DECIDE WHAT YOU WANT

Achieving your goals starts with establishing them and having a plan designed to accomplish them. Your goals are the direct result of your plan and without goals and an accompanying plan your productivity will suffer.

Effective goals should always be measurable and written some place where you will see them every day. Envision where you would like to see yourself in next year and beyond. Do you aspire to the Winner's, President's or Chairman's Circle? How many new referral sources will you need to get there?

Your goals do not all have to be professional in nature but understand your profession has ramifications for nearly all goals (i.e. a new house.) Try to avoid purely financial goals because they can unconsciously shift your focus away from helping people, which is ultimately what we are paid for.

So take an hour today to decide what you want next year. Remember what gets measured gets done, so spend some time alone and with your team to focus on what is important and how to accomplish your goals for this year. Write your goals and share them with at least two other people to stay accountable and on track, and remember if you help enough people, your goals will be achieved!

THROW IT AWAY!

A most important part of maintaining a positive attitude is to have a consistent process of "mind dumping." Our with the bad and in with the good. While none of us can erase the negativity of the past, we certainly can decide not to dwell on it and let it continue to drag us down.

By making a conscious choice to apply faith, hope and goodness to every situation rather than opposites of pessimism, gloom and negativity you will change all of your results for the better and be the kind of person everyone wants to be around.

When your outlook is right everything else will be right!

Have a great day or don't. The choice is yours!

A GAME OF ADJUSTMENTS

Why are some people miserable when they seem to have everything going for them, while others much less fortunate can maintain a positive, charismatic demeanor despite overwhelming perceived negatives in their life? If you answered "attitude" congratulations and please read on!

Our brains tend to accumulate a vast number of resentments, fears, grudges and feelings of inferiority over time. These things tend to stick in our minds if we allow them to, but what is the point? The results of hanging on to negatives from the past are predictably poor.

Some people actually seem to thrive on unhappiness but their misery usually comes from within because they either lack the ability or desire to ride themselves of these demons. Those who lack the ability are categorized in our society as mentally ill. The rest of us just need the desire because we all have the ability.

Changes in attitudes will change most anything for better or worse and the only thing keeping millions of people from their dreams is a little attitude adjustment. 

(To be continued...)

CONTROL THE CUSTOMER

Have you ever noticed that some of the loans you close with little or no deviations and very little effort are some of you happiest customers while many of the people you cut your price and bust your butt for are you most unhappy customers?

It happens all the time in our business and the sooner you realize why, the better off you will be. 

The reason for the imbalance of price and customer satisfaction usually comes down to just one thing. 

Did you control the customer or did they control you?

Future referrals come from people who do not only like you but also see you as a professional/expert. In other words if they don't like you and respect you, no referrals will be forthcoming and the complaining can start very early in the loan process!

GOOD > BAD --- A SIMPLE EQUATION

People naturally enjoy being around those who are upbeat so why not adjust your own attitudes toward the positive side of the ledger? It will only improve every single facet of your life!

Failure in personal relationships keeps people from their goals and dreams every day and they can be easily avoided when you consider that you are truly the one in control of all your personal relationships. While you can not change the behavior of others, you absolutely have the power to influence it with your attitude. We are all given the power of choice which includes our own amazing ability to consider, modify and change our previously adverse attitudes. 

But how? 

(To be continued...)

SOMETHING OBVIOUS YET UNTAPPED

Are you looking for Realtors with whom to do business? Do find it hard to decide whom to target? Do you find it hard to approach them initially?

If you answered "yes" to any of those questions you are among the majority of Loan Officers who want more business but aren't sure how to find it.

One way to make a "warm" cold call is to approach the referral source with something that establishes commonality between you. We have already talked about "Googling" them to discover their interests, etc., but there is a better way to approach Realtors in your areas that is so obvious yet almost everyone overlooks it.

ASK YOUR FRIENDS!!!

That's right. Most of them have Realtors. So why not ask your friends who their Realtor is and approach them. By sharing the common bond of knowing the same person your cold call will be much easier and more likely successful. And the best part is they won't dare be rude to you since you know their customer!

2 GREAT QUESTIONS

Building rapport is a naturally key element to the pre-qualification process but it is not the primary influence of the customer's decision. Within a few minutes of your first conversation your potential borrower will usually make up their mind as to whether or not you right for them. You can greatly influence their decision in your favor by demonstrating your knowledge but most importantly by demonstrating that you care.

The first question to make sure you incorporate into your pre-qualification script is "What area and price range are you looking in?" This question will take the conversation to a whole new level because now you are talking to them about their dreams, wants and desires in a clean fashion.

The second question you should always be asking is "What monthly payment amount are you comfortable with?" This question shows that you care about them because this is a question about their lifestyle and boundaries. Both questions will get your customers talking about themselves and we know the value of that in building rapport.

By using these two powerful questions every time, your rate of converting prequals into closings will improve significantly! 

I THINK WE NEED A LITTLE SPACE

To avoid "computer love", the ultimate enemy of salesperson productivity, you must take time to be away from your computer every day. By time blocking certain segments in which you only are out making sales calls or in making phone calls, your effectiveness as an Originator will blossom almost immediately.

On the flip side, you should also time block some quality computer time as well. By focusing on the computer and nothing else you will find yourself a more effective user because exploring your available software will make you much more at home with its proper capabilities than just using it.

 

CYBER SUCKING

One of our greatest assets in sales over the past 15 years has been that of the computer. Unfortunately, most people spend too much time staring at their computer and not enough time selling.

Email and the web make it even more tempting now. After just a few clicks we can completely lose focus on the task at hand. Sucked in yet again by the 1280 x 1024 high resolution screen!

The pitfall of donating too much time and attention to your cyber unit is easy for most of us. After all, it is comfortable and we are at our desk working so everything feels okay.

However, a computer have never been signed, 1003 or made a single mortgage payment. So too much attention directed its way is often time spent poorly. If you fit in this description, do something about it soon and please pay special attention to tomorrow's LO Insights on some ways to combat your "computer love."

CAREER THERAPY

Perhaps the most bedeviling of issues for any salesperson is that of the computer. We are forced to use them; we have to keep track of multiple log-ins, each with a different password and our days come to a complete halt when they malfunction.

And we all wish we were better at using them!

However, computers have enhanced our lives and productivity like no single invention since electricity itself. We can't live with them and we can't live without them, so they must be worth the trouble right?

Not so fast.

The computer has destroyed millions of sales careers and not just that of typewriter salesmen and Atari dealers. Worse yet, it could be destroying yours!

Why?

(To be continued...)

THE WORLD'S EASIEST LOAN!

It's not a no doc or a HELOC on a free and clear property. It's also not a payday loan, or a car loan with a 10% LTV.

No, the world's easiest loan is secured by a Certificate of Deposit. 

Unbeknownst to many, banks make loans on CDs all the time. Consider the ease of freeing up liquid cash for your borrowers who have CDs.

The collateral is already there and the value is known to the penny, there is no title work involved, and there is absolutely no need for a credit repot. Customers can usually borrow against almost 100% of the value of any non retirement fund CD at about 1% over the rate they are earning.

A very small price to pay for a short period of time opposed to an early withdrawal fee or other more expensive means or raising liquid cash!

Please advise your customer to consult with their financial planner or attorney before making a decision on this type of loan. 

ADVICE NOT PRICE

The following is an excerpt from the October 2004 issue of Mortgage Banking magazine...

“Success in today’s mortgage market is not about having the “product of the month”, slashing prices to win market share, or aggressive appraisal practices. To prosper, professionals in the mortgage banking business must make sound, ethical decisions on what is right for the customer. In our industry, companies that maintain high quality and service standards remain on top and reap the benefits from long term relationships they build. After all, it is our responsibility to open the door to the greatest reward of all-home ownership.””
— John Robbins - CEO & Chairman - American Mortgage Network


$100 BILLION LOST!

In September of 1998 a company called Long-Term Capital Management (LTCM) lost $100 billion mis-managing the concept of arbitrage. LTCM had attempted to make money on the difference between different fond instruments. For example, it would buy U.S. treasury bonds and sell Italian bond futures. The concept was that because Italian bond futures had a less liquid market, in the short term Italian bond futures would have a higher return than U.S. bonds, but in the long term, the prices would converge. Because the difference was small, large amount of money had to be borrowed to make the buying and selling profitable. 

The downfall is this system culminated on August 17, 1998, when Russia defaulted on its ruble debt and domestic dollar debt. Since the markets were already nervous due to the Asian crisis, investors began selling non-U.S. treasury debt and buying U.S. treasuries, which were considered a safe investment. As a result the return on U.S. treasuries began decreasing because there were many buyers, and the return on other bonds began to increase because there were many sellers. This caused the difference between the returns of U.S. treasuries and other bonds to increase, rather than to decrease as LTCM was expecting. Eventually this caused LTCM to fold, and a government bailout had to be arrange to prevent a collapse in confidence in the economic system generated by panic selling in the bond markets.

To be continued...

ARBITRAGE

In economics arbitrage is the practice of taking advantage of a state of imbalance between two (or possibly more) markets. A combination of matching deals is struck that exploit the imbalance, the profit being the difference between the market prices. Statistical arbitrage is an imbalance in expected values. For example a casino has  a statistical arbitrage in every game of chance played, even though they  could lose money on any single game. But casinos don't have all of those chandeliers, fountains and statues because they are losing money. Over time, the statistical imbalance will always be in their favor.

The term "arbitrage", is usually applied to trading in money and investment instruments such as stocks, bonds, and other securities, and the difference in asset prices are usually referred to as "the spread", so arbitrage is often defined as "playing the spread". Tomorrow we will look at a few real life examples of arbitrage...

 

OLD SCHOOL SALES

“If you say it, it is B.S., if your customers says it, it is gospel.”

One of the original "sales mantras" still applies in our business today.

Whereas it is our job to counsel and guide our customers to the right loan product, rate and fee structure for their personal situation, please keep in mind that part of persuasion is getting them to go along with your recommendations to the point where they are repeating and validating what you are telling them

We have all had situations occur where the customer was either uncomfortable or downright disagreeable to what you as a Loan Officer may be recommending. In a situation like this, you are almost always better off giving them what they want rather than what you think they need. Despite your strong beliefs, people will not buy unless you are selling what they want, and if not, they will find someone else who will.

CONFUSION 101

A recent survey conducted for the national branding firm Segal & Gale concluded that home loan applications are the most complex documents that American consumers struggle to comprehend. According to the so called dissatisfaction between mortgage companies and their customers.

This makes sense especially for those consumers who are asked to complete their loan applications. If you still let your borrowers fill out their own 1003, you are missing one of our greatest customer service opportunities. 

Would your doctor ask you to complete your own chart? Would your accountant ask you to complete your own 1040? Would a waiter ask you to write down your order for them? No, no and no!

A borrower can no better do your job than you can do theirs. So do your job. Complete your borrower's applications for them and let the internet companies be the ones asking too much of the customer and losing them soon after!

BE KIND

Regardless of their age, position, mood, social status, or beliefs please keep in mind that everyone is always struggling with something in their personal and/or professional lives.

Just because someone is wealthy does not mean they do not have money issues. Just because someone is the boss does not mean they do not have work issues. Just because someone has a positive demeanor does not mean they do not hurt inside for some reason.

Remember everyone is fighting a battle - be kind.

THE 2 TO 1 RULE

You have two ears and one mouth. Use them in proportion.

There many not be a simpler yet more important concept than this for all people regardless of their position. Think about how this applies to you in your daily dealings with others. Those who have this equation backwards are usually the worst listeners because they are either too busy talking or their minds are too preoccupied with what they are going to say next to listen effectively.

The best salespeople are, above all, good listeners but you don't have to be in sales to benefit from listening!

YOUR HEAD'S GREEN LIGHT

When you understand how your reticular activator works and use it effectively you can become virtually unstoppable in the pursuit of success! Your mind becomes clear and focused, all necessary information flows through and that which has no value in the achievement of your goals get rejected. Once you deliberately choose your goals and start to move towards them you know that you will accomplish them and that while temporary setbacks can and will occur failure is simply not acceptable under any circumstances.

Our final example of the reticular activators function is a simple trip to the grocery store. When we shop with a list most of us will spend less time and money at the store than if we just walk in and start plucking things off the shelf. If the loss of time and money isn't enough, consider that most of the mistake purchases the shopper without the list makes are buying products that are placed in eye level displays that are there because the merchandisers compel them to buy which fulfills their goals not yours!

Decide what is important to you! Let the good in and let your filter keep out the brain riff raff!