The Mortgage Industry has rewarded me and my
teammates over the many years we have been
engaged in this important business. I believe good
fortune should be paid forward. The most
effective way the Southeast Mortgage Team can give back to our industry is to
help educate others and improve their future prospects. Enhancing skill sets, fundamentals, and
certifications will open doors for personal development and add to the
stability of our industry. Our pay it
forward is described below.
Background:
The 2009 financial crisis marks the beginning
of my third recession. I learned valuable tactics during the past two;
however, this one was long and destructive.
The skills and knowledge from the past two recessions provided an effective
map for Southeast Mortgage to navigate the treacherous waters. Recessions
are basically a natural cleaning process for the economy which ensures the most
efficient and strong emerge. Sometimes
you have to clear some trees to build a bigger house.
Technically the past recession followed the
same indicators and patterns of previous deflationary cycles. One difference between this recession and
others for the Mortgage Industry is the opportunity created for the Mortgage
Loan Originator, MLO. MLOs, left in this
industry going forward now have the ability to create value in themselves versus
the company they work for.
Two types of MLOs in Georgia:
Registered Mortgage Originators
- work for depository banks and who are
not required to be Licensed per the SAFE Act
Requirements
·
submit
fingerprints for a state and federal background check
·
submit
their personal history and experience (MU-4 form)
·
will
have a unique identifier number
Licensed Mortgage Originators, per the SAFE Act
Requirements
·
submit
fingerprints for a state and federal background check
·
submit
personal history and experience (MU-4 form)
·
will
have a unique identifier number
·
demonstrate financial responsibility (LO's will have
their credit checked)
·
take 20 hours of approved pre-licensing education
·
pass the state and national mortgage exam by 75% or
better
·
will take 8 hours of continuing education annually
·
may never have had a license revoked
MLO opportunity changed in 2008:
Many MLOs did not like the National and State
Licensing requirement set forth by our government; however, I see it as a differentiating
certification and an opportunity. If you
obtain the licenses your career becomes portable in an industry that skill and
service dictates your growth.
Personally, I think all MLO's that made it through the past 4
years deserves a hand.
Now is the time to align with consumer and
Real Estate Agent needs that will maximize the next 3.5 - 4 years left in this post recessionary
recovery and be prepared for the next recession.
1.
Licensed MLOs earn 40
- 100 basis points more than Registered Mortgage Originators working under a
bank or savings bank registration. Profitability is similar among the
various forms of mortgage companies. That is a steep price not to invest
in certifications that build your career. Invest 30 days in your career to get
the certifications the government felt was important enough to put into law.
2.
With reduced
competition, barriers to entry, and enhanced regulation, now is the time to
build your referral networks with great service. Your referral base
should be 30% life cycle referrals, 30% Purchase Money, and 40% core repeat
clients. Fish for yourself and reduce dependency and uncertainty.
3.
Pipelines that grow
faster than your closed loan volume is a red flag.... You should close
70% of your pipeline monthly. Growing pipelines does not help clients,
Agent's, or your family's security.
4.
Purchase and Refinance
are the same just a different client need. Both should be treated equally
because both are important at that point in time to your client.
5.
Ultimately service
matters! Personalities, good looks, and
apologies only go so far. Consumers want great service and Agent's need
to close transactions.
6.
A Licensed MLO has a portable
career. Employers of Licensed MLOs
understand you have to have great service to earn your MLOs tenure. Mutual respect is the building block of great
organizations.
Consumers want Licensed Mortgage Originator that
has met the minimal standards set by the US government. If we had the
current regulatory environment during the 2001 - 2005 cycle, I bet the
recession would have been the usual 6 month bump in the road.
The Georgia Real Estate Industry is about 7
months into the current recovery cycle. Registered MLOs need to invest in
themselves by obtaining certifications, create referral chains that build
independent business, and maximize the current cycle opportunity with fast
closes and Licensed MLO wages.
The Mortgage Industry has been generous to me and my teammates.
We have always looked for the best path given the industry's challenges
and opportunity. The path we always choose is not determined based on the
size of the easy button, but what will improve the fundamentals of our
competency and make us stronger and better positioned in the mortgage market.
Southeast Mortgage wants to pay it forward with a NO Obligation
and NO Cost offer to qualified Georgia Registered MLOs. Southeast Mortgage will provide the training
materials, classes, and administrative support to obtain a Georgia State
Mortgage Origination License and National License. The process will remain confidential and SEM
will execute a confidentiality agreement to that effect.
** Registered MLOs must verify an average 1 million+ in
conforming mortgage production per month for the past 12 months.
Simply contact Kathy Gyselinck, Executive Vice President, at Kathy@southeastmortgage.com and
begin your 30 day path to a portable career with you in the forefront. Kathy has a 100% PASS RATE for Registered MLO's following her proven process.
Fresh out of The Georgia Institute of Technology and on my first day at my new bank job at First Atlanta Bank, a wise man told me "the secret to success is never drive in traffic and never get on a crowded elevator". He was right. Thank you Roger!
Cal Haupt
Chief Executive Officer
Southeast Mortgage
770-279-0222
References:
http://mortgage.nationwidelicensingsystem.org/consumer/resources/Pages/default.aspx
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