American Financial Network Inc. has migrated to an automated platform to manage and track commissions for loan officers. Until now, the staff accountant manually calculated and tracked commissions using a spreadsheet. Loan originators couldn’t track their commissions until they received their checks.

American Financial implemented CompenSafe from LBA Ware to increase efficiency and provide loan officers and their managers with real-time commission information as soon as loans are funded. Also, the accountants’ administrative workload was reduced enough, to enable AFN to make weekly payments rather than twice a month without any increase in payroll staff.

[caption id="attachment_9819" align="alignleft" width="218"] John Sherman[/caption]

“The platform gives LOs a real-time view into their compensation and enables us to pay out commissions on a weekly basis, inspiring confidence in the financial well-being of our company,” said John Sherman, president of AFN. “What’s more, by automating work that used to be done manually, CompenSafe saves our accounting staff time and decreases the frequency of compensation disputes and corrections.” American Financial has over 125 branches nationwide.

“In a tough market, lenders are looking for innovative ways to promote growth and maximize their production,” said Lori Brewer, LBA Ware Founder and CEO. “CompenSafe’s unique value lies in its ability to eliminate back-office inefficiency while at the same time providing originators greater insight into their performance and earnings.”

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.

[caption id="attachment_9789" align="alignleft" width="266"] Pat Sherlock[/caption]

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.