Add ‘focus’ to your mortgage lending vocabulary

When Bill Gates first met Warren Buffett, so the story goes, Gates’ father, who was the dinner host, asked everyone around the table to identify what they believed was the single, most important factor in their success through life. Gates and Buffett gave the same answer: Focus.

Not knowledge. Not experience. Not opportunity. Not even luck. No, they said it was focus—that was the single, most important factor in their success.

That’s pretty great. Because if indeed focus can bring success, then we all have a chance, right?

We can apply focus to the various compartments of our life, including family and, of course, our work. If we can sharpen our focus on mortgage lending, we can succeed.

And focus itself does not involve spending huge sums of money on staff or services. Focus means concentrating and zeroing in on what’s crucial. Focus means keep at it—don’t let up; don’t be scattered. Keep your eye on the prize.

For mortgage lending success, then, focus knows no bounds. It doesn’t apply to just the big operations. It doesn’t favor one type of loan over another.

No, what focus does is make you think about what’s best for your own shop. What can you do to make it the best it can be? Each mortgage-granting credit union will have its own list of items necessary to sharpen its focus. Here are a few questions to ask:

• Do your members come to you first for their mortgage loan? If not, why? A mortgage is a long-term commitment; done right, it can create a long-term relationship.
• Do you tailor your products to your membership? Knowing what they want and need, including how much they can afford, is a key element here. Would some of your members be better off with a non-conforming loan? Are VA and FHA loans in your mix?
• What are member expectations for the process? Do you set expectations about when the loan will close? Do you educate them on the process? Do you communicate with throughout? And perhaps most important, do you track it all (days from loan-to-close, communication at points along the pipeline, time length from application to approval, etc.)? Remember, you can’t improve what you don’t track.
• Do you have relationships with Realtors? Increasingly, referrals from these local professionals will be important for growing your business. Do Realtors know about your loan products? Do they know your field of membership? If they know both, they will be great partners.
• Are you ready for a wave of new purchase loans? As the Fed raises interest rates, refinance loans will shrink and purchase loans will take the spotlight. And as millennials age, they will take an increasingly larger role in home buying (it’s already large). Are you ready to offer them loans on their terms?
• Do you have the channels your members want? Some may prefer face-to-face applications; other want to go online. The mobile channel will gain momentum. Can members get help online and on the phone? Do you use texting and email to communicate with borrowers?

All of these questions are intended to get you thinking. And when you decide what route to take, make sure you bring along your focus. Focus on what you can do, and do it the best you can.  Have each member of your team know their responsibilities and help them focus.

You might even share with your team the story about Gates and Buffett. It can certainly be a motivator and bring a higher awareness of the role of focus.

Finally, give your team goals and recognize them when they succeed.