There's a time and a place to break the rules
You can’t make an omelet without breaking a few eggs, as the saying goes, and the same could be said for a mortgage business.
There are must-dos and can’t-dos of origination (for example, originators must be registered/certified and know guidelines; originators can’t lie to clients or knowingly submit false information), but there are also a wealth of should-dos and shouldn’t-dos floating around. For better or worse, these shoulds and shouldn’ts are sometimes followed religiously, especially in an increasingly competitive market, when originators are looking for the “tips and tricks” to success.
The truth is, following blanket recommendations on what you should or shouldn’t be doing for your business can backfire. Instead of following anything by the letter, originators shouldn’t be afraid to go off-book and trying something if they think it will work well for their business or their personality.
A few other approaches that aren’t as black and white as they seem:
Do go all in on social media
Social media is all the rage and there is a big opportunity for businesses to reach borrowers through social media. If social media isn’t your thing, however, then you don’t have to figure out the ins and outs of every platform. It’s possible to hire a company to do your social media marketing for you, or even just figure out one platform, the one that you find the easiest to post messages and updates, and let that be it.
Don’t make mistakes
Of course you’re going to make some mistakes when it comes to growing your business. Mistakes are where growth happens and where you learn, both personally and professionally. But don’t make the same mistakes that others have made. By working with a mentor or enrolling in a training program led by other successful mortgage professionals, you’ll not only get effective and profitable strategies to manage your business, but you’ll also hear pitfalls and failed ventures.
Not repeating the mistakes of others will save you time and money. Even if their failures might not apply directly to your business model, you already have a headstart in tailoring their approach to fit you and your business to something that will work much better.
Do underpromise and overdeliver
This is common trope of the service industry, to say that you’re going to do A and B but then come back with A, B, C, and D, or to do more than you said you were going to do in less time than you say you’re going to do it. But plenty of originators have had success with another approach: be honest about what you’re going to do, not overconfident about it, and be accurate with your time frame. “If I think I can do something I tell [partners] I think I can, I can’t guarantee it, I need to look into it, as opposed to saying yes I can and then blowing that. If you make one mistake, you’re done,” said Eric Rotner, vice president and a mortgage banker at Commerce Home Mortgage.
Obviously processes get held up all the time, but it’s important to let clients know if and when roadblocks arise, as it’s a more honest and genuine approach. Also, if you can’t fix something, don’t say that you can. Instead, find someone who can. You’ll end up making the borrower and a potential future partner happy by doing so.
Be meticulously organized
In an ideal world, most people would want a spotless desk and a client database that is up to date and isn’t riddled with outdated information. Some people, however, find it easier to run their business like their brain works, rather than trying to fight against the grain.
“If [you] came to my office, you’d think I was the most unorganized person in the universe, but I can tell you if I write something on a piece of paper exactly what the paper looks like, and where you’ll find it,” said Mary Lee, senior loan officer at Cornerstone Mortgage. “I keep notebooks like you would keep check registers and I have dated them, and I try to write down what the conversation’s been, just to keep notes. I tried using spreadsheets, but I don’t like them; it’s too confining and I need to be somewhat more freeform.”
There’s an end game to success
Just because an originator makes $50 million or $100 million doesn’t mean they know all the answers. It’s not necessarily about doing more volume or more units, but about streamlining processes and improving the loan experience for consumers. Even if someone’s business is pinpoint perfect, exactly as they want it, how can they make it more efficient in order to have more time to spend living their life? The idea that someone has “made it” is a bit of a misnomer. In an industry that’s changing constantly, to stay stagnant means falling behind.
There’s a difference between contentment and complacency, and even if you’ve reached where you want to go, you still have to work to stay there.
There are some things that most successful originators share, but there are many paths to the same destination. Sometimes breaking the rules and forging your own path is a valuable experience.
