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

Brian: In 1985, I was a real estate agent. The regional manager for Merrill Lynch Realty decided to open up a mortgage company and take me with her. That company unfortunately didn't last too long, and I went to work for a bank. The bank was taken in by RTC in the 80's, and I wound up with an independent mortgage banker called First Town Mortgage. That company, after 10 years, was sold to Chase, and I decided several years later to go with Integrity Home Funding and become a branch of that organization.

Boni: Were you an immediate success in the mortgage industry?

Brian: Hardly! As a Realtor, I believed that I knew everything there was to know. Coming into mortgage banking was a rude awakening. It taught me that there was a lot that I didn't know.

Being a former Realtor actually hurt my credibility in the beginning. A Realtor's natural tendency is to go through the path of least resistance. I went back to the agents who I had worked with on co-op deals and the agents from my former office to try to get business. I thought it would be very easy -- they knew me and liked me. I didn't factor in that they knew that I didn't know what I was doing because I was a brand new loan officer. I changed my tactics and started tackling other offices where no one really knew me. That is when I started having some success.

Boni: What mistakes do you think rookie loan officers typically make?

Brian: The biggest mistake is when they sit in their offices with delusions of grandeur, believing that the refi market will continue, and their phones will continue to ring endlessly. That couldn't be further from the truth. As I've experienced after every refi boom, there is generally a purge of loan officers who did very well financially with refi business, but did not take time to develop their relationships so that when rates go up and the phones stop ringing, they still have business. Basically, rookie loan officers make the mistake of being short sighted.

Boni: How do you establish relationships with your customers?

Brian: I do it in many different ways. In terms of the consumers who are using me to get their mortgage, we are constantly asking them for referrals. In fact, I have a monthly contest called "Refer a Friend". Anyone who sends me a referral during the month is eligible for entry in the contest to receive tickets to sporting event, the theater, a dinner, movie, or other prizes.

Every month we send out a newsletter and the folks who have sent me business are very anxious to get it. They call to find out when the newsletter is coming out because they want to know if they won the prize for that month. That is one way to build relationships with your existing database. I probably have about five or six thousand clients who I've helped with mortgages over the years.

We advertise incorrectly in this industry. We advertise by patting ourselves on the back. We tell consumers that we closed 10 million or 20 million in loans, or that we're the best loan officer, we work for the best company, we have the best rates, we give the best service - and the consumer really doesn't care. The consumer wants to know what the benefit is to them.

I've had great success in not advertising at all. I spend almost zero on advertising. Instead, I do a tremendous amount of PR, which gives me more credibility than I could ever pay for. It is millions of dollars of free publicity. I believe in picking a niche and becoming the expert in that niche, then letting everyone know that you are the expert.

Newspapers in town write articles about my area of expertise, which is helping buyers who've had a bankruptcy get into a home with very little money down and with single digit low interest rates. They've all written articles about me. The business and attorney publications around town have as well. And, because of my recognized expertise, I'm on the local TV station every week answering callers' questions.

The way I do business has changed. I used to bring in donuts, work seven days a week 24 hours a day returning calls, and hanging out in the Realtor's and builder's offices in an effort to get their business.

Now, because I'm known for my expertise, I have consumers calling me directly. I am then able to turn around and give that lead to an agent. That's the way to solidify a relationship - with a win-win situation. Now I have Realtors soliciting me for business.

Boni: How did you get started in this niche?

Brian: I've always been compassionate towards buyers who have had trouble. Not those who have bad credit because they don't pay, or because they mismanage or overspend, but for folks who've experienced unforeseen circumstances that were truly beyond their control. I don't feel they should be punished as heavily as they are in the mortgage business. They should not be prevented from owning homes.

Gradually, I decided that area is what I wanted to focus on. I used to be a typical loan officer with every product on hand, willing to help with any need. I was constantly screaming at our secondary marketing department to get me more products. I realized that is silly way to go when I took my child to a doctor. My child needed an operation and, obviously, we the best person for that particular issue. We found an orthopedic pediatric surgeon whose specialty was ankles. I had to take off from work to meet with the physician who was an hour and a half away. I had to go during his hours. And I didn't ask him what the price was because it was irrelevant.

That is when I decided to shift my business. It was very difficult working 75 to 80 hours a week. I realized all the time I was missing with my family and the amount of time I was wasting working very hard, but not very smart. Now I'm only open 8:30 to 5:00 Monday through Friday, because a burnt out loan officer can't give good service.

Boni: Are there any tips you can give loan officers who would like to create this niche in their own market?

Brian: I would tell other loan officers that it doesn't matter what your niche is, just pick one. It could be working with buyers who have great income but not a lot of cash and need 103% loans. Your niche could be working with folks who are elderly and doing reverse mortgages. Or you could go to auctions and become a 203K FHA rehab specialist. Regardless, you need to pick a niche. You need to become the expert in that niche. And you need to let everyone know about it through free publicity.

Boni: How do you begin to get free publicity?

Brian: First, you have to actually know what you're talking about. There are many loan officers out there who do not know all the guidelines or program parameters. I started by reading all the bankruptcy laws. I read FHA/VA conventional manuals and found out what the guidelines were. I took the time to read everything I could, and know everything I could. I still constantly update myself on changes to the laws and guidelines.

Second, you have to become active in your Mortgage Bankers Association, your Mortgage Brokers Association, and your local Board of Realtors. I became active in the education committee of my local Board of Realtors. When the paper in town had questions about financing, they always called the Board of Realtors and asked for the education committee. So I started making relationships with the newspapers. At some point, I actually hired a public relations firm to represent me. It cost about $2000 dollars a month. Some officers might say that is too much to spend, but it is only commission on one loan -- and you are practically guaranteed at least one loan as a result.

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

Brian: They become too comfortable. They have to remember that they are only as good as their last transaction. Once loan officers become successful, they develop a certain arrogance and expectation that business should just come walking through their doors. That's not going to happen. They need an ongoing marketing effort.

After almost 18 years in the business, I 'm still hungry. I still go out and make sure my PR happens, my relationships are growing, my newsletters are going out, and the phone is ringing. I think that seasoned loan officers are so stuck in their ways, they don't believe there are better ways to enhance their business - they believe they know it all. They need to be open to change.

I still originate and I train loan officers throughout the county. I still buy educational products because I still want to learn. Maybe I'll find a technique that will give me that little edge. I still buy other trainers' programs because they may know something I haven't thought of.

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

Brian: I would tell them not to judge their success by volume; judge it by income and quality of life. I would tell them they need to take a real estate course, because if they are going to be working with Realtors on a daily, long-term basis, and don't understand their business, it is very difficult to succeed. I'd tell them to educate themselves and continue to learn everything they can about our industry so they can pick a niche that they like. Don't try to be everything to everyone. Pick a niche, let the world know that you are the expert in that niche, and let the business start coming to you.

It infuriates me that, as an industry, we have prostituted ourselves with all sorts of different things so that when buyers contact us, the only thing they understand to ask about is price. We've trained them to do that! They don't know that there are any other ways to decide who to work with. We've become a used car lot.

As the expert, price isn't the issue for me. I'm here to solve their problem, to help them accomplish what they want to accomplish. I'm not going to gouge them, but I'm certainly not the cheapest person in town either.

Boni: What was your most successful marketing campaign?

Brian: I have a regular spot on the FEC affiliate in Baltimore. Every Sunday morning, I'm on the air live as part of the morning news. I do a segment where I give tips and actually answer questions live on the air. Of course that is a huge source of business and credibility, and it beats any marketing campaign I could ever put together.

Boni: How do you come up with ideas and topics? Do you work with the editorial staff at the station?

Brian: I can talk about any topic: the numerous different types of loans, the things going on in the real estate industry, the tax deductibility of owning a home, things like that. Then the callers' questions stimulate the next week's program. I take about three or four phone calls each week.

My marketing success is due to a variety of things. PR is a part of it, so is direct mail. Soliciting for referrals is important, having a newsletter, becoming active in the board. These are all marketing activities. I don't have one successful marketing campaign -- it's an ongoing effort with many different prongs.

Many loan officers, both rookie and seasoned, claim they are too busy to do marketing. They should consider this analogy. "If you had a million dollar loan application this afternoon, and you're going to make 60 basis points as your commission, how many of you would be too busy to go to that appointment?" No one ever raises their hand. An appointment to market (meet a builder, network with an accountant, etc.) is the same as a million dollars in loan applications waiting to happen. I tell them to block marketing time out in their planner.

Boni: Do you have a turn key sales or marketing idea you'd like to share?

Brian: I wrote sales letters (both for sale on my website) for renters and buyers who've had a bankruptcy. These folks are bombarded with offers on a constant and ongoing basis. These letters are about six or seven pages, front and back. I wrote them as if I was speaking to someone on the phone. I wanted to make it clear why they should listen to me and not throw out the letter.

I have the Arch Telecom system, which is a call capture system. My ads all say "Call for a free special report 24 hours a day". That is very non-threatening. A lot of people call. And with Arch Telecom, I can tell which marketing effort these people are coming from, because everything is coded. It also captures their name and phone number so we can follow up with them and send them their material. With this system, I go from being an annoying pest to an invited guest.

Boni: Who or what was the biggest contributor to your success?

Brian: My wife. She's allowed me to work the hours that I work and has stayed with me through the fluctuations of the market. She was the one who gave me encouragement. She still does. If I did not have a wife of her nature, it would be almost impossible to juggle the demands of being an originator, dad, and husband.

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

Brian: I would do a consistent level of the more challenging and difficult loans, rather than being bombarded and then having nothing. I'd level out the ups and downs of the business.

Boni: What are your current goals?

Brian: To go from 32 million dollars down to 18 million dollars, reduce my volume, and have more profitable loans. I'd like a higher margin and less volume. The real lesson I've learned over 20 years in this industry is to not be a slave to volume - be a slave to the paycheck.

Boni: Are there any closing thoughts you'd like to leave for other originators who aspire to the kind of success that you've created?

Brian: Always monitor your business and know where you're going. I learned early on that you need a plan to be successful. I have my finger on the pulse of my business. I know where my business comes from and, more importantly, I know where I want it to come from.

On my website (www.loanofficersuccess.com), there is a free resource section. There are a lot of the forms I use to track my business and the goal sheet I prepare for the year.