Estimated reading time: 3 minutes, 36 seconds

The Training Loan Officers Need

Much time is spent within the area of assessing loan officer hires. Assessments include the interview, trait testing, self-assessments and competency tests. When we find that a loan officer is deficient in their knowledge and/or skills within certain areas, how do we provide the training they need?

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

Certainly, the need for training of novice loan officers is very obvious. The need for training of experienced loan officers may not be as obvious.

The competency testing given to assess new hires should also be given to our present sales force. Many managers would be surprised at what their loan officers do not know.

During training the sales manager must be involved in many ways:

  • Assessment of their loan officers' needs.
  • Participation in their progress.
  • Providing day-to-day lessons through observations and coaching.
  • The assignment of additional training as the loan officer progresses their career.

Which is the best format for formal training?

There are several options:

  • Online self-paced format.
  • Online scheduled instruction led format.
  • Classroom or webinar training, depending upon if attendees are remote.
  • Some combination of the three.

These options are presented in the order of flexibility, with the first option being the most flexible because the course can be started at any time. With scheduled classes, the student must follow the timeline of the course’s schedule. And with classroom training there is even less flexibility because the student has to attend for those specific times and may also have to travel if not attending by webinar.

The potential for travel also makes in-person classroom training the most expensive option, though certainly face-to-face interaction with an instructor does provide additional benefits.

To these options, we add what is considered a more informal form of training, or field training. Field training is any form of instruction in which the task is actually being performed. This might be in the sales field or at a desk with a processor. Some simple examples include:

  • Sit with the processor today and see how a file is submitted to an underwriter.
  • Conduct a two-hour role-playing session developing phone sales skills.

What is the best training program?

Effective training systems employ both formal and informal methods. There is some truth to the statement that you must learn some things by performing the task. But you also need a base of knowledge from which to work. Relying on one strategy too heavily will not result in the training someone needs.

Training must also be consistent. It should not be delivered only when there is a perceived need. Spur of the moment training is not effective—and this includes management training. We must continuously follow-up. This is not to say that particular training needs will not arise because of industry changes or other events.

In addition, most training situations cannot be effective with one individual session. An example of consistent training for a mortgage company or branch would be a training plan which includes:

  • An orientation session for all new employees.
  • A basic training session for all rookies.
  • Four-week field training for rookies.
  • One-day session for new hires to fill in needs as determined on the day or orientation
  • Classroom or webinar training for the staff one time per month which may be combined with staff meetings.

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..

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