Everyone talks about top Producers? Focusing on Top Earners would be a better ranking criteria for Mortgage Professionals.
People always ask me what SEM’s production is and I proudly tell them our Shareholders own the best margined business in the industry. Frankly, production does not pay the bills.
A Company’s ability to convert production to Revenue to Net Income is sustainability. No Debt and Vertical integration of services and functionality creates incredible efficiency so you can pay your team well and still post impressive earnings. Many Mortgage companies use bolt on services and non-direct secondary access which is expensive and wastes revenue.
If your margins are too tight and you fail to balance revenue to expense, your company will have to sell or close their doors as we continue to see. The key and art is to price at market and competitively adjust to earn your Partner’s business.
Over my 26 years, I have heard “my pay will blow your socks off”, “I make a lot”, etc. If you only play pick up basketball in your neighborhood and there was no TV or Internet, you would not realize there is an NBA.
Focus on what pays your bills. Trophies and Trips will not pay your bills. Earn and grow your business. Buy your own better travel experiences with better production to pay conversion. I know from personal experience none of the Bank Trips I won were half as cool as the travel I enjoy today.
Mortgage Originator’s are realizing they have to make changes with respect to what is the most beneficial goal for them. As our Originator population ages, preparing for a secure retirement has become a call to action.
Cal Haupt, Chairman and Chief Executive Officer, Southeast Mortgage of Georgia, Inc.
Volume – Pay Shift