Interview With a Winner:
Dave Cusano
Dave Cusano, Chase Manhattan Mortgage, Sacramento, CA
Loan Volume: $380 Million
Average Loan Amount: $350,000
Software: Loan Soft, Excel
Referral Source Mix: Realtor/Builder/CPA/Financial Planners 40%, past clients 60%
Boni Lonnsburry: How did you get started in the mortgage industry?
Dave Cusano: I've been in the industry for 14 years. When I graduated from the University of Oregon, I had a lot of confidence that I could compete and do anything. I discovered that the mortgage industry is the market to be in if you're competitive, hardworking, ethical and honest. And I've been very lucky - I've been a top producer pretty much the whole time. I started with American Residential Mortgage. We were bought out by Chase in 1994.
Boni Lonnsburry: How did you become successful so quickly?
Dave Cusano: By working hard and working smart, understanding where my business is coming from and what it takes to get that business. I have a knack for it I guess. I know how to make money in the sense that I've always understood what my objective is.
When I first got into the industry, all of my business came from Realtors. I didn't receive referrals from Financial Planners, CPAs or anyone else. I was never in the office - I was on my cell phone and in the field all day long, developing relationships with various Realtors. I would meet clients and take loan applications at night. I still have a strong referral basis with many Realtors because I've been able to maintain those same relationships for 12 to 14 years.
To reiterate, I would say the reason I'm successful is that I work hard. No one out works me and that's really my goal. I will not accept anything other than success.
Boni Lonnsburry: It's obviously working for you!
Dave Cusano: I've been lucky too. I have not created this alone. We'd all be fooling ourselves if we thought we'd created this boom in business these last 10 years. This industry has actually created us. We've been fortunate enough to live in this window of a market. The housing and refinance markets have boomed because of interest rates trending down. We've been blessed, so we've got to be more thankful for that and not just pat ourselves on the back for being such ingenious sales people. We're very lucky that we're talking about rates that are at 5.5% and not 50.5%.
Boni: Dave, what mistake do you see rookie loan officers most often making?
Dave: The most common mistake they make has not been punitive for them the last five years because we've been in a declining market since 1998. They haven't experienced what is ultimately going to happen at some point when rates go up. They are depending on rates to stay low and the refinance market to always be here. As a result, they haven't thought about developing their niche, adding value to their business plan, or even creating a business plan. Many of them just get into the business and react to phone calls and floor calls, and market to databases of potential refinance clients, all without a plan. At the end of the day, there are very few truly qualified loan officers out there who know how to add value for the consumer.
Boni: How do you add value?
Dave: I'm knowledgeable about all the products that are available. I try to quantify each client's situation so I can direct them towards the best product. Understanding the market, understanding where rates have been, and giving a full array of sound advice with regards to prepaying mortgages, savings, debt and credit. Not just getting someone a mortgage, but giving them valuable information in all financial areas.
Boni: Do you think that veteran loan officers make different mistakes than rookies do?
Dave: I think a big mistake that most veterans eventually make is to become transactional. They're not concerned with the consumer, but rather more concerned with the deal or the commission. For me, it's important that everything goes smoothly for each client - if I don't make a penny on the loan, then so be it. I don't care if it's a $2 million dollar loan or a $20 thousand dollar loan; I want to do what's right for the customer all the time. Not most of the time, or 90% of the time, but ALL the time. That way, I never feel bad or have worries at night. I sleep well and the deals continue to come in.
Boni: If you had a son or daughter entering this business, what advice would you give to them?
Dave: Working hard is going to be a common denominator in anything you do, as well as working smart. It's not about showing up at 8 and leaving at 4:30. It's about being the first one there and having a plan, understanding the industry and becoming as knowledgeable as you possibly can. You're going to have to go to lengths other folks are not willing to go.
Boni: What was your most successful marketing campaign?
Dave: I wouldn't say there has been just one thing. Success is based on consistency. I'll implement a marketing plan and I'll do different things, and the ones that work the best are the consistent ones. They may not pay off right away, and it takes time to figure out which ones are the right ones.
I continually try to grow my referral basis with Realtors by one or two new sources a year. There are some I've worked on for five to ten years before getting business from them. Every single month I'll touch my past clients with a letter or a newsletter. Another thing that I do is to personalize the process by taking down certain information at the application (birth date, anniversary, kid's birth date). Every day I have a list of anywhere from two to eight people to call - I just leave a voicemail message at their work or home to say "happy birthday" or "happy anniversary." It's a great way to check in and they think, "Wow! This guy remembered!" I want to be the professional they think of the next time they want a loan or run someone else who wants a loan.
Boni: And how do you work on those Realtors you spoke of? The ones that take five to ten years?
Dave: I don't have time to be out in the field, calling on them and trying to get in their faces every day. Instead, I refer a lot of purchase transactions to them. If I give them referrals for listings and purchases, they'll eventually refer back.
To build relationships with CPA's, if I do a loan where I need a client's tax returns, I'll offer to follow up with their accountants. This is a perfect lead into a relationship with the accountant and, in my opinion, they are the best referral sources.
My niche is high end clients, which usually come from the principal accountant at a firm. I don't want everyone's referrals. It's too time consuming. I go after referrals from those specific professionals I know will work well with me, persons who know what they're doing, know their market and are tops in their industries. I don't want to go after middle-of-the-road real estate agents.
Boni: So you choose them by being aware of where they are in their industries?
Dave: I'm the best in my industry so I want to work with the best in the real estate industry. I hold myself to a loftier level than many mortgage originators. And frankly, when I do that and less successful agents know I don't want to work with them, they'll try to send me referrals. I get calls several times a year from some agents asking if they can refer business to me. But I don't want to work with the agent who is throwing mud against the wall and wants me to sift through it to see what's going to stick. I can pre-qualify 20 people a night if I wanted to, but is that really the smartest thing to do? Just because an agent holds and open house and moves 20 prospects through, are they real clients I should be pre-qualifying? That's really the agent's job. They need to learn to prospect. I can't spend my time doing it for them.
Boni: Who or what was the biggest contributor to your success?
Dave: My brother is my assistant - really more like my partner. I hired him in 1992. He's a smart guy and thinks a lot like me. I have to give him a lot of the credit. He's made my life so much easier.
Boni: If you had a magic wand, what would you change about your business?
Dave: My business is completely different than it was 14 years ago. I've sculpted it to work for me. If there're things I don't like to do, I delegate them and enjoy everything else. My referral sources respect me. I don't get calls at night or on the weekends. If you work with the right kinds of referral sources, they know how to figure out if someone is going to qualify or not.
Boni: What are your goals now?
Dave: I've done over $250 million the past couple years. I go to Italy once a year for five or six weeks and I take a lot of vacations with my family. Last year I was off on vacation for over 80 business days.
Boni: Wow! You must have an amazing staff.
Dave: I have two very knowledgeable and swift processors, my brother, who is my trouble shooter, and two assistants who follow up on the details.
I look at the mortgage process as an assembly line. It will run smoothly when everyone knows their role. Last year I took in about 1400 deals, and I took in every single application myself. I don't meet with clients - everything I do is over the phone. In reality, clients don't want to meet in person. They want the process to be as smooth, transparent and swift as possible. Getting someone to take a loan application sounds like a commitment. If I pre-qualify someone over the phone, I'll collect the rest of the info I need to do the loan application without making the client "commit" to anything. I've timed it, and I can take a loan application in nine minutes over the phone. On top of that, their loan is then pre-approved. The assembly line process helps me to do more business than anyone else, and to do it better than anyone else.
Boni: Is there anything else you'd like to leave in the minds of other loan officers who aspire to the kind of success that you've created?
Dave: No matter what the market, there will always be a demand for quality loan officers - those who understand the industry and who will work hard. Prepare yourself and make sure you are consistent with every part of your business. Go 100% non-stop and you will succeed.