April 12, 2024 • 19 mins
In this episode of "Loan Officer Sales Training," we explore the dynamic landscape of the mortgage industry and the importance of embracing change. Hosted by Kyle Hiersche, this episode offers valuable insights and practical strategies for loan officers seeking to adapt and thrive in an ever-evolving market.
Join us as we discuss the key drivers of change in the mortgage industry, including technological advancements, regulatory updates, and shifting consumer preferences. Our expert guests share their perspectives on how to leverage change as an opportunity for growth, innovation, and success in the lending business.
Tune in to "Loan Officer Sales Training" and discover how to embrace change as a catalyst for professional development and business advancement. Whether you're a seasoned veteran or new to the industry, this episode will empower you to navigate change with confidence and achieve your goals in the mortgage market.
For more episodes visit:
https://themortgagecalculator.com/Page/Loan-Officer-Sales-Training-Podcast
About The Mortgage Calculator:
The Mortgage Calculator is a licensed Mortgage Lender (NMLS #2377459) that specializes in using technology to enable borrowers to access Conventional, FHA, VA, and USDA Programs, as well as over 5,000 Non-QM mortgage loan programs using alternative income documentation!
Using The Mortgage Calculator proprietary technology, borrowers can instantly price and quote thousands of mortgage loan programs in just a few clicks. The Mortgage Calculator technology also enables borrowers to instantly complete a full loan application and upload documents to our AI powered software to get qualified in just minutes!
Our team of over 350 licensed Mortgage Loan Originators can assist our customers with Conventional, FHA, VA and USDA mortgages as well as access thousands of mortgage programs using Alternative Income Documentation such as Bank Statement Mortgages, P&L Mortgages, Asset Based Mortgage Programs, No Ratio CDFI Loan Programs, DSCR Investor Mortgages, Commercial Mortgages, Fix and Flip Mortgages and thousands more!
Our Mortgage Loan Originators are trained to be loan consultants to guide borrowers throughout the entire loan process. A licensed Loan Officer is only a phone call or zoom meeting away and always available to assist borrowers throug
The Mortgage Calculator is a licensed Mortgage Lender (NMLS #2377459) that specializes in using technology to enable borrowers to access Conventional, FHA, VA, and USDA Programs, as well as thousands of Non-QM mortgage loan program variations using alternative income documentation!
Using The Mortgage Calculator proprietary technology, borrowers can instantly price and quote thousands of mortgage loan programs in just a few clicks. The Mortgage Calculator technology also enables borrowers to instantly complete a full loan application and upload documents to our AI powered software to get qualified in just minutes!
Our team of licensed Mortgage Loan Originators can assist our customers with Conventional, FHA, VA and USDA mortgages as well as access thousands of mortgage programs using Alternative Income Documentation such as Ba
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:00):
But welcome everyone.
My name is Kyle Hiersche.
I am the CEO of the MortgageCalculator, and this is our loan
officer sales training that wedo at 12 p.
m.
Eastern every weekday, where wego through the front end and the
sales end of mortgages today.
We're going to be talking aboutthe art of closing loans.
So just some different tips hereand stuff to go through not the
(00:23):
most specific theme ever, butsome good information here.
So we'll go through it heretoday.
So first off, one thing we'vegot to keep in mind about
mortgages is, is this is not ahigh pressure sales job, right?
The high pressure sales peopleare, you know, like the call
center trying to pull yourcredit as fast as possible so
(00:46):
that you're kind of locked intodoing something since they
pulled your credit, that type ofhigh pressure sales.
You know, it is not what, whatnormal loan officers do.
And it's definitely not what wedo here at the mortgage
calculator, right?
Remember, this is the largesttransaction of people's lives,
right?
90 percent of the people youdeal with, this will be the
(01:08):
largest transaction.
of their life.
And we don't want to be pushy.
We don't want to be highpressure.
And it's also not somethingthat's going to happen
immediately.
So I do you know, always like togive tips on here for new loan
officers, for newer loanofficers.
One of my tips would be to makesure that you have you know,
enough cushion to make sure thatyou're not desperate for deals
(01:32):
because that will turn into highpressure, right?
This is an industry where it'sgoing to take a little bit of
time to build up your pipeline.
And at the end of the day, youknow, you can't it takes it, you
know, the, the, the work you'redoing now is going to pay off in
the months to come.
Right.
And so if you're at the pointwhere you're saying, Hey, I
(01:53):
can't pay my mortgage nextmonth, unless I make a sale,
you're going to start actingdifferently on the phone and
it's going to show, and you'regoing to be so much more high
pressure.
And this is not a high pressuresales job.
So that would be myrecommendation to new.
Loan officers is just make surethat you're not you know,
depending on getting a checkright away or something to pay
(02:15):
your mortgage or else you're,it's going to show through in
your activity.
Right.
We're going to properlyinterview, excuse me.
We're going to properlyinterview every client.
Now, the reason why this is hereon this training, right?
What the training is the art ofclosings, right?
So why are we talking aboutinterviewing a client when we're
talking about the art ofclosing?
(02:37):
It all starts with theinterview.
It all starts with doing theproper interview and taking the
proper notes as well as doingthe more in depth interview.
You know, the 2nd time you talkto him, right?
Once you're getting thingsgoing, you're going way more
into depth after you're sendingquotes and then, especially if
you're narrowing in on somequote, and they are talking to
(02:59):
you about 1 of the differenttypes of quotes.
That you sent theseconversations become a lot more
in depth, but the a good closingstarts with a good interview.
Right?
And more importantly, a seamlessclosing.
Starts with a detailedinterview, right?
Because the things that come upin this interview up front.
(03:23):
Can literally save a deal fromnot closing when they're sitting
at the closing table.
Right.
There's all kinds of times thatthings like that happen, where
there's just something thatwasn't communicated and they go,
Oh no, you can't, you know,they're like, Oh no, I just
bought it two months ago.
Like, okay, well, all of this isall, we just did an entire loan
(03:44):
for no reason because there's,you know, six months seasoning
required or whatever.
Right.
So, you know, it's veryimportant to do a detailed,
proper interview.
And like I said, it's not justthe first one, right.
It's, it's.
the follow up interviews withthem as well.
And that's where it all startsto go from start to finish.
So if you do proper thoroughinterviews with clients in the
(04:07):
beginning, it will absolutelyhelp you close the loans in the
end with no issues, right?
Now to close loans, first wehave to get the opportunity to
do loans.
Right.
And to do a loan, we'reessentially solving a problem,
(04:28):
right?
Somebody needs money or theyneed to purchase some real
estate.
You know, either way we'resolving a problem.
We're fulfilling a need and theyhave a problem to solve.
So we're going to structure theproblem, right?
We're going to quote multipleloan options.
And of course, with our quotingsystem, we always quote multiple
(04:49):
rate options.
And so quoting multiple loanoptions is also going to help us
close because it's going to giveyou know, the borrower the
choice.
Notice the next bullet pointthere, empower client with
choices.
I guess I can make the screenbigger here.
Let me.
(05:09):
Do that for you.
There we go.
All right.
Because we want to empower ourborrower with choices.
So empowering the borrower withchoices up front in the
beginning of the process, whenwe're still in the quoting
process, sending them multiplequotes to look at when we
empower them on the front end.
(05:30):
That's going to lead to aneasier closing on the backend,
right?
And it's going to lead throughan easier process the whole
time.
So from a you know, processstandpoint, that's very
important, but quoting multipleloan options from getting the
deal standpoint is extremelyimportant as well.
(05:51):
Right?
One thing that happens in yourmind.
Is when somebody sends you onething, your decision is binary.
Should I take this or not?
Should I work with this personor not?
Just the act of sending multipleoptions turns that binary choice
into not necessarily should I doit or not, but which one should
(06:14):
I do?
This is a very powerful conceptand this is a sales concept and
this is a psychological conceptand it's such a great thing at
the Mortgage Calculator becausewe have the amazing quoting
system where every quote you'resending them is giving them
multiple rate options, butyou're also sending every client
(06:35):
multiple quote options as far asthe different programs.
Right?
So, and in our system with theclick of a button, boom, you can
duplicate a quote, switch theloan program, pull the rates,
send them that program and go,okay, pull the rates for a bank
statement, send them the bankstatement, copy that, change it
to P and L, pull the rates for Pand L, send them that, full dot,
(06:58):
you know, copy that, click thebutton to turn it into full doc.
I mean, this is like 3 minutesof work here to send them 3
different loan types.
Okay.
Once you have the LTV andaddress and you know, all this
different stuff, or you might besending different LTV loan
options.
That might be one of the thingsthat you're changing when you're
sending them these options.
But within minutes, you canduplicate these quotes, change
(07:22):
them to a different loan typeand send them to them so that
You know, again, within minutes,we can take advantage of that
sales tactic and thatpsychological concept of them,
you know, not only is it aboutthem having actual choices in
real life, but it literally is apsychological trigger to where,
why are they talking to anyoneelse, right?
(07:43):
We can offer them more thananyone else can at the mortgage
calculator.
We have every lender out there,imaginable, every investor out
there for the most part,imaginable.
That has every product, right?
If there are other investors orlenders out there, they probably
just have all the same productsthat ours already do.
Anytime we find a new lender orinvestor with new products, we
immediately sign up for them,right?
(08:04):
So there's not people out therewith more choices than us,
right?
So why let them think theyshould go with someone else?
So if you don't quote.
Multiple options.
What if somebody else is talkingto them?
What if you just have blinderson and they say they want to do
a conventional loan or a fulldoc loan or whatever it is, and
you just quote them on full doc,but another loan officer told
(08:27):
them, I have a cool programwhere you could qualify just
bank statements.
And they go, Whoa, this otherloan officer said, I have to
give tax returns and all thisstuff.
Well, that's because you didn'tquote them on multiple options.
They need to know that you canalso do a bank statement
program.
You can also do a P and Lprogram.
You can also do an assetutilization program.
So don't let anybody else comeand take your client or show
(08:49):
them that they have moreprograms than you because they
don't.
And you have everything that'sout there imaginable.
So we need to show that to theclient.
You don't want to send them 10million quotes, but you want to
send them the two.
Between 2 and 4 quotes that makesense for their scenario.
You know, obviously if they'renot self employed, that's going
to limit it, right?
But if they are self employed, Imean, there's tons of different
(09:12):
options.
And they should, for the mostpart, all of the viable options
for that client, depending ontheir scenario, should be
explored and they should bequoted, right?
So again, we're giving them onequote so they can say yes or no,
we're giving them multiplequotes.
Not only is that going to makethat psychological difference,
(09:32):
but also it's going to allowthem again, here's that bullet
point to empower themselves sothat when any issues happen
throughout the process.
They chose this route right now.
We're not going to go.
Oh, that's your fault.
You chose it right?
But it is there, right?
That they made that decision.
We're there to empower them tomake whatever decision they want
(09:56):
to, you know, proceed with andexplain that and and everything
like that.
But at the end of the day, when,when we, when they don't, you
know, we don't want to push theminto something.
We want to let them make theirown choice.
Thanks.
And then the great part aboutthe quoting system is the
actionable items.
So to be able to close loansfirst, they have to start a
(10:19):
loan, right?
After you send them a quote,that's when they start the loan.
The quote is the key toeverything because that is when
they hit the actionable item,which is to start a loan.
The application, right?
So the quote is key to actuallygetting the application.
So again, the more quotes theyhave, as far as options, the
(10:43):
more likely they are to go, Ilike that one, click and start
the application.
So what do we want to be doingthen?
We want to re quote clients,right?
We talk about it on the quotetraining.
We want to re quote people everythree days.
We want to follow up with themafter we re quote them.
That's going to keep themactive, keep them engaged.
(11:06):
We've talked about this onprevious trainings too.
You, you should use it as anopportunity to call them and
follow up and say, Hey, youknow, rates changed today.
I just thought of you wanted topull the new rates for you just
so that you know, what's goingon, right?
These are amazing ways to engagewith clients instead of just
harassing them saying, Hey, Ineed a loan.
(11:26):
Can you, can I do your loan foryou?
Can I do your loan for you?
No, you're, you're genuine.
You're providing value.
And you're also having a perfectexcuse to follow up by saying,
Hey, I, you know, I thought ofyou.
So I wanted to keep you updatedon what's going.
And then remember once the appis submitted, we want to prepare
(11:52):
the client for what's about tohappen.
I see this so many times,especially with newer loan
officers, That once the app issubmitted, they kind of just
start spinning their wheels.
Or as Jose says, flounderingabout.
And there's no clearinstructions to their client
(12:12):
either, right?
So they don't, they're not clearon exactly what they're doing,
but there's also no clearinstructions for their client.
And so we need to make sure thatonce the app is submitted, we
communicate with the clientabout what's going to happen
next.
This is really big.
The reason why it's on this artof closing training.
Because we are at this point arestill far away from the closing
(12:35):
table.
Right?
But this is where a lot of loansgo from somebody.
agreeing to a quote andsubmitting an app and having
intentions to move forward tothis somewhat black hole
sometimes of newer loan officersor maybe a loan officer newer to
non QM or maybe a loan officerthat's too busy or that just
(12:56):
isn't doing things properly.
Whatever the case may be,sometimes it can go into this
black hole and doesn't moveforward.
And then the client doesn't endup moving forward.
And sometimes it's the clientthat doesn't move forward.
Sometimes they just.
It gets lost.
Sometimes it's the loan officernot pushing it forward on their
end.
And then the deal just kind offalls off.
(13:17):
So remember when we get the appsubmitted, right now, once we're
doing the loan, we want to makesure when we disclose the loan,
we need to prepare the clientfor that.
What's going to happen.
What's it going to look like?
Where's the email going to comefrom?
Right.
What does it mean when they signdisclosures?
(13:37):
Does that mean they're lockingin that rate?
No, right?
And so you need to make surethey're aware of what they're
signing.
I see tons of loan officersthat'll just send out
disclosures and the client hasno idea what is going on, right?
So you have to explain it tothem.
(13:57):
You have to prepare your clientfor trigger leads.
Remember once you pull theircredit, we had a training on
this.
Once you pull their credit, Imean, there's pretty much no way
around it.
You can try to opt them out inall kinds of different ways.
But when you pull your client'scredit, they're going to be
turned into a trigger lead, youknow, 99 percent of the time.
And you should prepare yourclient for that.
(14:20):
You should let them know, Hey,there's really no way around it.
When we pull your credit, you'regoing to get a bunch of spam
calls.
Just don't answer the phone.
These are things that theyshould know, and these are
things where you might say, Hey,maybe you should put your phone
on a, you know, there's a mode.
I'm not sure exactly what'scalled, but there's the mode
where it blocks numbers.
You don't know.
(14:40):
Right?
So it only lets numbers that arein your contacts come through or
something.
The first, like, 2 days afterpulling their credit, you might
want to recommend that becausethen it'll just not ring to
their phone at all.
Right?
It just denies the call becausethey're gonna, you know.
You see, I'm sure some of youwere in like Facebook groups and
stuff like that.
Loan officer, Facebook groups oftheir clients, sending them
(15:01):
screenshots of 40 calls in a dayor whatever, after they pulled
their credit.
So you might want to discussthat with your client as well
and discuss the fact, you know,it's important to set
expectations and manageexpectations.
Make sure they understand, Hey,people are going to call you.
You know, a lot of them aregoing to try to say that they're
going to undercut me or whateverthe deal is.
(15:23):
And just explain to them, youknow, that you're there as a
consultant.
And if the, you know, if theyhave any questions about
anything to let you know, but.
Just prepare them for that sothat they're not caught off
guard and that nobody's kind oflike I guess, maneuvering them
into working with them.
Right.
Now, EPOs, this is another thingthat we need to talk to our
(15:45):
clients about because when itcomes to the art of closing
loans.
It's only relevant and valuableif the loan stays closed, right?
If there is no early payoff orearly payment default EPO repeat
D.
So, you know, everybody has togive their commission back,
right?
When there's an EPO.
So six to 12 months is standardfor an early payoff.
(16:10):
And if they pay it off in thatamount of time, you know, and so
it's important to prepare yourclient and say, Hey, these loans
aren't meant to be paid offbefore six months.
But it's even more importantgoing back to the initial
interview of asking what theirplans are, right?
And interviewing them thoroughlyso that you know what's going on
because you don't want to getall the way to, you know,
(16:33):
signing disclosures and doingthe loan when the entire time
their intention was to sell it.
In three months or they'rethinking, well, I'll refi it
now, but then, you know, I knowrates are going to go down in
two months or so.
And so I'll do it again.
Then, right.
We can't have that.
You don't want to even proceeddown that path.
(16:55):
So that starts in that initialinterview.
Then at the point where you getto this point, right, when
you're, you know sending outdisclosures and all that, we're
moving forward.
Definitely make sure to discusswith them that, Hey, these
aren't meant to be paid off.
In the first six months, most ofthem are six months, at least
some are a year.
(17:16):
They've been getting worse,well, longer, whatever, worse
for us as loan officers andoriginators.
You know, they, they were prettystandard six months and then
reaching into the 12 monthsbecause of how the, the market
has gone.
So we have to be very careful.
Nobody wants to give theircommission back and nobody wants
to work for free.
Our company, their company.
(17:37):
You know, the, the, whateverlender or investor that we're
using, right?
Nobody wants to go through allthe motions.
And remember, nobody gets backunderwriting fees and stuff like
that, right?
There's a whole lot of stuffthat just just disappears.
If there's an EPO or EPD, sovery important there.
So this all just kind of comestogether again, notice, like I
(17:58):
said, there's not a superspecific agenda here for today.
Just kind of some general infothat I wanted to put together to
talk about here, just to helpactually close loans.
And I will say that after goingthrough all the motions here, I
still feel that the you know,biggest takeaway here is that.
(18:19):
It's not a high sales, a highpressure sales job and that we
need to properly interview theclient.
If we understand these 2 things,that is going to send us on the
way to a lot of happy closings.
And again, the properlyinterviewing the client, you
might think it's.
Something that's super on thefront end, but let me tell you,
(18:39):
it affects everything on theback end.
And we literally have caseswhere people are at the closing
table, or they, you know, have aclear to close or whatever the
case is.
And just something comes up thatcould have totally been avoided
if they, if the borrower was,was thoroughly interviewed.
(19:02):
All right.
Well, that is it here for today.
I'll make sure to wrap it up alittle early here so that
everybody can get out there.
It's Friday.
Again, loan officers, Saturdayand Sunday, best times to make
calls.
Right?
So you know, the weekends.
Our time to work for sure.
Cause the people couldn't answertheir phone during the week can
(19:22):
answer their phone during theweekend.
So let's all get out there andmake some calls.
I appreciate everybody tuningin.
Remember we do this 12 PMEastern time every weekday,
where we go through the frontend and sales end of the
mortgage business, we'll see younext week with some new topics,
so 12 PM Eastern for the nextepisode of the loan officer
(19:44):
sales training with mortgagecalculator.
Have a great weekend.
But welcome everyone.
My name is Kyle Hiersche.
I am the CEO of the MortgageCalculator, and this is our loan
officer sales training that wedo at 12 p.
m.
Eastern every weekday, where wego through the front end and the
sales end of mortgages today.
We're going to be talking aboutthe art of closing loans.
So just some different tips hereand stuff to go through not the
(00:23):
most specific theme ever, butsome good information here.
So we'll go through it heretoday.
So first off, one thing we'vegot to keep in mind about
mortgages is, is this is not ahigh pressure sales job, right?
The high pressure sales peopleare, you know, like the call
center trying to pull yourcredit as fast as possible so
(00:46):
that you're kind of locked intodoing something since they
pulled your credit, that type ofhigh pressure sales.
You know, it is not what, whatnormal loan officers do.
And it's definitely not what wedo here at the mortgage
calculator, right?
Remember, this is the largesttransaction of people's lives,
right?
90 percent of the people youdeal with, this will be the
(01:08):
largest transaction.
of their life.
And we don't want to be pushy.
We don't want to be highpressure.
And it's also not somethingthat's going to happen
immediately.
So I do you know, always like togive tips on here for new loan
officers, for newer loanofficers.
One of my tips would be to makesure that you have you know,
enough cushion to make sure thatyou're not desperate for deals
(01:32):
because that will turn into highpressure, right?
This is an industry where it'sgoing to take a little bit of
time to build up your pipeline.
And at the end of the day, youknow, you can't it takes it, you
know, the, the, the work you'redoing now is going to pay off in
the months to come.
Right.
And so if you're at the pointwhere you're saying, Hey, I
(01:53):
can't pay my mortgage nextmonth, unless I make a sale,
you're going to start actingdifferently on the phone and
it's going to show, and you'regoing to be so much more high
pressure.
And this is not a high pressuresales job.
So that would be myrecommendation to new.
Loan officers is just make surethat you're not you know,
depending on getting a checkright away or something to pay
(02:15):
your mortgage or else you're,it's going to show through in
your activity.
Right.
We're going to properlyinterview, excuse me.
We're going to properlyinterview every client.
Now, the reason why this is hereon this training, right?
What the training is the art ofclosings, right?
So why are we talking aboutinterviewing a client when we're
talking about the art ofclosing?
(02:37):
It all starts with theinterview.
It all starts with doing theproper interview and taking the
proper notes as well as doingthe more in depth interview.
You know, the 2nd time you talkto him, right?
Once you're getting thingsgoing, you're going way more
into depth after you're sendingquotes and then, especially if
you're narrowing in on somequote, and they are talking to
(02:59):
you about 1 of the differenttypes of quotes.
That you sent theseconversations become a lot more
in depth, but the a good closingstarts with a good interview.
Right?
And more importantly, a seamlessclosing.
Starts with a detailedinterview, right?
Because the things that come upin this interview up front.
(03:23):
Can literally save a deal fromnot closing when they're sitting
at the closing table.
Right.
There's all kinds of times thatthings like that happen, where
there's just something thatwasn't communicated and they go,
Oh no, you can't, you know,they're like, Oh no, I just
bought it two months ago.
Like, okay, well, all of this isall, we just did an entire loan
(03:44):
for no reason because there's,you know, six months seasoning
required or whatever.
Right.
So, you know, it's veryimportant to do a detailed,
proper interview.
And like I said, it's not justthe first one, right.
It's, it's.
the follow up interviews withthem as well.
And that's where it all startsto go from start to finish.
So if you do proper thoroughinterviews with clients in the
(04:07):
beginning, it will absolutelyhelp you close the loans in the
end with no issues, right?
Now to close loans, first wehave to get the opportunity to
do loans.
Right.
And to do a loan, we'reessentially solving a problem,
(04:28):
right?
Somebody needs money or theyneed to purchase some real
estate.
You know, either way we'resolving a problem.
We're fulfilling a need and theyhave a problem to solve.
So we're going to structure theproblem, right?
We're going to quote multipleloan options.
And of course, with our quotingsystem, we always quote multiple
(04:49):
rate options.
And so quoting multiple loanoptions is also going to help us
close because it's going to giveyou know, the borrower the
choice.
Notice the next bullet pointthere, empower client with
choices.
I guess I can make the screenbigger here.
Let me.
(05:09):
Do that for you.
There we go.
All right.
Because we want to empower ourborrower with choices.
So empowering the borrower withchoices up front in the
beginning of the process, whenwe're still in the quoting
process, sending them multiplequotes to look at when we
empower them on the front end.
(05:30):
That's going to lead to aneasier closing on the backend,
right?
And it's going to lead throughan easier process the whole
time.
So from a you know, processstandpoint, that's very
important, but quoting multipleloan options from getting the
deal standpoint is extremelyimportant as well.
(05:51):
Right?
One thing that happens in yourmind.
Is when somebody sends you onething, your decision is binary.
Should I take this or not?
Should I work with this personor not?
Just the act of sending multipleoptions turns that binary choice
into not necessarily should I doit or not, but which one should
(06:14):
I do?
This is a very powerful conceptand this is a sales concept and
this is a psychological conceptand it's such a great thing at
the Mortgage Calculator becausewe have the amazing quoting
system where every quote you'resending them is giving them
multiple rate options, butyou're also sending every client
(06:35):
multiple quote options as far asthe different programs.
Right?
So, and in our system with theclick of a button, boom, you can
duplicate a quote, switch theloan program, pull the rates,
send them that program and go,okay, pull the rates for a bank
statement, send them the bankstatement, copy that, change it
to P and L, pull the rates for Pand L, send them that, full dot,
(06:58):
you know, copy that, click thebutton to turn it into full doc.
I mean, this is like 3 minutesof work here to send them 3
different loan types.
Okay.
Once you have the LTV andaddress and you know, all this
different stuff, or you might besending different LTV loan
options.
That might be one of the thingsthat you're changing when you're
sending them these options.
But within minutes, you canduplicate these quotes, change
(07:22):
them to a different loan typeand send them to them so that
You know, again, within minutes,we can take advantage of that
sales tactic and thatpsychological concept of them,
you know, not only is it aboutthem having actual choices in
real life, but it literally is apsychological trigger to where,
why are they talking to anyoneelse, right?
(07:43):
We can offer them more thananyone else can at the mortgage
calculator.
We have every lender out there,imaginable, every investor out
there for the most part,imaginable.
That has every product, right?
If there are other investors orlenders out there, they probably
just have all the same productsthat ours already do.
Anytime we find a new lender orinvestor with new products, we
immediately sign up for them,right?
(08:04):
So there's not people out therewith more choices than us,
right?
So why let them think theyshould go with someone else?
So if you don't quote.
Multiple options.
What if somebody else is talkingto them?
What if you just have blinderson and they say they want to do
a conventional loan or a fulldoc loan or whatever it is, and
you just quote them on full doc,but another loan officer told
(08:27):
them, I have a cool programwhere you could qualify just
bank statements.
And they go, Whoa, this otherloan officer said, I have to
give tax returns and all thisstuff.
Well, that's because you didn'tquote them on multiple options.
They need to know that you canalso do a bank statement
program.
You can also do a P and Lprogram.
You can also do an assetutilization program.
So don't let anybody else comeand take your client or show
(08:49):
them that they have moreprograms than you because they
don't.
And you have everything that'sout there imaginable.
So we need to show that to theclient.
You don't want to send them 10million quotes, but you want to
send them the two.
Between 2 and 4 quotes that makesense for their scenario.
You know, obviously if they'renot self employed, that's going
to limit it, right?
But if they are self employed, Imean, there's tons of different
(09:12):
options.
And they should, for the mostpart, all of the viable options
for that client, depending ontheir scenario, should be
explored and they should bequoted, right?
So again, we're giving them onequote so they can say yes or no,
we're giving them multiplequotes.
Not only is that going to makethat psychological difference,
(09:32):
but also it's going to allowthem again, here's that bullet
point to empower themselves sothat when any issues happen
throughout the process.
They chose this route right now.
We're not going to go.
Oh, that's your fault.
You chose it right?
But it is there, right?
That they made that decision.
We're there to empower them tomake whatever decision they want
(09:56):
to, you know, proceed with andexplain that and and everything
like that.
But at the end of the day, when,when we, when they don't, you
know, we don't want to push theminto something.
We want to let them make theirown choice.
Thanks.
And then the great part aboutthe quoting system is the
actionable items.
So to be able to close loansfirst, they have to start a
(10:19):
loan, right?
After you send them a quote,that's when they start the loan.
The quote is the key toeverything because that is when
they hit the actionable item,which is to start a loan.
The application, right?
So the quote is key to actuallygetting the application.
So again, the more quotes theyhave, as far as options, the
(10:43):
more likely they are to go, Ilike that one, click and start
the application.
So what do we want to be doingthen?
We want to re quote clients,right?
We talk about it on the quotetraining.
We want to re quote people everythree days.
We want to follow up with themafter we re quote them.
That's going to keep themactive, keep them engaged.
(11:06):
We've talked about this onprevious trainings too.
You, you should use it as anopportunity to call them and
follow up and say, Hey, youknow, rates changed today.
I just thought of you wanted topull the new rates for you just
so that you know, what's goingon, right?
These are amazing ways to engagewith clients instead of just
harassing them saying, Hey, Ineed a loan.
(11:26):
Can you, can I do your loan foryou?
Can I do your loan for you?
No, you're, you're genuine.
You're providing value.
And you're also having a perfectexcuse to follow up by saying,
Hey, I, you know, I thought ofyou.
So I wanted to keep you updatedon what's going.
And then remember once the appis submitted, we want to prepare
(11:52):
the client for what's about tohappen.
I see this so many times,especially with newer loan
officers, That once the app issubmitted, they kind of just
start spinning their wheels.
Or as Jose says, flounderingabout.
And there's no clearinstructions to their client
(12:12):
either, right?
So they don't, they're not clearon exactly what they're doing,
but there's also no clearinstructions for their client.
And so we need to make sure thatonce the app is submitted, we
communicate with the clientabout what's going to happen
next.
This is really big.
The reason why it's on this artof closing training.
Because we are at this point arestill far away from the closing
(12:35):
table.
Right?
But this is where a lot of loansgo from somebody.
agreeing to a quote andsubmitting an app and having
intentions to move forward tothis somewhat black hole
sometimes of newer loan officersor maybe a loan officer newer to
non QM or maybe a loan officerthat's too busy or that just
(12:56):
isn't doing things properly.
Whatever the case may be,sometimes it can go into this
black hole and doesn't moveforward.
And then the client doesn't endup moving forward.
And sometimes it's the clientthat doesn't move forward.
Sometimes they just.
It gets lost.
Sometimes it's the loan officernot pushing it forward on their
end.
And then the deal just kind offalls off.
(13:17):
So remember when we get the appsubmitted, right now, once we're
doing the loan, we want to makesure when we disclose the loan,
we need to prepare the clientfor that.
What's going to happen.
What's it going to look like?
Where's the email going to comefrom?
Right.
What does it mean when they signdisclosures?
(13:37):
Does that mean they're lockingin that rate?
No, right?
And so you need to make surethey're aware of what they're
signing.
I see tons of loan officersthat'll just send out
disclosures and the client hasno idea what is going on, right?
So you have to explain it tothem.
(13:57):
You have to prepare your clientfor trigger leads.
Remember once you pull theircredit, we had a training on
this.
Once you pull their credit, Imean, there's pretty much no way
around it.
You can try to opt them out inall kinds of different ways.
But when you pull your client'scredit, they're going to be
turned into a trigger lead, youknow, 99 percent of the time.
And you should prepare yourclient for that.
(14:20):
You should let them know, Hey,there's really no way around it.
When we pull your credit, you'regoing to get a bunch of spam
calls.
Just don't answer the phone.
These are things that theyshould know, and these are
things where you might say, Hey,maybe you should put your phone
on a, you know, there's a mode.
I'm not sure exactly what'scalled, but there's the mode
where it blocks numbers.
You don't know.
(14:40):
Right?
So it only lets numbers that arein your contacts come through or
something.
The first, like, 2 days afterpulling their credit, you might
want to recommend that becausethen it'll just not ring to
their phone at all.
Right?
It just denies the call becausethey're gonna, you know.
You see, I'm sure some of youwere in like Facebook groups and
stuff like that.
Loan officer, Facebook groups oftheir clients, sending them
(15:01):
screenshots of 40 calls in a dayor whatever, after they pulled
their credit.
So you might want to discussthat with your client as well
and discuss the fact, you know,it's important to set
expectations and manageexpectations.
Make sure they understand, Hey,people are going to call you.
You know, a lot of them aregoing to try to say that they're
going to undercut me or whateverthe deal is.
(15:23):
And just explain to them, youknow, that you're there as a
consultant.
And if the, you know, if theyhave any questions about
anything to let you know, but.
Just prepare them for that sothat they're not caught off
guard and that nobody's kind oflike I guess, maneuvering them
into working with them.
Right.
Now, EPOs, this is another thingthat we need to talk to our
(15:45):
clients about because when itcomes to the art of closing
loans.
It's only relevant and valuableif the loan stays closed, right?
If there is no early payoff orearly payment default EPO repeat
D.
So, you know, everybody has togive their commission back,
right?
When there's an EPO.
So six to 12 months is standardfor an early payoff.
(16:10):
And if they pay it off in thatamount of time, you know, and so
it's important to prepare yourclient and say, Hey, these loans
aren't meant to be paid offbefore six months.
But it's even more importantgoing back to the initial
interview of asking what theirplans are, right?
And interviewing them thoroughlyso that you know what's going on
because you don't want to getall the way to, you know,
(16:33):
signing disclosures and doingthe loan when the entire time
their intention was to sell it.
In three months or they'rethinking, well, I'll refi it
now, but then, you know, I knowrates are going to go down in
two months or so.
And so I'll do it again.
Then, right.
We can't have that.
You don't want to even proceeddown that path.
(16:55):
So that starts in that initialinterview.
Then at the point where you getto this point, right, when
you're, you know sending outdisclosures and all that, we're
moving forward.
Definitely make sure to discusswith them that, Hey, these
aren't meant to be paid off.
In the first six months, most ofthem are six months, at least
some are a year.
(17:16):
They've been getting worse,well, longer, whatever, worse
for us as loan officers andoriginators.
You know, they, they were prettystandard six months and then
reaching into the 12 monthsbecause of how the, the market
has gone.
So we have to be very careful.
Nobody wants to give theircommission back and nobody wants
to work for free.
Our company, their company.
(17:37):
You know, the, the, whateverlender or investor that we're
using, right?
Nobody wants to go through allthe motions.
And remember, nobody gets backunderwriting fees and stuff like
that, right?
There's a whole lot of stuffthat just just disappears.
If there's an EPO or EPD, sovery important there.
So this all just kind of comestogether again, notice, like I
(17:58):
said, there's not a superspecific agenda here for today.
Just kind of some general infothat I wanted to put together to
talk about here, just to helpactually close loans.
And I will say that after goingthrough all the motions here, I
still feel that the you know,biggest takeaway here is that.
(18:19):
It's not a high sales, a highpressure sales job and that we
need to properly interview theclient.
If we understand these 2 things,that is going to send us on the
way to a lot of happy closings.
And again, the properlyinterviewing the client, you
might think it's.
Something that's super on thefront end, but let me tell you,
(18:39):
it affects everything on theback end.
And we literally have caseswhere people are at the closing
table, or they, you know, have aclear to close or whatever the
case is.
And just something comes up thatcould have totally been avoided
if they, if the borrower was,was thoroughly interviewed.
(19:02):
All right.
Well, that is it here for today.
I'll make sure to wrap it up alittle early here so that
everybody can get out there.
It's Friday.
Again, loan officers, Saturdayand Sunday, best times to make
calls.
Right?
So you know, the weekends.
Our time to work for sure.
Cause the people couldn't answertheir phone during the week can
(19:22):
answer their phone during theweekend.
So let's all get out there andmake some calls.
I appreciate everybody tuningin.
Remember we do this 12 PMEastern time every weekday,
where we go through the frontend and sales end of the
mortgage business, we'll see younext week with some new topics,
so 12 PM Eastern for the nextepisode of the loan officer
(19:44):
sales training with mortgagecalculator.
Have a great weekend.
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