Things Your Loan Officers Should Do With Rates Rising

It’s all about sphere of influence now.

Insider

Contributing Writer

The market is definitely changing in 2022. Higher mortgage rates (thus far), drastically fewer refinances and a shortage of inventory for purchases. The one thing I have found in my 35+ years in this industry is that it is always changing. As a leader, you must help your loan officers adapt to change so that they can continue to succeed in any market.

What should you be suggesting they do? Here are just a few areas of focus that I consider critical.

Finally build a complete database of their entire sphere. How long have they been promising themselves that they would compile a complete database? Your sphere is not just your previous customers, but what I call a compendium of your life. It is every aspect of your life — experiences, background, education, interests and more. If you don’t codify your entire sphere, then you will not be able to effectively implement the next steps. Note: if you don’t have an idea of the composition of your entire sphere, then email me at the address below and I will send you a recorded webinar — Maximum Sphere Marketing.

Tell everyone in your sphere what you do for a living. Then ask for their help and tell them how to help you. Do not assume that your sphere knows how to help you or that you are interested only in their purchase or refinance referrals. For example, your next-door neighbor does not know that you would like to meet their brother who is a financial planner.

Prioritize your contacts. Now that you have the universe of possibilities, you need to decide who is more important within your sphere. You can’t have lunch with 3,000 contacts (yes, your database should be this large). Lunch is a prioritization decision, and you can’t make the best decision unless you consider all the possibilities. If you compile your complete sphere, I guarantee you will see many contacts that you should prioritize.

Add value to your sphere. Yes, I understand you would like to focus on real estate agents. But what kind of value will you deliver to them? Great service and competitive pricing should be a given. How are you going to help real estate agents increase their business? Yes, you must become a partner, not a vendor.

Your sphere is not just your previous customers — but what I call a compendium of your life. It is every aspect of your life — experiences, background, education, interests and more.

Focus on Cash-Out. Rates are still reasonably low. There is plenty of equity out there and plenty of consumer debt and home improvements to undertake. Focus on solutions for your previous clients and entire sphere. You can deliver value by improving your clients’ financial situations. Become a trusted advisor.

Certainly, I could add 10 more items to this list. Cold calling is not going to cut it in this market. Your loan officers must leverage their relationships and — above all — they must deliver value to these relationships. Value is comprised of what your target is interested in — not what you are interested in.