event booklet - Loan Officer Training

Transcription

www.LoanOfficerSchool.com
866.623.1250
S E M I N A R
B O O K L E T
Advanced
Mortgage Broker
Training Seminar
BE A TOP PRODUCING LOAN ORIGINATOR
The mortgage business is not brain surgery but it can provide you with a similar income if
you follow the advice of others who are doing it successfully. Here’s their advice:
1. Talk to more people that may be interested in borrowing money
2. Take a complete, accurate, legible, loan application
3. Use electronic underwriting
4. Return your telephone calls
5. Market yourself
6. Know your products
7. Build a referral network
8. Work with integrity
9. Think like a financial planner
10. Talk benefits not rates
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SEPERATE YOURSELF FROM YOUR COMPETITION BY ADDING
VALUE THAT OTHERS DO NOT
When a consumer is shopping for a mortgage loan and speaks to three loan officers, all
things being equal, the borrower will usually default to rate and cost. Put yourself on an
unequal playing field by adding specific value that others do not.
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GREAT LOAN OFFICERS TALK ABOUT BENEFITS NOT RATES
If anybody can do it, you can, so think of ways to separate yourself from the competition so
that borrowers do not need to continue shopping for the lowest rate. Here are some ideas
how:
1. Sell yourself
2. Ask about past experiences
3. Think payment not rate
4. Talk about benefits
5. Talk more about benefits
6. Cash out
7. Re-establishing credit
8. Simple vs. compound interest
9. “What’s your Rate?”
10. Be a closer
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CRITICAL CONTACT POINTS DURING A TRANSACTION
There are several occasions during the transaction that are most critical to a successful
outcome. You must continue to build rapport, educate, and maintain the borrower's
commitment to you throughout the process to prevent lost loans. Here are some things to
remember:
1. Initial contact
2. Credit report
3. Disclosures
4. Loan approval
5. Closing/Post closing
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CREATE AND MARKET TO A DATABASE
The biggest mistake a seasoned loan officer has made is if they have not collected a
database of information on their previous clients and contacts. Marketing regularly to those
that know you generates new business and referrals and is an effective way to put you in
front of the right people so that you can say the right thing.
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PRODUCTION IDEAS
Don’t ever forget your job. Your job is to get loans and if you cannot get loans, it does not
matter how good you are or what you know. Top producing loan officers have a “Get Loans
Mentality” and use multi-pronged marketing in order to generate consistent business.
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CRITICAL NEEDS
There are several things required to maintain success as a top producer in the mortgage
industry. Absolute confidence can only come with absolute competence. Resolve yourself
to master every aspect of the industry.
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SELL BENEFIT NOT RATE
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Great Loan Officers talk about benefits, not rates.
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Great Loan Officers talk about monthly payments, not rates.
• A great Loan Officer doesn’t talk about credit, income or loan to value problems;
they talk about being an expert in getting people qualified that others cannot.
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A great Loan Officer thinks like a financial planner, not a rate-quotor.
• A great Loan Officer takes an inquiry and a loan application to close a loan, not to
quote a rate.
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A great Loan Officer adds value to the transaction that others don’t.
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A great Loan Officer is a closer
You are, above all else, a closer.
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BENEFITS
1. Payment savings
Universal benefit. Everyone likes to save money.
Quote savings monthly, annually and as a percentage of gross income to show short and
long term benefits.
2. Cash out
Include cash out in every offer to maximum. Equity.
Cash out is non-taxable
Always provide ideas on how to use the cash.
3. Shortened term
Terms on credit cards can arrange from twelve to thirty years.
When offering term reduction, calculate the savings in payback and age factor to payoff.
4. Fixed Term
Closed end loan with no fluctuations in term.
5. Fixed rate
No fluctuation in payment.
6. Adjustable rate
Offers lowest possible rate and payment.
Loan is re-amortized if borrower makes a payment towards principal.
7. Reduce the number of payments.
Ease of one payment versus multiple payments.
Less time paying bills.
Less stress paying bills.
Credit scores will probably go up.
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8. Free and clear Auto Boat or Rv
Allows customer to accumulate assets.
Potential savings in insurance premiums.
Pride of Ownership.
9. No application fee
No cost out of pocket at time of application.
Only out of pocket expense cost is appraisal, which can be paid with a charge card and
probably paid off with the loan proceeds.
10. You get to work with me!
I work with integrity.
I return my phone calls.
I want you as a client.
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INITIAL CONTACT
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Be a “10” when you answer the telephone
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Thank the customer for calling
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Acknowledge questions
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Do not give rates
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Ask about past experiences
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Sell yourself
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Add value
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Create expectations
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Close- “Now lets get started"
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SAMPLE DIALOG
Good morning! This is David. How may I help you?
I received a postcard in the mail about a debt consolidation loan. I wondered what your
rate is?
Well first of all, thank you for calling. We appreciate your business and that’s great
question. I’m sure you have been through this before.
Yeah, I went through the process before when I bought my home.
Well you are already ahead of many people then. How was your experience financing
your home?
Well, frankly, I hated the entire process because……
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It went pretty well.
Wow, that sounds frustrating. I’m glad you decided to give me a chance to do better.
You’ll like the way we do business here at Emerald Home Loan and I really want you as
a client.
*Or
Well I plan to work just as hard for you. You’ll like the way we do business here at
Emerald Home Loans and I really want you as a client.
First, let me tell you a little about us and how we work. Most lenders will quote you rate
right over the phone as soon as you call. The problem with that is that they can’t possibly know
what rate they can get you if they haven’t even looked at your credit and income. It’s kind of a sad
thing in our business that if customers shop for the best rate over the phone they usually find
somebody willing to say whatever it takes to get your business or someone that doesn’t know what
they are doing. (Has that ever happened to you?) We do things a little differently here. We do it
the right way by getting enough information from you up front before we quote you a loan program.
We take the time to understand your financial profile and goals and then after listening to what you
want, we design a specific loan program that meets your needs. After that we get you an approval
electronically through the lender that offers you the best program. We usually get back to you
within 24 hours with an actual loan approval. Sound good?
Yes, it does.
Great, let’s get started. How do you spell your name?
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No, it doesn’t.
Well that’s ok, I’m not for everybody, but let me just ask you one more question. If you could
identify the single biggest obstacle that may prevent you from getting the very best interest rate,
what do you think it may be?
Probably my Credit, Income, or Down Payment………..
Well you know, it’s not so much a credit problem usually, it a getting qualified problem. I specialize
in getting people qualified that others cannot. In fact, I just closed a loan that was denied at another
lender and we were able to close there loan in 32 days and get them into the home they wanted
with no money down. Let’s see what we can do for you, here’s what I can do for you that you won’t
get anywhere else.
See Adding Value at the Point of Sale!
Sound good?
Yes, it does sound good.
Then let’s get started, how do you spell your name?
No, it doesn’t.
Well, like I said before, I’m not for everybody. Just out of curiosity though, on a scale of one to ten,
ten is the highest, how important would it be to work with someone that tells the truth, returns their
calls and knows what they are doing?
7 or above
Well you just found a 10, and we really want you as our client because you are going to like the
way we do business, so let’s see what we can do for you………..
6 or below
Well then I am probably not best for you because I’m a 10 in those categories. Do you know
anyone else that I may be able to help?
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FAST TRAK PROGRAM
The goal of this program is to close loans faster and allow Loan officers to send in complete
and documented files to processing. By enrolling the borrower in our FastTrak Loan Closing
Program, borrowers and Loan Officers are designating the file as their highest priority. As the result
of committed borrowers who have demonstrated their eagerness to close and Loan Officers
sending in files which have been completed properly up front, the processing, underwriting and
closing departments will also spend less time on these files and deliver a successful loan closing
much faster. The goal of the FastTrak program is to close the loan within 15 days and for the
Loan Officer to send in every borrower document up front to the processor with a cover letter in file.
PROCEDURE: The FastTrak program is not for everybody and must be SOLD as such. It is only
for borrowers that are committed enough to spend time needed up front and immediately to send
you a completed package of everything that an investor would ever request. After the borrower
has committed to move forward, you will engage them in a conversation regarding the timeliness of
their loan closing and offer to let them into the FastTrak program. When you enroll your borrower
into this program you are adding value to your service. You are pre-closing your borrower by
making them respond to your requests up front and you are ensuring that a complete application
and file will be delivered to processing who will give these files priority as a result of your effort.
Once you have enrolled your borrower into the program you will provide them a complete lit of
MORE THAN everything that may ever be needed on your loan file. The list will be long and
complete. These items will be issued to document all conditions on the loan approvals based upon
new information. FastTrak files will be given priority by the processing department as these files
represent borrowers who are committed and files that have been properly documented and
structured by the Loan Officer.
SAMPLE DIALOG: Mr. and Mrs. Jones, I want to talk to you now about when we can pay off all
your bills (reduced your payments, get you the money, SELL BENEFIT HERE!). We have a twotiered processing system department. One of them is our traditional processing and I’m sure you
have heard it is taking about forty-five days and sometimes a lot longer to close a loan under most
processing systems. We have a special program here at Emerald Home Loan about it. The
main features that I always start with is that I only get to put a few loans per month in FastTrak so
I’m kind of picky of which loans go into this program because I am talking to so many people. I
only put loans into this program that I know will close because my processors and funders will give
priority to your loan and will usually be able to pay off all your bills within fifteen days. I think you
should be in it because of everything we have talked about up until now. Here’s the catch to be in
the program but it’s really easy. I’ll give you a list of everything we would ever possibly need from
you today and you have it ready for me within twenty-four hours. The list will seem long but what
most companies do is ask you for a few things up front and then ask you for a few more things a
few more times. You probably had that happened to you when you got your last loan. Well,
processors and funders don’t like to get all these things over a four week period the way it usually
happens and you as my client don’t like me asking you for things over and over either, right? So if
I give you a complete list of everything I would ever need from you can you get it ready for me
tonight and I can have it picked up from your house? I’ll even pay for your shipping and if you don’t
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have copies I’ll make your copies and send you back your originals. This FastTrak program is
basically saying that you and I will both do whatever it takes to get your loan closed. I think you
need to be in our program. I need to make sure your committed to do this though since I only get a
few loans onto the program and I am counting on you to get me everything I need right away. You
see a lot of benefit in doing this, right?
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RULES FOR COMPLETING A
GREAT LOAN APPLICATION
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Use the application as a tool to build rapport.
Collect more information than you need.
Note strengths and weaknesses at every opportunity.
Use the application to plant seeds and show confidence.
Think like an underwriter at every step of the application.
The more information you get the more your client will trust you.
The more intrusive you are as a loan officer the more loans you will close.
Make a commitment to continually improve your applications.
Submit your loan applications complete, accurate and legible.
After completing the application say out loud to the client,
“Mr./Mrs. Martin , I just wanted to say I am very happy to
have you as our client and you’ll like the way we do business!”
Attach a cover letter to every loan application.
THE BENEFITS OF A
GREAT LOAN APPLICATION
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You receive valid loan approvals.
You save time later in the process.
You won’t “nickel and dime” your clients.
You eliminate last minute surprises and problems.
A smooth transaction means better service and more referrals.
You have started a relationship and pre-closed the borrower.
Your processors will want to work on your files.
Your processors can process more loans.
Your company becomes more profitable.
You close more loans with less stress.
You make more money in less time.
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USING THE FINANCIAL CALCULATOR
N=term
I=rate
PV=loan amount
PMT=payment
FV=future value
Solve monthly payment
Enter term 360(n)
Enter rate 10(I) or 10 g (i) for HP12c
Enter loan Amount 100,000 (PV)
PMT
Solve Loan Amount
Enter term 360(n)
Enter loan payment 877.57 (PMT)
PV
Solve Loan Term
Enter term Loan Amount (PV)
Enter loan payment 877.57 (PMT)
N
Solve APR
Solve for regular monthly payment above
Add total of loan amount and all borrower paid closing costs= (PV)
(PMT)
Change Loan Amount back to its original balance
(PMT)( make sure pmt has negative sign )
(i)
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LOANOFFICERSCHOOL.COM
Case Study 1A
Mr. and Mrs. Reed purchased a home ten years ago for $260,000 and borrowed at an 80% LTV.
They have an interest rate of 8% on a current loan balance of $170,000. They are considering
refinancing but can’t improve their rate and are offered 8% for thirty years or 7.5% for fifteen years
with two points because of the market and their circumstances. They have outstanding consumer
charge card debt of $40,000 that has minimum payments each month of $1,600.00.
Mr. and Mrs. Reed are not convinced they should do anything because the rate is the same and
she is already ten years into her current loan.
The Reeds need to refinance. Why do they need to refinance and what are their best options?
How will you sell this service to your prospects?
WHAT YOU NEED TO KNOW:
1. The original loan balance and rate OR the exact current principal and interest payment.
($260,000* 8%)
2. The number of month left on the current loan (360-120)
3. The monthly payments and balances on consumer debt to be consolidated.
4. The number of months left on any installment loans that will be consolidated.
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Case Study 1B
Mr. and Mrs. Reed purchased a home ten years ago for $260,000 so we will assume they have
the value needed to cash out at an 80% LTV or less. If there is any question about value we
must account for PMI in our calculations. In this case study the borrower will finance $10,000 in
closing costs. Assume the borrowers charge cards will be paid off in fifteen years with current
payment.
The Reeds can’t improve the rate on their first mortgage but they can greatly improve their
immediate cash flow, accelerate equity, improve their tax liability, and invest monthly savings.
We might show the prospect several perspectives as a mortgage specialist.
1. How much will the Reeds sav e each month if they refinance all of their debt on a thirty year
fixed rate loan?
2. How much will the borrowers save over the life of the loan if they move all of their debt to
fifteen year fixed rate loan?
3. How much will the borrowers save in added tax bene fits in the 35% tax bracket?
4. How soon would the borrowers pay off their mortgage and 100% of their consumer debt if
they paid all of their monthly savings towards the principal of their new loan thereby
leaving their current cash flow unchanged? How soon could the borrower become debt
free with the same cash flow they now have?
5. How much will the borrowers have accrued if they invest their savings each month on a
thirty year loan into a mutual fund that earned 6% over 5, 10, and 15 years?
WHAT YOU KNOW:
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$260,000 * 80% = $208,000@ 8 % / 360 = $1,526.
360-120= 240 months remaining.
$1,600 per month and $40,000 balance.
Charge cards take forever to pay off.
We need to show them the benefits of a fifteen and thirty year debt consolidation loan on
their home.
6. We need to borrow $210,000 plus closing costs ($220,000).
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Case Study 1C
1. $220,000 @ 8% / 360 =$ 1614. -1526-1600= <1512>
2. ($1526 x 240 = $366,240 + $1600 x 180 = $288,000) = $654,240
($220,000 @ 7.5 %/ 180= 2039 x 180) = $367, 096
<$287,144.>
3. $50,000 x 7.5% = $3750. x 35% = $1312. yr.
4. $220,000@ $3126 = 93 mos. Payoff
5. $1512 @ 6% / 60 = $105,000 / 120 = $248,000
180/ = $440,000
WHAT YOU KNOW:
1. The borrower will save $1512. per month in pure cash flow if they decide to refinance their
loan for thirty years.
2. The borrower will save $287,144 over the life of their loan if they decide to refinance their
loan for fifteen years.
3. The borrower should save an additional $1312 per year in taxes if they pay the average
35% state and federal tax liability.
4. If the borrowers decides to refinance their home and continue to pay every month into their
home what they now pay elsewhere, they will be completely debt free in 93 months.
5. If they borrower decides to refinance to a thirty year loan and invest their savings each
month their future life will change.
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CHECKLIST FOR THE LOAN OFFICER
Is the property presently for sale or has it been recently?
Is the current loan to be refinanced a FHA loan?
Have there been any draws against an equity line or second trust deed in the past year?
Has the reason for the cash out been explained in writing? Is it leading to more debt?
Is the appraised value a potential problem?
Does the property sit on large acreage?
If the subject property is a condo is the condo approved? Did you get the condo name?
Is the property on a private road?
Is the property currently under renovation?
Are there any repairs needed on the home to get an average condition appraisal?
Is there anyone on the title of the property who is not going to be on the loan?
Is there anyone on the loan request who is not currently on the title?
Have there been any changes in title in the last year?
Has the borrower owned the home for less than one year?
Is the property in a trust?
Does the borrower have any additional cash reserves or retirement assets?
Does the loan that will be paid off have a prepayment penalty?
Is there any documentation that would indicate the borrower does not live in the property?
Is the property a manufactured, prefabricated, modular, or a mobile home?
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If so does the borrower pay property tax or motor vehicle tax?
Is there any documentation that would indicate the borrower is self-employed?
Can the borrowers withdraw from their retirement account in an emergency?
Are there any loans against the borrowers 401k or retirement account?
If so, what is the monthly payment?
Does the borrower pay child support or alimony? Did you get the complete divorce decree?
Have the borrower been continuously employed for the last two full years?
Did you obtain accurate starting and ending dates for all employment?
Do you need an explanation for position changes or declining income?
Do you have the last two years complete federal tax returns and W-2’s if needed?
Does the average income match your application? Did you highlight the 1040’s appropriately?
Did you breakdown salaried and variable income?
Do you have documentation of the last two years of variable income and did you average?
Does the file need a letter from the employer?
Are there any withholdings on the pay stubs indicating additional debt or loans at work?
Does the year to date history on the pay stubs match the annual income level?
Can you gross up any non-taxable income?
Has the borrower cosigned for anyone else’s debt?
Does the borrower have any tax liens or judgments?
Have you written a cover letter for your file?
Are there any loans on the credit report that you have not matched to a property or asset?
Is everything that you are submitting to your processor complete, accurate, and legible?
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QUICK BORROWER ANALYSIS
The Four Most Important Questions Underwriter Ask:
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What is the source of down payment?
Is the borrower’s income stable?
Does the borrower have a good credit rating?
Is the proposed mortgage payment close to current housing expense?
Grading The Borrower
1. Source of Down Payment:
_____ Savings
_____ Sale of Current Residence
_____ Borrowed Funds
_____ Gift Funds
_____ What kind of reserves remain after closing
_____ What kind of savings pattern?
2. Job Stability:
_____ Employed by same company for at least 2 years?
_____ Changed jobs during last 2 years?
_____ Stayed in same line of work consistently?
_____ Changed career within past year?
_____ Trained for new career? How extensive?
_____ Self-employed for more than 2 years?
_____ Self-employed for more than 1 but less than 2 years?
_____ If so, has income shown steady increase and stability?
_____ Is overtime to be considered?
_____ More than 25% of monthly income comes from commissions?
_____ Does borrower pay his own expenses?
_____ Income from other sources, such as alimony, child support?
_____ Will income continue for at least three more years?
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3. Credit History:
_____ Does borrower have good credit?
_____ Does borrower have satisfactory explanation for late payments?
_____ Has borrower had a bankruptcy that was discharged 2 years ago?
_____ Is there a satisfactory explanation?
_____ Has borrower had property foreclosed upon? How long ago?
_____ Is there a satisfactory explanation?
_____ Has borrower been late in the past 2 years on monthly housing payments?
_____ Does borrower have excessive consumer debs?
4. Proposed Mortgage Payment:
_____ Is the proposed mortgage payment 50% or greater than current monthly housing
expense?
_____ Is the proposed mortgage payment close to current monthly housing expense?
OTHER FACTORS TO CONSIDER:
_____ Is co-borrower non-occupant?
_____ Is borrower non-permanent alien?
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FILE TACK DOWN ORDER
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Cover letter
Loan approval and worksheets
Loan Application
Signed credit authorization
Purpose of refinance/cash out letter
Credit report
Explanation of credit
Divorce decree
Evidence of debts that have been paid
Pay stubs
Tax returns, w-2’s 1099’s etc.
Corporate tax returns
YTD profit and loss statement
3 months bank statements
Retirement/stock statements
Title report
Appraisal
Signed original up front disclosures GFE, TIL etc.
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SALES LEAD GENERATORS FOR BOTH NEWCOMERS AND
SEASONED REPS
1. Be in the market
It’s been said the luckiest people in the world are those who know lots of other people. That’s true.
By simply getting into your market (i.e., attending networking groups, business luncheons, civic
groups, conventions and volunteer organization), you will attract ideal clients and customers to you.
You can also generate sales leads in elevators, movie lines, at the supermarket or any place else
that positions you next to other people The trick to being in the market, however , is to make sure
that you are proactive. Don’t just sit there like a bump on a log, hoping something good will
happen. Draw attention to yourself by asking question. Make comments, when appropriate, that
relate to your business. When you meet people for the first time, look for casual ways to convert
the dialogue to your business. Your ideal prospects will ask you questions and consequently
reveal themselves as candidates for your program.
2. Call your warm market
This is a particularly good way to start generating sales leads if you are new to sales. Make up a
list of everyone you know on a first-name basis and call them. Believe it or not, the average
person knows about two thousand people. Make your list and include their phone numbers.
Include family, friends, neighbors, old classmates, vendors, suppliers, your butcher, coworkers..
the list goes on and on. Once you start this list, you’ll be amazed by how many people you know.
Many of the people on your warm list will be ideal prospects for you. And many of those who are
not will refer other people who will be your ideal prospects. You only have to ask to get even more
names and numbers.
A note of caution: It’s best not to approach your very closest friends in a new sales business until
you have achieved some level of success. In fact, as you become more successful, they will
probably approach you.
3. Cold calling a target market
This is the most difficult of all prospecting; however, there are two ways to make this approach
more feasible: Make sure you’re calling your ideal clients or customers, no matter what you have
to pay to get this list. (Calling out of the phone book will drive you crazy). Have a good, proven
script built around questions that are designed to get you the appointment, or at least permission to
send prospects your material. If the goal of the call is to send them cassettes, sales letters, video
brochures, etc., you must make another call to them within 48 to 72 hours after they receive the
information. Otherwise, forget about it.
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4. Drip campaigns
Have you ever heard of Chinese water torture? A very powerful but long-range strategy for
attracting clients is to send them something of value for free on a regular basis. This could be
newsletter, flyers, brochures, reports, postcards, cassettes, faxes or whatever. Just be sure before
you send material that your clients or customer either requested it (from your web page) or gave
you permission to send it. No exceptions. You can get this permission by meeting and asking
them in person (the best way) or by calling and asking (don’t worry, they almost always say yes).
One more thing: always get permission directly from the decision maker to send your material, not
from assistants or staff members. Even with that, it may still go into the round file.
5. Seminars, demos and mass presentations
This may be the best lead generator of all time. Find ways to get in front of large and small groups
of people and give them the benefit of your knowledge and experience – for free. This could be in
the form of roundtable discussions, sponsoring a breakfast, sales meetings, breakout sessions,
home parties, seminars or keynote addresses. Let your imagination go wild. Again, make sure
you’re speaking to your target audience. Just ask yourself who would benefit from knowing what
you know about the intended results of your product or service. Then find leaders of these types of
groups and offer to give their groups a training session or demonstration in exchange for an
endorsement. You’ll be surprised at how many people will take you up on your offer.
6. Internet joint ventures
Now, we’re getting a little more sophisticated. One of the coolest things I’ve done at was to surf
the Net and locate companies that have subscriber lists or databases of our ideal prospects. Then,
we offered to make our newsletter available to their lists at no charge. We get free exposure, and
they get to offer an added-value service to their subscribers/ members.
Note: Once you become established as an expert in your industry and / or build up a large
subscriber list, organizations will seek you out and ask permission to reprint your articles.
7. Endorsements
Who do you know who is a center of influence and would write a letter endorsing you, your product
or enormous amounts of money and energy to build a trusting relationship with his or her
customers- customers you would like to have? If you can figure out how it would benefit that
center-of-influence person to endorse you and your firm, you will create an explosion of remarkably
easy sales as a result. Perhaps you help license that person, exchange databases or offer a free
service or sample that would be of added value to his or her clients. Maybe your product or service
is something that person’s customers need and would benefit from anyway. Maybe your expertise
could be used to coach others. You might just get the endorsement of the company as a goodwill
gesture. If you can get a written endorsement, insist on paying all mailing expenses and doing all
the work, including writing the letter. Again, who do you know who likes your product or service
and has a trusting relationship with your ideal prospects? Put together an irresistible proposal for
this person right now. You won’t be sorry.
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8. Referrals
If you have been in business for a while, I’ll bet you have a gold mine of past customers that have
been neglected and could be reactivated to give you some business. Think about it. These
customers already know you (or your company), and there’s a good chance they at least liked your
product or service. For the asking, you have a tremendous resource for referrals, resells, up-sells
and cross-sells. Inertia has caused them not to contact you but, most likely, they would welcome a
call from you.
Here’s how to do it: Call or write these people and apologize for not staying in touch. (That’s right,
you should apologize because it’s your fault that you haven’t stayed in touch.) Tell them that from
now on you’ll be keeping them informed about your company’s products and services, and that you
want them to call you whenever they have questions. Also tell them you’re going to give them
unbelievable service. And of course, give them just that. If feasible also, give them a small gift or
gift certificate when you make these calls. (It would be better, but not necessary.)
9. Direct Mail
The greatest mistake I see salespeople make with direct mail is that they send too much to the
wrong people for the wrong reason. Direct mail can be very effective you follow these four simple
rules: Identify your prospect first. Make sure you’re marketing to the right person. Call behind the
mailing and make sure your prospect received it and looked it over, continue to call every two or
three days until he or she has looked it over or has told you to take a walk. If you’re not wiling to
takes these four steps, don’t waste your money on direct mail.
10. Advertising
Personally, I don’t believe in expensive advertising. (except the phone book) as a Loan Officer
Trainer, my experience has been that salespeople advertise to avoid making sales
calls or to avoid being in the market and putting creative deals together. My recommendation is
that if you’re going to advertise anyway, at least take a short course in direct response advertising.
This is the kind of advertising that you can measure and quantify so you can tell if it’s working or
not. The best advertising I see today uses a lot of text with great headlines and has a compelling
call to action, such as offering free reports, newsletters, information or samples. People who
respond to these offers are usually good, qualified prospects. Do you have a free report about how
your product or service can solve problems?
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STAYING IN TOUCH WITH YOUR CLIENTS
It’s easy to forget that the word “network” includes the word “work.” Indeed , you can’t network
without permitting in some work. But networking doesn’t have to be drudgery. There are lots of
creative ways to keep in touch with the people who need your product or service, as well as the
people you may need yourself someday.
Here are 15 creative ways you can stay in touch with your contacts.
1. Get face to face with your customers on their turf.
Visit their sites without selling anything. Ask questions, look and listen. You’ll learn how to better
server your customers. You’ll build trust and a relationship.
2. Invite a customer—potential, past or present—to attend a meeting with you Send a copy
of a meeting notice just to inform him or her or as a follow-up or preamble to our call. So you’ve
actually contacted that person twice.
3. Invite a customer to sit with you at a meeting, luncheon, etc.
Introduce your customer to everyone. This positions you as a host and puts the customer at ease.
4. Hang out where your customers hang out
If they are members of professional associations or charities, attend and support those meetings or
events. Buy an ad in their charities’ fundraising event programs.
5. Read what your customers read
Read trade journals and neighborhood and regional newspapers. Read church and school
bulletins. You’ll understand your customer’s needs and perspective, and you can use the
information to keep in touch.
6. Have a voice-mail message that informs and calls for action
Be brief. Leave out the standard statement “I’m either on another line or away from desk.” We all
know that drill by now, so we tune out that message and just wait for the tone. Give your callers
something new to listen to.
7. Send a personal message on audiotape or CD-ROM
Make it brief and make it a benefit.
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8. Send gifts to customers
Have your card attached with a note so your name is remembered. It’s personal, and a small
token humanize even the most distant service provider.
9. Send articles of interest with a note to customers
The article can be about you, your company, service or product (to show your customers they are
smart to do business with you), or about the customer’s business or interests. Downloading and
printing an article from the Internet lets your customers know you’re web literate.
10. Use attractive seals or stickers on envelopes or on your letterhead to get attention Are
you having an anniversary? You don’t have to wait for a fifth, 10th, 25th anniversary. Have you won
an award? Have a seal printed to reflect that. Again, show your customers they are smart to do
business with you. This builds your credibility and their trust.
11. Lend a book or tape to a contact
Deliver, then follow up to see how he or she liked it.
12. Set up a “brown bag” lunch with a speaker and invite your customers to attend You will
then be a resource for your customers in an area you don’t need to have any expertise in. Can you
spell win-win?
13. Interview a customer/ contact for an article you’re writing
Everyone likes to be thought of an expert, plus you’ll get exposure and credibility by quoting an
expert. Send your contact a copy of the article when it’s published, and ask him or her for a list of
people to send a copy to. In a way, you’re offering to do PR for your customer. Of course, you’re
simultaneously marketing to potential clients.
14. Ask a client, contact or customer to review and comment on something you’ve written.
This could be a brochure, sales piece, article, letter, etc. Be sure to discuss the comments with the
contact and ask for suggestions. Send a thank-you note afterward.
15. Create a quiz or a case study.
Distribute the quiz to your customers. Follow up with a thank-you note. Don’t do the usual “How
are we doing?” survey. Instead, create a quiz that gives information and piques interest. Create a
case study describing a tough deal that you have closed for a borrower.
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1O THINGS TO KEEP IN MIND WHEN YOU ARE DEALING WITH
YOUR PROSPECTS
1. Your prospects need you
Do you imagine that by promoting yourself, you are intruding on or interrupting your prospect? Are
you thinking, “They won’t want I have,” or “They probably already have someone?” Well, as
someone once said, “At this very moment, your prospects are waiting for you. Whether it’s true
about a specific prospect is irrelevant; if you approach each prospect with that frame of mind, you’ll
make a better presentation.
2. Your prospects want to look good
Things are kind of scary out there. No matter what the industry, but especially a career so closely
ties to the economy, things aren’t the way they used to be- not for you and not for your prospects.
So what they want from you, over and above what they are asking for, is that you make them look
good. That’s your job.
3. Your prospects are, well, lazy
That means you have to do some of their work: Help them find you, help them contact you and
then, of course, help them work with you. The fewer obstacles they have to surpass, the more
likely they are to follow through—and the more likely you are to get the business.
4. Your prospects have got a lot going on
Don’t loose sight of their big pictures. In the office, there are interruptions galore. They can’t get
anything accomplished. Their desks are disaster areas, their voice-mail boxes are jammed and
their e-mails are stacking up. In a word, things are out of control. You are jut one of many things
they are trying to focus on. Now try to ask: Why aren’t they calling me back?
5. Your prospect act on impulse
We all do this: We see something interesting, get excited about it, call for information and, when it
comes, we put it in a pile. Determine as quickly as possible if you’re dealing with an impulse
inquiry, and waste as little time as possible with that prospects. But don’t write impulsive prospect
off entirely; just put them on your quarterly mailing list and let them come back to you. Real needs
and desires will stand the test of time.
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6. Your prospects need to pigeonhole you
Although you hate it, let them do it; in fact , help them. Give them a box to put you in a label to put
on your box (I’m speaking figuratively here). There’s plenty of time to tell them more about your full
range of services later. It is better that they think something of you than not know who are or what
you do. The latter can never lead to business.
7. Your prospects may not know what they need
Listen to them and provide a solution to their self-defined needs. Offer a few alternatives for them
to choose form. If necessary, explain—without trying to persuade- why what your prospects say
they want might not be the best thing for them. Let your prospects decide. A good loan officer
asks questions, listens, gathers information and provides their borrower with the best option and
alternatives.
8. Your prospect need time
It’s not always a put-off. Believe them when they ay they have to think about it, or that they have to
sell the idea to someone else. We all need time to think, get ready, adjust or clear our plates. Give
your prospects the time they ask for, and keep in touch to remind them that they were interested
and that you are there for them. Remember that some tings will never come to fruition. That’s life.
Some great things develop well after the first, second or tenth attempt at earning your prospects
business.
9. Your prospects are people
Your relationships are not with companies; like it or not, they’re with human beings. And
relationships are more important now than ever, especially since people are moving around a lot.
You better believe people are taking their Rolodexes or Wizards wherever they go. The internet
will never replace the live well trained officer. The well trained loan officer will use the internet as a
tool to increase their success by utilizing low cost marketing techniques, automating origination and
processing, lending nationwide and more to increase their production
10. Your prospects are just like you and me Don’t forget: You are a prospect to someone out
there, too. Which defenses do you use? How do you want to be treated when someone is
marketing to you? How often do you want someone calling? How much freedom and time would
you like to have to think about a product, to ask questions and to make your decision? How do you
want to feel about the process when it is over?
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HERE ARE EIGHT PEOPLE SKILLS TO TRY TO BUILD INTO EVERY
SALES CALL YOU MAKE TO A CUSTOMER’S HOME
1. Careful where you park
When you drive up to a customer’s house, always be careful how you park your car. For one thing,
take care to not block the customer’s driveway. The customer may have a teenager who needs to
leave for work, or someone else who needs to get in and out. The last thing you want is to have to
get up in the middle of your presentation and go and move a vehicle. That’s when you lose control
of the situation. While parking or on the way to a presentation, always clear your mind in those
final moments. Salespeople shouldn’t be making last-minute phone calls or fussing with other
details. Your job is to sell, so focus on selling along.
2. Knock, don’t ring
When you get to the front door, knock, never ring. You will lose that sale if you wake up the baby
by ringing the doorbell. Customers with toddlers taking naps will appreciate your thoughtfulness.
Sometimes, you may have to knock for several minutes before the homeowner hears you. Then
they’ll ask you why you didn’t ring the bell. Tell them that you didn’t want to wake any children who
may be sleeping. The homeowner is almost always surprised and pleased with the trouble you’ve
gone to.
3. Remember, it’s the little things that count
A salesperson went on a sales call to a women’s house. She was about the fifth or sixth
salesperson to visit this woman, hoping to get a loan commitment. As soon as she stepped
through her front door, she noted that hers was one of the cleanest homes that she had ever seen.
The hardwood floors gleamed. The rug was pristine. So while she was taking off her shoes she
mentioned what a beautiful and clean home she had while she handed her one of her famous pies.
Well, the prospect really appreciated it. The conversation started like this:
Customer: Wow, you are so thoughtful to have brought me a dessert! Thank You.
Who do you think go that deal? Taking off her shoes, complimenting and a small food gift may
have been a small points, but people have to know that you care before they care about what you
know.
Let’s review for a moment. Your customer has barely answered the door, yet you’ve already
mentioned several things that will help you make the sale. These are details that
almost none of your competition will think about. A good salesperson sweats all the tiny details.
You’ll be way ahead of others in your field if you do, too.
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4. The Handshake
Always shake hands, whether a man or a woman. Never overpowering, but firm and friendly. It
does more than establish rapport. It helps to evaluate your client. If it’s a couple, sometimes you
can tell from their handshake who’s really the decision-maker. You need to know that.
5. The mirroring technique
Whenever dealing with customers---whether in person, on the phone, or by mail- use a technique
called “mirroring.” It means that to match whatever verbal you are too. If the customer is timid and
shy, then you’re also quiet. If a customer communicates by short written notes, then write short
notes back!. You’ll find this technique usually establishes a rapport from the beginning.
6. Get them responding to you
The sales person can establish control at the beginning by asking for little things. Since your in
your customer’s home, ask for a glass of water. Sometimes your pen may skip, and you can ask
for another writing instrument from the customer. By bringing you the water or pen, the customer
gets used to responding in a positive way to your verbal cues.
7. Eye contact and seating arrangements
You must make eye contact with your customers. If you don’t, they may not trust you.
Furthermore, you won’t be able to read their reactions to your questions. You don’t have to lock
them and get into a staring contest, but you do have to appear friendly, helpful, and open to their
thoughts and suggestions. To facilitate eye contact, always try to arrange the seating so that your
directly opposite your customers. If there’s a husband and wife, I try to seat them at the kitchen
table where the corner meets, so they’re close together with you directly across from them. Often,
a homeowner will try to get you to sit in the living room for your discussion, try to get to the kitchen
table right away. The kitchen is where friends sit. If you’re in the living room, that’s business. You
want to be more like friends with them. To do that, you have to get them into their comfort zone,
both physically and mentally. It’s easier to do that in the kitchen than anywhere else.
8. Coffee, tea, or soft drinks
Almost all of your customers are kind enough to offer you water, coffee, tea, a beer whatever.
Always accept something. It helps to break the ice. If the customer comes to your office, it may
help to offer him or her something. To refuse a courteous offer of a soft drink may actually offend
some customers. Drinking out of one of our your clients household glasses is also a rapport
builder.
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WHAT THE REAL ESTATE AGENTS WANTS
Before the business
Establish a rapport
Collect business card
Send a hand written letter or card
Market your data base weekly
Maintain relationship
Ask for referrals
During the Transaction
Edify the Realtor to the client
Know your job
Meet all deadlines
Communicate during transaction
At/ After Closing
Gift to the borrower at closing
Edify the Realtor and remind borrower for referral
Gift to both realtor after closing
Congratulate both Realtors
Hand written cards to both Realtors
Continue to market to both Realtors
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DEVELOPING A SUCCESSFUL RELATIONSHIP WITH A
LOAN OFFICER
Always have your borrower pre-qualified by your loan officer.
* Prior to the interview
Brief the Loan Officer prior to the first meeting on details of the borrowers.
Brief the Loan Officer as early as possible on details of the property or proposed property type
or condo name.
Decide who will lead the conversation.
* During the interview
Help make the client feel confident and comfortable. Interject any information on the borrowers
behalf that helps the loan application. Ask questions that are relevant to our goal.
* After the interview
Tell the Loan Officer your expectations. You are a client of our services, express yourself and
expect professional service. Save copies of the condo docs for the Loan Officer. Inform the
loan officer of anything that affects the timing or likelihood of the transaction ASAP. If you plan
to exceed the maximum sales price agreed upon or change the loan program, consult your
loan officer for possible consequences or pitfalls.
* When appropriate
Provide a complete copy of the signed DROA.
Coordinate time and location of loan signing with escrow documents.
Trust that the Loan Officer is doing everything possible to make the deal work. Ask your Loan
Officer to help you create business if you’ve done the same.
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TOP TEN MISTAKES TO AVOID WHEN BUYING A HOME
For most people their home is the biggest investment they will ever make.
However, few people do the research necessary to make a good buying decision. The home
purchase process is extremely confusing for most people. However, with a little bit of
homework and with advice from family and friend who have been through the process before,
you can make this a little easier on yourself. There is no substitute for taking time to educate
yourself before you buy a house—which typically costs you 25% to 40% of your gross income!
1. Looking or a house without getting pre-approved. Do not confuse a pre-approval with a
pre-qualification. During the pre-qualification process a loan officer asks you a few questions
and hands a pre-qual letter. The preapproval process is much more complete.
During a pre-approval the mortgage company does all the work of a full-approval, except for
the appraisal and title search. When you are pre -approved- you become like a CASH BUYER
and have more negotiating clout with the seller. In some cases (especially in multiple offer
situations), having a pre-approval can make the difference between buying a home and not
buying a home In other instances home buyers have been able to save thousands of dollars
as a result of being in a better negotiating situation.
Most good Realtors will not show you homes before being pre-approved because they don’t
want to waste your time, their time and the seller’s time.
2. Making verbal agreements! If an agent makes you sign a written document that is contrary
to their verbal commitments- don’t do it! Example: the agent says that the washer will come
with the house, but the contract says that it will not- the written contract will override the verbal
contract. In fact, written contracts almost always override verbal contracts. Buying a house is
a very complex process—but it’s a lot easier when everything is in writing.
3. Choosing a lender just because they have the lowest rate. Not getting a written good faith
estimate. While rate is important, you have to look at the overall cost of your loan. This
includes looking at APR, the loan fees, as well as the discount and origination points. Some
lenders add origination points into their quoted points while other lenders add an origination
points into quoted points. So when one lenders says 2 points they mean 2 points, whereas
another lender means 2 points plus 1 origination point.
The cost of the mortgage, however, cannot be your only criteria. There is no substitute to
asking family and friends for referrals and interviewing prospective mortgage companies. You
must also feel comfortable that the loan officer you are dealing with is committed to your best
interests and will deliver what she or he promises.
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4. Choosing a lender just because they are recommended. Friends and family are not a
financial expert. The may not know what’s the best loan for you. The realtor only
gets a commission when your house closes. As a result the Realtor may refer you to a lender
that is sure to close the loan, but no necessarily the lender that has favorable rates or fees.
Also many Realtors refer you to their friend in the loan business- who again may not be able to
get the best loan for you. Even if the realtor is very professional and looking out for your best
interest, you should still do homework on your own.
We recommend shopping for a loan with at least 3 mortgage companies before you make a
decision. There are countless stories of consumers who wound up paying higher rates or
getting a loan program that was not right for them, because they blindly followed someone’s
advice.
5. Not getting a rate lock in writing. When a mortgage company tells you they have locked
your rate, get a written statement which details the interest rate, the length of the rate lock and
details about the program.
6. Using a dual agent i.e. an agent who represents the buyer and the seller on the same
transaction. Buyers and sellers have opposing interests. A dual agent in most normal
situations cannot be fair to both the buyer and seller. Most dual agents represent the sellers
more strongly than they do the buyer. If you are a buyer, it is much better to have your own
agent who will be on your side. The only time you should even consider a dual agent is when
you get price break from using a dual agent. If that is the case, then tread carefully and do
your homework!
7. Buying a house without a professional inspection. Taking the seller word that they have
made repairs. Unless you are buying a new house where you have warranties on most
equipment, it is highly recommended that you get a property inspection, a roof inspection and a
termite inspection. This way you will know what you are buying. Inspection reports are great
negotiating tools when it comes to asking the seller to
make repairs. If a professional home inspector states that the certain repairs be done, the
seller is more likely to agree to do them.
If the seller agrees to do the repairs, have your inspector verify that they are done prior to close
of escrow. Do not assume that everything has been done the way it was promised.
8. Not shopping for home insurance until you are ready to close. Start shopping for insurance
as soon as you have an accepted offer. Many buyers wait until the last minute to get
insurance and do not have time to shop around.
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9. Signing documents without reading the. Do not sign documents in a hurry. Whenever
possible try to get documents that you will be signings ahead of time so you can review them.
It is advisable to ask for a copy of all loan papers you are signing a few days ahead of the
close of escrow. This way you can review them and get your questions answered. Do not
expect to read all the documents during the closing. There is rarely enough time to do that.
10. Making your moving plans too tight. Example: you expect to move out of your prior
residence on a Friday and into your new residence over weekend. So you give notice to your
landlord to end your lease on a Friday and arrange for movers to come to your house on
Friday. Then, your loan closing gets delayed until the next Tuesday.
You now may be homeless! New tenants could be moving into your apartment, and the movers
are going to charge you for wasting their time. You could be forced to live in a motel for a
couple of days!
A better plan: allow for a 5-7 overlap between closing and moving. In the long run it is not
nearly as expensive, and it will sure give you peace of mind.
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Just out of curiosity…
Let’s get started…
I want you as a client…
You’re going to like the way I do business…
On a scale of one through ten…
How do you spell your name…
That’s a great question…..
Are you locked in to that rate…
What’s the APR on that loan...
How does that sound…
I know how you feel, that’s how many of my clients have felt, and what they have found is…
Have you ever obtained a mortgage loan? How was your experience with that…
How many years have you been paying on your existing loan?
Our rates are very LOW, COMPETITIVE, and SOME OF THE LOWEST IN THE COUNTRY…
What is your goal…
What age do you hope to be when you retire...
When lenders compete, you...?
Are you sitting near your computer right now?
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event booklet - Loan Officer Training

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