Dennis Black is the CEO of Dennis Black and Associates, a
training organization devoted exclusively to the development
of sales and management professionals within the lending
industry. Dennis Black and Associates has trained more than
120,000 mortgage professionals throughout the United States,
Canada and Australia. Black speaks at conferences sponsored
by the Mortgage Bankers Association and NAMB — The
Association of Mortgage Professionals about selling strategies
and is a frequent speaker at state conferences. Visit
dennisblack.com. Reach Black at firstname.lastname@example.org.
Pounce Early to Set Up
You need to put in the effort now to build your
business, so you can realize the payoff later
By Dennis Black
Mortgage professionals must decide between two opposite paths in 2019: thrive or just survive. You need to ask yourself: Am I pushing myself and
my team to place all the chips on the table and play, or
am I going to be cautious and pass and see what shakes
out in the industry?
Now is the time to throw all caution to the wind and
get after it with a big push in the first quarter of this
year. As 2019 evolves, you should evaluate your progress toward a strong year in bite-sized segments.
Take command in January with maximum effort by
calling as many real estate agents as you can, along
with reaching out to other contacts in your portfolio
and pursuing leads from your consumer-direct team
— focusing on debt restructuring and, where possible,
pre-approvals for people who will be shopping for a
home in the spring.
All mortgage originators need to solidify or secure
a working base of 10 quality real estate partnerships
heading into the second quarter of this year. Waiting
for interest rates to drop or level off will not get you
one Realtor relationship and, more importantly in 2019,
there will be more originators competing for fewer
loans, so the focus on real estate agents will be intense.
There are no shortcuts or magic formulas to success.
It is disciplined strategy and maximum sales effort
that will help you to stand above the pack during the
challenging year ahead. The first quarter is your snapshot to see where the cards will land.
When we look at the reality of the recent 2018 interest rate increases, who truly feels they cannot sell a
30-year mortgage with a 5 to 6 percent interest rate
to either a real estate agent or a borrower? The real
estate agent needs you to exude confidence and,
more importantly, walk the borrower through the true
cost of a 0.5 to 1 percentage-point rate increase on
Depending on the loan amount, the difference may
be minor compared to the opportunity to build equity
and take full use of tax advantages. In general, the
mortgage originator needs to paint a picture for the
borrower of what it means to own a home versus renting and sitting on the sidelines.
There will be more bargain hunting because of rates
rising. As a result, the originator and real estate agent
need to work in tandem efficiently to encourage to
borrowers at the beginning of the year.