blessed with historically low rates for several years now.
Rates will increase, however, and
when they do, the first thing that will
be affected is lead volume. there will
be an immediate drop in the number
of marketing sources you currently rely
on, and the higher the rate increase,
the bigger the impact.
to succeed, you need to have additional sources of lead generation already established. these include:
• aggregator leads: purchasing leads
from aggregator sources allows you
to maintain a steady flow of leads by
buying them on an as-needed basis.
• repeat and referral leads: Implement
an effective and consistent market-
ing campaign by phone, mail and/or
e-mail with your previous client base.
Re-establish relationships with ev-
ery client you have ever made a loan
to and solicit each one for refinances
and referrals. try to average three
referrals per client, as three referral
applications will typically get you one
new closed loan.
“Establish your credibility and
prove to your customers that
you are there
to help them
make today’s borrowers particularly
worried and distrusting. Consequently,
earning their trust has never before
been more important.
Establish your credibility and prove
to your customers that you are there
to help them and are watching out for
their best interests. You do this by demonstrating your integrity and by developing relationships with them. Become
knowledgeable about their family, financial goals and concerns.
and are watching out for
their best interests.”
private money loans
4. Make a difference
Great loan officers understand that
their only goal is to positively impact
their borrowers’ lives. Become the loan
officer they can rely on for the rest of
their lives. A mortgage is the largest,
most personal and most important
financial decision many people ever
make. It’s not a decision they want to
make with a stranger, but with a competent and trusted adviser.
that means not just meeting their
short-term needs, but also helping
them achieve their long-term goals.
truly separate yourself from the competition by helping them build cash
reserves, maximize and protect their
equity, maximize tax benefits, and get
out of debt quicker. When you can
help your borrowers manage all their
finances, you become a valuable asset.
Have you ever wondered why your private lender real estate loan is
taking so long? Have delays ever caused you to lose an important deal?
Are you just plain frustrated with all the waiting?
Now there’s a fast and efficient solution. It’s the new 1-2-3 Funding
program. It’s specially designed for real estate investors and it’s available
exclusively from Stout Street Funding.
Get loan preapprovals in one business day
Final loan approvals get done in two. Funding gets done in three. There
are no fees, no prepayment penalties, and multiple deals are welcome.
We actively seek viable deals in virtually every major metropolitan area
in the country.
Get the details at stoutstreetfunding.com or call us directly.
• third-party leads: Cultivate third-party referrals and affinity relationships with sources like Realtors,
financial planners, certified public
accountants, and real estate and divorce attorneys. You can no longer
rely on just inside lead generation
such as Internet leads, direct mail
and rate tables. You have to use third-party sales, too. this can be done
face to face or via phone or e-mail. If
you are predominantly or solely a refinance lender, you should build a purchase strategy immediately.
• networking leads: Look for opportunities everywhere you go. Ask everyone you meet if they are homeowners
and interested in saving money or if
they would like to become a home-owner if they currently are not one.
Stout Street’s new 1-2-3 Funding Program can get you a loan preapproval in just one business day.
2. Quit selling rate
the biggest mistake that salespeople
fall into is selling rate upfront. When
you do this, you not only become just
another loan officer, but you actually increase your competition.
When you quote rates upfront, you
give borrowers offers they can use as
a bargaining chip with competitors.
Additionally, you are not telling the truth
because you won’t know the borrowers’
rate until you know more about them.
Even if your rate is a little higher, that
doesn’t mean a competitor’s loan is
better. Rate only affects payments in a
mortgage. What is most important to
the borrower is not what they pay, but
what they get. It’s value — the benefits
of the mortgage — that matters most.
5. Focus on today
You inhibit your ability to close high volume units when you dwell too much on
your past successes or on the future.
You can achieve double-digit loan production by simply focusing on making
a sale today.
When you focus on your past sales or
pipelines, you create a negative thought
process and stop focusing on selling.
When you focus on just one lead, one
sale and one day at a time, however, you
will never have a bad month. By making
just one sale each day, you effectively
put 20 or 21 deals in your pipeline each
month. Whether your conversion from
sale to close is 70 percent or 50 percent,
you are still guaranteed at least 10 loans
per month. •
© 2011 Stout Street Funding LLC All Rights Reserved.
3. Build relationships
the media’s attacks on the mortgage
industry and the sour economic climate
Dale Vermillion is a prominent industry
speaker and president and CEO of Vermillion
Consulting Inc., a consulting and training firm for mortgage professionals. He is
author of Navigating the Mortgage Maze:
The Simple Truth About Financing Your
Home. He also founded Mortgage professionals providing Hope, a nonprofit organization that aids impoverished children and
families in rural India. to learn more, visit
www.dalevermillion.com or www.mpph.org,
or call (888) VCI-EDGE (824-3343).