This is a guest blog post from Ron Quintero
As I finished reading Dave’s recent blog post and the many comments that followed I was compelled to write this follow up post:
What vortex are you In? I recently watched an interview with Terrell Owens, Dallas Cowboy fans know him as TO. Allow me to first to state that I am not a Cowboys fan, nor an Eagles fan, nor a TO fan, but I am intrigued by his recent turn-around or resurrection.
In the past, he played for the Philadelphia Eagles and during that period of time, it was a nightmare to watch the Eagles play if you enjoyed team sports. There was dissention on the team, the players argued and showed their distain for one another in public. They argued almost to the point where they were ready to physically fight one another. TO was extremely vocal and most football fans – most team sports fans – did not appreciate that type of public display of dissatisfaction being broadcast to the world.
Most people saw Owens as an individualist, a non-team player, arrogant, self-centered, all the negative labels. Most so-called experts – the “talking heads” on ESPN – were so disgusted with his public displays and verbal attacks on his team members, coaches and owners of the company that many said “who would pick this guy up?” Who would want them in their locker room?
Well the Cowboys picked him up and WOW, what a turn around. First of all, the Cowboys have not been a real NFL contender for years. Now they have won over 90% of their games They are going to the play-offs and many consider TO’s contributions one of several contributing factors. He is reported as being a team leader in the locker room, a spirit of encouragement for the team both on and off the field. In the interview, a statement was made referring to the past and then the question was asked “what was or is the difference?” He said “I was caught up in a vortex of negativity and once it started, it was hard to get it to stop.”
vor•tex - pronunciation [vawr-teks]
- A whirling mass of water or air esp. one in which a force of suction operates as a whirlpool. One in the form of a visible column or spiral, as a tornado.
- A state of affairs likened to a whirlpool for violent activity, irresistible force, etc.
- Something regarded as drawing into its powerful, current everything that surrounds it:
I sat back and thought to myself “you know, our industry is caught up in a Negativity Vortex as well right now.” With all the bad news, with the purchase marketplace pulling back in many markets by as much as 25 to 40% when measuring the number of purchase loan opportunities, when refinance opportunities have dropped off by over 60%, in the face of those two major pullbacks, we should expect to feel some pain. Oh, did I mention the easy to sell product going away? The real problem in the marketplace today is that our industry got spoiled with cheap, easy-to-qualify-for money. It made us lazy, we forgot the basics of blocking and tackling, developing relationships and not taking the past market conditions for granted.
Many within our industry attempt to define “commodity trap” as rate and cost, but I do not define it that way. Many originators that were making huge profits selling subprime or Alt A loans were also in a commodity trap – they became too dependant on a product and, let’s be honest, most in our industry, if they can find a way to sell a product without having to do any hard work, they are all for it.
On page 236 of Al and Laura Ries’ book “The Origin of Brands”, it says “what does customer loyalty REALLY mean?” Their answer and I buy into it…”In practice, customer loyalty means that your customers are willing to do business with you even though they can buy the same products or services at a lower price (or better quality) somewhere else.” WOW. That is it.
So many are waiting around for a rate drop or another refinance wave to only temporarily stop their current pain only to revisit it once the wave is gone again. STOP THE INSANITY.
Change your vortex. It’s simple. The more people you meet, the luckier you get. What is the secret of the MEGA producers? They are all master self promoters and marketers. There is an old joke that goes…”what do you call a Realtor® that does not market? The answer: a secret agent. What do you call a lender that does not market? BROKE. Provide a service even when you cannot see an immediate return.
I am not going to share with you some “get rich quick” idea or some blip or dip on the market radar where you get some immediate business but you have not taken care of the long term problem.
This is what I am currently saying to my clients and audiences:
Are you feeling some pain? The answer is YES.
My next question is, “What are you going to do to avoid that pain in the future?”
If you are a Mortgage Coach (MC) user, start to adopt and manage mortgages EVEN IF YOU DIDN’T ORIGINATE THEM.
Develop at least two consumer direct strategies. Get your phone ringing. Others are.
In 2008, develop one partnering relationship per week and do all the things necessary to make that happen. One per week for 40 weeks, holidays excluded, you are set. I can almost guarantee you this, the STRONG majority of you either listening or reading this have not done this in the past and if you could hit the rewind button on time, you wish you would have.
The average interest rate to the consumer over the last 35 years is 9.38% according to Kiplinger’s website and MMG’s. We are at 6% possibly heading to 5 ½% next year. Compared to the ridiculous market we just left, anything would be challenging. The economy is stable. We are not in a recession or depression, although many LOs think it is a depression because the economy is created between their two ears, in their minds. If you can’t sell in this rate environment, get out now and save the industry for the pros that know how to make it happen.
Real estate is STILL the only tax free game in town. Living in caves is not a growing trend, there is no more land being made, we are breeding like cockroaches, millions of people are swimming across rivers, crawling over fences, risking their lives in small boats to get to our country and I don’t see anyone leaving. Get over it. Quit looking in the rear view mirror. Be grateful that so many are getting out of the business creating less competition and confusion, and reposition your business for the new market, the one that is here and will be for a few years to come. Come on gang, the industry did not go away when the 125s went away. RE-TOOL, get your head screwed on right, get committed to working twice as hard to make half as much, commit to being a survivor and in the future a THRIVER.
This change is the great equalizer for the industry. It has put everyone at the same starting blocks and now we will get to see who tomorrow’s leaders will be. Re-commit to making 2008 the year that you will work harder than ever before, you will go the extra mile, you acknowledge that the easy money has been made and that going forward, you will put in place now all the processes and systems you wish you had put in place in 2002 so when another easy money cycle comes around you can claim your fair share – forget that, more than your fair share next time around.
The pain of discipline weighs ounces. The pain of regret weighs tons. Do what needs to get done to survive and later thrive. Commit to using the tools you already have at your disposal. If you are a current MC user, just go deeper with the program. Most MC users use one or two components of the program. Before you spend more money on new ideas, make sure you are fully deploying and taking advantage of the tools you have at your disposal now.
If you are not an MC user, well, I do not know how you plan to differentiate, stand out, tell the Total Cost story and make your competition and their marketing messages invisible. If you want to optimize your success in this marketplace you need the Mortgage Coach and you need the mindset that is passionate about uncovering hidden opportunities. ALL of my clients use the Mortgage Coach and there is a reason. It is without a doubt the most essential and powerful tool available to the industry today, period.
I also recommend that you listen to Dave’s recent interview with Jeremy Forcier, if my recommendation alone isn’t a good enough reason to listen to this call, then let his results inspire you to listen to it today. He originated 7 new loans the day before this recorded interview, he has opened 17 new loans within three days, and he had 38 loans approved in the month of December. To top that off, he had 25 leads that he hadn’t even had enough time to call back yet.
If you haven’t read Dave’s post and the comments to it that inspired this post, then also click here.
My hope is that you will re-commit and take your level of success to the highest level possible throughout 2008. Please post your challenges and success stories in the comment section below…I will be keeping my eye on this post and I will respond to questions.
To your success,
Ron Quintero
