Loan originators and their managers all look for the path to higher productivity. There is not a day that goes by that I am not asked why some originators do better than others. The answers are not as complex as you would think. In fact, production can be traced to following the number five. Those five critical areas are:
5) Follow up
These five areas are often the difference between the average loan originator who closes less than 42 loans per year and those that close 100 or more. We are not talking about “super star” levels of production; we are talking about how to move the average production from where it is to where it can easily go. In my opinion, the average loan originator needs to be closer 60 to 75 units per year, working alone, about 172 hours per month.
If we continue to follow the “five” method, we can break it down concentrating on a specific area of focus for our prospecting, five days a week. Each day, we need to focus on prospecting two hours during the peak five hours of each day between 10am and 3pm. The focus can be anything you like, but the result needs to be communicating with a minimum of five people so you can generate one opportunity to review credit. If we are looking at five new credit reports each week, the result should be a minimum of five closed loans per month.
When we get started along this path, you will find a startling number of times the “Power of Five” finds us during a mortgage transaction. You should never spend more than five minutes talking with anyone about mortgage possibilities without having the conversation lead directly to the five things you need to review with any person about mortgage possibilities. They are:
2) Pay Stubs
3) Tax Returns
4) Bank Statements
5) Tri-merge Credit Report
Once you have this information and agree on the path to take, it should not take more than five hours-worth of work to get that file closed.
Even when it comes to following up with each lead or potential referral partner. You should have a predetermined schedule of contact that includes a minimum of five touches. Every closed client and referral partner should be on your schedule for a minimum of five personal communications a year either in person, by E-mail, or individual card or letter.
There are more than 120,000 licensed loan originators in this country and most of them never close five loans a month consistently. Of those that do get to five, fewer get to reach the ten loans a month plateau and still less go on to more than that. We need to look at our production and set new standards. We all know that the more loans you do, the better and faster you get. In many cases, those originators closing five or more loans a month actually work less hours than those that are closing fewer because they have the experience and the discipline to set proper expectations and hold themselves accountable to getting the file right up front! You can’t consistently close 10 loans a month or more if you are always chasing documents and putting out fires. When you manage the five critical areas of production, you will find yourself with more time to find more opportunities.
There are only 172 hours in a typical work month. How productive you make those hours is up to you. If the actual physical work of meeting with the client, reviewing documentation, preparing loan scenarios, completing and submitting applications, and managing that file through closing only takes about five hours; where does the rest of the time go? If you don’t know, track your time for just one week and see where you are committing yourself and if each thing you are doing is the best use of your time, or could have been avoided if you managed the expectations better up front? The Power of FIVE is very real. Keeping it simple is the key. There should be no drama or crying in the mortgage industry.
1) Schedule the outcome you want.
2) Prospect 2 hours each day.
3) Set the proper expectations.
4) Manage your communications
5) Follow up with everyone.
These Powerful Five steps will make you more consistent and more productive.