From the Editor
By Jim Davis
Jim Davis is editor of Scotsman Guide Residential Edition.
Reach him at (800) 297-6030 or email@example.com.
Look to the past for your future business
There has been a lot of handwringing over brand loyalty in the business press recently. The idea is that if you can
get a consumer to try your product early in life, that consumer will continue to come back to you.
You can find an article almost daily about brand loyalty, but is this idea dead? Is there a difference between
brand loyalty and customer loyalty? Are millennials actually more loyal to brands due to social media?
For the mortgage industry, brand loyalty has always been a challenge. A borrower buys a home every nine or
10 years. By the time the buyer is looking for a new home, they’ve forgotten who assisted them with
their previous mortgage.
In this edition of Scotsman Guide, which focuses on the topic of business development,
a couple of articles take on the issue of capturing repeat business.
Mike Eshelman of Jornaya and Scott Payne of Home Captain explore the topic on
Page 37. They explain that borrower-recapture rates have dropped to a 10-year low.
Lenders and the mortgage originators who work with them are missing out on
serious money allowing this portfolio runoff to continue. Originators can stop this
by developing the right strategic partnerships.
On Page 70, Kirk King of Continuity Programs Inc. also delves into the issue. He
writes that creating repeat clients needs to be an important part of the growth
plan for every mortgage business. The best tool to do this is one that was developed
nearly a quarter century ago.
RPM Mortgage’s Dick Lepre takes a look at Fannie Mae, Freddie Mac and their conservatorship.
On Page 57, Lepre explains some of the options to end the entanglement of the government-sponsored enterprises. He lands firmly on one path to solve the mess.
Churchill Mortgage’s Mike Hardwick has been writing a series of articles, adapted from his autobiography,
“Keep Chopping Wood: A Pastor’s Son Who Had It All, Lost It All and Then Regained True Wealth.” On Page
67, Hardwick concludes the series with a look at the traits needed by originators to overcome what could
become a down market.
On Page 98, Michael Sunnaa of Wallick & Volk Mortgage writes that too many originators worry there is a lack
of available clients. He suggests that this is due, in part, to the industry’s post-recession reluctance to take on
anyone but the highest-quality client. In his article, he suggests originators can grow their business by looking
at people who were once considered fringe borrowers.
Susan Graham of Financial Industry Computer Systems Inc. writes on Page 106 about the need to reach clients
on their mobile devices. She explores the idea of whether mortgage companies should invest in mobile apps or
instead optimize company websites for the mobile experience.
Mortgage Marketing Pros’ Nathan Rufty writes on Page 116 that too many originators consider themselves
employees at their mortgage companies. Successful originators need to shift the prism and see themselves as a
business within a business, Rufty says.
Enjoy these and other articles in this edition of Scotsman Guide.