As an LO, did you choose the big-commission vs a shop where your split would have been less, but where you would have been trained, instead of what you ended up with? I'm sure by now you've realized with a high split you can't have your cake and eat it too (but you want to). And, if you're like most young LOs you want answers right away, unfortunately that's a way of thinking too many in this instant gratification society expect, but it doesn't come with a high split, does it? You probably tell yourself, you're a quick learner, so you'll learn over time, however, how many mistakes will you make with the lives of your customers along the way? Will any of them be big ones? Would you want an LO like you dealing with one of your close family members?


You say to yourself, "I'm okay with that in exchange for lack of support. All I do is reel them in, win them over, get a commitment and then sit back for two weeks making them feel warm and fuzzy while my processor does it all …" In other words, you expect the income of a Doctor, but with little training/learning commitment on your part, right? And also maybe you say, " … As far as training...I DON'T WANT TO KNOW THIS BIZ INSIDE AND OUT! I know what I'm good at ...selling ...so instead of worrying about learning everything I do what I'm good at … I'm not in this for the long haul …."

You hear from time to time, the home financing decision is one of the biggest financial and emotional decisions most Americans make in their lifetime. And, because that is true, we are one of the most highly regulated industry around, all those pesky laws, all those silly details DO matter. Since you're on the front line, many of the laws are aimed at you, and what you can do, or are not allowed to do as an originator … so what's an untrained LO to do?

First, I think you need to understand as an LO you're at the entry level of an industry. As with the restaurant industry, you don't get to start as the head chef of a 5 star dining house, you know where the entry level people start in that industry, right? Some as dishwashers, bus boys, waiters, etc. All critical to the business, but they each have their specific/limited value to the overall business. In your case, you're in the unique position to bring a lot of joy, or do a great deal of significant damage to the customers, so your role must be dealt with carefully and with a lot of integrity and ethical behavior.

Given all the moving parts that make the process From 1003 to Funding™ you should take the time and make it your mission, to get all the outside help you can find. One of the easiest ways is to regularly read industry trade papers and journals; they will give you a thorough view into what's going on outside of your Big Split high commission check mentality. Secondly, we suggest you seek out some independent schooling, mentoring, etc. We recommend you pick from those with a long background successful operations.

Once you follow this advise, you may find yourself thinking a bit more long term, and possibly about opening up your own shop some day, where you'll treat your employees better than the way you've been handled! Wanna tell us what you think? CLICK HERE

See everything our learning center at the Secret! University has to offer by Clicking Here!

You're invited to join us for an all day Live chat, a Conversation with Secret! Sat. Nov. 12th in So Calif. To RSVP Click Here!

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Our ground breaking Mentor Program can be the exact fit you need. Do you want work to not be so much work, yet still rewarding? Our long experienced faculty can show you short-cuts, and guide you where not to step! Click Here to get started today.

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Want to learn how to easily find plenty of customers in CA, FL, MA, OH, IN, NY, WA, etc. and get them funded by your favorite wholesaler? Then don't miss our exciting Website & Internet Originations class. Click Here and register right now for the Dec 11 class (tuition increase of $300 is planned for 2006).

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Take a moment and take a look at our growing directory of educational CD's we call Secrets of the Mortgage Industry™ The list of CD Lessons includes several areas that can help make your operation smoother. Go to our full list by Clicking Here

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Need to stay in touch with your organization regularly, provide updates, answer questions, etc? If that's you, look into our new Communication Center concept! See how this new area we have available, can help you Click Here

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Our Discussion Board is the place to visit for "serious people to discuss serious issues." Next month it will be two years old! Go ahead check it out, just Click It!

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No Waiting! Instant reliable answers, grab your cell phone and Ask Secret! Get help from somebody with the experience to get it right, someone you can trust. Click It!

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Link to the permanent version of our newsletters by Clicking Here and save our online Newsletter Library in your computer's 'favorites' - there's loads of good stuff in past issues too!

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Click Here and we'll mail you our Secret! University Intro CD today. It tells you what we're all about, and your own serialized CD includes several significant discounts toward our popular products and services!

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Is that what your Help Wanted signs says, or if it doesn't say that, is that how you feel as a shop owner when you consider hiring LOs?

When you engage Loan Officers where the focus is all about Big Commissions to them, you're encouraging a dangerous situation, one that's surely a detriment to the customers (and you in the long run too). The conversations between other LOs, surrounds how much money they make, and that's bad for the customer and the industry. It tends to breed suspect ethical and integrity issues when helping the consumer - the focus should not be "how much money can I earn" inside the mind of the LO as they work with the customers. It ain't all about let's make some big money.

With that kind of highly charged sales focused personnel, you yourself end up having little or no time to supervise their loose cannon activities; you need to keep up your own individual production to stay afloat. If most of them are younger and new-comers to the industry, you find yourself seeing them as merely tall children that you need to babysit frequently. And that's not necessarily the best employer employee relationship.

As you continue to develop this kind of an atmosphere at your shop, you know from time to time, some of the LO's are authoring their own flyers - often with Truth in Lending advertising violation trigger terms, and therefore insufficient information for the consumer on them. You also know they take customer paperwork and information home (into a non-secure environment), and they also normally communicate with the customers without using at least an 8 character protected/encrypted e-mail, so they're violating a couple areas of the privacy statute of the GLB Act. Without proper teaching by you, probably several of them don't issue the GFE on time, or they show the YSP (improperly) as a vague range, instead of dead-on specific as HUD requires, magically most of their customers select the higher rate STATED loan programs so they'll qualify, etc. Does a lot of this sound familiar?

The result of this sort of inaction on your part, there will end up being a great deal of compliance problems you'll have to deal with soon enough (if you haven't already). Some of them, easily big enough to put you out of business. Also, there's high turn-over among your Loan Officers, because they realize they need a lot of help to do thing right, and down deep they really don't like to feel as clueless as they do - so they move on - and you repeat the cycle.

It's time for a change, help them learn the right way to do things. Do it yourself or bring in someone to help you do it, hire a consultant, send them to industry classes, make training materials available for them to study, etc. As a shop owner, you need to be the major part of the solution. Do it for their own improved self-esteem, so your company is more professional - more credible, so your turn over will decrease, to preserve yourself from repercussions that they cause, or just do it because it's the right thing to do.
Tell everybody what you think CLICK HERE










HIGHLIGHT: Special Event - Conversation with Secret!
At our first two sessions earlier this year, after everybody had their complimentary continental breakfast, we all sat around a big table (no not quite that big) and talked about what's happening out there. There were questions and comments by most everyone in attendance about sales issues, regulatory compliance matters, various educational and training suggestions, and an industry forcast for the next year. Come and help out the group ... "Learn easier ways to operate your business" CLICK HERE to attend