For the first time since 1981, our industry is experiencing a rising interest rate environment. Some people may assume that the current market shift means their business will take a downward turn from which they will never recover. I don’t buy it. The way I see it, challenging times force us to refine our processes and practices.
With today’s focus on new and emerging technology, it can be easy for loan officers to rely on electronic, automated solutions to gain new business instead of putting forth their full efforts to reach potential customers and referral sources. While keeping up with technological advances is vital to staying relevant in our industry, the timeless fundamental practices of a natural self-promoter are irreplaceable. Read on for three steps self-promoters utilized to strategically market themselves to each audience.
Most organizations believe that culture is the key factor of excellence, yet few are intentional in making it happen. Recently, XINNIX brought together some of the mortgage industry’s very best executive leaders to share what building a culture of excellence means to them and their companies. Here is their best advice.
It has been proven time and time again that companies that make an investment in workplace culture attract the industry’s best talent and achieve greater success. For leaders who want to see their business grow to the next level, the solution is to focus on building a great culture — a culture of excellence.
As I have spoken with CEOs around the country, I’ve found that one of the most challenging problems leaders are facing in the industry today is uncertainty about what to do with underperforming loan officers. These are the LOs who are not generating significant business or contributing to the greater success of the company. Managers need to quickly develop these underperformers into successful originators, but many are not sure where to begin.
The 2017 Retention Report from Work Institute states that 34% of all turnover is from first-year employees. Additionally, a 2014 study across multiple industries from BambooHR states that roughly one third of employees quit within the first six months of starting a new job. Out of these, 16% to 17% quit within their first three months. That means one out of six employees lasts three months or less after accepting a new position.
Our industry is at a crossroads. As our most experienced mortgage professionals enter into retirement, who will fill in the gap? The time has come to hire new talent. If the mortgage industry is to move forward, it will be because new professionals step into the roles that a retiring salesforce are leaving vacant.
Acquiring a new client can cost as much as five times more than retaining a current one. By reducing their customer defection by just 5%, loan officers can increase their profitability between 25% and 125%. If they are not working diligently to retain their current customers, lenders are leaving money on the table.
Most mortgage professionals know that the client feels a sense of loyalty to the first person they speak with. When they establish themselves as the first contact, loan officers gain a critical sales advantage. In fact, speed-to-call is the single largest driver of conversion for new customer leads.
Studies show that returning a call from a new customer within the first 30 minutes produces an average of a 62% increase in conversion rates.