Beyond the cookie-cutter approach: Changing the recipe for 2005 could be just what your business needsJohn Courson and Kevin Sextonsuccess tips, mortgage banker, transition, profitability
The beginning of another new year is a good time to evaluate the
direction your business is going. Are you in position to remain
competitive in this challenging and evolving industry? As we look
to the future, it's clear that taking the same old approach is not
the answer anymore. It's time to go beyond the old cookie-cutter
way of doing business.
In 2005, flexibility and adaptability will be the key
ingredients for success as the industry looks for new options. For
example, many brokers and other mortgage professionals have begun
to discover the advantages of one of these options: making the
change from broker to mortgage banker as a way to increase
origination volume and profitability. There are several avenues for
achieving this change. One of the most beneficial is to operate as
a retail origination office aligned with an established mortgage
banking company. Another, open to those who have experience in the
wholesale arena, may be the opportunity to operate as a wholesale
branch office for one of these companies.
In either case, working with the right company--a strong,
experienced partner that encourages entrepreneurship and has
established a proven process for supporting its branch offices--is
essential for making a simple, smooth transition to mortgage
banking.
Just as importantly, working with a company that offers
flexibility and adaptability is critical to providing the most
beneficial business structure, and one should seek out a firm that
provides:
•Unique solutions for each office;
•The autonomy for offices to remain in control of their own
operations, office structure and profitability;
•Access to banking expertise;
•Comprehensive support services, including administrative,
sales, marketing and human resources support;
•Advanced technology; and
•A diversified product menu.
Another important factor is to work with a company whose
management structure provides the ability to react quickly to
changing market needs and adapt to new ideas. It is vital to
consider all of these details, because many mortgage banking
companies have an established, "cookie cutter" set of rules to
implement for every office, dictating office size and
administrative procedures, loan programs, etc. Working with a
company that's not bound by rigid corporate bureaucracy allows more
flexibility in almost every aspect of the business.
For instance, in our operations, if a broker is committed to
doing as many loans as possible, in an ethical, professional and
responsible manner, we can be adaptable in just about everything
else, providing unique, flexible solutions for each individual
office. Branches can be set up based on how the manager wants to
position the branch, from the number of staff members and their
compensation, to the product menu and managing profitability.
Retail offices can operate using a d/b/a identity, and wholesale
offices control their own loan programs, rate-sheet pricing,
in-office underwriting and closing, staffing and compensation
packages. Our responsibility is to provide administrative and
marketing support, to ensure stability and compliance with laws and
regulations.
It's time to throw out the cookie cutters, change the recipe and
think creatively to meet the challenges of 2005. Making the change
to mortgage banker status will be the right move for mortgage
professionals who join a company that offers the flexibility and
adaptability to ensure a win-win partnership.
John Courson is president and CEO of Central Pacific
Mortgage Company, 2003 chairman of the Mortgage Bankers
Association, and has more than 40 years of mortgage banking
experience. He may be reached at
[email protected]. Kevin Sexton is
executive vice president of production at Central Pacific Mortgage
Company and has more than 18 years of industry experience. He may
be reached at
[email protected]. Both may be contacted at (916)
353-1616.
