The third optionPaul Wyliemortgage originators, independent originator, branch office
One of my favorite training exercises as a coach and manager of
mortgage originators was to offer my clients a choice between a $5
bill and a $20 bill. In an overly humble gesture, a few people
chose the $5 bill, but most chose the Jackson. A rare few, only
about one percent of my mortgage originator clients, indicated that
they would like to have both the $5 and $20 bills. It is these
originators—the ones who created an option that had not been
offered—that I ask everyone else to emulate.
The moral of the lesson is that when presented with an either/or
option, an originator can instead create a situation in which the
best of both worlds can be obtained. It is this third option that I
encourage all originators to consider when determining which is
better—working independently from home or working in a branch
setting.
The pros and cons of the either/or solutions are
obvious—an independent originator has total autonomy. A
highly resourceful and disciplined originator who excels at
generating referrals, researching and implementing best practices,
developing marketing strategies, and producing results will benefit
in-full from the fruits of their labor. On the other hand, this
independence requires a high level of skill in not only the
technical side of the industry, but also in operations,
administration, marketing and research. Factor in the time and
resources necessary to address all these components, and most
originators are simply not positioned to successfully promote
themselves to their full potential. This is particularly true
during a receding market. More than anything, loan officers need to
generate referrals, which is hard to do while spending time
answering phones and fixing printer issues. A branch offers
administrative support and a platform from which an originator can
piggyback for lead generation and fulfillment, but this usually
means surrendering some amount of autonomy.
The third option creates a hybrid in which an originator works
at a branch—the right branch, the branch of the originator's
choosing and the branch that works for the originator, not the
other way around. To create this option, let us consider the
positive traits of both sides of the coin, and then determine how
we can extract these traits while minimizing the cons to develop
this hybrid situation.
Karen Crosby, a consistent top producer who has averaged $100
million-plus annually in closings for the past decade and well over
$1 billion in career closings, specified the following as benefits
of the right branch setting: Interaction with top producers,
increased energy levels, increased efficiencies, better access to
experts in industry niches, better feedback and accountability.
"Even though I have a high level of self-discipline, I know that
I am always being watched," said Crosby. "It's like I am center
court, and I want to play the best game I have."
The branch experience is largely relationship-driven. An
affiliated loan officer has the benefit of the collective knowledge
of all their colleagues. Simply by virtue of being in the vicinity
of others working in the same industry, a loan officer will absorb
the positive traits and best practices of other lenders. By
watching seasoned veterans, an affiliated officer is able to refine
their client generation techniques, adopt practices that strengthen
client conversion and solidify client retention. In addition, the
office banter that goes hand-in-hand with the branch experience
allows an affiliated officer to uncover invaluable insider
information about current trends and niche industry information,
much of which is unpublished and experience-based.
And, as Crosby points out, the branch experience creates a
platform in which an officer becomes a member of a team whose
production is being watched. This fosters healthy competition,
which usually accompanies a friendly camaraderie. It also acts as a
support system that propels people to perform at a higher level,
which, in turn, leads to more productivity. At a bare minimum, it
creates contagious energy that encourages an officer to keep
advancing forward.
My most important observation as a manager in a branch setting
is that top loan originators are generally fiercely independent
and, at the same time, hungry for interaction, support and
appreciation. Like a teenager who strives for independence but
seeks understanding, affection and support from those around him, a
top originator essentially embraces the following motto: I do not
need you, but I want to know you are there for me.
A top producer can certainly perform independently, but forming
groups and connecting to enhance experiences is part of human
nature, and no amount of technology or virtual-offices will replace
the non-verbal and non-textual communication that is only present
in a physical setting.
So what does an originator who desperately wants both
independence and relationships do? My advice is that the originator
interviews branches as aggressively as if the branch is to be the
originator's employee; consider that the branch works for the
originator, not the other way around. In this way, the originator
will search for the right branch, creating proactive criteria that
a branch must fulfill if the originator is going to join its team.
Start by making a simple list of your interests and needs as
related to a branch setting, ranking the top five. Your top-five
list might look something like the following:
1. The team. Who is, or who will be in the
branch? Who will your peers be? Who are the fellow originators? You
might want to be the poorest kid on the block, surrounded by
mentors whose behavior and level of success will serve as positive
and inspiring models.
2. Values. What are the branch's core values?
You must know what day-to-day activities take place inside the
branch in terms of ethics, compliance, humility, integrity and
camaraderie. Are these values aligned with your own values? If not,
the branch will work against you instead of for you, and your
independence and autonomy will be sacrificed.
3. Branch management/leadership. How does
leadership facilitate an environment of emotional intelligence? Is
leadership inspiring, respectful and energizing? Do they offer
innovative strategies for problem solving?
4. Tools. What loan products, technology,
service levels, niches and business development tools does the
branch offer? You might want to find a company that provides
affiliated business arrangements, marketing services agreements,
comprehensive lead-conversion business systems and client retention
tools.
5. Money. Though money might be the top factor,
it does not belong on the top of a list. Remember that this process
is about finding a branch that works for you. This is not to say
that you will be at the top of the pecking order, but rather, that
the branch supports who you are, what you need and what values you
possess. If you sacrifice these evaluators simply because a branch
appears to offer a greater earnings potential through higher
advertised commission splits, I can guarantee two things. First,
you will not feel independent. Instead of aligning with your
values, your branch will work against you if you do not
specifically choose one that supports your overall goals. Second,
you will not make more money in the long run. Although the question
of money cannot and should not be ignored, remember that money is
driven by inspiration, work, motivation and the positioning of
values. The overall experience a branch offers extends to include
much more than just money.
In conclusion, mortgage originators should reject the either/or
proposition of working for a branch or going solo. By aligning
interests and needs, an originator and branch can create a great
relationship in which the originator still maintains autonomy and
control, while benefiting from the relationships, tools and
resources of a branch office.
Paul Wylie is the founder and former CEO of Metrocities Mortgage. He
can be reached at (818) 878-9581 or e-mail
[email protected].
