Oh, database,
Ahhh, database,
Ummmm, database.
This has been the mantra heard in the industry for the last seven years.
We know our business can only improve and yet we hesitate to implement this system.
Why does this project seem so overwhelming?
Why are we not willing to invest in this area of our business?
Many of us are able to wrap our arms around the concept of “Customer for Life” understanding that we must create “Raving Fans” in order to achieve this lofty goal. The challenge comes in when we try to express our uniqueness. What makes working with this team and/or company a special experience? What is the bond that holds this relationship together? All long-term relationships will encounter peaks and valleys; the purpose of the database is to create the glue that will solidify this bridge when these challenges arise.
From the time you close the first loan for your client, it becomes open season because the document is recorded (public information) the solicitations to refinance from other lenders is non-stop. Their marketing is relentless, and if you do not have a game plan in place, the client you worked so hard to obtain is going to go somewhere else for their next loan. If this is not what you want to see happen, lets talk about what can be done in the way of preventative measures.
First: Employee systems must be in place. Each employee has two or three major job functions they are expected to do. Are they clear on what is expected of them, and what the end result should look like at the end of the day? For example:
Originators:
- Pre-Qualifications
High Trust Interviews
Annual Reviews
Processors:
- Pre-Underwrite Loans
Clear Conditions
Manage Closings
Clerical Assistant:
- Type Letters
Manage Calendars
Confirm Appointments
Marketing:
- Keep Database
Manage Marketing Campaigns
Run Queries on Rate, Pre-Payments, etc…
Second: Consistency is Key - The process needs to run the same way for each client every single time.
Property TBD:
- Client Faxes
Alt. Doc
Run Auto Approval
Schedule Meetings
Pre-Approval Letter Delivered to Referring Source
In Contract:
- Intro Letter/E-Mail/Fax to Realtors
Thank You Note to Referring Source
Gift at Formal Approval
Status Letter/E-Mail
Faxes Each Week
Ten-Days Before Closing
Expectations Notification
After Closing:
- Quarterly Newsletter
Economic Conditions
Rate Watch Call
Annual Review
Third: Analyze Your Business. What in-flight corrections are necessary? Are you running into emergencies on a daily basis? Why is that? Here are some suggestions on how to shore-up some areas:
- Lead Conversion: Run prospect pipeline report weekly, monthly, quarterly. Analyze the patterns. Are your referral sources closing deals or keeping you busy?
Underwriting: Make an extra copy of the approval, place in a separate folder. Review once a month with staff to determine team/investor weaknesses.
Late Closings: Make an extra copy of the Prior-to-Funding Report, place in a separate folder. Review once a month with staff to determine team/investor weaknesses.
Before you can expect automation to work well for you, these areas must be in alignment.
Once you have clarification in these areas, you will be able to communicate what is unique and special about the relationship you and the client are building. This provides the confidence to market and retain the long-term relationships that are the annuity of all businesses.
This about it this way…your database is really the only asset you have in the mortgage business!