Schnurman's sales success: Time to shineMark SchnurmanAlt-A market, communication, purchase market
"If there be light, then there is darkness; if cold, then heat;
if height, depth also; if solid, then fluid; hardness and softness,
roughness and smoothness, calm and tempest, prosperity and
adversity, life and death." The contrast of Pythagoras aptly
describes the current state of the mortgage business. There is good
and bad, but for the industrious loan officer, there is more
occasion for joy than sorrow. It is critical to see the glass as
half full, and as the competition retreats, you can watch your
business opportunities improve.
The mortgage business is morphing, and that has far-reaching
consequences for loan officers. The purchase market has shrunk as
sales of new and existing homes fall. The sub-prime market is
changing daily, and a myriad of companies are going under. The
spill over from the days of easy credit has led to the tightening
of guidelines in many other areas, especially the Alt-A market.
It is easy to get frustrated, disappointed and even depressed as
the market convulses and business appears more difficult. Market
change and the feelings it conjures has caused loan officers to
leave the mortgage business in record numbers. Further, the change
is having a paralyzing effect on many loan officers who have chosen
to stay in the business. They do not know how to appropriately
communicate with their clients in this strange new world. Hard
work, intelligence and savvy are now required and many loan
officers, never having experienced this type of adversity before,
do not have the skills or emotional fortitude to succeed.
In virgin territory, avoidance behavior kicks in. Avoidance
behavior occurs when a person defers or postpones behavior to avoid
pain. Lacking the confidence born from experience, many loan
officers fearing pain, rejection and failure do not take action.
They avoid speaking to their clients and instead risk the
relationships that compose their business. The funny thing is that
your referral sources and clients understand the game has changed.
They read the newspapers and listen to the radio. They want you to
call them and speak honestly. Your clients understand that business
is difficult and that some deals that could be closed over the last
few years cannot be closed in today's market. Clear, direct and
honest communication is more than OK it is required. Your clients
don't want you to run and hide in the face of adversity. They want
you to talk to them. They need you to talk to them.
Instead of avoiding communication, you should embrace it.
Over-communicate! Business is lost by the call you should make, not
by the extra call you do make. So pick up the phone and make the
extra call. Get out and drop by some offices. Send extra notes and
e-mails. Reassure your referral sources and borrowers that
everything is OK and that you will do everything in your power to
help them. Tell them that their deals will close and that your
company is doing well. Over-communication will foster
confidence.
So what does all this change mean for loan officers? In a word:
opportunity. Opportunity to deepen existing referral relationships,
opportunity to build new relationships, opportunity to exhibit
expertise, opportunity to deliver great customer service and the
opportunity to build your business.
I strongly believe that business is won and lost through
communication. To keep your referral sources, you must communicate
more frequently and effectively than the competition. To win new
referral sources, you need to communicate more often than the
sources' existing loan officers. The goal is simple: to be the loan
officer your referral source thinks about.
In times of flux and change, trust becomes more important.
Relationships forged in the crucible of industry transformation are
deeper than those formed in relative ease of the gaga years because
there is a deeper emotional connection. Now is the best opportunity
to build a lasting client base than we have seen in years.
By seizing the day you can fondly look back on these times
knowing you made a choice that few loan officers did. As Robert
Frost said, "Two roads diverged ... and I, I took the one less
traveled by, and that has made all the difference."
Mark Schnurman is the director of business development for
New York-based GFI
Mortgage Bankers. His writing draws upon his experience
recruiting, training, managing and coaching thousands of
salespeople. He may be contacted at (212) 837-4645 or e-mail
[email protected].
