Escape the Quicksand of Complacency: Stop Blaming Customers and Start Driving Results!

A pervasive issue has been quietly eroding our effectiveness – the 'waiter' mentality, where we find ourselves routinely saying, "I'm waiting on the customer." I confess to having fallen into this trap. It’s a quicksand mindset that subtly pulls down our proactivity and initiative. Maybe its COVID exhaustion... Maybe the interest rates just make it so hard for deals to qualify.... Maybe a changing credit and regulatory environment are making it "hard".... (anyone else making these excuses?) Reflecting on this, I realize we've all played a part in this problem. It’s time for an unflinching self-assessment and a bold commitment to transformation.

The “waiting on the customer” mentality is more than a passive approach; it's a symptom of a deeper professional complacency. It represents a reluctance to take charge, a hesitancy to push boundaries, and a failure to fully embrace our responsibilities. This mindset isn’t just an individual failing; it’s a collective issue that has been insidiously damaging our industry’s efficiency and reputation.

Owning the Process:

Imagine a loan application is stalled due to incomplete documentation. Does that not seem to be every loan? LOL... The typical response by BDOs, underwriters, and even closers, is to send an email and wait. Hell, even AI processes will do this same nonsense and cannot solve customer concerns. What if instead, we proactively called the client, guided them through the requirements, and set a clear deadline to follow up on every item? Such a shift from passivity to action can significantly expedite the loan process and truly adopts a customer first mentality.

Action Plan:

Cultivate a culture of proactive engagement. Train your team to take initiative, maintain regular communication, and offer solutions. Encourage them to anticipate client needs, ask the right questions, and be the driving force in moving the process forward. Have your team identify a way to hold themselves accountable and be looking for ways to overcome the failures that will happen.

Anticipate Challenges:

Consider regulatory changes or market shifts. The SBA was riddled with them in 2023 and caused so many issues across nearly every lending team in the US. Those unprepared for these changes often find themselves reacting in panic, causing significant delays. By staying informed and preparing for inevitable future changes, we can adapt our processes smoothly, turning potential challenges into opportunities for efficiency.

Strategy:

Foster continuous learning within your team. Encourage them to stay ahead of industry trends and regulatory updates. Create a forum for regular discussion on these topics, ensuring that everyone is equipped with the latest information and tools to handle upcoming changes effectively. Be willing to be wrong and be willing to change outdated philosophies and workflows.

Direct, Effective Communication:

With rates in flux and terms at the highest they have been in a decade, customer reservation has been common. A delay caused by a client's confusion over loan terms can be prevented with direct and clear communication from the start. This involves not just conveying information but ensuring the customer understands what they are looking at. It requires building a relationship based on trust and clarity.

Guideline:

Develop a team culture centered on clarity and proactive communication. Invest in training that enhances communication skills and customer service. Emphasize the importance of not just delivering information but also ensuring it is understood and acted upon.

Align your Credit and Sales Teams:

Sales Teams:

Move beyond the 'spray and pray' method. Understand underwriting criteria and align your efforts with them to craft deals more likely to succeed. Spend time with credit managers and underwriters to gain insights into what makes a deal viable.

Credit Teams:

Adopt a facilitative stance. Instead of instinctively pushing back on submissions, find ways to constructively contribute to making deals work. Get the customer on the phone and get the answers instantly, instead of pushing it off for someone else to collect. Balance risk management with a progressive attitude, focusing on how to advance deals rather than stalling them.

Embrace Technology and Innovation:

In an era where technology is evolving rapidly, integrating the latest tools into our workflow can significantly enhance efficiency. From CRM systems to automated underwriting tools, technology can streamline our processes, allowing us to focus more on customer service and less on manual tasks.

Encourage your team to be open to new ways of working and regularly suggest improvements. Create an environment where innovation is not just adopted but is a part of the team's DNA. Regular brainstorming sessions can be instrumental in fostering this mindset.

Build a Learning Organization:

The loan origination landscape is ever-changing. To stay ahead, we must become a "forever-students." This means not just staying updated on industry trends but also investing in the continuous professional development of your team members. Encourage certifications, attend industry conferences, and provide access to ongoing training resources.

Foster an environment where knowledge is shared openly. Regular team meetings, where insights from recent deals, industry news, or training sessions are shared, can help spread valuable knowledge across the team and contribute to a collective growth mindset.

Customer-Centric Innovation:

Our primary goal is serving our customers. This means understanding their needs, challenges, and expectations. Regular feedback sessions with clients, customer surveys, and keeping a pulse on market trends are essential in aligning our services with customer needs.

Be prepared to adapt your services to meet the evolving needs of your clients. This might mean offering more personalized loan options, simplifying the application process, or providing additional support and guidance throughout the loan process.

A 2024 Call to Action:

Complacency is an enemy we've all entertained. It's time to shatter this status quo, to move from passive engagement to leading with conviction and decisiveness. We're not just setting expectations for our clients, but challenging ourselves to exceed them. This isn't merely about improvement; it's about a relentless pursuit of excellence in every aspect of our work, about being the best in a world that's constantly evolving.

This year, I urge you to engage in deep, honest self-reflection. Ask yourself where you've accepted mediocrity or let fear of change hold you back. It's time for a candid assessment of our shortcomings. Owning up to and learning from our failures isn't just necessary, it's transformative. Let's lead this race, share our stories of growth and triumph, and together, build a community that doesn't just value excellence but embodies it in every action. Let's seize this moment to redefine the future of loan origination, embracing change with courage and determination.