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IN THIS ISSUE:
- A Message From Jason Kane
- Secrets To Loan Officer Success
- Longevity In Shifting Market
- Senate To Consider Ban On Banks In Real Estate
Dear Friends,
In
order to better accommodate our clients we have been working to implement
new internet technologies. Our new
system will allow Lenders and mortgage brokers to submit orders
for title or closing work (directly out of major LOS systems or
through an on-line order form). check on the status and details of
individual orders, obtain reports on their entire order pipeline
and get access to on-line resources for industry professionals.
It's my hope to have this available to you in the next 2
months.
I'll keep you updated.
Sincerely,
Jason Kane
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Article
by: Chad Weber
As much as I hate to use the word secret in anything I write,
I’m using it in this article because a large majority of the
mortgage community seems to jump through all the hoops to get new
customers, but then forget to incorporate this important step into
their daily sales cycle.
I’m
talking about follow-up. When I say follow-up, I’m not referring
to the process of returning phone calls and giving quotes to those
who have asked for them. No, what I’m referencing here is the
powerful form of constant contact to a group of individuals who
have identified themselves as potential future clients, or
consistent mailings to a target group of realtors etc.
Whether
it’s your sphere of influence (SOI), a group of real estate
agents, or even your database of happy clients, a consistent drip
mail campaign has proven to be one of the missing links of most
loan officer business plans. Why is this?
In
short, many loan officers are so focused on the here and now, they
forget that next month and even next year will soon be the here
and now as well. We become so enraptured with trying to bring in
business that can close today we don’t bother with marketing to
our warmest group of clients.
What
can a properly executed follow-up plan do for you? Well,
statistics show that 10-12% of an average database will need to
buy, sell, or refinance each year. Wow! Think about that for a
moment. If you have a database of only 300 names, 30 or more of
those individuals will need your services over a 12 month period.
How
much extra commission would 30 extra closings earn you? What if
you have a database of 500 names? Can you see how powerful this
concept is? How much easier is it to market to a group of warm
leads versus the marketing and advertising you do now?
A
properly executed follow-up campaign is full of useful information
as opposed to the blatant sales messages many of us have grown
used to. A follow-up campaign is designed to provide this
information over a 3-6 month period or more depending on what part
of your database is being targeted.
For
instance, if you are marketing to call capture leads (a great
target by the way) then you need to be prepared for a 10-12 week
marketing cycle that touches the client 1 time per week for 50-60%
of the database, and have a 6-12 month campaign ready for the
remaining portion that decides not to purchase for a while longer.
If you
are marketing to a group of previous clients, then you need to
have a long term marketing plan in place here as well, but the
number of contacts is reduced to just once per month in this case.
Any time I discuss a program
or method for increasing business, I like to review both the pros
as well as the cons. The drawback of running a follow-up point
such as this can be both the time invested as well as the cost.
The
good news is that both of these drawbacks can be minimized, if not
eliminated all together. If you are handling each and every
contact yourself, then yes, the time spent on this sort of
campaign can become quite overwhelming rather quickly. However, if
you elect to handle most, or all of your follow up electronically,
then not only do you eliminate the time needed to print fold and
mail hundreds of letters and postcards each month, but you also
eliminate the cost of postage as well.
A
system known to many as ‘smart auto responders’ can automate
the entire process for you so that your entire campaign can be
entered just once, and put into motion with nothing more than the
push of a button. Of course you will want to begin asking for
email addresses from each and every person you come in contact
with. This can be a rather simple “oh by the way” process if
your information holds true value as opposed to blatant sales
literature. Perhaps you can offer an informative newsletter?
The key
here is to get permission to send something. Sending information
via email without asking for permission first will quickly get you
labeled as a spammer.
Categories
that work well with this type of campaign are:
-
Financing
tips
-
Credit
and credit repair
-
How
to negotiate when purchasing a home
-
How
to assure a smooth purchase process
-
Can
I really get into a home for 0 down?
-
ARM
vs. Fixed rate
Can you
see the pattern here? These articles focus on providing valuable
and usable information. We are helping the client without asking
anything in return. Of course, you will want to create a strong
call to action at the end of each article. Give the prospect a
good enough reason to want to contact you. Perhaps you offer a
free booklet that helps organize the buying process? Maybe a
coupon for a discount on closing costs?
Get
creative with your call to action, and rotate the offers from time
to time. Be proactive and get started on designing your follow-up
plan today. Follow these guidelines and watch your pipeline grow!
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Article
by: Laura Culver
Doesn’t
it seem like the mortgage industry is in the news every day?
Foreclosures are rising, rates are going up, ARMs are expiring and
the media is spreading doom and gloom saying homeowners will
default as rates continue to rise and blaming lenders for selling
risky loans. It sounds bleak doesn’t it? Actually it isn’t
bleak; it’s great news for you! Great news? Yes… you can be
that trusted professional among the disreputable lenders.
How
you may ask? First, by marketing. Continually remind your past
clients and sphere of influence that you’re here for them, they
can trust you and that you would appreciate the opportunity to
work with their friends and family members. Second, incorporate
these 10 critical components into your business vision and plan to
achieve the success you want and deserve.
One.
Decide how successful you want to be.
Think
about this for a moment. How successful do you want to be? Do you
want to do one loan a month or twenty? It’s really not about the
number; it’s about finding a way to define your success. The
Rolling Stones, The Eagles, Elton John, U2 and Paul McCartney all
have something in common. Can you guess what it is? No, it’s not
that they’re all old guys still on stage performing! According
to Forbes, each of these bands made more than $50 million last
year. They accounted for 40% of the Top 10 acts. They had a plan
for longevity and ongoing income. What’s your plan?
Two.
Be very clear about how you will get there.
If
you’re happy where you’re at, then don’t change what
you’re doing. Did you know that if you only market to your past
clients and do nothing else, your business will grow over time,
you will recoup your marketing investment and you don’t need to
worry about expanding your market share.
But,
if you want to expand your market share and increase your
business, then it’s important to be clear about what you want to
do. Break it down into the number of leads and closings you need
to reach your goal. Identify the best way to reach your market and
as part of your plan put a marketing component in place to support
your goals. It doesn’t have to take much time to add a marketing
section in your plan.
Three.
Differentiate yourself.
Two
little words that could make all the difference to your career –
differentiate yourself. Give this some thought, how do you want to
differentiate yourself? Is it a) your niche, b) your approach or
c) your follow-up methodology?
Many
in the mortgage business choose a niche as a way to differentiate
themselves. Those who are successful typically identify with their
niche, have a special affinity with the people associated with
that niche or have discovered an untapped market they can
effectively serve.
You
may want to differentiate yourself by how you approach your job
and your industry. Most consider refinances a distant memory;
however, if you partner with financial planners and focus on asset
reallocation you can effectively change how you approach
refinances and increase your business as a result.
Another
way you can differentiate yourself is in how you work with and
follow-up with your clients. Some lenders take extra special care
to learn everything there is to know about every client and their
family. They then follow up with articles, gifts and items that
are of interest to that client. This type of specialized marketing
creates a long-lasting, positive impression on clients who will
become your referral ambassadors.
Four.
Know what kind of business you are (really) in.
There
tend to be two camps on this subject – this is a numbers game
or, alternatively, this is a relationship game. If you’re in the
first camp, you can succeed, but it will come at a much higher
cost and take longer than those who cultivate relationships.
Those
who are financing a loan are basically looking for two things: 1)
a smooth loan process and 2) that they matter to you. Sounds too
easy, doesn’t it? If you care about your clients and you
demonstrate that to them they will be your clients forever and
will rave about you to their co-workers, family and friends.
Unfortunately, just doing a good job isn’t enough. You have to
stay in touch with your clients on a regular and consistent basis.
It’s critical that you remind them of who you are, that you
prefer to work on a ‘by referral’ basis and that you’re
there when they need you.
Five.
Know where the future of the industry is headed.
Look
at the current market conditions, what’s happening right now?
Rates are going up. That means those with 1% ARMs or expiring ARMs
need to refinance now. Are you capitalizing on this trend? Are you
contacting all of your clients with ARMs and providing timely
advice? If you’re not, your competitors are.
What
about tapping into the property investment/foreclosure market? In
some parts of the country foreclosures are at an all time high. If
you’ve got the right mix of loan products and partner with a
Realtor who invests in property and knows the up and coming areas,
you could capitalize on this trend. You could be closing loans
while your competition is still scratching their heads wondering
where their next deal is coming from.
Six.
Build a (growth) support team.
Building
your support team doesn’t mean that you need to run out and hire
an assistant. Instead think of those who can mentor you to higher
levels of performance. Time and again, those who are very
successful shadow others who are experiencing high levels of
success. Sometimes these mentors charge a “fee” to come and
shadow them and see how their operation works. Others do it as a
way to give back and help others achieve even a small portion of
the success they’ve achieved.
Don’t
forget to include your past clients as part of your support team.
They have valuable insights about what they want from lenders and
how you can better serve their needs. Take the time to ask for
feedback and then really listen. They know how to make your
business better.
Seven.
Pick your niche.
We’ve
already discussed that a niche can be used as a differentiating
factor. A niche can provide another income stream and depending on
the niche can also give you a sense of personal and professional
satisfaction. You may deliberately choose your niche because of an
interest you have, you may fall into your niche due to economic
conditions or you may discover an underserved market. Whatever
your motivation, choose a niche – become known as a specialist
within your industry. You will achieve a higher level of success
than those who just do loans.
Eight.
Add more value than ever before.
Yes,
times are tough. But, those who are successful are already
figuring out ways to add value, to distinguish themselves from the
pack and to continue to succeed even in this market. How are they
doing it? They’re tweaking their business focus and they’re
maintaining regular contact with their past clients and further
cultivating those relationships.
You
can enhance your relationships and add value by providing
education and appreciation. If you’re like most lenders,
you’ve done first time home buyer sessions. Have you ever done a
session to help your past clients learn how to make the most of
the equity in their home? Have you offered sessions to your past
clients to teach them about investing, buying a second/vacation
home or how to capitalize on a reverse mortgage?
Do
you show your clients that you truly appreciate them? Do you thank
them for their business and referrals they send you? Do you
remember them on their birthdays, anniversaries and at holidays?
Do you tell clients you really appreciate them? If not, why not?
Nine.
Be memorable.
You
don’t have to hold extravagant client appreciation events to be
memorable. Use both high tech and high touch marketing methods to
ensure that you’re memorable to your clients. Here’s an easy
way to be memorable: call the husband five days before his wedding
anniversary and wish him and his wife a happy anniversary.
You’ve just reminded the husband that his wedding anniversary is
fast approaching and he can get dinner reservations made and a
card and gift bought before the big day. He’s a hero to his wife
who’s convinced he never remembers things like wedding
anniversaries. You’re a hero to the husband and have created an
easy way to be memorable to your client. Then simply follow up by
sending a happy anniversary card to the couple.
Ten.
Realize true success is more between your ears than anything
written in this article.
There
is work involved with being successful, but success is really
about a mental attitude and set of beliefs you hold. As the saying
goes, “if you can see it you can achieve it”. Be methodical
and realistic, make a plan and stick to it. Track your progress
and celebrate incremental successes.
Yes
the mortgage industry is changing. How you respond is key to your
success. Are you willing to change the way you’re currently
doing business? Are you willing to revamp your marketing methods
and further build relationships with your past clients? By
incorporating these 10 critical components in your business you
can succeed while others fail. It’s a time of change and
renewal. Are you ready to succeed?
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| Senate
To Consider Ban On Banks In Real Estate |
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Source: Inman News:
For the
third straight year, the U.S. Senate Appropriations Committee has
approved a permanent prohibition on the entry of federally
chartered banking entities into the business of real estate
brokerage. The committee approved the ban as a part of an
appropriations bill for the departments of transportation,
treasury, and housing and urban development.
The
National Association of Realtors trade group for several years has
aggressively lobbied to block federally chartered financial
institutions from engaging in real estate activities, charging
that these large companies would have an unfair advantage in the
marketplace. Meanwhile, banking industry supporters have countered
that new competition would be good for the real estate brokerage
industry.
"Last
year, House and Senate appropriations conferees agreed to the
Senate permanent ban prohibition provision until the House
Leadership insisted on its removal during the final hours of the
conference," stated Mary L. Trupo, public issues director for
the Realtor group. The full Senate may consider the latest
proposed ban in late September or later, according to Trupo.
On June
14, the U.S. House approved a one-year prohibition on the entry of
banks into real estate brokerage activities as a part of its
transportation-treasury-housing-and-urban-development-spending
bill. The provision in that bill prohibits the Federal Reserve and
Treasury Department from finalizing a rule that would allow banks
to engage in real estate brokerage, Trupo stated.
"We
will continue to make the case with ... leadership of both (the
House and Senate) that this is the time to resolve this
issue," according to Trupo.
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