Unfortunately, the names of most mortgage providers in Georgia are now different than those who were here pre 2009. Experience navigating a few recessions will clarify what is going on.
First of all, everyone does well in this segment of the economic recovery as long as they focus on good core beliefs and are diligent in a few key areas.
The best thing management and a company can do during this type of expansion cycle is to get out of the sales teams way and manage service and the balance sheet.
|Stimulus / Recovery Creates Crowded Waves|
The reason everyone with any plan, good or challenged, are setting volume records is because of the economic consequences of an expansion fueled by stimulus. This brings me back to those taking credit for merely riding a wave in Hawaii that was created by a tsunami in Japan.
Anyone with a piece of wood or pretty shinny fiberglass board can ride these waves. Either with style, too fast, too slow, or on their backs as the wave carries everything to the beach or rocks. The key is which companies can ride the smaller waves in the future with the same efficient board. Refer to my post http://southeastmortgage.blogspot.com/2011/12/low-country-view-of-recessions-from.html .
|Very few can ride a recession|
The skill for any company and or their management is how they end the ride. You will either be taking photo ops with your board intact for the next season of tsunamis or not pay attention and destroy your board or even worse hurt yourself and others on the rocks.
My Advice: Manage the balance sheet to ensure it is not stripped. Cash is king, keep debt and other funding liabilities low. Keep COGS and Operating expense variable. Be a steward of our industry by only placing sustainable product. Volume does not pay the bills, converting volume to profit is what pays the bills. IMO this is the best course of action during this wonderful cycle we all are enjoying.
My Advice to Licensed Mortgage Loan Originators and Non-Licensed Bank Loan Originators: As volumes build for the reasons above and as the waves get smaller, look deeper into the company you work for to ensure the reputation and brand recognition you built for yourself does not hit a rock due to poor optics. The client's you serve today are the people who will keep your volume up during the next downturn. If your company does not have an automated awareness system that will keep your image and brand in front of your closed clients monthly, find one that will. This is you and your family's hedge to a stable constantly growing standard of living. Chasing the next new client each month is great during this type of cycle but when it ends and it will, organic growth built during this time stabilizes your income. Southeast Mortgage’s profitable navigation of past recessions is a direct result of this strategy. Of course the best service in Georgia helped tremendously.
As it has in the past, all of these similar cycles end the same way and this one is identical to the last 3 except it is has higher octane fuel. The when is what changes each time.
Chairman and Chief Executive Officer
Southeast Mortgage of Georgia, Inc.