Identifying your unique selling proposition or performing to certain standards are important. Integrating these aspects into the company culture is quite something else. Just because a company underwrites and/or approves loans quickly does not mean it is part of the culture. For example, are each and every one of the loan officers featuring this turnaround time or are they selling rate and assuming that the quick approval is not something their clients want or need?
For a more in-depth example of this, let’s take a look at two different wholesale or correspondent lenders. Both underwrite loans at a 48-hour turnaround time. For one their advertising lists quick turnaround as one of many features. The other actually guarantees this turnaround time with a penalty if they don’t hit it. Not only is the advertising different, but their reaction to a busy market will also differ. One might move to 96-hours when things get tough. Another will do whatever is possible to avoid this—including having overflow contract underwriting in place so they can avoid the penalty and not contradict their mission. It’s the same performance, but a very different underlying commitment to the “culture.”
The issue of culture is more than just one of “service” versus “rate-based” advertising and sales. The issue affects every aspect of your company:
The development of minimum standards that are set for sales personnel
These minimum standards may be quality-, action- or production-based. An example of a quality standard would be the percentage of fall-out that is allowed. An example of an action standard would be the requirement that a loan officer attend mandatory meetings. A production-based standard would require a certain number or volume of loans per month or quarter. Or perhaps it would require a certain number amount of revenue per month.
The development of a team atmosphere
How well do the loan officers support the processors and vice-versa? When someone is sick do others pitch in? Are loan officers helping each other with their clients and helping to train new loan officers or are they trying to steal deals from each other? Everyone must know what groups they serve—including the manager. The manager is actually a servant of everyone in the office and if this is not part of the culture, the office will not function well as a team.
The development of a professional atmosphere
How is the staff dressed and how well do they communicate with themselves and their clients? How well do you treat vendors, including paying their bills and the development of loyalty? Are lenders used as hedges for larger profit? Are people screaming at one another in a crisis?
The development of an ethical reputation
There is no doubt that the industry in the past has left much to be desired with regard to how well we serve clients and present cases. The issues of predatory lending and/or outright fraud such as exaggerating income on limited documentation programs have been well documented as contributors to the financial crisis. Is this behavior tolerated, overlooked or completely banished within your organization?
How do you develop and/or change the culture of your organization?
It is more than deciding what you want to be known for. You will have to make tough decisions, including firing those who clash with the culture or refusing to hire those who could help with profitability but hurt your long-term direction. Likewise, it means turning away certain types of business—business that you know might be profitable but not help in the development of your desired culture.
You may have to change your advertising methods or even abrogate relationships with long-term referral sources. A culture is built from a foundation. A foundation is built one brick at a time. It does not exist because you say it is so. It is built with your reputation, actions and results.
Most importantly, everyone in the organization must know the culture and be a part of it. If they are not aware of your goals, they can’t be part of the solution. Your culture should help you make recruitment decisions, select candidates and orient new employees.
Dave Hershman is a top author in the mortgage industry with seven books published, including The Complete Mortgage Management Kit. Dave is also director of branch support for McLean Mortgage. He may be reached by e-mail at
[email protected] or visit OriginationPro.com.
