Boni Lonnsburry: What is your referral source mix?

Steve Rockefeller: Realtor 13%, Builder 35%, Previous Customer 41%, CPA/Financial planner 5%, and Consumer Direct 8%.

Boni: How did you get started in the mortgage business?

Steve: Ten years ago, I was what I considered a successful real estate agent. In late 1991, my last year in real estate, I closed over $5 million in transactions, which at that time was excellent in our southeastern Virginia marketplace.

But I was bored. I'd sell a deal and turn it over, sell another deal and turn it over, sell another deal and…you get the picture. I needed something more to keep my mind active. Plus, I wanted something that would give me an opportunity to help people in more ways. In my previous career, I was kind of at a dead end. I was selling new homes from a model home site and just went from job to job with no real future.

A loan officer I worked with thought I'd do a great job in this business and that I had a knack for talking to people. It got my brain turning. So I started looking into it and went on an interview with his boss. She said " No". She was adamant that they did not hire rookies. So I sold her on the fact that I knew what I was doing. About 3 or 4 months later, on July 4th weekend, she called me. The first of August that year I started doing mortgages.

Boni: Were you an immediate success?

Steve: My first day on the job, she handed me a box of blank cards, a blank rate sheet, and said "Go Get 'Em." I asked "where is my office?" She told me how to get there; she basically drew me a map. I remember going to my office and just sitting at the desk. It was covered with dust. I checked to make sure the phone worked; I looked in the drawers. I thought, "Oh my God, what do I do?"

I immediately started calling all of my Realtor friends. Of course they all said, "No. We're not giving you business because you're too new!" So I did what came natural. I looked at where the market was and figured it must be a good time to refinance. I did whatever I had to do. I felt like I was an immediate success because I never took a draw. When my first draw check came in, I gave it back. I didn't want to be dependent on the bank.

Boni: Did you have any training at all along the way?

Steve: Believe it or not, I just relied on what I barely knew with real estate. We didn't have computers back then. You had a calculator and that's it. I went to a couple other mortgage officers and said, "I've just gotten into the business - will you help me?" Most of them turned their backs. One of them said, "Steve, because you sent me so much business, I'll give you a couple of pointers." So he put me in touch with some people who helped me learn the basics of what I needed to know. I had an awesome processor who took me under her wing and taught me about the business itself.

Boni: What mistake do you see rookie loan officers making?

Steve: I think rookies typically make a number of mistakes:

Not being good at time management. I think that rookies get stuck talking to people who just can't do it. They've got credit problems or this or that. They are just grasping at straws to get deals going. The rookies get stuck talking to these people, becoming their best friends and guiding them through it. These people don't have a prayer. They are light years away from being able to buy a home. Rookies also come in early, stay late, and yet don't get anything done. They don't know how to manage their time. They need to learn when to say "No."

They don't follow through. If you're a new loan officer, and a customer says to you, "I got a better quote from someplace else", you need to have the sales knowledge to continue to sell yourself and your company, you don't just say "Oh, okay. Have a great day." You need to continue to sell yourself and follow up with the customer. Rates are not always the issue in my mind. Banks traditionally don't have the best rates. But I'm very upfront with the customer. I say "You know, there is more to it than rates." I use the Mortgage Coach program to guide me through different scenarios. I'm constantly emailing or faxing those programs. Knowledge is power. Most of my competitors don't have 100 + programs at their disposal.

They over promise and under deliver. Rookie originators take time to return phone calls, etc. But in the course of a day, they get so hung up on the junk details that they can't call people back when they say they will. If someone tells me that they are calling me back at 2 o'clock, I'm expecting a call back between 2 and 3. If you set an expectation with the customers, you can't let them down.

They don't ask for referrals. This is the first thing I teach all the originators here. If you don't ask for referrals, how do the clients know what you expect from them? I start asking for referrals right away. I tell clients "I want to be your lender. I want you to be able to refer your friends to me." I try to meet every one of my customers. It is important to me to do that. I think it is a good idea. It helps me to get where I want to be. I tell them exactly what I am doing to help them and benefit them. I conclude the application by asking for more referrals. I tell them that my business depends on what they do.

Finally, too many rookies who enter the mortgage industry in boom times are not thinking forward, i.e. the "Customer for Life" philosophy. They're not looking at the bigger picture. They need to invest in their careers.

Boni: What are your goals now?

Steve: I would always like to increase production, but it is important to me to be home for dinner with my family every night. I'd like to continue to help more people become homeowners. And eventually, I'd like to retire with my two young kids and have fun and enjoy life.

Boni: Do you have a personal mission statement or a motto that you work by?

Steve: In 1997 I went to a Zig Ziggler seminar. He is a phenomenal man. One of the things that I remember him saying is that "If you help enough people get what they want out of life, you'll always get what you want." That is the motto I fly by.

Boni: Is there anything else that you would like to say to other originators who are aspiring to the kind of success that you've created?

Steve: I think that it is important for any originator in today's business to recognize that there is a balance between family and business. In today's world, you're in this fast food society and you're either going to deliver a McDonald's type of business or you are going to deliver a five-star type of business. But, if you find that balance in between, maybe a 3.5 or a 4 star, I think that is going to mean more to you than anything else. If you are cheap in your business, that is the kind of business you are going to bring in. But if you set the standard for your customer, they will respect that. Your customer won't let you down. If you find balance and establish your own goals, you'll always be a success.

Boni: How do you counsel your team to invest in their careers?

Steve: Back in late June, it was pretty apparent that we were going to go through another refi event. I brought the originators together and I said, "Look, here's the deal. I don't care how many refinance applications you take. But I don't want you to stop focusing on your purchase business. Look at the refinance as gravy, but you need to leverage that. Those people are not going to live in those houses for more than 5 years. Make sure to leverage those transactions so that in 3 to 5 years, when they do move, they are going to think of you." I make them all go out and buy magnetic business cards. I'll split the cost with them, just to give them some security in knowing that I am behind them. I tell them to make sure that the clients know that they want to be their lender.

Boni:What mistake do you see veteran loan officers make?

Steve: Not listening to the customer and losing their sensitivity towards their customers. Most Veteran L.O.'s feel as though this is just another routine application. They become complacent, losing their awareness for the needs of the customer. The customer is coming to you for advice. Why not give them the best advice possible? I think the transaction to a veteran becomes de-humanized.

On a monthly basis, I go to breakfast with a couple of veteran loan officers. These people have been in the business for more than 20 years. It's funny to listen to them talk about their applications. It boggles my mind. Do you wonder why the veteran loan officer, as they are working towards retirement, ends up with less and less volume? It's because clients are walking away from them. They are being treated like they are less than human.

I listen to some of these veterans sit there and talk about how so and so can't be quoting this, and the customer just doesn't understand, and they are not going to do business with them. It's not that the customer doesn't understand. It's just that the customer wants more information. The veteran sometimes gets to a point in their career that when they schedule an hour, by gosh they are going to get those people out in an hour, whether the people understood what they just did or not.

Boni:How would you suggest somebody who has been it for 10, 20, or 30 years keeps their passion and edge? How do you stay fired up?

Steve: I love what I do. This is the best job. I am not kidding you. This is the best job that anybody could ever ask for. On Thursday I met with a couple. She's pregnant and teaches school, he's in the Navy. They came in here, scared out of their minds. Towards the end of the application they asked me, "When do you think you'll know if we're approved?" And I said, "Right now, it's done." They were holding hands and I saw them breathe a sigh of relief. There was no question in my mind that they would get the loan. They had perfect credit - their income was fine. They were actually under buying what they qualify for. It's just such a good feeling.

Boni:If you had a son or daughter entering this business, what advice would you give them?

Steve: To treat each customer with dignity, respect and compassion. I'd advise them not to attempt to hit a home run on every deal, and to be creative in marketing. It's the dumb things that work.

When I first got into the business, I wondered what I could do. I remember calling my wife and saying, "Look, I'm not coming home until late tonight because I want to get some business and I'm going to go by some of the real estate offices." There was a Dominos or a Pizza Hut right next door to my office. I walked over and spoke to the manager and asked him to help me out. I said "I'm not looking for anything free, but I am looking for a way to get some bulk pizza."

The guy was so happy; he actually offered me coupons to give to my customers at closing. I went and bought a bunch of pizzas and started delivering them with 6 packs of Cokes to the real estate officers in the evenings. I said, "Hey, here I am and here is what I am doing and can you help me with some business?" Well, come to find out, those were all part-time agents and I didn't get a lot of business out of it. But when the managers found out, I got to sponsor a couple lunches. That was dumb, but it worked.

One day I was filling my car up with gas, and I happened to see this guy in a tree behind the gas station. I wondered what he was doing. I walked back there to make sure he was okay. He told me he was getting mistletoe. I asked him how much he would sell it to me for. For $75 I got more mistletoe than you could ever imagine. Then I went out and bought some bags, and I put in some mistletoe and my business card. Then I taped some ribbons on. I delivered them to agents around the holiday season. That was dumb, but it worked.

I just did this last week: I was in a store during its end of summer sale. They have this Macy's brand margarita mix that comes in a 2-gallon bucket. All you do is pour the tequila in and freeze it. Then you scoop it out with an ice cream scoop. I had bought one at the beginning of summer for a neighborhood party and it was a big success. The other day, I bought every one of them that they had at 60% off.

I went on the web and found a picture of a beautiful tropical scene. I printed it on photo paper and wrote, "I hope you're having a great summer, thanks for your business." Then I delivered them to all my top agents and to my top builders individually with the drink mix and a bottle of tequila. It was awesome. Last week I took 11 loan applications - 5 of those were the direct result of my deliveries.

Loan officers should also let the customer get to know you as a person. I used to have all these awards on my walls. Then it hit me that I looked like a real estate agent. The next day, I took all the awards off and tried to decide what to do. I like lighthouses, so I put some lighthouse pictures up. I do a lot of work with the local media, so I had some front-page stories with me on them. I had those framed and I put those up. I also like foreign currency. I made two frames full of foreign currencies. Now people come in here and look at the walls and it generates conversation. I also have pictures of my kids and my wife. People can see that I am a real person.

Boni: How would you advise your son or daughter to start generating sales?

Steve: I rarely hire rookies. When I do, the first thing I tell them is, "Don't count on your friends." Everyone knows a Realtor. Everyone knows a builder. But 9 times out of 10, when you call on them, they let you down. I just tell them "Go out there. Find your niche. Figure out who you are as a person." I also tell them that I want to see their goals. I want to see their business plan. We review their goals every quarter to make sure they are on target.

Boni: What was your most successful marketing campaign?

Steve: Years ago, I placed ads in three local military newspapers - ads that I never showed anyone in our marketing department. I later learned they did not meet legal requirements. But, these ads worked and my phone rang off the hook. I double-booked appointments and I scheduled two clients each hour to take loan applications. They filled out paperwork and I walked back and forth between rooms. After a while, my manager told me to stop because the office couldn't handle the volume.

Boni: What are your best turnkey sales or marketing ideas that we can share with everyone?

Steve: Using Mortgage Quest. Mortgage Quest is a database management program. In about 1994, my company was going to start experimenting with computers. They bought me one. I had seen an article about Mortgage Quest and purchased it. I loved it. It is a great program because you can import from Mortgage Coach or Calyx.

Also, I absolutely love the In Touch Today program. I'm doing monthly postcards to my past customers. I'm up to about 500 now. Since January 2002, I have actually tracked 17 loans directly from the mailings.

When it comes to marketing, I would also suggest becoming a local media expert. I owe 99% of the credit to Barry Habib for that. His guidance was priceless. I met Barry 5 years ago at a Sales Mastery event. He really impressed me. After talking with Barry, I started calling the reporters with story ideas. Then they began calling me. I have my own column in the newspaper. It prints about every other week. It's called "Mortgage Matters."

Boni: What or who was the biggest contributor to your success?

Steve: In this business, it's hard to bounce ideas off anyone. My wife, Judi, is always willing to let me bounce ideas off of her and giving me honest feedback. By the way, I should tell you that Judi was a top New Homes Sales agent in our area. In her last year of sales, she closed over 14 million. (The best part is that I did not get a bit of that volume.) Judi has been a stay at home mom for the past 3 years with my kids, Avery, 4, and Evan, 20 months.

Boni: If you had a magic wand, what would you change about your current business?

Steve: I'd find a way to organize my desk!

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