Savage Insights

Learn How Cezar Mansour Turned an Unmotivated Refi Client Into a Very Motivated Closed Loan

Cezar Mansour is a master at maximizing every opportunity at his disposal. A mortgage broker, realty company owner and author of the recently released book, “The Official Guide to Building a Referral Based Business,” Cezar focuses on building long-term relationships with past customers and generates new customers through referrals with other Realtors and home builders.

PROBLEM/SOLUTION:
Cezar identified this particular client during his quarterly RateWatch analysis process. He discovered that he could save the couple $100 a month over the refinancing loan he had transacted for them two years ago. But they weren’t sure that $100 a month in savings was worth the effort of conducting a new transaction, until Cezar showed them the long-term benefits of that $100.

He dollarized the monthly savings by showing them how much their money would build over time if they put it into an account at 6%. Then he translated the dollars into dreams by talking about a family vacation in Hawaii or college funding for their children. Equally as important, he also “reverse dollarized” by showing them how much they could lose if they didn’t refinance. Cezar’s well-honed process allowed him to close this deal in under three weeks.

TAKEAWAYS OF THIS CALL:
* This transaction came through because Cezar consistently manages his clients’ mortgages by sending a quarterly RateWatch Report.   
* Using a script he has honed over time, Cezar asks specific questions over the phone that earn the client’s trust and are the secrets to success.
* By encouraging the client to come in for a one-on-one meeting, Cezar was able to make them feel comfortable and uncover and respond to their concerns.
* Cezar left column 2 of the TCA blank and utilized the last three columns so the client’s existing loan would be set apart, both visually and mentally, from the ideas he was presenting.

“I think of it as my obligation to my clients to manage their mortgage,” he says. That commitment is not only helping this expert gain new clientele, but he says his past clients are his biggest fans. He also referred this client to one of his financial planner partners, who is now managing their investment needs.

Click on the player below to listen to the conversation between Cezar Mansour and myself.

or you can download it here grab the 10Mb file here

Guest Blogger Todd K Ballenger Has An Important Message For You

Today's message is from guest blogger Todd K. Ballanger.   He has 18 years of mortgage industry experience and is considered an industry pioneer in the area of capital market and credit market convergence.

You can check out his personal blog entitled: Borrow Smart Retire Rich by following this link. 

Todd's Message:

Many of you know that I believe the Mortgage Industry is about 5 years behind the Securities Industry in REGULATION,and that gap is closing
quickly.  Many of you have asked me about the banker -vs- broker impact of such regulation, where suitability and eligibility is heading for the mortgage industry, etc.  You might want to be aware that a new Rule proposed by the Federal Reserve could dramatically affect your mortgage business
in the future, and how partners align with each other:

The Federal Reserve has a proposed Rule amending Regulation Z (73 Fed. Reg. 1,672 January 9, 2008)

The rule proposes several changes to underwriting and the mortgage industry which will brokers will feel directly.

1.    The Federal Reserve is introducing a new category of loans which will trigger the abolishment of stated and no doc loans under any
circumstances.
2.    The Federal Reserve recognizes that all originators receive a form of YSP or SRP but mortgage broker transactions will require that you
disclose before application what your income will be on the loan and this cannot change during the loan application.
3.    The Federal Reserve wants the originator to determine that the borrower has the ability to repay the mortgage they are applying for - for
at least 7 years.
4.    The Federal Reserve wants to put triggers in place similar to 1817 to have 3% and 5% caps before the loan would fall into the higher costs
loan.

The cut off for comments is 4/8/2008. 

If you want to speak out, letters need to be mailed to:

Jennifer J. Johnson, Secretary
Board of Governors of the Federal Reserve System
20th Street and Constitution Avenue, NW
Washington, DC 20551

You may also submit comments, identified by Docket No. R-1305, by any of the
following methods:

Agency Web site:  http://www.federalreserve.gov.  Follow the instructions for submitting comments at
http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.

Federal eRulemaking Portal:  http://www.regulations.gov.  Follow the instructions for submitting comments.
E-mail:  regs.comments@federalreserve.gov.  Include the docket number in the subject line of the message.

Not sure you can fight City Hall and win, but these issues will have a big
impact on your business if you are, or will continue to operate as a broker,
and not a banker in the future.  With the momentum building for change, and the support of the Federal Reserve, brokers should give more consideration to aligning or partnering with banking institutions - at least have a Plan B.

The Mortgage Coach’s Temporary “Stimulus Package” Brings Big Solutions for the Lowest Price Ever

Everyone’s talking about what can be done to stimulate the economy. Last week we saw the Fed lower rates while the government rolled out a stimulus package focused on tax breaks.  This week, The Mortgage Coach has joined the crusade by creating the Temporary Stimulus Package, a comprehensive product and service package designed specifically to help originators and homeowners during this chaotic time in our economy, all at a significant--but temporarily--reduced price.

The Mortgage Coach Stimulus Package includes web-based classroom education, a brand new software solution, and custom strategies designed to help originators generate business in this tempestuous market.  The web-based classroom education includes Marketing Crisis Essentials – Critical Concepts and Strategies for Thriving in Difficult Times, along with a Weekly Opportunity Coaching Forum.  In addition, Stimulus Package subscribers will also get access to a ground-breaking new software release called the Opportunity Optimizer, as well as The Market Crisis Sales Plan, a new special report designed to educate originators on key strategies that will help them thrive during these turbulent times.   

Purchased separately, the package would normally retail for $2195.  But because we want every originator to get the chance to reach the high production levels that top producers are reaching in this market, we’ve temporarily slashed the price nearly 60%, from $2195 to just $895 for new members.   

The Mortgage Coach Stimulus Package includes The Mortgage Coach’s foundational business-building products, and also provides critical education and new software tools focused on helping loan officers to uncover and originate new high-quality loans. 

The truth of this market is that it’s either feast or famine.  On the one hand, many originators are packing it in and leaving the business.  On the other, we’re seeing massive production from Mortgage Coach Power Users that are doing 10, 20 and even 50 and 60 loans in one week’s time, by using The Mortgage Coach to manage their mortgages and capitalize on hidden opportunities. 

There are two basic types of borrowers in this market.  There are those who need a loan but can’t qualify, and those who can qualify but don’t have a sense of urgency.  The beauty of the Stimulus Package is that it helps originators create a sense of urgency among qualified borrowers. Instead of waiting for loans to come to you, you can create high quality loans of your own.  The Stimulus Package takes you out of the rat race of scrambling for the same low-quality loans that every originator on the block is vying for, and puts you in a category of your own. You get the tools to uncover, evaluate and seize your own high-quality, competition-free opportunities.   

One of the most important elements of the Temporary Stimulus Package is the mass market release of The Mortgage Coach’s Opportunity Optimizer, a web-based system providing an automated six-step process that helps loan originators diagnose a homeowner’s financial situation and make a sound mortgage recommendation based on each homeowner’s specific needs.  The findings are presented with high-impact visual reports that show borrowers a clear-cut and tangible value to refinancing now, rather than doing the usual wait-and-see routine. 

The Mortgage Coach Temporary Stimulus Package was created to help loan officers originate new loans quickly--within seven days of taking action on three critical steps to success during this market crisis. Many originators have started creating new loans within just a day or two of implementing the system. 

If you’d like more information, visit http://mortgagecoach.com or call 800-951-2696 to speak with a Solutions Coach who can explain the details and walk you through the Opportunity Optimizer.  There’s no time like the present to start increasing your production. 

You’ve Got to Watch This Amazing Video by Dr. Randall Pausche

As a follow-on to yesterday’s post about relieving stress, I recommend that you take a step back from your daily grind and watch this thought provoking YouTube video.

Dr. Randy Pausch offers a very inspirational message that cuts across any industry, any job, and any situation.

I don’t want to give away the details on this one. Just please trust me and take 10 minutes out of your morning to watch and listen. You won’t regret it.

Thanks to Pete Moroz of CornerStone Mortgage Company in Las Vegas for sending it.

http://www.youtube.com/watch?v=R9ya9BXClRw

Stress…It’s How You React to it That Matters, Not the Stress Itself

“The process of living is the process of reacting to stress.”

I came across this quote by physiologist Stanley Sarnoff this morning, after thinking about it I quickly realized it applies very well to loan officers, since, in our marketplace, we are surrounded by a tremendous amount of tension and stress.

Everybody has stress. It’s how we process it and react to it that really defines our quality of lives. I see people with differing qualities of life and different levels of success and I think, it comes down to who does the most effective job of managing stress.

How are you reacting to your stress? Is it bringing out the best in you? Are you seeing more opportunities than ever before? Are you working on the most important things with more focus than before or are you functioning at a less than optimal pace and doing just enough to stay in business?

Remember:
How you process stress — not the stress itself — defines your quality of life and how many happy moments you have in your life.

Here are some great ways to process and alleviate stress:
* Take a physical break from your day — but don’t plan it. When you feel stuck or overwhelmed, get out of your chair take a walk, head to the gym, step outside and shoot some hoops or pop in an exercise video.
* Read or listen to something inspirational — completely ignore the stress for 20 minutes.
* Pick up the phone and call a friend, family member or colleague you haven’t spoken with in awhile. Make plans to get together.
* Spend a few unscheduled minutes with your spouse and kids laughing and having fun.
* Do some volunteer work. Just an hour a week can help dozens of people in many ways and you’ll be amazed at how good you feel about yourself.
* Cut stresses out of your life where you can, such as moving away from a negative environment or quitting smoking.

Finally, remember, no matter how bad things may seem, nothing seems impossible when you have a plan for success. Make a list of all the things you can do to alleviate and improve upon the problems or challenges you are up against, then separate the list into:

1) things you can do right now without effort,
2) things you can do within a few weeks with minor effort; and
3) things you need to develop a plan to tackle.
4) things you need to stop doing

Then start working on your list today.

“I Just Signed Up for Mortgage Coach. How Do I Get Started?”

Recently, Rob Welshans, a mortgage broker from Hagerstown, Maryland, called me with this question.

It’s a  question I get asked weekly, and one which I felt that many loan officers could benefit from the answer. So I took the opportunity of recording the call, with Rob’s permission of course, so that everyone could listen to our conversation.

My suggestions should serve as a step-by-step manual for new members, and a refresher course for veteran LOs. I recommend that even seasoned originators take the time to listen to this call to ensure you are doing everything at your disposal to maximize your business and your clients’ lifetime goals. 

Attention Sales Managers: I recommend that you have all your loan officers listen to this call. 

Key takeaways from this call:
* You’ll learn the very first thing you should do to get started;
* When to make calls and what to say when they answer;
* Tips on openers that will get your foot in the door;
* Complimentary services you can offer that will show value, not sell loan products;
* How to keep the door open for future calls; and
* You’ll learn the don’ts as well as the do’s.

This conversation is chock full of ideas that you can implement immediately that will turn into loans in just a few short days. Take a few minutes to listen to this 24-minute recorded conversation today.

Thank you, Rob, for bringing your questions to my attention, and for graciously allowing me to record the call for everyone’s benefit.

Click on the player below to listen to this call.

Lance Lastinger From Bank of America Shares His Secret to Success in Today’s Marketplace

We receive a lot of feedback from Mortgage Coach members. Recently, we received an email from Lance Lastinger of Bank of America in Tampa, Florida. In this challenging market, I thought it would be valuable to share his comments with other MC members and blog readers, especially those who may be hesitating to use Mortgage Coach with every client, or those who haven’t joined the Mortgage Coach team yet.

He writes:

“Mortgage Coach is one of the best supporting and most beneficial tools for a loan officer…a true necessity for success and sales, especially in our market today.

Trying to save money by not using Mortgage Coach is like trying to save money by driving on bald tires. It is an accident waiting to happen!! The loan officer without Mortgage Coach is actually losing money by missing sales opportunities and doing their clients a big disservice.

We thanked Lance for sharing his thoughts with us and, to help readers better absorb his comments, we asked him to elaborate on how he uses Mortgage Coach. He told us:

After asking probing questions and finding out the client’s goals, Mortgage Coach clearly shows, with just a few easy entries, the best options for the client. The debt restructure tool shows debt being paid off and total monthly savings.

It also illustrates that if the savings is applied to the mortgage or invested, the new mortgage could, in most cases, be paid off years in advance (or have one dynamite retirement) for the same or less money than they were previously paying.

Mortgage Coach is an easy way to clearly show the client’s goals achieved and make the sale!! My sales almost doubled the first year using it, plus Mortgage Coach made my job a whole lot easier. It is a fact — a loan officer using Mortgage Coach will increase their sales.

Thank you Lance for your first-hand experience and thoughtful feedback.

If you have any questions for Lance, email him at lance.a.lastinger@bankofamerica.com.

David Kuiper Sells a $280,000 Mortgage to a Couple Whose Home is Paid Off and Secures Their Future for Life

You may recall that I’ve written about David Kuiper before. He has a very interesting and unique arrangement with his financial planning referral partner, Shane Ale. They actually own an office building together. When David receives a referral, Shane simply walks the customer down the hall to David’s door.

PROBLEM/SITUATION:
That’s exactly what Shane did in this latest example. John and Tracy received an inheritance and used the cash to build their dream home, so they had no mortgage, but they also had no retirement plan or college fund for their kids. They went to Shane to see what they could do and Shane sent them to David.

SOLUTION:
Using the Equity Repositioning Analysis, David convinced this couple — who, remember, had no mortgage payment — to take on a $280,000 cash out refinance with payments of $1,400 per month. The instrument he used was a 5-year interest-only ARM. The benefit: They now had a nest egg that would secure both their and their children’s future.

KEY TAKEAWAYS OF THIS CALL:
* David’s key questions, such as “What do you want your retirement to look like?” and “What do you want to accomplish while you’re here on earth?” establish the client’s lifetime goals up front.
* David translates the dollars on the ERA into lifestyle benefits so the client can see the true value they’ll get from the transaction.
* David not only talks the talk, he also emphasizes to his clients that he walks the walk. Meaning, he has three properties of his own, all with interest-only loans. He makes it clear that he would not sell them something he would not take on himself.
* He goes off the credit report to talk about liabilities that might not show up on paper to get a true picture of their financial situation before making recommendations.
* He gained John and Tracy’s trust and business by showing them how their asset accumulation would create a secure future for them and their children. 
* After paying off closing costs and other debt, the couple gave $270,000 to Shane to invest. As a result, David secured Shane’s trust and business by generating more assets under management for him.

When this client walked into David’s door, they were putting away just $300 a month for retirement. At that rate, it would take their entire lives to secure their future, if at all. What David did for this couple you can easily do for your clients.

Listen to this call today.   

Or you can download this 23MB file Click Here.

Click here for a sample of David's Equity Repositioning Analysis.

Learn How Richard Lovell Turned 1 Loan Into 4 Loans

Richard Lovell of First Choice Mortgage Lending in California is a 12-year veteran of the mortgage industry, so it’s no surprise that he is a master at turning a single loan into multiple loans and referrals. In this recorded interview, he’s got some great ideas for helping other loan officers do the same.

PROBLEM/SOLUTION:
This client, a restaurant owner, had a strong financial position with low debt — but they had limited monthly cash flow and were concerned that they were paying too much in taxes. So, their financial planner sent them to Richard.

KEY TAKEAWAYS FROM THIS CALL:

* Richard creates what he calls a “predictable process” and uses it consistently.
* He starts with basic questions that uncover unseen problems while setting up his future presentation.
* He drills deep to uncover unseen opportunities. For instance, after discussing their current home mortgage payment, Richard asked if they had made any improvements on the property. It turned out they had, which he felt expanded their options.
* He positions himself as the “captain” of their “wealth team” early on by asking for the names of any financial planners, tax advisors and estate planners they work with, as well as permission to call them. 
* Richard always presents the Total Cost Analysis report first, and uses a client’s existing loan as a starting point. He then makes comparisons with loan options that would increase their liquidity and long-term assets.

Soon after the loan closed, the client referred Richard to another family couple who also had multiple properties. In addition, by bringing the tax advisor into the loop, he now has a new referral partner. And by introducing the tax advisor to the financial planner, Richard looks like a hero all around.

Click on the player below to listen to this call.

Or you can download this 28MB file click here.

Click here to see a sample of Richard's Equity Repositioning Analysis he presents to clients.