Here are some thoughts on turning around a trend of declining income.
Just a few years ago, most mortgage lenders were basking in good fortune. Originators found a thriving homebuyer market, with millions of people eager to refinance existing mortgages, low interest rates and every financing option imaginable. Many experienced loan officers who ran well-established operations and built hefty client databases cashed in on this windfall, doubling their income year after year. That was then. This is now.
It is the goal of most working Americans to earn more money each year. Yet today, many experienced mortgage loan originators find themselves earning less. A number of originators I have spoken to recently tell me they expect to make less money in 2010 than they did in 2009, and that their 2009 income was less than what they earned in 2008.
Does this sound familiar to you? Are you an experienced loan originator looking to get back on the earnings track you once enjoyed? The following is a little "coaching session" that may help you raise your loan production results and your income to get you back on the right track.
1. Where are you right now? This question forces you to register your results. What was your total income last year? How much money have you made so far this year? It is extremely important that you are honest here; exaggerating your numbers to make you feel good will do you no good. Get the right data to begin with and study those numbers carefully so that you can answer the next question.
2. Are you happy with where you are right now? This question is designed to find out how you feel about your present standing. Are you happy with your income? Are you happy with how your business is going, with the activity you are seeing and with your job in general? Quite simply, if you are pleased with your numbers, no action is necessary. Keep doing what you are doing and you should continue to experience the results you are getting. If you are not happy, then something needs to change.
3. Realistically, where do you think you should be right now? This question helps you to discern the difference between where you are and where you want to be. Note the use of very specific words here. The word "realistically" guides you toward attainable, practical goals. The term "right now" asks you to focus on the present, not the distant future. This thought process helps you see the actual gap between where your income is now, and where at this stage of the game you think it should be.
4. What is holding you back? This question will help you begin to identify what is not working, or what barriers, obstacles and issues are holding you back from earning the money you feel you should be earning. Make a list of the things inside your control that are keeping you from making more money. What do you suppose are the reasons why you are not earning what you have the potential to earn? Be upfront and honest with your list, and be critical of what you are not doing. Remember that you cannot change the world economy, the bond market, housing demand, or any other external factor. All you can change are those things inside your control.
5. Are you ready to make some changes? This is perhaps the most important question of all. Many loan originators would like to produce more loans and earn more money, but nearly as many are simply not willing to change, to do things differently to accomplish those goals. You must convince yourself that getting different results means executing different activities. Some originators don't like the sound of that, and shy away from trying new things that stretch their comfort zones. Change frightens many people, but to grow you must change. Accept the fact that unless you are willing to change what you are doing, your income will never grow.
6. Where do you start? This question begins the action plan process. It is not unusual to spend 15 to 20 minutes trying to answer this question. It is a good idea to take out a pen and paper and make notes on the ideas that come up. Remember, your objective is to list specific activities that will directly relate to overcoming your obstacles (see your answers to question No. 4) and earning more money. If you are having difficulty staying organized or spend too much time working loan files, the action plan should relate to activities that will help solve those problems. If you are not making enough sales contacts, the action plan should relate to activities involving prospecting, networking, consistent sales calls and strengthening your client presentations.
There is no reason why you can't be making good money in times like these. Some loan originators are. They are steadily advancing, implementing new ideas, overcoming challenges, changing old habits, increasing their visibility, and as a result, are making more money. You should be among them.
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
