Friday, June 2, 2017

Putting Builder and Realtor Value First

Although 85% of Southeast Mortgage's volume is derived from retail clients, we are very proud of our accomplishment in the New Homes Sales Channel.

"Builders want to work with Southeast Mortgage due to our value added proposition.  We are the best at delivering great predictable service; however, the videos and other media we co-market with our Builders and Realtors simply drives more potential clients to their open houses and subdivisions.  More traffic = more sales.  We believe in adding value to our partner's franchises rather than just taking applications."  Cal Haupt, Chairman and CEO of Southeast Mortgage of Georgia, Inc.

With our extremely high pull through from application to close and accurate reporting to partners, Southeast Mortgage delivers the best overall solution to its partners and is why we are growing rapidly and earning more Builder and Realtor requests to partner.

Friday, May 19, 2017

Fake News is a Path Best Avoided

In my opinion, the truth is always the righteous path to good works.  History has proven that "green eyed monsters" orchestrate stratagems but the smoke always clears uncovering their true intent before it has any tangible effect.

Recruiters probably have one of the toughest occupations in our industry.  They are on the phone all day talking to hundreds of people trying to differentiate one company from the others.  In our business if you exist after 2009, you are probably doing a few things right.

Very few good Originators leave because of a company, they leave to fill a void or a need not being met.  The void could be a breach of trust, health care coverage, pay, an argument, the list is long.  The need not being met by their current company is what recruiters should focus on and like a good originator they just have to uncover the need not being met to close the deal.
Text to an MLO at SEM
The problem with “Fake News” is it eventually makes the person creating it unbelievable and their ability to recruit tougher.  I am sure everyone knows some of the characters in our industry that make outrageous fake statements.  As the target of many “fake statements” over the past 24 years, I learned that “fake statement” purveyors always attack your strengths.

If someone says you are running out of money and you will be out of business next week, you probably bank mid-8 figures in reserves.  If someone says you are a crook, you are probably a trusted fiduciary.  If someone says you are a bully, you probably care deeply about your team’s welfare and protect their livelihood and families from deceptive practices.
History has proven it is always good to be talked about whether good or bad.  If it’s good and truthful the world is working the way it should and good deeds are appreciated, if it’s bad assume the reverse.

I encourage everyone in our small industry to take the high ground and recruit based on need.  Need based selling is more effective with clients and recruits.  It is the righteous sustainable way to effectively accomplish your goals.

Tuesday, May 9, 2017

ART in Mortgage Industy - by Cal Haupt

Have you ever seen an ART Class where all the participants paint a subject from the same perspective and look over at each other to see how others are doing? 

Over the weekend, I was
reminded how important organically adapting a company to the market yields a major advantage and return. 

ART is a diverse range of executive activities creating a tangible expression of the executive’s technical skill intended to be appreciated by the shareholders and community analyst. 

Being able to see the beauty in the Mortgage Industry and its opportunity is a unique skill needed to see a path to incremental success over varying market conditions.  Most in the Mortgage Industry listens to the same paid service view of the market and act upon that data.  As a result, everyone is following the same path and by definition, if you are all doing the same thing an average result is the certain outcome.

The client and secondary market is a zero-sum game.  The client will always get a market rate and the secondary market will hedge and arbitrage that rate to an acceptable return without impact to the client.  How a company functions and the perspective they have of this known universe is what quantifies the rewards.

When I meet someone who follows Southeast Mortgage they always want to quantify us by volume.  I always respond that we track Revenue which is your ability “ART” to convert volume to revenue.  Revenue to Net Income is easy with a grasp on GOGS and Operating Expense.  I have combined 14 companies into Southeast Mortgage over the years and the net margins I observed left a lot of opportunity on the table.  Southeast Mortgage shared a unique perspective with the owners that yielded a significantly greater return for them from the same volume.  Given any volume of production has a theoretical maximum rate of return most only capture ¼ of what is available because that is all they see is available on others canvases.  I call it wasting opportunity.
If I could offer one suggestion to those that participate in the Mortgage Industry, it would be to keep an open mind to a better path.  If you can accomplish your goal 3x faster, don’t discount the opportunity just because the other canvases have the same picture resulting from pack mediocrity and shared expectation.  Traveling the same path always yields the same result.  Take a new educated perspective and create beautiful ART.

Cal Haupt
Chairman and Chief Executive Officer
Southeast Mortgage of Georgia, Inc.

Thursday, March 23, 2017

Recent Retiree List (The Ultimate Career Done Well)

Jason Hultgren gave me a copy of the MBAG Gold Award List that SEM participated in for the first time in our history thanks to J. D. Crowe's support.  A great group of mortgage professionals with huge volumes that consistently earn this recognition year after year.  Other than a wonderful MBAG award, are these talented Originators awarded stock in their company or made a Member of their Company's LLC Operating agreement? 

I always ask myself, do they share in the wealth they build for their owners? 
Ask yourself these questions:

1. Do you have a path to retire that includes equity in the company you help create?  If you can only rely on what you save from your 30 - 120 bps per deal, you need to re-think how you will retire.

2. Have you worked hard only to start over again when your company sold or left your market?  Did they cut you a check when they sold?

3. If you do not act now to explore a path to retire, what will you do if mortgage delivery channels change before you have saved enough?  The company will benefit but will technology reduce your compensation?

I admire loyalty and friendship (SEM has the longest tenure and tenure of key people in the industry thanks to a Village view of loyalty); however, it is a two way street.  Solidify your family's future longer than a month out. 

Do your Career Right
I would love to see a section in the MBAG Gold Award Brochure that lists the latest retirees and celebrate Careers Done Well....  Everyone has a finite time and a finite market to originate.  Need to plan today!

Call 770-279-0222 ask for Shaun Graham or Kim Thompson or Jason Hultgren