Interview with a Winner:
Jane Floyd
Speaks Out on Creating a Blockbuster Origination Business
JANE FLOYD, Diversified Home Mortgage. Tampa FL
1998 Volume: 369 Units
1999 Volume: 311 Units
2000 Volume: 200 Units (while taking some time off)
Average Loan Amount: $170,000
Software: Point for processing; ACT for database and Microsoft Outlook for emailing, The Mortgage Coach.
Boni Lonnsburry: Jane, what is your referral source mix?
Jane Floyd: My referral source mix is about 63 percent referrals from prior clients, 30 percent Realtors and about 7 percent affinity groups.
Boni: How did you get started in the mortgage business?
Jane: I was in public relations - a pr rep for a title company. I would take people to lunch, bring them donuts etc. So I knew all the Realtors in town and just wanted to do something different. A friend said, "Why don't you get in the mortgage business?" and that is what I did.
Boni: What year was that?
Jane: 1990
Boni: And were you an immediate success?
Jane: Yes. I got in and just loved it. I worked really hard. I just went out pounding the pavement and hitting on Realtors - doing the rate sheet thing. Luckily I knew the Realtors, because I didn't know much about the business. I can't even quote you exactly how I did but I did very well. I got into the business in April and I had my first closing two weeks later. I made twice as much from April to December as I did in my prior job.
Boni: Jane, what mistake do you see rookie loan officers making?
Jane: Well I think, the biggest make would be in not planning. It's important to decide where you want your business to come from and then focusing on that and building from there. And it's also important to surround yourself with good people. That is one of the things I still struggle with - keeping good people. I used to try to do it all myself. Then I realized the importance of focusing on exactly what you do best and then hiring people to do the other things.
Boni: So in the beginning did you sit down and make a list of what those jobs duties might be?
Jane: Until I was introduced to Todd Duncan back in 1995 and started going to seminars I just worked like crazy. I went out and did deals; hit on Realtors day-in and day-out. I was doing a lot of loans but I really had no systems in place. The work just piles up. Now I have a book for every desk. I have specific job descriptions. I am always reevaluating too, because you do get off balance.
Yesterday was a perfect example. We were just so busy and we kind of just had to regroup and refocus and say "Okay who is over loaded?" Still everybody knows what he or she is supposed to be doing and they are doing what they do best. I am doing what I do best. I am not doing things that I should not being doing.
Boni: How did you begin to put your systems and people in place?
Jane: Well that was pretty grueling. And I did it wrong at first, so I can tell you how not to do it. I hired my first person and just threw her in without having a job description. Then I took the step that I should have taken first, and for basically two weeks I wrote down absolutely everything that I did. I did basically a task analsis.
I went through and figured out which of those things somebody else could do, so I could spend my time doing things that were profitable. That is how you create the description and then you grow from there - as your business goes up you get one assistant, two assistants, you break it out. But until you sit down really realize exactly what you are doing, you won't know what your staff should do. Some people don't even realize the things they are doing on a day-to-day basis that they shouldn't be doing.
And you constantly reevaluate. I reevaluate myself at the end of the day. "Okay how did today go and what can I do differently tomorrow?" When I first got into the business I didn't spend any time in planning, I was constantly just working in the business. Now I spend as much time working on the business.
Boni: What are some suggestions for keeping your team on track?
Jane: Definitely having an every morning meeting or weekly meeting. It is also important to keep your eye on the business. I could see we were getting off track just because of the amount of business we are having right now. So if you are close with your people and you work well together, you are going to be able to see if someone is getting stressed out. And then sit down and reevaluate it. What we did yesterday was, we pulled some work off of one processor who overloaded and moved it to somebody else.
So you really have to stay close with your team and know what they are doing. That is another big mistake I made years ago. I would just come in and work, work, work, and I didn't really notice, it's not that I didn't care, but I was so busy doing what I was doing that I didn't focus on what they were doing. I have to focus on what they are doing because they are my team. Just really keep your eye on what is going on around you.
Boni: Is there any difference in the mistakes that you see veteran loan officers make?
Jane: I think even with veteran loan officers, time blocking is huge. You have to know when you are going to be taking apps, when you are going to be working on them, when you are going to be out marketing yourself, and when you are going to be meeting with your strategic planners, or whatever it is you do best and that makes you money.
I think a lot of veteran loan officers just don't have a plan. They don't even have a business plan. It amazes me. How are you going to go if you don't know where you are going? They just come in day-to-day and approach their business from a totally reactive place rather than deciding - "This is what I want to achieve and here is how I am going to achieve it."
And then you have to track it. Especially right now - you can do a lot of business right now without a plan, but when all of this goes away the people who are focusing on where their business is coming from are the ones that are going to survive.
Boni: What system do you use to keep in contact with your past clients?
Jane: I send newsletters. We use Front-runner and we also use another company. But what we do is we use a lot of what they have and then we just add a personal article. Like the one we are working on now - we are doing a little blurb on life, like "Did you know that Jane turned 40 this year?" and just going into a little spiel about where you are at in life - something short like that; and we do a recipe. So we just add a little something just to personalize it. I do a pretty nice newsletter that is high quality.
We also use email. We are pretty big on email, which we use through Act and Microsoft Outlook. I have one person who markets, that is all she does - market to our past clients. When a loan is closed the file goes to her. We have a really good profile "Page 5" of the app that we kind of go in-depth on questions. We take that information that we've gathered and we try to send out things that are of interest. The newsletter pretty much goes to everyone but then we have segments of our clients that we send other things that will be of interest to that specific person.
Boni: And so maybe articles or website links, something like that.
Jane: Say somebody is big into golf; we will send something out on golf.
Boni: And where do you get that information?
Jane: Hope gets that from all over. She gets it from magazines, different periodicals, and a lot of the people I network with share ideas. We did a big one that got a lot of feedback: One of our clients is a Fed Ex delivery person and over Christmas he raises money for toys for kids and we support that. It was a star profile on him. I had clients sending in checks! We didn't ask for them - the article was just to show appreciation to him and for what he is doing for the community.
So we do all different things. I have five loan officers that I am helping to grow also. A lot of people can't have a full time marketing person so they can out source it.
Boni: How many are there on your team?
Jane: On my personal team, I have an assistant who works on apps with me. I try very hard to take the initial call. Then she takes over and gathers all the documentation, does the input, and follows up with the client. All she does is work on the loans with me.
Right now I have two processors but it is only because my processor got transferred because her husband got transferred, he is in military, so she is moving at the end of June and my new one came on. We are in the transition period with him right now. Normally we have only one processor.
I also have an assistant for that processor who follows up with any verifications that we need; title, insurance, all those kind of things. She copies all the packages for the processor.
We time block for the processor. Two times a day we block a 1 ½ when her assistant takes phone calls. She shuts her door and during those block times she reviews new files that have been turned in because we want those reviewed within twenty-four hours, and she submits loans. That has been huge because it has really kept her on track with a pipeline of about 65 loans - that is a lot of loans for one person. With this assistant she is able to shut the door and stay on track.
I block myself similarly because it is just so easy to be interrupted. I block myself during the day and when my door is closed, it is closed. It means don't come in. If it is urgent you can email me but those are times when I am making my phone calls, doing my prequals, doing the things that I have got blocked. And to me that is one thing that is huge for anybody that is starting out. I think the time blocking is essential.
Boni: Do you send closing gifts?
Jane: We send a closing gift. We send a closing survey. We send a whole closing book. The gift is a big box and you open and it is a tin of cookies. The tin has our company logo on it and balloons pop up. It is gourmet cookies with a really nice card. And then on their anniversary they get the same tin that says Happy Anniversary with gourmet nuts in it.
Boni: So it creates a big impact.
Jane: Exactly, yes. We send surveys out on all our loans. Those go out right after closing. Then they go out with the closing book that has the survey, the HUD, just everything they need in a real nice closing book. And it has the Realtors name on it too. It is something they can keep and go back to. And I personally do a one-month, a six-month, and a one-year phone call.
Boni: Just touching base…
Jane: Touching base, exactly. The one-month is because I find that you get a lot of referrals when you are still fresh in their minds. The one-month is just checking in, how is the house going, by the way if you know anybody… I don't spend any money advertising, except for charities and things like that. It is all from my past clients. That's how I have built my business.
Boni: If you had a son or daughter entering the business, what advice would you give them?
Jane: I think it is really important to go through some sort of training, which of course I did not. Maybe like Todd's (Duncan's) productivity school or some sort of training program. I only worked for a very small broker (and have my company) so I have never really been on the banking side or worked for a very large company. So many people think that this business is so easy. Get the training and know your product.
That is one of the mistakes that I made when I got in, was not spending enough time learning. Now I block time to read the guidelines, to meet with my reps once a quarter, to go over the new products because things are constantly changing. If I were getting into the business today would be really great to get in with someone that has a good training program.
Boni: What was your most successful marketing campaign?
Jane: Honestly I don't think that there's one thing. I think it is just the constant follow up. We get really good feed back on that. The point is that they are constantly getting something in the mail from me. I am constantly staying in contact. I have clients from even 7 or 8 years ago - and just because they are getting something from me they are remembering me and calling back.
When I meet with them, I am real big on showing them their options. I use Mortgage Coach - it is just incredible. We also try to find out if they are happy with their current financial planner if they are not then we are trying to refer them to one. My clients don't just come in and get a 30 or a fixed rate mortgage. They see that I am helping them. I am helping them plan and figure out where they want to be - and using their mortgage as a tool to get there.
Boni: Who or what was the biggest contributor to your success Jane?
Jane: You know I have to say honestly it would have to be Todd Duncan and the associations through him. I have met people like Dave Savage, Mark Klein, and Steven Marshall. Right now I am in a women's group where we just talk on the phone once a month. I would not be where I am today if weren't for him.
Boni: And if you had a magic wand, what would you change about your current business?
Jane: That is a tough one Boni.
Boni: I am sure, given the extent that you plan, you have some goals at this point?
Jane: Let me just tell you one of my goals is trying to increase the relationships with my Realtors. That is my big thing. I am where I want to be with my past clients but I feel like I can be of more value to my Realtors.
What I am trying to do is share (with my Realtors) what I have learned with (my coaches and trainers) as far as all the tools - learning how to time block, how to do a business plan, etc. It's amazing how many high-end Realtors don't have one. So if I could just snap my fingers and wave a wand and say "Wow I wish this was done," - I wish I had more control with them.
They are loyal to me so it's not the loyal part. It's that I want to help them grow. That's what I am working on and I wish I could just jump ahead and we were helping each other grow more.
Boni: What is your plan to do that?
Jane: I have a plan shared with me by one of my dearest friends; Scott Cummings in Albuquerque. What he does is he holds a luncheon for his Realtors. He has done this four or five months in a row now and it is unbelievable that he has agents come whom he doesn't even work with (although he is now starting to work with them!). I think it is about and hour and 15 minutes, and he has a set agenda.
We have so much training in our industry with all our different trainers, and there is not as much in the real estate business that goes into as much depth as what we get. So that is one of the things my marketing assistant Hope and I are working on. Scott was just telling me that one of his top agents in his market; started working with him because she was just blown by what he was doing at these luncheons.
Boni: That is a wonderful idea.
Jane: Scott is a great teacher. He has a lot more experience than I do and he is very polished, where I am not. I love one-on-one but I'm not good in front of a lot of people so for me it's a lot harder, but I am going to do it.
Boni: You have built your business on these principals already...
Jane: I have built my business so I need to share it with them. There are so many things that I do that they don't even know that I do - like including their name on these gifts. They don't even know that I have all these letters and this material.
Until this point, all I have been doing has been one-on-ones. I explain what the company is all about and I have showed them my life plan. But that has been very time consuming, meeting one on one. I think by doing these realtor luncheons I will be able to increase that business and accomplish what I am trying to do.
Boni: How often do you plan on meeting with them once you get it going?
Jane: He is doing it once a month so I think that is probably what I will do. Again it is just planning. You have to be committed. You have to block the time to do it and just do it.
Boni: Is there anything else you would like say to new or aspiring loan officers?
Jane: I guess the one big thing I would say is: always be upfront and honest with everybody you are working with. If you have a problem file either kill it right away, or if it's a realtor that you are working with, let them know right away. I found that that's how I earned the loyalty a few of the high-end agents that I work with. Someone asked one of my top agents why she uses me and she said, "Because she always tells me the truth. It may not be what I want to hear, but she always tells me the truth."
I don't have deals that don't close. I don't have surprises because I know this business and if you don't then you need to be upfront and communicate that. When you first start in this business you are so excited and you want to do a deal so bad and you can't help it. I just would say the honesty, right up front even with your clients, is critical.
Also, surround yourself with good people. If you don't have good people you are going to be frustrated and you are going to be spinning your wheels. And treat them well. I go out of my way to do fun little things and surprises for my team because they have to know that you appreciate them.
Boni:What do you do, Jane?
Jane: Well here is a cute little one we did this spring. We held an adult Easter egg hunt. We made everybody leave the office. We said we were spraying for bugs or something silly. Then when they came back, we had a quick luncheon, and then had them find the 100 hidden eggs. And in each Easter egg we had gift certificates to Starbucks, to the fresh market, cash, and candy. It was so fun. You should have seen these adults running around the office trying to find eggs.
Boni: And how often do you things like that?
Jane: We do things like that often. I have flowers delivered to everybody for no reason. I placed different gifts on everybody's desk for Easter. I bring lunch in for everybody when it is real busy. One of the things I do like to do, and I do this for my Realtors also, is to email inspirational quotes. Not too long and too overbearing but just something early in the morning to really set the tone of the day. They really appreciate it. It's just really neat when they email me back and say, "Wow, this really applies to me today." Just so that they know that I am thinking about them and that I care about them - that they are important to me.
Boni: That is such excellent advise to treat your customers and your clients like your want to be treated yourself.
Jane: Exactly. When our customers walk in they can see our core purpose and values statement, which are posted in the conference room. They get the feeling that this is a warm, fun place.