Interview With a Winner
Bryan McNee
Bryan McNee, American Lending Group, Lexington, Kentucky
2003 Loan Volume: 40 Million
Average Loan Amount: $130,000
Software: Provantage, Genesis, ACT, Mortgage Coach, Barry Habib's Mortgage Market
Referral source mix: 45% realtor, 45% past client and 5% other
Boni Lonnsburry: How did you get started in the mortgage business?
Bryan McNee: Eight years ago my CPA convinced me to come on board with him (he's now president of American Lending Group). Before that I was in the electronics business (the sales and finance of semiconductors). I have a very strong accounting background, and he convinced me that I could use it in the mortgage business. If it weren't for my personal relationship with him, I probably wouldn't have gotten into mortgage banking.
Boni Lonnsburry: Were you an immediate success?
Bryan McNee: I was in a great position for the first three months. This was back in the day when you still got some sort of starting salary before getting hit with commissions. I shadowed the underwriters and looked through the other loan officers files. I learned why they were put together poorly, why some would never close - all the mistakes the loan officers made. This helped me to thoroughly learn the products.
Once I began originating, I closed 120 loans my first 12 month period. That's a pretty substantial amount of closings considering that rates were around 8%, not the 5% which a lot of the new loan officers have recently enjoyed. I was able to close that number of loans because I was working hard to find a financial solution for my customers as opposed to just trying to rip out the cheapest rate on the market.
The majority of the other loan officers who were around eight years ago are no longer in the business. Very few of them survived October of 1998 when mortgage rates shot up. These former loan officers were basically what I like to call "phone monkeys." They answered the phone and reacted to what the customer was asking them. When I'd answer the phone, I would ask the potential customers very specific questions to determine what they really needed. Most consumers only purchase or refinance a home a couple times during their lifetime - they don't know how to ask the right questions. I try to get them to start thinking about what will be best for them. That's why my referrals are so strong. My customers recognize that and they keep coming back.
Boni: How do you use Mortgage Coach in that mix?
Bryan: I've primarily used Mortgage Coach on purchases. The refinance boom hasn't had much effect on my business. My numbers are basically the same as they were six years ago. Within 20 to 50 units per year, my production has been steady because I've focused on the purchase side of the business.
I use Mortgage Coach to show the total cost analysis of four different types of loans side by side. I try to figure out how long the customer is going to be in the home and take a look at some ARMs. Even though 30-year fixed rates have been quite low, the number of ARMs that I've closed has increased over the last 24 months because a lot of people simply weren't going to live in their homes for five years. They were able to get an even better deal on rates with ARMs. Mortgage Coach helped me show them how. I was able to earn their business by doing more than just giving them a quick 30-year fixed rate over the phone.
I think I'll be using Mortgage Coach a lot more in October after the summer purchase business is over. That's when I'll start working more with customers who want to refinance to take care of debt, restructure some things, or set up their retirement. That's where Mortgage Coach offers a huge benefit.
Boni: What mistake do you see rookie loan officers most often making?
Bryan: If they've gotten into the business in the past couple months, they've already made a big mistake. Every trade publication, economist, and business model for every mortgage company out there shows that they will be downsizing offices, processors and loan officers. So anybody who has gotten into the business very recently is going to be gone shortly. Very few will survive. I call it the "Turtle Theory." Have you ever seen sea turtles hatch (on the Discovery Channel for example)? 10,000 of them crawl up out of the sand and try to make it to the ocean. Thousands of birds sweep down and snatch them up. Only a few of them actually make it into the water. The ones that do make it have to worry about getting eaten by fish. Only a small percentage of them actually become adult sea turtles. That's the way it will be for those who have entered the business in the last 12 months. A lot of them are going to be eaten up. They won't get to be a senior loan officer.
I think our industry suffers from a lack of professionalism. The young people who are just getting into the business don't know how to do business the old way - meaning wearing a suit and tie to work, following up, doing all the little things that made salespeople successful 20 years ago. They also aren't getting to know their products and their programs very well. They aren't taking the time required to learn.
Many of them are forced into a commission situation where they have to try to focus immediately on closing loans. They are so consumed with making the money required to survive that they aren't giving their customers all the benefits that they should as a trusted loan officer. Their short term thinking will hurt them in the long run.
Boni: What about veteran loan officers? Do they make the same mistakes?
Bryan: There aren't a whole lot of veteran loan officers around. When you consider that 40-50% of the people employed in the mortgage profession probably have five years or less experience, there are very few officers out there who have been through the downward portion of the market cycle that we are headed towards now: higher rates and a lower volume of closings.
The biggest mistake I see veteran loan officers make, is that they don't continue to invest in themselves with ongoing training, new systems, seminars, etc. Any sales professional has to avoid stagnation. If you aren't experiencing new programs and learning from other successful loan officer's approaches, you'll suffer. As long as you take advantage of new trends, training, and what you can learn from other successful people, then you'll continue to do well.
Boni: What do you think separates you from the average loan officer?
Bryan: Professionalism and branding. Realtors have always fascinated me. They sell their personality and their "brand." They always put their picture on their marketing materials. They want to sell themselves as trustworthy and someone you should remember. I do the same thing. My letterhead (and all my marketing materials) have my ugly face on it. I put a big part of my budget towards In Touch Today's fantastic newsletters, magnets and other features because they differentiate me from other loan officers. So few loan officers take advantage of the great service that In Touch Today provides - they've really helped me to brand myself.
Boni: If you had a son or a daughter entering the business, what would you tell them?
Bryan: I'd give them the same advice if they were going into any business. "Do unto others as you'd have them do unto you." Make sure that you research everything about each customer so you can give them the best product and service that you can - not just what will get you the highest commission on the loan.
Boni: What was your most successful marketing campaign?
Bryan: I hold a customer appreciation day and take my Realtors and past customers to a minor league baseball game. The number of referrals I get from this is amazing. I also send out a monthly newsletter through In Touch Today. It keeps my name and my face in front of my clients at all times. They don't forget about me when they're thinking about refinancing or hear that one of their neighbors is going to be moving. They call me because my number is right there on their coffee table.
Boni: Do you have a turnkey sales or marketing idea you can tell us about?
Bryan: A lot of what I've been talking about is the importance of setting yourself apart from other mortgage professionals out there. For instance, www.homecompanionpro.com offers a business card CD for $89. It contains a mortgage calculator, a couple of videos, and can be personalized with your photo and logo. Handing out a business card CD really sets you apart from other loan officers. When the client puts it in their computer, your face is right there the whole time. It's an inexpensive marketing tool that has led to many sales for me.
We have about 250,000 citizens in our "metro area," and the average loan amount is in the low 100's. However, there are about a gazillion Realtors here and a lot of mortgage companies. I market to the Realtors through email every day. In the old days, I'd knock on the Realtor's door and hand out a rate sheet every once in awhile. Those days are over. The Realtors don't have time anymore. Putting together a nice slick HTML email with your face and some great articles is very easy and inexpensive. You can get the email addresses from your local board of Realtors and promote yourself and your rates every day. You'll be surprised how much business you get from the Realtors as far as their own personal loans for homes and investment properties. If you do a good job on their loan, they'll obviously send you other business as well.
I also suggest that you show up to your closings. I have all my closings here at my office. Just call your title company and remind them that YOU are the customer (not the Realtor or the borrower), and that you'd like to have the closings at your office. They'll be happy to do it for you. You're there for your clients in the beginning and you should want to be there for them in the end.
Boni: Who or what was the biggest contributor to your success?
Bryan: I budget $500 a month for training. I'll take a class online, buy a seminar or a new CD, or go to one of the superstar success seminars. I identify most with Greg Frost. He has focused on the Realtor more than anybody else has. I've implemented a lot of his ideas and they've worked the best for me. Some of the other guys, like Barry Habib, focus more on the Mortgage Coach end of it and the bond market side which has also helped me - but Greg Frost has had the most impact on how I do my daily business.
The philosophies of Norman Vincent Peale have also had an impact on me. I've adopted a lot of his techniques and values, which I feel can make you successful in any business.
Boni: What are your current goals?
Bryan: My goals as a loan originator is to make the transition into more of a team oriented approach in order to free myself up to do other things. I've been approved as a continuing education instructor for Realtors in Kentucky. I'm starting to work on some coaching, and I'm working on a few online seminars. I'm looking for ways to get the local Realtors to send my team more and more business, while I'm doing less hands-on originating.
I've got a great assistant, but it took me a long time to find somebody who I thought would do a great job as a loan officer. I wanted somebody who shared a lot of my views. I think that I've got a really good team together now. By setting up a great team, I'll be able to get to my other goals. Most originators have a "this month" mindset. They are always thinking about their commission. I want to move on to where I do not have to think about it because my team will take care of it.
Boni: Is there anything else you'd like to say to other originators who want to create the kind of success that you've created?
Bryan: One of the individuals I recently interviewed for a position with our company had interviewed at several other companies. When we sat down he said to me that I was the first person he'd met with who was wearing a suit. It reinforced my belief that many of the mortgage "professionals" out there aren't very professional. When someone is sitting across from you at the table, and you're talking to them about a loan (and their future), you need to be professional in order to instill confidence. They need to be able to trust you to make the right decision.
It's as basic as doing business in 1920. You must have a professional office and professional appearance. I survey my clients and the Realtors at every closing. If they've had a prior loan through another company, I ask them how we compare. What keeps coming across is how professional we are compared to the other mortgage companies out there. Professionalism breeds referrals.