By Pat Sherlock

As everyone in the mortgage banking industry knows, loan origination is a hard job.

The emotional roller coaster that originators go through on a daily basis is not for the faint of heart. Today, in our more difficult marketplace, this is especially true.

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Whether it is coming from the company, or the individual, the pressure to perform is tremendous. In my opinion, there are three primary factors, or habits, that distinguish originators who generate leads successfully--from those who fail in this arena:

1. The best originators serve as great teachers to their clients. What does that mean? Selling at its core is the ability to influence another person. Many average originators can't or won't take on this role and are more product experts than anything else. Product specialists are more likely to be successful during a refinance boom because customers are coming to them. On the other hand, top salespeople form a credible relationship with customers and prospects by aligning their efforts with the customer's emotions and mindset with the goal of making the best decision for the customer. Weaker originators want the product to sell itself.

2. Top originators recognize that the selling environment is changing and are willing to learn new techniques to adapt accordingly. This is no surprise to any sales trainer who has top producers in a class. They are the best students and the most demanding. A teacher must deliver their "A" game to them.

If the marketplace is first-time homebuyers, these originators are texting updates because that is what their customers want. Top originators are continually learning and tweaking their sales models. They have coaches, read books, and go to advanced training classes.

They are proactive and don't wait for the company to provide what they need to be successful. They do whatever it takes to get better.

Also, top originators also realize that they don't know everything and are willing to do the work needed to meet customers' needs. Low-performing originators tend to make excuses for why they aren't doing more production and want the selling world to stay the same. They are stuck in the past.

3. Top salespeople have a great attitude and lift the people around them up including operational staff. Sub-par originators have the opposite attitude and blame everyone else for their failures. They do not recognize or admit that to change poor sales results, they must first take responsibility and own their situation.

There is no question that today's selling requires originators to cast a wide net and make lead generation an integral part of their daily sales activities. The reality is that originators always need to replace customers or referral sources who do not match their current selling model or sweet spot.

Originators who aren’t continually prospecting are destined to be left behind.

About the Author: Pat Sherlock is the founder of QFS Sales Solutions, an organization that help sales organizations improve their sales talent management and performance. For more information, visit https://patsherlock.com

By Patricia Sherlock

Originators know that their database of closed transactions and referral sources represent a gold mine for future business.

Obviously, people with whom you have already done business are easier to sell to than prospects you don’t know. This is not news. In fact, I would argue that originators who have the largest number of people in their database make the most money.

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There is a correlation between the size of an originator’s database [plus frequency of contacting them] and the originator’s sales performance and income. In this more difficult marketplace, it is critical for originators to “work their databases” if they want to survive.

So, why is it that so many originators fail to make their database a top priority in their weekly selling efforts? Why are they leaving one of their most valuable assets in the hands of the lender with the hope that corporate marketing efforts will be effective? A better idea would be for originators to put a plan in place to market to their database and to implement it. Originators who do not incorporate database marketing into their regular sales activities are simply leaving money on the table.

I realize that many originators will say they just don’t have the time. Their strategy is to strike while the iron is hot, especially as the spring home-buying season is ramping up. They are busy and need to make their money now. I can certainly understand that issue.

The problem with this approach is that when business inevitably slows in the fall and winter, producers who have not worked their database consistently will not be top of mind when prospects are ready to purchase a home. Depending on a corporate CRM to do the work by sending out generic information doesn’t accomplish much. The fact is that prospects want personalized contact, not mass marketing materials.

Gary Keller, founder of Keller Williams Realty, recommends that real estate agents have 33 contacts a year with former customers. Some of the contacts are obvious such as birthdays, holidays and specific milestones.

Keller suggests that the remaining touchpoints deliver valuable content that relates to customers’ interests and where they are in their journey of life. Relevant information might include local market updates, changing tax laws and local activities.

Some of the salesperson’s contacts can be by phone. Other contacts would use social media platforms and emphasize videos etc. What the touchpoints look like is limited only by a salesperson’s creativity but contacts must be consistent and frequent if it will have any impact on prospects and referral business.

Helping someone purchase a home often isn’t enough to prompt customers to refer new transactions. The borrower’s motto might well be “What have you done for me lately?”

Keller’s strategy of frequent touchpoints is smart business regardless of what industry you are in. If the originator doesn’t market to former customers, they are losing a great opportunity to leverage the contacts of their former customers.

Some of their former customers might even be interested in buying a second home or investor property or might have children who want to purchase a home. Unless former customers hear from the salesperson, they will not think of you when it comes to making a recommendation. As time wears on, that becomes more of the case.

The bottom line is that the days of the originator depending solely on their current referral sources is not enough. Originators who want to generate future business should optimize their database contacts starting with their former customers and the real estate agents who helped them in the process.

About the Author: Pat Sherlock is the founder of QFS Sales Solutions, an organization that help sales organizations improve their sales talent management and performance. For more information, visit https://patsherlock.com

USA Mortgage outfitted its mortgage originators with an intelligent chatbot that provides instant, mobile access to critical loan information. The lender deployed artificial Jane.ai, an artificial chatbot, through which originators can gain access to the data and documents they need to originate mortgages. Improved originator efficiency and reduction in time can reduce processing costs and increase efficiency.

The platform helps USA Mortgage reduce the time originators spend looking for information as they process mortgages. By integrating the chatbot into Slack, an originator with a question can send a message and receive the information they need far faster than is often possible with a call or email.

Jane's technology connects data across platforms, documents, emails and applications, like Encompass and Allregs, and seamless integration means zero time lost to on-boarding or training employees on a new tool.

And retention rates often increase because borrowers have an improved experience, strengthening the lender’s reputation. If the technology results in a 25% increase in productivity among the top-40 percent of loan officers net revenue could increase  as much as 20 percent, according to Jane.ai

"The mortgage industry is fiercely competitive for talent, with high turnover in top-performing loan officers; more than half of loan officer tenures are less than two years. In an age-old business like lending, embracing technology like Jane attracts younger talent - a challenge for the industry as a whole - and helps retain valuable team members," said Jane.ai CEO and co-founder, David Karandish. "We're thrilled to partner with USA Mortgage to help solve some of the efficiency challenges that have plagued the industry for decades, and provide a sustainable opportunity to increase revenue."

USA Mortgage and Jane.ai predict that the company will save 1,000  labor hours per month through increased productivity from using Jane to access Encompass and AllRegs alone.

"Thanks to this integration with Jane.ai, our employees have 24/7 access to critical information - whether in the office or out in the field," said Ron Mueller, senior vice president of sales and marketing at USAMortgage. "This type of technology gives our company a critical edge in a highly competitive industry, both in business and in retaining talent. We're excited to offer USA Mortgage employees cutting-edge tools that improve both their experience and the experience of their customers."

Jane launched in mid-2018 with $8.4 million in funding.

Angel Oak has increased its originations of non-qualified mortgages to $2.2 billion in 2018, from $1.1 billion in 2017, increased headcount by 53 percent to 648 people, and completed four mortgage securitizations totaling $1.1 billion.

“In 2018, our lending units saw a distinct rise in the popularity and use of non-QM products as more creditworthy borrowers turned to these innovative options,” said Michael Fierman, managing partner and co-CEO of Angel Oak. “We’ve reached an inflection point for non-QM products, and the industry across the country now sees the strong demand for our products.”

Other highlights from the Angel Oak’s 2018 are as follows:

• Originated over $2.2 billion in non-QM loans, a 118 percent rise on a year-over-year basis. The lending companies reported a 121 percent increase in the fourth quarter of 2018, compared with the same time period in the previous year.
• Launched Angel Oak Commercial Lending LLC, which provides financing to commercial real estate owners, developers and investors. Also, it acquired a controlling interest in Cherrywood Mortgage, a small-balance lender based in California.
• Expanded the Angel Oak Mortgage Solutions unit into four new states, while Angel Oak Home Loans added 18 new branches in four new states.
• Achieved approximately $9 billion in assets under management through public funds, private funds and separately managed accounts--a 12 percent gain over the previous year.
• Issued four securitizations totaling over $1.1 billion, three of which were almost 100 percent non-qualified mortgages issued through affiliated lending companies.
• Raised $291 million in capital commitments for its first private credit fund that invests in non-qualified mortgages.

“The Angel Oak team has been at the forefront of the mortgage industry’s post-crisis growth and we are proud to be one of the largest non-QM lenders and a leader in non-QM securitizations,” said Fierman.

Affiliates of Angel Oak are Angel Oak Capital Advisors as well as Angel Oak Mortgage Solutions, Angel Oak Home Loans, Angel Oak Commercial Lending and Angel Oak Prime Bridge.