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ICBA appreciates FDIC pledge to cut special assessment: Nation’s community banks should not shoulder Wall Street’s burden

National Mortgage Professional
Mar 06, 2009

Winning the mental game of the liquidity crisisErik Janeczkoloan originators, leads, liquidity crisis, client, database, In the current environment, loan originators are suffering. There is a lot of confusion and uncertainty as to what will happen next. Specifically, originators are struggling to manage the challenges in the secondary market in relation to the credit and liquidity crisis. Loan guidelines are changing as rapidly as interest rates these days. With major companies folding that most people thought had little risk of going out of business, and maybe more to follow, we, as an industry, are likely to find ourselves in a negative environment of doom and gloom if we're not careful. And not only is it tough on our industry, but the real estate agents, appraisers, title companies and home inspectors we work with have many of the same concerns. All of us are affected by the radical shift in the programs that are available in the marketplace today. But you already know this. So, what now? What should we do about it? Do we have any hope of surviving? If so, how? Well, many of our clients have been asking these same questions, so we have to brainstorm and research ways to resolve these issues and find solutions that not only allow us to survive in this market, but to accelerate through it. But first, let's start by talking briefly about your car. Obstacles or opportunities: Which do you choose? For a second, think with me about what happened the last time you bought a new car. Let's say, for example, you bought a gold Pontiac Aztec, as I did a while back. All of a sudden, I started seeing gold Pontiac Aztecs everywhere along the road. So, why is that? Well, it is because the human brain is a lot like a computer. Its programmed biologically to respond in a specific and consistent way. But because there are literally millions of bits of information we have to process in a single day, we must have a filtering mechanism. As a result of this need, a part of our brain called the reticular activation system (RAS) is programmed to subconsciously do this filtering for us. Then, when our brain sees something that's already on our mind, it's programmed to bring that item to our attention, at the highest level of consciousness. Now, more than any time before in human history, in our culture, the RAS is fine-tuned and at work in every situation throughout our day, simply due to the sheer volume of information that we handle on a daily basis. More simply stated, what's already on our mind is going to be what we see a lot more ofhence the gold Aztecs. And conversely, what is not on our mind, we see less of. For example: How many Honda Civics do you see on the road? Strange, isn't it? Especially considering that there are roughly 17 times as many Civics on the road as Aztecs. So, how does this relate to the current market environment and our attitude toward it? Good question. It is because in any market, there are as many positive opportunities as there are obstacles and challenges, which is why Warren Buffet's famous quote of "Buy when there's blood in the streets" is such a powerful rallying cry to our market at this exact moment in history. You see, even during the worst of times in the 1929 stock market crash, there were a few bright individuals who had the forethought and resources to take advantage of opportunities that were created in that market and, as a result, accumulated massive wealth. In any situation in life, there are just as many positives as there are negatives; it is simply the yin and yang of life. Basically, your results will come from the choices you make, what you focus on. Ask yourself these questions: "If I focus on the obstacles, what am I going to see more of? And if I focus on the obstacles, what will I not see?" The answers to these questions are rather obvious: If you focus on the obstacles, you only see more obstacles, and just like the Civics on the road, you will be blinded from seeing even the most obvious opportunities. Shift your focus If you first change your focus and start looking, thinking about and digging deep for the positive opportunities that exist in this market, you will see more opportunities because your RAS will bring these ideas to your attention. Then, one idea leads to another and another and another in a way that creates a massive snowball of positive energy. In general, the biggest challenge that people have when it comes to trying to find opportunities is that they ask the wrong question. They look at the challenges and obstacles around them and they say, "Why are we in this situation" or "What are we going to do about it?" Questions like this create a focus on the challenges. In this situation, the brain is only going to bring more challenges, more obstacles and more negative situations to your attention, which further clouds your ability to see any of the opportunities. However, if you shift your focus and ask questions like: " How do I connect with the people who need my help? " Who is in a position to benefit from buying a home now? " What segments of the market are moving now and how do I become a part of that movement? " What opportunities currently exist that will enable me to grab market share for the future? " How can I take positive advantage of the current media attention on mortgage lending? " What companies are most likely to survive and prosper in the current environment, and how can I get closer to them? By asking these types of questions and many others like them, the simple fact that you are looking for the opportunities will enable you to see more of them, just like with the Pontiac Aztec. You will see these opportunities more frequently and clearly, because that is what your RAS is programmed to bring to your attention. Carpe diem (seize the day) If you truly want to seize the day and "buy when there is blood in the streets," you have to attack the market. To get you started, here are a couple of ideas that are working really well to take advantage of the opportunities in the market: Client opportunities Now is a perfect time to touch base with your past customers and be a valuable resource to them. Think about it: If people in the industry are about ready to jump out a window, how do you think the customers feel about the flood of negative information out there in the media right now? But you can leverage the media attention in the market to make it easier to touch your clients with a very simple script that offers your clients a way to avoid becoming victims of the current credit crisis, a mortgage protection review. You can also take this one step further and use this connection with your clients to help reach out to others they know and ask for referrals. I assure you that as a result of using this simple tool, you will find at least one loan from every 10 people that you talk to regarding this offer, and quite possibly many more. This then gives you additional leverage to approach the second opportunity, referral partners. Partner development opportunities Another way to attack the market opportunities and grab market share immediately is to reach out to your referral partners with the type of message described in this article. Then, use this focus-shifting RAS conversation for the beginning of a masterminding session where you brainstorm ideas with them on how to take advantage of the many opportunities that exist in this current market. Take action Simply put, the choice is yours. Now you have the tool, but the question remains: What will you do with it? Will you take action and attack the opportunities, or will you sit on the shore awaiting the storm? Naturally, our hope is always that you will take action and make the shift toward a bright and powerful future. Erik Janeczko is a coach/certified instructor with Maximum Acceleration, the LoanToolbox Coaching System. He may be reached by phone at (314) 635-5090 or e-mail [email protected]
Published
Mar 06, 2009
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