With most of your loan production now in the books for 2011, you have a pretty good idea what you will earn this year. If your income exceeds $100,000, congratulations—you'll make more than 90% of all working Americans. If you take home over $200,000, you are in the top 5% of all wage earners nationwide. Even if you are making less money now than in years past (due to smaller loan amounts, larger downpayments, a no-overage law and a tight home sales market) landing in the top 10% or 5% is something to be both proud of and grateful for indeed.
We tend to throw around a lot of big numbers in this business, and though some mortgage professionals can lay claim to some very impressive incomes, the fact remains that the vast majority of loan originators do not gross six figures. Take away the top 20% of all producers and the bottom 20%, and you'll discover that the “middle 60” close, on average, two to five transactions a month and make around $30,000 to $70,000 a year. It's not to say that a midrange income of $50,000 is anything to sneeze at, but the fact remains most originators in business today are still in pursuit of that coveted $100,000 mark.
With 2012 looming on the horizon, originators are recalibrating their income goals and hoping to make more money next year than they did this year. If you are one of those sold on the six-figure goal and are earnest about attaining it, here are five solid pieces of advice you should consider:
1. Move to the market that's moving. In every area of the country, something's hot. Maybe it's short sales or investor properties or new construction or FHA homes for first-time buyers. To grow your production volume and income, you have to be an active player in the market that's in demand. Do some investigative research (don't guess) and find out for sure the property types, price points and parts of town that are selling and move your business and your prospecting efforts to that market. That's where you'll find far more activity and more lending opportunities.
2. Expand your scope. Many loan originators limit their income by limiting their sources of business. If you are relying on just one or two Realtors to refer you business, or if you are dependant on your bank branch to feed you the majority of your leads, you are working under a very small scope. As you cast a wider net, you catch more prospects and eventually land more borrowers. Consider aligning with new strategic referral partners like CPAs, insurance agents, attorneys or financial advisors. Start marketing your database of past clients. Deliver homebuyer workshops or join a networking group. Launch a consumer-direct ad campaign. More sources of business means more leads, more loans—and more money.
3. Put in more hours. We could debate the “work harder versus work smarter” argument all day long, and while many originators indeed need to work smarter, the biggest reason why most sub-six-figure income earners in this business don't make the big bucks is simply because they don't work very hard. They come in at 9:30, take time for personal errands during the day and head home at 5:00. They blow off Friday afternoons and rarely work on the weekends. Few (if any) top performers in this industry who earn upwards of $100,000 or more a year follow such a slack work schedule. They out earn the rest because they outwork the rest. More time at work every day means more time to make contacts, follow up on leads, market your database, make phone calls, schedule visits, and grow your business connections. The bottom line is this: You'll never make big money with little effort.
4. Step away from your files. Every originator still in this business today knows that it's taking longer on every loan file than in years past, and that's just the way it is. But people who make big money doing what you do aren't “slaves” to their pipelines. They don't allow their loans in process to define their daily activities, nor do they use issues and problems with their loans as excuses to mask their own sales call reluctance. (Interestingly enough, my research shows that most originators with 10 to 15 loans in their pipelines actually spend less time with their files than do originators who have five or six deals in the works.) You make more money by writing more loans, not by working on, fretting over, or baby-sitting the loans you already have.
5. Get serious. Famed motivational speaker Tony Robbins notes that “You are where you are because that is really where you want to be, whether you will admit it or not.” Many originators say they want to make $100,000 a year, but they really don't mean it. Making that kind of money puts a whole new set of expectations on them. It may challenge them to make significant changes in the way they do things, in how hard they are working, and whom they are working with. When you stop thinking about closing three or four deals a month and earning $50,000 a year, you start thinking about eight to 10 deals a month, making $100,000 a year, and how you'll get there. The day you finally get serious about making serious money, you'll make the moves necessary to make it happen.
Above all else, realize that earning a six-figure income (even a seven-figure income) in mortgage loan origination is very possible—because others in your profession are doing it right now. People often live up to the limitations they place upon themselves. When you remove those limitations and start expecting and demanding more, you recognize what you are truly capable of achieving.
Doug Smith is a nationally known industry speaker, author and sales trainer. For more information, please visit
