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
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
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
" 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
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:
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
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,
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
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]