The most commonly utilized method of prospecting which many new LOs do, is going after referrals. That's mistake Number One ... to grow a business you need to invest both time, effort & money.

Some say to 'buy a box of business cards and hand them out to everybody you know, all your relatives and friends, and tell them you're in the mortgage business!' Translated, that theory seems to be "don't invest in your book of business" ... this method is a short-cut and it's cheap!

Here's how that blows up in their face - every time. The short-cutters who say that, don't much care about the level of anxiety and lack of training for the LO, since they will close a loan or two this referral way (so a little money is earned) - but - the LO's the one stuck with the unhappy friends and relative.

Even though 'cold' leads make more sense in the long run, while loan originators are new, they'll be brutalizing referral applicants typically - because they don't quite know what they're doing yet - but mostly because they have no idea how to 'manage the vendors' they need to deal with. They won't be able to preempt the problems that often come up with title people, appraisers, processors, couriers, wholesale underwriters, notaries, etc. since they don't understand their roles too well yet.

An all around bad idea, especially when they're new. The reputation they end up with won't be favorable in their referral circles. Ask a few seasoned LO's about how many times they made Uncle Frank mad (the appraisal came in low), or one of their long time friends or a neighbor (when their credit score was a bit low) - and they got dirty looks for months and months afterwards. The LO's service level will suffer, and these referral customers will tell others and hold it against them - plus since they're friends and relatives, the LO probably offered to do their loans for next to nothing also, huh? An expensive lesson, it would be best to side-step and avoid learning the hard way.

The smarter piece of advice is "never do a loan for a friend or relative." There's 98 ways to find qualifiable borrowers, this is one of the most difficult ones.
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Are you one of the regular readers on our mortgage professional Discussion Board yet? Check it out and post your views. It has the right tone, so you'll feel comfortable referring your friends there! Please Click Here
 

 
 
 
 
 
 
 
 
Looking for a simpler way to operate your loan origination business? We've got a method, unlike anything you've previously considered. Sign up today for the next Live class session on our Secret! System, here in So.Cal June 13th. Click Here to read all about it; see the entire Summer School schedule plus our Early Bird pricing too! If you can't travel, it's also on CDs now!
 

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Since our last newsletter, we have published a new CD Lesson; we believe it will become our biggest seller. It's called 'Semi - Clueless LO Orientation 101' and we feel it would be a good one to be given to all newer LO's you may know. To review our Secrets of the Mortgage Industry CD training lessons just Click Here. 

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Looking for some reliable advice you can count on, so you can grow your business better/faster? Our counselors are your answer! We've got just the right one for you. Click Here to see which of our advisors can help you get to where you want to go with our Mentor program.
 

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Feel free to Click Here and access any of our previous editions right now!
 

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Happy Father's Day
 

At this point in the rate cycle, we all hear this comment more and more, about mortgage personnel ... can't wait until they're gone. Typically that's being said by someone who thinks the other guy is doomed because they always undercut the pricing & over-promise, thereby creating too many unrealistic expectations among the unwashed borrowers, which these veteran types have to face later.

We all know, one way or another, most in this industry must eat what they kill to survive. Unfortunately that leaves very little incentive to learn train/teach, when day in and day out your own income must be your principal focus. Except for a few exceptions with the largest financial institutions, we're in a very entrepreneurial industry that has a lower than stellar view of training. It's all about the bottom line. Reliable & solid planning to train better staffers, so long term profits will soar, is a thought which many never seem to have.

Here's some news for you, we hear this very thing with the ending of each rate cycle! Although this latest one has been the deepest and longest one in several decades, it remains a common theme ... can't wait 'till "they're" gone.

Do you anticipate the time when a tougher environment will smoke out & eliminate your incompetent competition? What happens if that environment ends up feeding the more sophisticated competition ABOVE you? What are YOU doing to build yourself & your team so that YOU aren't the ones doing the duffle bag drag?

I'm sure you know that anyone who coasts when the business is fat & easy gets killed when it stiffens up again ... today, we offer up a helpful suggestion: Visit the Secret! University. It's our mission to help.
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