MLO's--Making money is simple. But then you make it hard.

I said it was simple but I don’t ever remember saying it was easy.

Most of the readers of my column are Loan Officers: People who attempt to earn a living by being paid a commission when a loan they originate closes. Simple.

For those of you who are in positions of the “C” suite, this is the second part of a paper I wrote saying that what your sales force is doing is all wrong. I request you take heed.

The challenge of the simple vs. easy part comes from two main sources, both of which I have written or spoken about for the past 50-60 years. It comes up almost every day in one conversation or another. And the part I don’t understand, cannot comprehend and completely causes me constant feelings of failure is that almost all of you know what you should do to get the job done and earn the money you say you want to earn, yet you just won’t do those simple activities.

Yesterday I had an extensive conversation with a Loan Officer who had seen my video about how simple it is to become well known to the people you want to have refer clients to you. I had another conversation with another Loan Officer who is relatively new to the business, having taken a position about six months ago.

Both of these conversations come flippingly off my tongue because of the constancy of the issues they both raised.

Here is issue number one- Training.

When I became a Loan Officer, God was guiding me to find the best mortgage expert and manager that has ever lived. Bill Schor, who I have written about many times came from a farming family in central New Jersey. Somehow, he was blessed with a brain so disciplined and mathematically bent, he was almost born to be the person he became. When he gave me the opportunity, he demanded I follow in his footpaths and refused to pay me my draw if I didn’t. Understand that I had already been in the business for a few years most of which had been spent working in what we refer to as the operations end of the business. I was an underwriter of sorts, making decisions as to which bank we would sell our closed loans to. Then as I progressed, I became in charge of fixing all of the post-closing issues, anywhere from errors of title or improperly signed document s from the closing.

My first year working for Bill was as his assistant where he taught me all that came between the origination and the closing. Because of certain circumstances, President Nixon froze wages and prices and that precluded my ability to get a raise, one that even Bill thought, was well deserved. But there was nothing that could be done other than to put me on commission and try my hand at sales. Believe me, it was not what I wanted to do. I thought salespeople were lazy playboys who spent most of their days at bars or the racetrack. I was right by the way because the guys at our company, all experienced and flush in comparison to most other business people.

I do not digress here. What I wrote above refers to the fact that I was managed. Assiduously managed. My time was accounted for every hour of every day. How, simple: I had to write down where I was going every day from Monday through Friday. I had to write down who I saw and what we spoke about. I was told to visit, and I know you won’t believe this, but without any exaggeration, it was my obligation to visit 20 real estate offices a day, five days a week. I had to write and submit a report on Monday who I was going to visit that week and on what day. This is not even slightly untrue. Not only that, but Bill called offices I was to visit or had visited and asked if I had been there or could they please tell me to call him when I arrived. This is sales management. This is what sales managers are supposed to do. This is how you get the most out of your people. And in today’s world, it doesn’t happen. Why, because managers are so wrapped up in fixing their files, both the ones they produce and the ones their salespeople produce.

You should have a serious question: if sales managers are so busy with their fingers in files fixing issues, how can they possibly do what Bill did.

Here is the simple answer:

           a-Have a specialist who does the accountability work. Require the written reports and have a system that requires the salespeople be followed up.

           b- put people as managers who are not required to produce, just manage the salespeople and actually help the salespeople make an impact in their market.

Under all circumstances, require the salespeople to see only certain referral sources who can actually refer clients, not waste time seeing people who don’t do business

Issue number two- what should salespeople do to originate business?

I’ll try to make this even more simple than anything I’ve ever written before.

a-   Pick out a small number of referral sources that actually DO BUSINESS. Get off your ass and get out in the field of business and see them on a regular basis, my suggestion is EVERY WEEEK. Set up a schedule to see the ones who do business because the myth that referral sources who do business aren’t in the office anymore is just that – a myth. Professional real estate people, attorney’s, insurance brokers, financial advisors go to their offices. Maybe not all the time, but they do go and if they are really successful, they have teams of people who work with them. Those people might be out of the office more, but the professionals have a desk in an office. Make a schedule to see them. Keep to the schedule.

b-   Stop talking about rates, points, programs, service and how great your company is in comparison to the others. Those are the things everyone talks about. Don’t be like everyone else.

c-    Send your referral sources and your past clients a weekly email

Look, this is just the start of the simplicity of sales in any business. It doesn’t matter what you sell.

I have for you the following immediate call to action. send me an email at [email protected] or call me at 917 576 1230:

1-   Ask me for any of the helpful papers I’ve written, especially

a.    What realtors like and don’t like

b.    Questions on coaching

2-   Sign up for my weekly videos at https://mortgagenewsnetwork.com/mortgage-godfather

3-   Be sure your company and salespeople are being kept up to date with compliance issues. For more information check www.lenderscompliancegroup.com

It’s all simple, but to be successful, you need to change what you do. It's simple NOT EASY!