The mortgage business is not particularly known for its in-depth training programs. Other than online loan officers, we are certainly not adept at bringing rookies into the business to hit the streets and originate loans. We will get back to the “rookie” concept in the future, but we certainly don’t spend enough time helping our present loan officers get to the next level. 

One powerful reason for this dilemma is the fact that most of our sales teams are producing managers who make somewhere around 80% of their income producing loans. That does not leave a lot of time for recruiting, training, and coaching. As a result, we spend our time chasing after experienced producers that we don’t have to train or “coach” up.  

But that is not the only reason we don’t commit our resources to training. We have so much turnover caused by chasing experienced producers that we fear we’re going to invest money and time in a fleeting resource. While most will not say this out loud, it makes more sense to use our time to produce a few more loans than trying to move someone from three loans a month to five loans per month. Of course, this becomes a self-fulfilling prophecy because when we don’t spend enough time with our producers, they are more likely to be open to promises from another organization. 

Even when we do make a commitment to train and/or coach our sales force:

• Our sales managers themselves are likely to have received little preparation for being a coach and/or trainer. Being a top producer does not develop the skillset needed for becoming a solid mentor. Leading by example can only take you so far. We must train our managers to become more effective mentors. 

• We can choose to hire outside consulting companies — or sales trainers. The problem with this approach: some may not be specific to the industry, let alone specific to the particular type of origination your company is performing. Someone who is doing online sales is definitely not performing the same job as someone who is originating out of the branch of a bank or from a real estate office. While all sales training is good, if it is not geared toward the challenges you face every day, it will not be as effective. 

Some training does originate from industry vendors. However, their training is likely to be geared towards what they are selling. A Non-QM wholesale company is going to train on the features of their products. Don’t get me wrong — product training is important. But it is not filling the need for the development of relationships and marketing skills. 

In reality, the more time and energy we invest in our sales force, not only are they more likely to succeed, but the more likely they will develop loyalty to the company. In so many industries there is a major push to develop mentors who can help their sales force develop the skills necessary for success. I personally have heard from so many loan officers who lament that they lack a mentor. Many turn to paid coaches, which is helpful. But a paid coach talking to a loan officer a few times per month is not the same as having a day-to-day mentor within the same organization.  

And here is the good news: organizations that provide effective mentorship are actually developing their next generation of mentors. This is how organizations succeed and where the term “root growth” is derived. Organic growth is so much more efficient than purchasing loan officers and/or branches/companies. 

When developing a company culture, an organization has to answer this fundamental question: Are we going to try to purchase the market, or are we going to become the market? The answer to that question will define the future of your people, your culture, and your success.