You don’t have to use commissions to buy down rate if you are truly adding value to your client. Here’s how to do it if you find yourself always sacrificing income.
You don’t have to use commissions to buy down rate if you are truly adding value to your client. Here’s how to do it if you find yourself always sacrificing income.
A long time client of mine came into the office to sign their commitment last week. I was excited for this one. It was over $500,000, which in my market doesn’t come around on a regular basis so I was even borderline giddy.
When she and her husband came in, I had two sparkling waters and some of my famous homemade chocolates ready and waiting on my desk for them to enjoy as we went through the documents.
I was so happy. Not only for the size of the deal, but just so happy that these clients came from their little condo, to their first little home, and have now grown as a family into this big forever home and I did the mortgages all the way.
They walked in, gave me big hugs, we chatted about life and all seemed great! Until I picked up the pens…
That’s when they did it. They did the one thing a broker struggles with on a regular basis, the one thing we all hate….they ghosted me.
If you have ever been on dating sites, or have been recruited to a point you almost got the job, or even thought you had it and then it was taken away, you probably know how it feels to be “ghosted”. But this one hurt just a little more. Long time clients.
What is the “ghost” you ask? Client ghosting is when they appear to get to the finish line with you, you put in all of the work, time and effort to get them approved and then they drop this on you:
“Thanks so much for getting us approved, we have always loved working with you. It’s just that, we told little Timmy at the bank the rate your are giving us and after changing his pull up, he came back to the table with a lower rate and I think we will take it”.
Oops, do I still sound bitter? That may not have been an exact quote (I can neither confirm nor deny the “pull ups” part, it’s possible that will get edited by M|M, but raw is what I do, so I hope not.
Anyway, ghosted, again. But this time by a loyal long time client!
If somehow you are not a broker but a client and reading this or better yet, broker family, why not share this out to clients….read this:
Client Ghosting is one of the worst things you can do to us in our business. You may visit us for 20 minutes to take an application, but behind the scenes we put hours and hours of work into finding you the right lender, getting you approved, proving you are the good paying awesome mortgage holder you are, and navigating the always choppy waters of pre-funding…yes your lender reviews you again before close so for the love of god don’t change jobs. Then we also help coordinate with your realtor and lawyer. We work hard for your business.
But we don’t get paid until you close the mortgage with us! That’s right, not a dime. Timmy at the bank gets his $18/hr no matter what, and did no real work for you. Wait until you check out that penalty he buried under page 6.
My point here is, as brokers we are always looking out for our clients, it is our passion, it is what we live for. Don’t Ghost us.
How I Handled it and Won Them Back
For those who know me well, they know that I rarely give up without a fight. As infuriating as client ghosting is, if I gave up on each one, I wouldn’t be as successful as I am.
I may not have been as tactful above writing to you, my peers, but with the client tact is always my first approach. This was the conversation:
Me: “Oh Mr. and Mrs. Smith, I am so glad you have taken such a deep interest in our process that you brought it up with your bank. Doing as much research as possible is exactly what I do and I am glad you followed suit.
I am also very sorry that they (the bank) didn’t take the time to get to know you well enough to be aware you needed this better rate in the first place. I always hate having to tell the businesses I deal with how to do their own jobs”
Clients: “How to do their jobs?”
Me: “Well yes. Let me ask, why did you visit the bank in the first place?”
Client: “Oh we were just transferring some money into our account for the rest of the deposit and when we mentioned what it was for that was when the teller brought Timmy over”.
Me: “Oh good so these funds came from your mutual funds as you stated to me in the application, correct?”
Me: “Wonderful! That was exactly the idea we had when I called you in March after Jordan was born and you were worried the house wasn’t big enough, right?”
Client: “Yes! Thank you for that by the way”.
Me: “Oh you are welcome, I was just so excited Jordan was here with us all now and wanted to say congratulations, but totally understood it was perhaps time for a bigger home. Tell me, did Timmy or someone at the bank agree with my idea about using some of those unregistered savings to help you get into this house, when they called after Jordan was born?”
Client: “Oh no, we didn’t bring it up to anyone until just now, they didn’t call”.
Me: “Oh I thought they would have with the birth of Jordan”.
Client: “Oh no they didn’t”.
Me: “Well you would have been pregnant during their mandatory annual review of your mutual funds, I would have thought they would bring it up then, given the life event you were about to have.
Client: “We did not have an annual review”.
Me: “Well you must have. The banks mutual fund license holders need to abide by the ‘Know Your Client’ (KYC) rules and have a full review with you at a minimum annually. Tell me, when Timmy opened those mutual funds for you he didn’t inform you of that?”
Client: “Oh Timmy didn’t open them for us, actually he is new! He just graduated.”
Me: “Oh good for him. So he is new to the business. So, he didn’t call you when Jordan was born, and didn’t open your investments, so you effectively have no relationship with him. (client nods at me)
The bank didn’t call you to review whether your investments were right for your life situation or risk profile anymore, even though they are required to do so. (Client nods again)
You essentially had to tell a teller that you were buying a home to get the teller to refer you to a representative essentially in training. That rep then had to tell you about a rate available to you that you would have known about long ago with proper client care and a full review before I put all of this work into getting you approved. Is that correct”?
Client: “I think I see where this is going”.
Me: “I would hope so. Yes, you did their job for them. I hate when that happens”.
The conversation went on about how the rate difference impacted overall cost, how they were attaching another $20,000 as a line of credit and the impacts of that HELOC being on there and the astronomical possible penalties.
In the end they decided rate wasn’t the most important thing and stayed with me.
The lesson here is two fold…
Yes it is absolutely rage inducing to have a client “ghost” you. Such is the life we lead fellow colleagues. Don’t let that deal walk! It will mean the difference between epic success and the “mushy middle” as another article on here put it.
Help them see why the rate was offered and how the bank was jumping on a cheap opportunity to make a sale. You are the expert, you have the license, you are driving the bus, even when it seems like your ghost across the table is driving.
Will you win them all back? No. But if the baby doesn’t cry the baby doesn’t get fed. Open your mouths and save your deal. You’ll thank me later.
Stay tuned to Mortgage Magnates for new video content on this and more topics streaming this December! Check out all of our current content by signing up now! Just $16.99 per month gets you full unlimited access to all streaming content 24/7. It’s about brokers helping brokers! Now streaming success
In the first few days of my new role as President and CEO at Mortgage Magnates (formerly Mortgage Mondays), I have been asked by many in the industry: “Is this thing legit?” “It looks good, but why is it only $16.99 per month?” “Why would you pay the brokers that appear on the videos to share their best practices? I am sure most would do it for free.”
The answer is very simple. My approach, and the approach of everyone ever associated with Mortgage Magnates is and always will be, we are in the business of people. Not training, not profits.
When we say this is ‘brokers helping brokers’ we truly mean it.
Of course we know it is also a business and businesses need to make money to survive, but our primary mindset is “people” and those “people” are each and every one of you.
I am sure that is going to be met by skepticism by some and you are well within your right to take that approach. Society and likely business in general may have hardened you that way. Proof will be in the action and not the words.
When it comes to Mortgage Magnates, we will act, not spout.
If our members learn something from a “magnate” of the industry that has experienced success using that best practice themselves, and it helps this newer professional take their business to the next level and put food on the table for their family…then we have done our job.
We are not worried about their monthly fee. We are celebrating their win! We want them to be so successful that they end up in one of our next videos a few months down the road and WE pay them. That is our goal.
As for paying the residuals to brokers that appear on M|M University, I wholeheartedly believe in this approach.
You are sharing best practices that took you a very long time to discover ,and likely weren’t paid to discover them, it was just trial and error. You deserve to be rewarded for sharing it.
Not only that, paying the magnates of the industry to share best practices ensures they share the best ones, that make the most impact. How?
Our residuals are paid per view of the video. So if the featured broker shares something just to share it, and it doesn’t work, it won’t get the same amount of views as a stronger best practice that is working well for our members, and therefore, they won’t get paid as much in residuals.
The point is, to be a business about people first, we have to truly be about the people we are involved with. Our membership, our featured brokers, our own team, all of our families. It is about making this industry even better than it already is and setting ourselves apart from the banks. It is about continuing to make all of us the best choice for mortgage advice for North American families.
Making a difference in the business of people is all in how you show up. I encourage you all to watch this video by my friend and industry speaker Ryan Estis about running into someone that was in the business of people and how it changed his world. It will give you strong insight into why this is and always will be, the M|M University approach to our industry.
All the best to you as you finish your 2019! We can’t wait to work with you all.
Chris Baker is President and CEO of Mortgage Magnates and M|M University.
Ontario, Canada Release: November 8, 2019 For Immediate Release
Mortgage Magnates and M|M University, today announced that Chris Baker will assume the role of President and Chief Executive Officer.
Chris comes to us with a plethora of knowledge and background that is poised to lead Mortgage Magnates and our M|M University platform in its projected growth over the coming years.
Educated in Radio and Television broadcasting, Chris most recently held the role of Regional Vice President in Southwestern Ontario for one of Canada’s prominent lenders in the Mortgage Broker space. He also spent time as Director of Field Initiatives and National Recruiting manager at London Life and Freedom 55 Financial where he was also a prominent figure at industry speaking events. Chris began his leadership career at Wells Fargo Financial over 10 years ago.
Mortgage Magnates is thrilled to have Chris’ media, broadcasting, speaking, business building, mortgage and financial services experience coming into the leadership fold.
Baker says, “I am excited and thrilled to bring this new learning platform to North American Mortgage Agents and Brokers. It’s revolutionary design and Netflix style delivery of content makes it an industry leading way for Canadian mortgage professionals to learn sales, marketing and business development skills. Best of all, we know these skills and best practices work, because we are delivering them directly from the brokers who are implementing them successfully today in their own practices”.
Chris will spend his initial days travelling to the offices of featured brokers to be involved in the filming of new content and meeting with our featured brokers as Mortgage Magnates moves forward on executing it’s previously announced plan to move away from animated delivery of content into live action content featuring our broker partners sharing their best practices.
About the Company:
Founded in 2018 as Mortgage Mondays and recently rebranded as Mortgage Magnates, M|M University has built it’s membership around the vision of providing better sales, marketing and business development training for mortgage agents and brokers who have traditionally only had access to licensing training that does not include these important skills to developing success. Mortgage Magnates is a streaming service similar to popular services like Netflix in that new streaming content is delivered monthly to its membership so that the learning and most up to date best practices never stop.
It’s acclaimed “burst training” model, means no agent or broker has to sit and view a module for any longer than fifteen minutes. Agents and Brokers spend less time acquiring the skill and more time using it in their practice. Best of all, all content comes from already successful brokers utilizing that best practice right now. It’s truly about brokers helping brokers.
For any questions or comments related to this release, please contact us at:
Client Services – 1-800-975-6370 or email us at: firstname.lastname@example.org
Chris can be reached for comment at:
email@example.com or 1-800-975-6370 ext 103
Visit http://mortgagemagnates.com to sign up!
The key to every successful relationship both personal and professional is…trust. In life, we leverage so many different ways to earn and build a trusting relationship, especially in our personal lives.
Often, brokers, agents and other business professionals, let this part of life slip a bit when it comes to their growing business. Many are in it for the quick sale and “say anything to get the deal”. It may result in a quick one time mortgage transaction but in the long run, your business will grow at an exponentially slower rate than that of a broker who makes trust their number one priority.
I recently heard a new agent cold call a potential client. They spent the entire call telling them, “the banks are bad, use a broker, use me”.
I get it….We all know clients are better off using us, but this was an entirely wrong way to go about this call and build trust. Why? How can you build trust with someone new when you just spent the entire call spewing about how everything they have done to this point is wrong?
See this agent just told the potential lead that their whole life using their bank was basically insane and that my random phone call to you should change all of that. No established trust whatsoever.
There is some great content here on Mortgage Mondays that tells agents how to spend more time showing prospects an understanding of the value of our business and I immediately signed the agent in question up for a membership so they could watch it. In that particular call, they gave them no understanding of what we do and yet felt comfortable enough to tell them why they have been wrong their whole lives. Needless to say….no appointment set.
Trust is integral to all sales roles, not just mortgage brokering and once it has been earned and built, THEN we can leverage trust to increase our mortgage sales by asking for and receiving referrals.
Let me ask you….
If someone you know and trust rings your doorbell with an opportunity and then 20 minutes later someone you never met has the same opportunity, who are you more likely to give the time of day? Exactly. We MUST build and earn trust in this business.
The fact of the matter is, being a broker or mortgage agent is about advice. It is what sets you apart from the banks and even each other! When providing someone with mortgage advice , trust is what gets the advice listened to, taken and adhered to.
We can also build trust during advice by not making outlandish claims. You need to simply give reality and easy to understand outcomes to the client that are positive, and then also not withhold what happens (in a gentle way) if the advice is not adhered to. Why?
Being honest and realistic is what keeps a client coming back for more advice, it builds trust and it leads that client to referring you to others to heed your advice. When clients seek your help with making decisions, this is where the birth of sales begin.
Trust is in the hard conversation too. I contributed to the Mortgage Mondays module “having the bad credit conversation” and in it describe that it is a hard conversation, but when done right, it also builds trust.
No one likes getting bad news about their mortgage. But how you present this information is critical to building and maintaining trust. I once heard an agent say over the phone “sorry we can’t do anything for you, your beacon is too low. Wish I could do more” and essentially leave it at that. Are you kidding me?
As I move forward and try to grow myself as a broker, in this ever growing and competitive mortgage broker industry; I have invested in myself.
How have I chosen to invest? First, by getting my membership here to Mortgage Magnates. Then, I implemented new and what I think, are great strategies to finally take my mortgage practice to the next level, and pulled out all of the stops to be better than the broker down the street. So what did I do to achieve this you ask?
Well, the Mortgage Magnates platform, and further research of my own, have taught me strategies that have fundamentally altered my entire career trajectory as a broker.
The question was; in a day where banks spend millions on quick and efficient online applications and calculators, I was left wondering….how are we ever to compete? Are we a dying breed? The answer, is simpler than we all thought.
Mortgage Magnates was good enough to let me share some of my discoveries here for you on the blog but also note: I will be appearing as a featured broker in the December 2019 M|M University content release lineup, so check that out when it is streaming live, beginning in December right here.
Alright, enough with the shameless self promo…I want to expand on this idea of mortgage client transformation. We’ll discuss where clients are today, and where they are headed into 2020 and beyond by referencing three trends. Think about your clients, and how much they have truly changed over the course of the last few years. Pretty incredible isn’t it?
Mortgage Magnates actually calls this the “era of the mortgage client” and I completely agree. The research identifies three trends that are extremely relevant to us as brokers and our industry as a whole.
The first trend is that speed and efficiency rule. Think about that quick and dirty bank mortgage app I just referenced earlier. This is so effective for them because our potential mortgage clients are busier than they have ever been! They can come in when they have 15 minutes, fill out an app, get an answer quickly and be on their way.
Why is this an advantage for the banks? Think about how busy you are in your own brokering lives right now. How many of you out there are reading this on a smart phone?
Consider this…in 2019 the average smart phone user checks their device 151 times per day. The average professional, checks email over 35 times per hour. The average Facebook user checks their account 17 times per day. On top of this, most of us are truly working multiple “life” shifts in a single day!
We work the 9-5 shift at work, then head home, feed the kids, do the homework, get the showers and baths done, get the kids in bed and then what do we do? We are back on for the 8 to midnight shift.
We are busy and we are more distracted than ever.
In fact, the average human attention span in 2019 is a virtually terrifying 8 seconds, just one measly second longer than the common household gold fish! That is insanely low in this writers opinion.
In an era where we are so busy and our expectations are changing so fast, speed and efficiency truly matter in our business.
The other major trend is that our potential clients are more informed than ever before. With access to more information right in their own pocket and it is absolutely changing the way they make their buying decisions.
Today, a modern mortgage client is over 65% of the way into a decision before they ever walk into your brokerage or come in contact with you at all. So we are meeting our clients in a very different place in their decision process as compared to the brokers of yesteryear.
The last trend in all of this is that our mortgage clients of today will continue to be bombarded with more and more choices than ever before. Your competition is truly just a click away! But this is where the rubber meets the road because here is where a stark contrast is created when it comes to the difference between “what you do” and “how you do” business as an agent or broker.
Increasingly, in this new economy, the ‘what we do’ is quickly becoming a commodity in vast supply. It’s harder and harder to differentiate and get an advantage. This is because products and services and us ourselves, become more and more a commodity available in mass quantities.
But there is a HUGE opportunity my fellow agents and brokers! There is an enormous chance here to create a revolutionary differentiation in “HOW” you do business with your clients. This is where your championship win resides.
This is your opportunity to get the “How Advantage”. The best way in my business that I captured the how advantage over the broker or bank down the street, is to strive to be remarkable at everything we do consistently, right down to servicing. This is, in fact, our daily mantra here. Be remarkable, consistently.
What do I mean? Well, remarkable is being worthy of being remarked upon. Something so good, a client leaves thinking, ‘I can’t wait to go tell someone else, tell my friends, and my family about my experience.’
These three trends and how to deal with them, will have a really significant impact on a mortgage business…
To learn more, stay tuned to catch my video, streaming on Mortgage Magnates, this December.
One of the biggest differences mortgage brokers who exceed their own performance expectations have today vs. brokers and agents who never seem to pull themselves out of mediocrity is this: They both approach one of the barriers to top performance completely differently.
Brokers experiencing the “middle” in performance are selling and presenting to clients to simply share information, whereas top performing brokers and agents are presenting and selling to earn a commitment to doing business.
See top brokers and agents realize that every single interaction and touch point with a potential client is a defining moment and a clear opportunity to advance the relationship between broker and client AND they realize that every touch point should have a commitment objective.
So what is a commitment objective?
It is not always about getting a signed commitment for a mortgage with your client. It’s about moving your mutual relationship forward to that moment of truth at signing. Consider it the law of incremental commitment.
Typically in our world, mortgage sales include a series of incremental commitments, whether that be the commitment to dealing with you, the commitment to refer you, the commitment just to come in and meet with you or the commitment to actually sign on the dotted line.
As part of our brokerage we put into place three questions that we always, without fail, ask ourselves. We use these questions post mortgage appointment, call, referral appointment, you name it… we use them all the time. We use them to elevate our ability to review whether we earned commitment and created impetus to do business with us instead of the “other shop” across the way.
Here are the three questions:
2. What are the defined steps and timelines around these commitments?
3. Did I confirm commitment in writing and add some value to my client?
The fact of the matter is, you can’t just do this once to experience top performance. This approach has to become part of the culture of the brokerage and part of your committed sales approach with all clients.
How did we know this was successful for us? When we had agents both new and veteran, wandering around the office, holding each other accountable and asking each other things like, “hey, what commitment objective did you get out of that call this morning?”. That was when we knew this was working. Too often we think, hire an agent, bring them in, tell them to go, and reap whatever benefits you can get out of the splits. Then we wonder why X brokerage is performing at double the clip we are.
I can tell you why you are in the middle, because we DO need culture in our business, we DO need brand, we DO need unified approach to set ourselves apart. You might think your agents are just a means to more volume bonus, but the top brokerages understand that as a team, as a squad as an entity together, true top performance is born.
This is how you achieve breakthrough mortgage sales in today’s competitive marketplace.