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

Richard Elmendorf: I was working as a real estate appraiser in early 1994 and decided that the monotony wasn't fun for me anymore. I figured the guys on the other end, the ones sending me all the appraisal work, were making significantly more money than I was.

I started working for a small mortgage broker, learning the business from the ground up, and discovered that I loved it. I loved dealing with people, helping them and making a difference in their lives.

Boni: Were you an immediate success?

Richard: No, not at all. I floundered for several years as I learned the business. Things turned around when I moved to a big company (I joined North American Mortgage Company). At that point, I did pretty well (18 million dollars the rest of that year).

I also went to a sales seminar given by Todd Duncan. He spoke about ways of doing business, systematizing and working with a plan. Hearing him, I felt like lights went on. I bought his mastery system and listened to it twice on the way up to a closing I was having in Northern Michigan.

When I got back, I started implementing immediately. I didn't think I could afford an assistant, but I hired two anyway. As a result, my volume grew like crazy. Working alone, I was cranking at two and a half to three million dollars a month. The second I hired assistants, and started implementing some of Todd's ideas, I jumped to six million the next month and eight million the month after that. I've never had a month under eight million since then. My year to date for 2003 (as of July 31st) was almost 110 million, and we're tracking to do about 170 million total.

Boni: When mistake do you think rookie loan officers most often make?

Richard: I think they work too hard and don't work smart enough. Without systems to guide their business, they do the simplest things, such as sending out personal emails, over and over again. I think loan officers mistakenly believe they need to meet face to face with every prospect and applicant they have. It's a big misconception. I don't meet with anybody until I've decided whether or not they are a qualified prospect and whether or not I can help them. I think the rookies aren't making the best use of their own, or their client's, time.

Boni: When a prospect calls your office, who do they talk with before they get to you?

Richard: When someone calls my office, my assistant answers the phone. He has a script and says something like "Rick is currently assisting another client, is this in regards to a new loan or a loan currently in process?"

If the call is in regards to a new loan, my assistant enters the initial info into our ACT database and tells them, "I'm Rick's sales assistant and I can help you get the preliminaries out of the way." Once he gets their info, he emails them a loan questionnaire form (which is an Excel spreadsheet).

He then mentions, "I see you were referred by so and so, let me put you on hold and interrupt Rick, as I'm sure he would like to speak to you." I then spend 60 to 90 seconds on the phone with every initial contact so they get the personal touch. I thank them for calling; tell them I look forward to working with them and receiving their completed questionnaire. Once I've received the completed questionnaire, I can determine whether or not I can help the prospect. If so, I'll then schedule time to meet with them face to face.

Boni: What mistakes do you think veteran loan officers make?

Richard: I think they make the same mistakes as rookies. They don't have systems. They might have a referral base, but they tend to spend too much time doing things that they could delegate to an assistant. I see a lot of guys around my office who are great loan officers but don't have assistants. If you don't have an assistant, you are one.

Additionally, everyone needs to determine what things they are good at, as well as the things they are not. Todd Duncan talks about creating a "Not to Do" list. That's one of the first things I did after attending his seminar. I wrote a list of everything that I never wanted to do again. I then hired people to do those tasks while I concentrated on the processes that make money. I think that's something that some of the more experienced loan officers don't understand.

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

Richard: The first thing I would have them do is write down their life plan and business plan. I'd tell them to determine what area they are going to focus on, who they are going to serve, and have a good plan of how they are going to fulfill the business before it comes through the door. I'd also recommend that they carve out a niche for themselves (my niche is the military).

Boni: How did you get started in the military niche?

Rick: I had a financial planner who was local and dealt exclusively with the military. He spoke highly of me to other financial planners within his office, and I soon found myself giving a presentation. Word spread from there.

I concentrated on making my clients a major source of referrals. Todd Duncan often speaks about developing the right business relationships. He recommends that those relationships be with low maintenance, high profit people.

Boni: How have you made your clients such a good source of referrals?

Richard: I ask them. No matter how busy I am, I touch every client at least three times during the loan process (in the initial conversation, once their loan is approved and before they close). Each time, I ask them to refer business to me. I try to make sure that they understand their referrals are the key to the success of my business.

Boni: Do you stay in touch with them after closing as well?

Richard: Honestly, that is probably the biggest downfall of my entire business. It's something I've been working on automating. Right now, all I do is send something quarterly, and that really is not enough.

Boni: What was your most successful marketing campaign?

Richard: I called every person who had referred business to me and had lunch with the top 13. I wanted to let them know how much I appreciate them and how important they are to my business. I asked for ways I could help them and their clients. That was the most effective campaign, and it cost me only $20 a lunch.

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

Richard: God has given me everything that I have. I couldn't do anything without him.

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

Richard: I would be more automated. Our industry has so much to offer in the way of technology. There are a lot of areas in my business where automation could be better utilized. The technology is available, but we aren't using it to the full advantage.

I'd start by improving the process flow. I think more collaboration between the processing staff, assistants and clients would help. That's what really needs improving.

Boni: What are your current goals?

Richard: I'd like to be web based. It would give my clients a collaborative feeling because they'd know where their loan process is at every step. My main goal is to work more efficiently like that.

I also want to increase purchase business and the awareness of my team and my name within the military. We're placing an advertisement in Military Times magazine which will be targeted towards military people moving into the Washington metropolitan and D.C. area. My goal, from a production standpoint, is to consistently do 10 to 15 million dollars a month in purchase volume.

I also need to improve my system for staying in contact with past customers. I want to find a way to automate it. I'd like a system where I would be automatically reminded of past client's birthdays. Then I could send a card or a gift.

Boni: Is there anything else you'd like to leave in the minds of other loan officers who aspire to reach your level of success?

Richard: Know your life plan, build a system and invest money in your future. Even if you think you can't afford it, do whatever you have to do to get to one of Todd Duncan's seminars. You'll find that it's really life changing.