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On Wednesday, Feb. 3, the Mortgage Leadership Outlook featured Eric Mitchell, author of “The WHY of MONEY” and executive vice president – National Retail, Gold Star Mortgage Financial Group. Mitchell joined series' host Andrew Berman, head of engagement and outreach for National Mortgage Professional Magazine, as they explore Mitchell's transformation after selling his company, went soul-seeking and wound up in Los Angeles. They also chatted about what motivates Mitchell, his five reasons that drive originators to go from good to great, the possibility of Fintech replacing originators and more.
Mitchell has been with Gold Star Mortgage Financial Group since February 2015. He was named one of NMP's Most Connected Mortgage Professionals in 2018. Mitchell has 30,000 industry LinkedIn connections, 5,000 personal Facebook connections and is a certified master practitioner in neuro-linguistic programming. He negotiated the national agreement between Gold Star and CraigProctor.com, to revolutionize the way Realtors and Loan Officers work together.
Highlights From The Interview:
- “It is 2021 and I would say that Fintech is radically changing the way we’re doing business,” Mitchell told Berman. “Whether you think it is or it isn’t, it is. You either can skate to where the puck is and get in front of Fintech, or you’re going to get body checked into the boards and your career is over.”
- Mitchell said 70% of loan officers will be wiped out by Fintech in the next five to seven years. The ones that won’t make it are trained to do what everyone in their field is trained to do. The ones that will make will engage and adopt technology at a radically different pace.
- “Technology is not going to replace loan officers. Loan officers that adopt technology at a very high level will replace the loan officers that don’t.”
- “If you’re out on the market saying, ‘I have better rates because I’m a mortgage broker, I’ve got great rates,’ if that’s your value proposition in the marketplace, you are the walking dead.”
- Mitchell got into the mortgage business in 1999 after moving to Minnesota from Canada. Mitchell said a bank broke a promise to him and after some more research, he realized he could make a difference.
- In December 2006, Mitchell said he made more money than he had ever dreamed of in his life. Then in 2007, he found out about a website called Implode-O-Meter and “saw names that shouldn’t be on that list.” Upon further investigation, Mitchell decided he was going to sell his business. He was able to sell to First Tennessee Bank and deposited the check as fast as he could. Three weeks later, the bank went under in a day after funding $2 billion a month.
- He later moved to Los Angeles to get away from the snow. Once there, he and a friend decided to build a production team. His friend left on a pre-planned vacation to Vietnam. When he came back, he no longer wanted to originate mortgages anymore.
- Mitchell then went to Prospect Mortgage and created a short-sale division. He would later receive an offer from an independent mortgage bank and 30 days after accepting that position, a friend at Prospect Mortgage called and said she believed the company was in trouble after HUD auditors walked into their office. Two days later, HUD issued a memo saying that anyone found doing string LLCs with joint ventures in any way would have their HUD license revoked.
- He would pivot once again. After attending a Realtor seminar, he chatted with the speaker to see why there were no sponsors at the event. He was granted the opportunity to become a sponsor for free and travel with the speaker. Mitchell would have visibility at a high level and helped a company develop a stated-income product, which he presented to rooms full of Realtors. He was doing about $100-$150 million a month with his team.
- Later on, Mitchell decided he wanted to travel less and settle down. He met with Gold Star Mortgage and signed on in February 2015.
- “There’s a list of things that I’m good at. One … is quantifying algorithms, quantifying steps,” said Mitchell. He used that knowledge along with systems he learned from top professionals along the way to develop a system of his own. He tries to get people to understand where to change their focus.
- “The purpose of the book was to give them their new focus. If I’m focused on the money, I’ll never get the money. Ever.”
- Mitchell realized there was something more to the achievement of all of the successful business minds he talked to when writing his book. When asked what drove them, they gave the same five answers every time. He says not all five reasons have to resonate: just one does.
- His five reasons are lifestyle, emotional ratification, taking care of your parents, opportunities for your children, and legacy (creating permanency). Mitchell stated that for him emotional ratification was a driving factor.
- “I just want people to understand their own drivers. If it’s going to be a driver, if it’s going to change your activities and your behavior, it has to mean something.”
See the entire interview between Mitchell and Berman below.
See all the interviews from the Mortgage Leadership Outlook series on its YouTube channel.