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There
you sit, one of the best Loan Officers at your
company. Although you measure your career in
terms of only months, you feel your broker/owner
is clueless and you can do a better job than
he/she can … any day of the week. Knowing this
industry is a very entrepreneurial one at its
core – you quietly plan to make a break for
it, and jump up and start your own mortgage
company. You know in your heart, you haven't
been trained too well, but "sales is
sales" you think, therefore you'll be fine
in your own operation. Believing 'referrals' is
the only way to attract potential new applicants
(because you boss never did teach/show you any
other method) you tell yourself, you've got all
these referral sources, so how hard can it be to
run your own firm, right?
Well, as an LO focusing exclusively on your own
commission and sales – you frequently were
thinking "I'm in this for the money, not
the risk" – but now as a new entrepreneur
that attitude should change immediately. You
want your share of the American Dream, to own
your own business (and that comes with lots and
lots of risk), but lets do it right – instead
of half-way like your current boss did!
There's a great deal of risk when you own your
own shop, as well there should be. You're about
to become a central figure in a drama about the
largest single financial decision most families
make in their entire lifetime. This is not the
sort of place for you to 'learn on the job'
while brutalizing consumers and any new
employees, with your lack of understanding of
correct procedures, or the many laws that
regulate you and your new company, or your
uncertainty of appropriate integrity &
ethical issues you'll be confronted with. Being
an owner/operator entrepreneur is nothing like
being a ‘sales type' person, managing a
business is different. If all you bring to
the party are sales-skills, you're sure to fall
flat – let's do it right!
With ample planning, in your new operation
you'll probably want to hire employees like Loan
Officers; then you should correctly W-2 them
with a salary (paying all the proper payroll
taxes naturally – just like a real business
does – since we both know they're not really
1099 independent contractors – so why cheat
them) and a bonus structure for those who excel
in the performance of their job duties. Your
focus should be teaching them to be
‘underwriter' types, since the true job of an
LO isn't "selling" (like a car
salesmen 'promise maker') but rather as a
problem solver ('promise keeper') by putting
each customer into the loan which best suits
their family needs. When you inject into the
LO/customer relationship "big
commissions" you are absolutely asking for
integrity and ethical issues to be in your
face (the new boss) all the time. If your
new LO's are salaried "employees",
they can sidestep those common and widespread
problems in your new company, and also you'll
have more money yourself to pay for good working
conditions, afford up to date equipment,
advertise for customers, and pay your employer
share of payroll taxes, benefits, etc.
Moving forward as a new 21st century employer,
it's time for you to change the culture and tone
of your own shop, since as the boss you're
allowed to do that! By removing the big
commission and sales attitudes from LO's you
breed, it will tend to infect your entire
enterprise. You'll quickly notice an enhanced
feeling of personal dignity and professional
pride, which you now see lacking with your
present boss and fellow LOs. It's that sort of
new direction you'll find fulfilling as an
owner/operator; it in turn will help lead to a
long running and stable company for you!
As an entrepreneur owner/operator there are many
new things you must learn to be able to stay in
business. Since ‘getting into' business is
relatively easy, the challenge is to ‘stay' in
business. Our industry has many so-called
mentors, education, training, and consulting
services where you can learn all those non-sales
duties you have to know. I suggest, as you
consider which advisor you'll select to help
you, that you focus on their individual
experience and industry accomplishments. Pick
somebody that as an owner themselves, they've
done what you want to learn – that's your best
bet. Good Luck!
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