The Three Keys to Mortgage Greatness…
in Any Market!
By Mike Baker
They seem to do the impossible … Year after year top producers in this country create staggering levels of production and commission income.
Some of these master originators generate 60, 90, 100 and even several hundred million dollars a year in personal production. That means that they are generating personal commissions ranging anywhere from $300,000 to $2 million a year or more! If you are like me you have three reactions to those numbers ... Wow, how do they do that or No thanks, or They must have a bunch of assistances working for them.
A common perception is that these lenders are working horrific hours, have no life and probably are destroying their families. Yet, a five-year study into the practices and strategies of these loan officers reveals some fascinating facts. Facts that you can use to double your personal commissions in the next 90 days while not spending as much time on each deal as you may be now. For example, our research uncovered the following discoveries:
Fact: These top pros actually close 9 out of 10 rate-shoppers.
Fact: On average these mortgage pros earn at least a 10% higher commission on each loan.
Fact: They receive far more referrals than the industry average.
Fact: They have more professional referral sources so that they do more loans with fewer referral sources.
Most importantly, these master originators accomplish these strategies and still spend less time and effort working on each loan than the average loan officer. Simply put, these top producers are working less and earning more - far more - than the average lender.
So, what's going on here? What are these loan officers doing that makes this type of production possible? True, maybe you don't want to do 90, 100 or 200 million dollars a year in business, but wouldn't it be nice to not have to work any harder and still earn higher commissions and receive more referrals. Wouldn't it be nice to add 30% or 50% to your closed loan volume? Wouldn't it be nice to add 10% revenue to each and every loan you close? Wouldn't it be nice to deal only with the top Realtors, builders, CPA's and financial planners?
My team talks with over 1,200 mortgage professionals everyday over the last several years so I can personally tell that these master originators have discovered a way to fire off two distinct "mental triggers" in the minds of their prospects. When both of these triggers are fired off simultaneously, it causes their clients to rate-shop less, not grind as hard on commission, and then rave about the service they received to their friends and family. Let's take a look at these two mental triggers and examine how you can use them to earn more in less time.
In order to fully to understand the first mental trigger that these master originators are using, we have to journey back through time to 350 B.C. in order to discover the answer. Around 350 B.C., Greek philosopher Aristotle was the first person to identify and classify the means and methods of persuasion experts such as leaders, politicians, lawyers and salespeople. His insights were so profound and on-target that universities still teach his methods today. No one has ever come up with a better approach to the art and science of persuasion.
The first category of persuasive techniques he discovered was named "logos." Logos is the root of our modern word "logic." Logic is a useful tool of influence in some situations, but after observing the most persuasive men and women of his time, Aristotle identified it as the weakest form of persuasion. If you've been selling for longer than two weeks you know this to be true. People are far more persuaded by their hearts than their heads.
The second form of persuasion that Aristotle identified was called "pathos." Pathos is the root of our word "passion."
Aristotle observed that those who used passion to influence were far more powerful as speakers, politicians, salespeople and persuaders. In fact, most of the sales training, advertising strategies and political speeches we are exposed to in business and life today use some form of pathos to accomplish their objective.
Yet, as effective as "pathos" is, Aristotle identified one more level of persuasion that was more powerful than logic and passion combined. This next level of persuasion is so powerful because those under its influence actually don't believe they are being influenced at all. In your own life, you realize that when you know someone is trying to influence or persuade you, your defenses and resistance go up. The magic of this next level of persuasion is that it bypasses that human resistance reflex to being persuaded.
Aristotle called this highest level of persuasion "ethos." We derive our modern concepts of ethics or moral character from this Greek word. What he meant by "ethos" was this: When a professional persuader had a strong "ethos" his or her audience immediately felt a deep trust and respect. It is the exact same emotional response or reaction we have to a trusted family doctor or a world-class specialist like a brain surgeon, or a trusted advisor like a CPA. The opposite of the Ethos Effect would be the feelings we have when we are in front of a used car salesman who only cares about the commission.
So, the most powerful and influential persuaders throughout history have been masters of creating the Ethos Effect in their audiences. Our research shows that master originators are also experts at instantly triggering this Ethos Effect in their prospects.
But how can you create this Ethos Effect - this Trusted Advisor reflex, in your prospects? By following these three keys:
Key Number One: Credibility. There is an immediate impression that this man or woman possesses extraordinary knowledge in his or her area of expertise. Aristotle observed that the most influential men of his time did and said things that instantly gave their audience the confidence that they were dealing with the consummate professional. When an influential man or woman spoke, his or her audience immediately recognized that they possessed rare knowledge and abilities. All top loan officers have mastered their knowledge of the mortgage business and this shows in their presentation to prospects within minutes. They do and say things with more impact than the average loan officer.
Key Number Two: Trust. The most persuasive leaders instantly sent the message that they had their audience's or prospects best interest in mind. They care about the people they serve. All top loan officers are effective at returning phone calls, sincerity, communicating progress, problem solving, and truly caring about their clients.
As powerful as the Ethos Effect is by itself, we have made another fascinating discovery when observing master originators which is revealed in key number three. Without exception, they discovered ways to completely change the game on their competitors. They did this by altering the customer's perception of the nature of a loan. We've discovered that top producers are absolute masters at showing their clients how small, subtle differences between loan programs can create life-changing differences.
Think about this: if you believe that someone has extraordinary knowledge but you can't trust them you will shop them - right. And the same goes for if you believe you can trust them but they lack knowledge you will also shop them. BUT, if you believe they posses both extraordinary knowledge and you can trust them, you do business with them. RIGHT
Key Number Three: Show them. They say seeing is believing. So, here is another critical differentiator between a typical loan officer and a Trusted Advisor originator…
Traditionally, when a customer begins to shop for a loan they are trained by the media and other lenders to look for the best rates and fees. A loan is an expense and a way to get a home - nothing more. So, loan officers naturally compete with other loan officers on rates and fees. This is why consumers are compulsive rate shoppers. In their mind, the only difference between one loan officer and another are their rates and fees.
By contrast, after a prospect meets with a Trusted Advisor originator, they no longer see a loan as just a loan. They are no longer focused on rates and fees. In fact, prospects don't even consider these top loan officers to be offering the same loan as other originators. They are focused on much more important issues like early retirement, financial freedom, education planning and savings.
The effect of key number three creates a shift in your prospects thinking. So much so that the customers view the top producers as offering a completely different product and service.
Put yourself in the prospect's shoes for a minute. What is going to have a more profound emotional impact on you? Saving $30 a month or retiring 10 years early - debt free? Saving $500 or $1000 in fees/points or being able to afford a Harvard education? Would you personally want to try selling a $30 monthly savings over retiring 10 years early?
Now you should understand why the typical loan officer doesn't stand a chance against a Trusted Advisor originator. Their ability to set themselves apart from the crowd of competitors by combining both the Ethos Effect and a Shift in thinking gives them an almost unfair advantage over competitors.
Now let's focus again on you. To grow your mortgage business, do what these top producers have done. They have invested eight to ten years perfecting their strategies, polishing their presentation, educating themselves on financial analysis and much more. If I were to guess, I would say that you don't want to wait eight, ten or more years to begin reaping the advantages of being perceived as a trusted advisor by your prospects.
I started originating loans in 1985 and I really wish I had some of the wonderful tools that are available today back then. You must find a way to show your clients financial reports that show life changing impact and are easy to produce (within 2 to 3 minutes). You must find a way to offer mortgage advice at a high level. Remember, you are not selling loans. You are selling yourself and the advice that you offer … how good is it?
This article is a summary of a white paper called Mental Triggers, if you would like to read the entire white paper you can go to www.mortgagecoch.com/mentaltriggers for a complete copy. I also recommend the e-Book "The Art of the Referral" you can access it on the same page. This will give you a head start. You are now on your way to mortgage greatness!
Mike Baker is CEO of the Mortgage Coach as well as an industry speaker and author of 'Mortgage Power' and 'Loan Officer Recruiting.' He can be reached at 800-499-2242 or visit his web site at www.mortgagecoach.com.