Is It Fair To Compare?

Written by Posted On Monday, 03 August 2020 05:00

Many of the conversations we are having in our business lately has focused around production, opportunities, closings, dollar volume, loan sizes, loan products, timelines, and the quality of the experience for the customer. I also think we need to think about including the quality of the experience for our families, our teams, and ourselves. Far too often, we also don’t include the number of days and hours we commit to making it all happen. For those who follow the numbers, it can become a painful observation without the benefit of clarification.

An example of a conversation I was having with a client this week focused around the dissatisfaction in specific number of monthly loan closings. What further made the situation worse was the company published every month a list of all the originators and ranked them by dollar volume and number of units closed. This is likely something we have all seen before. I think it serves an important function to do this and to recognize what is taking place across the company. The issues become troublesome when some originators see the numbers and devalue their personal accomplishments because they do not compare as well as some others. The issue is that no two people are identical, and neither are their referral partners, clients, types of loans, or quality of the process. Forget about calculating the hours worked, starting point, size of team, quality of the borrower or loan product!

When a loan officer closes 5 units more in a month than they did the month before, that is a good thing. But the question must be asked, what was the starting point? If that originator is used to closing 5 units in a month and goes on and closes 10 units, that is a 100% increase in volume. When another originator who averages 15 units a month closes 5 more, it’s a 33% improvement; still a nice thing, but a much different accomplishment. In fact, it’s much more likely for the 15 unit person to improve by 5 than it ever is the lower producing one. I am just talking units for now, but dollar volume can also be an issue given loan size. An originator who averages $200,000 loans adds five loans, that is a million dollars in volume. When an originator who averages $500,000 a loan adds two loans, it’s the same million dollars in volume. While the same dollar volume, not the same thing at all, not by a long shot.

So just keep in mind that a lot of our business is about numbers, just that the numbers don’t always tell the whole story. Compete against yourself and your personal best. Provide the best experience you can that fits your efforts and quality of life. Sometimes more, really isn’t more at all, just different. And managers; it would be good for you to acknowledge personal bests and percentage improvements as well as the top producers. Just a thought!

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Michael White

After 18 years working in all phases of mortgage originations, Mike left day to day originations to start his consulting and coaching company. Now, more than 18+ years later, Mike is working with clients across the country in all markets, big and small, that have generated more than three billion dollars in loan originations within a year.

Mike teaches a system that is focused on time management, action planning, marketing a message, and creating value for both clients and referral sources alike. Quite simply, providing more value leads to more opportunities, more income, less time, and a systematic approach that begs to be duplicated.

 

By breaking down individual aspects of the mortgage business and providing a step by step approach to creating a consistent flow of opportunities that can lead to a highly successful mortgage practice. That is why people who incorporate these strategies out produce the national averages by almost 3 to 1!

Fundamentals and simple strategies provide day to day activities that help provide a “scheduled success” philosophy. It’s all about identifying, targeting, and establishing profitable referral relationships using exceptional value to keep you in the center of your own referral triangle. 

 

https://www.imtcoaching.com/

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