“Managing loans” is the tail that wags the dog today.\u00a0 When I was a rookie stockbroker, the good folks at Mother Merrill taught us to “gather assets”.\u00a0 Essentially, the firm encouraged us to pitch clients to have their assets transferred to a Merrill Lynch account.\u00a0 The strategy was that assets “in-house” would result in a commission when they had to be sold.<\/p>\n
Is it any wonder that the mortgage sales gurus who brought that strategy to the mortgage business were former stockbrokers?\u00a0 Rich Katz<\/a>, former President of Loan Toolbox, spent his early career with both Merrill Lynch and Smith Barney.\u00a0 Dave Savage<\/a> of Mortgage Coach perfected that strategy with his software offering.\u00a0 Todd Ballenger<\/a> developed a business model that partnered with financial planners; it’s cornerstone was actively managing mortgages for customers.<\/p>\n Simply put, a new mortgage originator could track current homeowners’ mortgages, by rate (and\/or term).\u00a0 The lowest-tech system would be in file folders, indexed by note rate.\u00a0 Vendors like Mortgage Coach<\/a>, Top of Mind<\/a>, and MyLoanBiz.com<\/a> offer automated solutions to managing mortgages.\u00a0 Whether you spend the money for automation or not, “managing mortgages” can be fruitful, especially in a low mortgage rate environment like today.<\/p>\n Greg Frost of LoanToolbox tells us that “first in wins”<\/a>.\u00a0 When a dramatic move in rates occurs, the first originator to call the homeowner with an attractive loan solution usually has the best chance of earning the new loan business.\u00a0 Regardless of rate movements, approximately 9% of all loans outstanding are refinanced each year.\u00a0 Another 11% of all loans outstanding are paid off due to sales.\u00a0 This means that one out of five loans will be retired (and new loans will replace them) annually.\u00a0 A mortgage originator who wants to close 100 loans each year would do well to “gather” data for at least 500 homeowners then.<\/p>\n The strategy works whether you use a computer or a drawer-full of files.<\/strong> Here are some real life examples from practicing originators:<\/p>\n Dan Green talking to Dave Savage about how he used this strategy to excel in a down market.<\/a><\/p>\n Khai McBride discusses his quarterly credit review for clients<\/a><\/p>\n Jim Sahnger talks about how to <\/a>Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" “Managing loans” is the tail that wags the dog today.\u00a0 When I was a rookie stockbroker, the good folks at Mother Merrill taught us to “gather assets”.\u00a0 Essentially, the firm encouraged us to pitch clients to have their assets transferred to a Merrill Lynch account.\u00a0 The strategy was that assets “in-house” would result in a […]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[17,26,6,18],"tags":[],"class_list":{"0":"post-6458","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-interview","7":"category-lending","8":"category-marketing","9":"category-podcast","11":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":7122,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/7122\/sorry-europe-our-president-might-just-cowboy-up\/","url_meta":{"origin":6458,"position":0},"title":"Sorry Europe. Our President Might Just “Cowboy Up”","author":"Brian Brady","date":"February 24, 2009","format":false,"excerpt":"Bank of America is getting slaughtered by short sellers.\u00a0 The stock has plummeted to under 10% of its March, 2008 value.\u00a0 Of course, a few things happened on the way to the slaughterhouse: The bought Countrywide, America's largest mortgage originator. They bought Merrill Lynch, America's largest retail securities firm. Ken\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1810,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1810\/the-countrywide-federal-bailout-act-of-2008\/","url_meta":{"origin":6458,"position":1},"title":"The Countrywide Federal Bailout Act of 2008","author":"Brian Brady","date":"August 15, 2007","format":false,"excerpt":"Have you ever felt your stomach drop? I received an e-mail, from reader Robert Kerr today, asking if I had seen Merrill Lynch's downgrade of Countrywide Financial. Merrill Lynch believes that Countrywide might face bankruptcy. Make no mistake about it, a collapse of Countrywide Financial will give everybody in the\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4448,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4448\/bloodhound-blog-radio-nehemiah-down-payment-assistance-program\/","url_meta":{"origin":6458,"position":2},"title":"Bloodhound Blog Radio: Nehemiah Down Payment Assistance Program","author":"Brian Brady","date":"September 15, 2008","format":false,"excerpt":"Our guest on Bloodhound Blog Radio, this week, was Ronda Green, area manager with the Nehemiah Down Payment Assistance Program. Listen to the full episode here. We opened up the program announcing that we can be found on iTunes as \"Radio Mortgage\" .\u00a0 All episodes will be available here, on\u2026","rel":"","context":"In "Interview"","block_context":{"text":"Interview","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/interview\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1682,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1682\/mortgage-fraud-did-you-do-it\/","url_meta":{"origin":6458,"position":3},"title":"Mortgage Fraud: Did You Do It?","author":"Brian Brady","date":"March 5, 2008","format":false,"excerpt":"Mortgage fraud seems to be the hot topic, today. I attended a party this weekend where I was pelted with questions and varying opinions about the topic. Many came from the legal crew, a few from bankers, but most were from worried consumers. The former two groups scared the crap\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7344,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/7344\/the-subprime-bank-of-america\/","url_meta":{"origin":6458,"position":4},"title":"The Subprime Bank of America","author":"Brian Brady","date":"March 6, 2009","format":false,"excerpt":"Remember those impetuous, ne'er do well subprime borrowers and those greedy subprime lenders?\u00a0 Writing about them is sooo... 2007 but I'm happy to report that both greed and reckless abandon are alive and well today.... ...at Bank of America. Remember Ken Lewis?\u00a0 He's that sober-faced, bespectacled CEO of the Charlotte-based\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3648,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3648\/mortgage-market-week-in-review-4\/","url_meta":{"origin":6458,"position":5},"title":"Mortgage Market Week in Review","author":"Tom Vanderwell","date":"August 1, 2008","format":false,"excerpt":"Is it just me, or do Fridays keep coming around faster and faster? Maybe it\u2019s because I\u2019m so young! 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