In my experience, the only way for lenders to achieve better sales results is to double down on training that makes sure LOs can execute sales fundamentals like prospecting, influencing and closing well.
Why it matters:
- 2022 productivity dropped to an average 1.5 loans per LO a month, down from 2.5 loans per month in 2021, according to the Mortgage Bankers Association’s (MBA) Annual Mortgage Bankers Performance Report. The report also found that total loan production expenses skyrocketed to $10,624 per loan in 2022, up from $8,664 in 2021.
- Onboarding LOs usually consists of training on products and processes, not on sales training and development. If LOs already have a book of business, most managers falsely assume that they know how to sell. Our dismal industry average of less than 2 loans a month tells a very different story.
- Training LOs on prospecting and relationship-building skills needed to connect with borrowers and referral sources is a strategy that pays off in the long run IF managers are willing to hold their sales teams accountable for results.
For additional insights, check out this Mortgage Women magazine article by Megan Marsh, owner, Keystone Mortgage Alliance: “Why Do Loan Officers Play Musical Chairs: Sales Training Makes Them Less Likely to Jump.”
Pat Sherlock is the founder of QFS Sales Solutions, an organization that helps organizations improve their sales talent management and performance. For more information, visit https://patsherlock.com.
