If you flashed back to a year ago, you’d find yourself in the midst of a refi boom.  The government started buying mortgage-backed securities which drove rates down into the 4 percent range which sparked a refinance market nationwide.  In 2009, many loan originators produced as much as 60 to 80 percent of their total business in refinance loans.  That was then, this is now.

Smart loan originators know how to “move to the market that’s moving.”  They adjust their focus, energy, attention and activities to where they can generate the best result.  If you have not already done so, now would be a good time to make that shift.  With two months in the books and ten more to go in the year, making adjustments early on can make a big impact in the type of year you’ll have.  How can you do that?

First, contrast this year to last year.  What was your mix of business closed in 2009?  For example, if last year you funded 60 loans total and 42 of those loans (70 percent) were refinance loans, you’ve got a big gap to fill this year.  Nobody wants to see their production volume and income drop by 70 percent.  And even with a few refis here and there, you’ll still need a lot more purchase loans just to produce and earn what you did last year. 

Second, re-tool your thinking for purchase loans.  In a refi year, sitting at your desk answering phones and responding to emails will help you land a lot of refi-nance opportunities.  But in a purchase year, sitting at your desk waiting for a buyer to call or email you out of the blue is a strategy that will send you to the poor farm.  Purchase loan business happens out of the office.  Get out!

Third, make a list of things you can do and places you can go to find purchase loans.  These activities might include:

• Realtor sales calls
• Open houses
• Broker opens and caravans
• Talking with builders
• Targeting a CPA, financial planner or divorce attorney for referral business
• Delivering homebuyer seminars
• Attending networking group or leads club meetings
• Giving talks on home buying to churches and civic organizations
• And a whole lot more

Yes, activities like these take time, work, risk, and maybe even some money.  But remember this:
That’s where the business is!

The National Association of Realtors predicts that around five million homes will sell this year.  That means five million potential purchase loan customers are out there.  Who is going to find them?  The loan originator who is out looking for them, that’s who! 

Get in the game this year and move to the market that’s moving now.  That market is purchase loan business!

Power Selling
is a monthly publication of
Douglas Smith & Associates.

The editor of Power Selling is Douglas Smith.  Please direct any comments or input to 877.430.2329.
© Copyright 2009 DS&A.  Reproduction in whole or in part by any means without written permission of the
editor is prohibited.
http://www.dougsmithonline.com/

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