In my 13 years working as an originator, I have found that teams are more effective than individuals who try to do it all. In any loan process, there are three distinct responsibilities and skill sets.
No.1: Prospecting
Marketing, lead generation, rainmaking—it has been called lots of things. But we call it prospecting, or the work that is done before you secure an actual appointment with a client.
No.2: Direct client contact
This includes the real duties of a loan officer—explaining the program, taking the actual application, answering questions and objections and helping the customer understand the origination process, the loan itself and the personalized benefits to each client.
No.3: Clerical work
This part includes paperwork—interfacing with the client for updated documents, working with underwriters, insurance companies and other third-party vendors—and is usually divided between a processor and a loan officer assistant.
Clearly, four people can accomplish these tasks better than one—that seems obvious enough. But of course, cost is the first thing that comes up. If we hire three people, we have to share commission and pay more salaries. That may be true, but at Fairway we believe the benefits outweigh the costs.
It is interesting that on an appraisal report one of the things that is always mentioned is the “highest and best use.” We think the same concept should be applied to the loan process. Loan officers and their supporting cast should make sure that whatever they do is the highest and best use of their time. We have found that most salespeople are not good prospectors and most good prospectors are not good salespeople. And, the detail-oriented people who excel at clerical work are the best at handling all the paperwork involved with a reverse mortgage loan. We believe that letting each person shine in the role that fits them best provides the maximum benefit to the client.
The other issue is efficiency. A loan officer might take 30 minutes to do something that a clerical person could do in 10. Wouldn’t the salesperson be better off spending that time connecting with the next prospect?
This is how we believe things should work. The marketing loan officer assistant focuses on prospecting—making calls to prospective clients and constantly massaging the lead database. They set appointments for the loan officer to meet potential clients and keep them as busy as they can. The job of the loan officer then is to attend every appointment and follow up with each lead as directed by the sales assistant. Usually a different loan officer assistant takes care of loans in process and continues to interface with the client and the processor. The processor deals with underwriting and all third-party vendors with consistent follow-up from the time an application comes in until it is closed.
We know that this system takes some faith, because there are higher upfront costs. Some companies may be turned off by this or will abandon it before it starts to work. But we have found that this is a system that is not only more efficient than working individually, but also better serves the client—and that is, after all, our highest priority.
