GUIDE TO ELITE BROKERING: On Becoming an Elite Broker
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08/08/2010 1:38:00 PM
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Becoming a mortgage broker is easy --take a course, get licensed, find a broker to work for. Each year, hundreds of people across the country make the decision to join the industry and each year hundreds of people leave the industry. According to insiders, nine out of every 10 new agents drop out in a year. Then there’s the moonlighters – those agents who have other jobs and are satisfied with a deal or two every six months.
Commission sales can be stressful but can also be most rewarding. It depends on the level of commitment and the burning desire to achieve personal and financial goals – it’s a profession that can earn agents and brokers high monthly incomes. Along the way there are proven methods to help agents become better salespeople, whatever the personal goals.
There are, however, some truths: You have to be able to sell, you have to understand loan processing and you have to effectively market yourself. Sales skills are essential to your success as a mortgage agent. Previous sales experience is not important, and won’t necessarily guarantee success so agents must commit themselves to continuously learn about the mortgage-selling process.
Understanding the lending process is also critical. Learning each lender’s products, and the criteria for those products, will give agents valuable insights and establish themselves as the expert in mortgages, which will allow them to offer better service, faster closings and a seamless process for clients.
Effective marketing attracts prospects. By keeping the pipeline full, chances for success are greater. Prospecting will always be the cornerstone for any successful agent. It’s is not something to do when there’s time or something that others can do, but a routine first step toward a sale.
Goal Setting
The importance of setting goals cannot be underestimated and should be part of every agent’s business plan. Colin Dreyer, president and CEO of Verico Financial Group, based in Vancouver, B.C., attributes an individual agent’s success to not only having an effective business plan, but being committed to following through with it.
“There’s a fine line between winning and losing so it comes down to making sure you’re doing more of the right things,” Dreyer says. “The more successful agents are those who do what other people won’t.”
He says they will pay more of a price for success by spending a lot of time learning everything about the industry, about lenders, about rates, etc. and by diligently understanding their customers' needs. “Over delivering creates a trust relationship between the agent and client and as a result they become a strong referral source.”
As for the business plan, Dreyer suggests it include a clear financial picture of the current status of the agent’s earnings and where they want to go. “It has to be realistic,” he says. “If I’m currently earning $50,000 and I want to earn $250,000 next year, you have to really ask yourself if that’s doable. The goal is a good one but the timing may be off, so you continue to learn and grow and systematically move toward that goal.”
Salesmanship according to Dreyer is about learning the basic fundamentals and working diligently to reach goals. “Sometimes successful agents are considered lucky; well you make your own luck by consistently doing the right things.”
Dreyer’s Tip: Get a mentor
The importance of continuing education
With the constant changes in the mortgage industry; from changes in lender products and changes in interest rates to varying economic cycles and legislation changes, there’s a lot for agents to stay on top of. For David Armstrong, broker and general manager of River City Financial in Edmonton, Alta., keeping on top of the industry changes and even the industry itself is important to achieve success.
“Along with a strong customer focus, agents must be knowledgeable about mortgage products,” he says. “There’s information everywhere. The real challenge is to get agents to live and breathe mortgages. This is what differentiates the top agents. They read the news, the financial news, they research products and read material provided by lenders.”
In addition to learning about clients and the industry, that educational component also includes understanding the deal process from beginning to end.
“If you know the requirements of your lenders then you can get the ball rolling right away with your clients,” Armstrong says. “And don’t proceed without all the information and all the documentation. When you do this you’re speaking from a position of power, and clients want to feel confident that you are doing the best job for them on the biggest transaction of their lives.”
Armstrong’s Tip: Volunteer to assist another agent
Education is important, of course, but more importantly is that the knowledge gets used. Joe Pinheiro, vice-president of sales for Mortgage Alliance Canada agrees. “Education is great – it empowers you to be able to look at a client’s situation and offer more solutions, but just the fact that you know something doesn’t matter unless it’s used.”
Part of a broker’s job is to also educate the consumer. “Right now consumers love banks – they need to love us,” he says. “The one skill I would urge brokers to hone in on is their ability to empathize with their clients. They must be good listeners and also listen to what is not being said.”
Empathy adds an emotional component to the whole process, which allows consumers and the broker together to get emotionally attached to the outcome. When that happens, the customer and broker is not trying to get a mortgage, they are trying to finance a home. “Even in a debt consolidation, brokers can empathize with the client’s stress and describe how good it’s going to feel to have only one payment.”
Brokers have to sell solutions to problems and empathy can help you become a better broker, explains Pinheiro. “In the end, a happy client probably won’t remember what you said but will always remember how you made them feel.”
Pinheiro’s Tip: Try to get all involved emotionally attached to the outcome
A lender’s perspective
At Optimum Mortgage, based in Edmonton, Alta., Bernie Budney, sales manager for Western Canada and Brian Karim, BDM, have both seen what works and want doesn’t.
“The ones who are most successful have found a way to be in constant contact with their client database,” says Budney. “Whether it’s through e-mail or newsletters, the brokers who stay top-of-mind are constantly filling their pipeline – these are the ones who successfully grow their business.”
Karim mentions that those brokers who are consistent, who repeat the same steps in the same way, seem to enjoy the most success. “When submitting deals they have a checklist of items, which makes them more confident in their ability to see challenges, so they are able to get to the client’s real story and are able to relate that back to the lender to ensure their deals get approved.”
Again the theme of goal-setting, planning, and business building seems critical to broker success. “You have to ask yourself where you want to be in the industry – where’s your niche?” Karim explains. “The other two components are developing a three-year and five-year plan and then executing those plans.
Another key to success is becoming the expert in the eyes of the client to gain their confidence.
“They are not the experts – they want the best advice for their particular situation,” Budney explains. “If you know your lender products, and are able to offer solutions, then you’re the expert. “
Both Budney and Karim emphasize the importance of developing a relationship with the lenders’ BDMs.
“If brokers understand that we are partners in their business, we can help them get more deals approved,” Budney says. “For example, we look for deals that make sense to us – our criterion is different than some other lenders. Brokers have to get to the heart of what happened to his client’s credit and we can help offer solutions to move that client forward. By doing it this way you will have a client for life.”
Budney and Karim’s Tip: Get to the heart of the client’s story – know the whys
Lenders see them all – the really successful agents and brokers and the ones who struggle with packaging a proper deal. If there is one thing a successful broker does better than anyone else, it is to service both the client and the lender.
“Successful brokers have a really good understanding of the entire mortgage process,” explains Boris Bozic, president of Merix Financial Inc. “They understand that there’s a customer and there’s a supplier and are able to make them both happy.”
There are brokers who are super salespeople who can attract business, however, Bozic says, “sometimes a really good salesperson may not be an effective broker.”
The effective broker is an entrepreneur who looks at building a business not just building a job. “He or she learns the fundamentals, seeks out knowledge, incorporates structure into the day and creates a strategy to build their business.”
Bozic also contends that many brokers confuse strategy with tactics. Strategy is determining where you are today and where you want to be in two years time, for example. The tactics are getting to where you want to be.
Also critical for success is the team. “You need to surround yourself with people who will help you execute your strategic plan – they will take you where you want to go.”
And the most successful brokers, according to Bozic, are the ones who can change course midstream and adapt quickly to the changes in the industry. “These are the brokers who are not married to a single position – they are flexible and can adapt as the need arises.”
Ethics and responsibilities
Joe Pinheiro’s definition of mortgage fraud is any misrepresentation or omission on a mortgage application for a lender to approve. Well, it might not be his alone, but it certainly sums it up.
“If you’re caught, lenders will cut you off,” Pinheiro says. “Your most valuable asset is your name so you need to protect that asset no matter where you go.”
The issue of mortgage fraud is a serious issue for every broker in this industry. Earlier Pinheiro mentioned that consumers love banks – they need to love us (brokers). “By holding ourselves to the highest standards in our industry, we can turn those consumers our way.”
Latest Comments
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comment(s)
Elfie Hayes on
30 Aug 2010 02:44 PM
I enjoyed reading this article and have forwarded it to my entire staff. I have lived it so I believe it! A sound Business plan, education, mentoring, listening and solving the problems while caring about the outcome to the customer and the lender. Couldn't have said it better myself. Thank you.
Sudershan Kaur on
27 Sep 2010 12:00 PM
I am Sudershan Kaur from Dominion Lending Centres and feels this article very useful,knowledgeable . I enjoyed reading this article.
Thanks
Arun Barry on
07 Nov 2010 10:12 AM
It adds to the very basics of success in the long run in mortgage business. As a mortgage professional, one cannot afford to overlook contents of this article. Excellent!!.