--more-->In the first part of this series I introduced two models. In one, a manager hires numbers and hopes each hire brings in a few loans. In the second model, the manager hires fewer originators, but tries to make each hire a quality producer.

[caption id="attachment_9654" align="alignright" width="268"] Dave Hershman[/caption]

My vote is for the second model. Why? First, because of profitability. Some managers would argue that an extra loan officer who is on 100% commission does not cost the company anything. I beg to differ. There are many costs, including support, no matter how little support you give to each loan officer. Even answering questions uses precious resources.

For example, if you provide processing, the efficiency of that processor falls significantly if they have to deal with many untrained loan officers. And, of course, the numbers game prevents you from providing quality support and advancing these loan officers. So, turnover increases and it becomes a vicious cycle. There is nothing which is more expensive and detrimental to the bottom line than turnover.

Second, because of quality. Think about it from a customer’s prospective (this is called empathy). What kind of experience is it for them when they deal with an untrained, unsupported and probably part-time originator? Is this how they should be supported in the most important financial decision they will ever make?  What kind of experience do you want your company to be known for?  And that is the good scenario. In the “bad” scenario, unsupported loan officers commit fraud, sometimes just out of ignorance.

Finally, quality attracts quality. No quality originator wants to be surrounded by a company of originators that don’t know what they're doing and have the potential to hurt the quality name the originator brings to the organization. Top originators want to be challenged by their boss and their peers. In this case, the strong get stronger.

Dave Hershman is Senior VP of Sales of Weichert Financial and the top author in the mortgage industry. Dave has published seven books, as well as hundreds of articles and is the founder of the OriginationPro Marketing System and Mortgage School – the online choice for expert mortgage learning and marketing content. His site is www.OriginationPro.com and he can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it..