Now is the time to start doing what is necessary for success.
The diversity in performance of today's loan originators is astounding. Last month I talked with people who made as much as $500,000 in 2009 and people who barely made $5,000. In my travels across the country I encounter dozens of originators closing 20-plus loans a month, and just as many closing two loans a month. The results are all over the map. There seems to be no "average" producer anymore.
In 2000, Robert Kiyosaki wrote a runaway best selling book entitled "Rich Dad, Poor Dad." If you read the book, you know the premise: How we look at work and money determines how successful we are and how "rich" we can become in our lives. Some people were taught (by their dads or others) you should go to school, get good grades, land a job at a company, put your nose to the grindstone, suck up to the boss and you'll get ahead.
Mr. Kiyosaki points out that this vision of work and a career is incorrect, as we are finding more and more every day. Thousands of good students and loyal worker bees today are unhappy, unemployed, living paycheck to paycheck, or laboring at reduced wages. The author bluntly points out that it is not our employer's responsibility to make us a success, it's ours. We are the captains of our careers, and the course we steer determines where and how far we will go. Understanding money, how to make it, how to make more of it, and investing wisely over long periods of time are the keys to getting rich.
As you look closely at the work attitudes and actions of successful loan originators today, compared with those of the less-than-successful originators, you will quickly notice some very stark contrasts. How they look at work, how they think about their role as an originator, how they make money and what they do (or don't do) with their time every day determines the results they get. For example:
Poor Originator: I need to work on this loan file.
Rich Originator: I need to work on getting a referral from the borrower on this loan file.
Poor Originator: Things are really slow out there. I think I'll take some time off.
Rich Originator: Things are really slow out there. I need to work more hours.
Poor Originator: I should read my e-mail.
Rich Originator: I should send out some e-mails about these great rates.
Poor Originator: I need to find another loan.
Rich Originator: I need to find another great referral partner who can send me a lot of loans.
Since I have the opportunity to venture inside many mortgage companies in my consulting and training work, I've been able to gather some interesting observations from the management perspective on the contrasts they see between their own successful and unsuccessful loan originators.
From various assessments and discussions of recent, here are a few things they've told me:
High-producing originators spend about two to four hours in total working on a loan file. Low producers spend over twice that much time.
High producers work an average of 50-60 hours a week. Low producers work an average of 30-40 hours a week.
High producers are selective about the real estate agents and buyers they work with. Low producers work with marginal agents and low quality borrowers.
High producers study their loan programs and guideline changes as they occur. Low producers run around asking others questions all day (i.e., "Can we do this type of loan?).
High producers complain little and make few excuses. Low producers like to complain a lot (about products, rates, processing, underwriting, etc.) and make many excuses for their lack of results.
Most every mortgage loan originator entering this business says he or she wants to get rich, to make a lot of money. The fact is, very few do. Most originators do not get rich or enjoy a rewarding career in mortgage lending. Most originators today are barely getting by, struggling from month to month, and wondering where their next deal is coming from. Today, high-producing rich originators are the exception, and it seems to be getting more so all the time.
Evolving from a poor originator to a rich originator starts with a change in mindset, a different view of how you look at your job, how you prioritize a day, and how you invest your time in higher payoff, more profitable activities. Most importantly, becoming a rich originator in today's environment means stepping out of old habits and comfort zones and doing things most of your competitors are not willing to do.
If you are intent on improving your loan production results and getting rich this year, here are five suggestions to start with:
1. Spend less time working your loans in process and more time marketing and selling and prospecting to find more loans.
2. Invest no less than 50 hours a week in your career - every week.
3. Be more selective about the quality of borrowers and referral partners you work with.
4. Schedule one hour on your calendar every week for study and review of all the changes happening to stay on top of the latest information.
5. Leave the excuses for lack of performance behind this year. It's not the rates, the economy or your company's support system that's responsible for your success. It's you.
Douglas Smith is founder and president of Douglas Smith & Associates, a training, speaking and coaching firm based in Asheville, N.C. He can be contacted at 877-430-2329 and his website is
