Social Media and Loan Origination in 2009

by trace richardson on 13. Jan, 2009 in Mortgage News

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This post was written by trace richardson who has written 25 posts on Lenderama.

No Responses to “Social Media and Loan Origination in 2009”

  1. Todd Carpenter 13. Jan, 2009 at 11:49 pm #

    Trace, I’m kind of a Seesmic comments hater. But if enough people ask for them, I’ll consider it.

  2. Trace 14. Jan, 2009 at 12:51 am #

    I hear you. Not a lot of people use it, just throwing stuff against the wall. :)

  3. Bill Rice 14. Jan, 2009 at 3:52 am #

    Trace,

    You are right on how us mortgage guys have always trailed real estate in working effectively online. I think a lot of it has to do with our fear of competition. The Real Estate folks are out there because they are social, they do collaborate. Their market is local. Whereas, many brokers are licensed in a handful of States. So, We immediately think, “If I talk to another mortgage broker they may steal a deal or one of my secrets to getting a client.”

    Good stuff–things are changing! We had better get there.

    Bill

  4. Lorraine 14. Jan, 2009 at 4:03 am #

    Trace,

    Always interesting to hear what you guys are up to ‘over the pond’, especially in my line of business.

    Lorraine

  5. Paul Piers 14. Jan, 2009 at 1:33 pm #

    Trace is right, the mortgage industry must innovate and find new solutions for success in 2009. Mortgage people need to use the internet and web applications to better service their clients and their referral sources. Tangible customer service is the name of the game. What I mean is a solution mortgage people can point to and say this is what sets me apart from all the competition. The industry needs a new service standard and this is what I am passionate about. I am for a complete remake of how mortgage transactions are facilitated. My name is Paul Piers and I am with Sthenia Solutions. Our company was founded on realizing the industry can do a much better job servicing borrowers and real estate professionals.

  6. Dave Woodson 14. Jan, 2009 at 5:11 pm #

    Trace, I think a lot people fall short as they are afraid to step out there. I could care less. I know I am not pretty, but I have a lot of knowledge and I am willing to work. I know in NW Indiana the average and above average RE person is falling way short.

    I think I am way ahead of the curve. I am there to help, but they do not know they need it.

    Dave

  7. Trace 14. Jan, 2009 at 10:21 pm #

    I think the real focus that is becoming clear is power for developing yourself as a personal brand. If you can provide the goods / content and package your message in a nice manner, social media is opening up more and more opportunities to reach people that you could never reach before.

    @Dave: That’s good for you, I personally want to compete in an arena where others are not using competitive advantages or tools.that I am aware of or are using… …. that being said, we can all learn a lot together…

  8. Ling 15. Jan, 2009 at 7:27 am #

    Get a blackberry and respond to emails and calls immediately, instead of when you ‘get to the office’. Once your customers know that they can contact you anytime, anywhere, you’ll be surprised at how much the trust factor goes up. Same thing works for social media. Just respond to people, and establish at least a passing aquaintance with a lot of people. Once they know you’re available, that makes a big difference.

  9. Paul Piers 15. Jan, 2009 at 7:45 am #

    The mortgage industry is foundationally broken. The problem pervades the entire mortgage transaction. What’s the problem? Unrealized promises mortgage people have made regarding customer service. Mortgage people relentlessly pitch to the market they offer the highest customer service, concierge level service, or white glove customer service. These taglines have been pushed so hard without any clear difference between them and their competitors, that customers don’t believe any of it. After the subprime mortgage debacle, mortgage people should have received a wake up call. Customers are demanding service and the leaders that really offer it at a high level will succeed. Mortgage people need to tangibly raise customer service through education, over disclosure, and communication. J.D Power and Associates in a survey released October 20, 2008 said that customers are “committed to their lender when the loan officer takes the uncertainty out of the mortgage origination experience by setting expectations, proactively communicating and maintaining personal contact with them during the loan process.” The survey also states that customers “are more satisfied when status updates are provided” and “last-minute requests for information are limited.” Mortgage people cannot continue status quo when their potential customers are screaming for change. The writing is on the wall – innovate or exit.

  10. Rodil San Mateo 15. Jan, 2009 at 2:50 pm #

    Paul – thanks for mentioning the J.D Power survey. This is a good example of how skilled Mortgage Professionals can separate themselves from their competition. Regular communication with all parties in the transaction (including the listing agent!) and educating clients on how the loan process works helps to create a better mortgage experience for everyone involved.

  11. Paul Piers 15. Jan, 2009 at 3:04 pm #

    Communication and service is paramount to success, especially in this market. Mortgage people have to realize the fudiciary responsibility they have when servicing their clients. Those who raise the service bar will excel and survive this crisis. The mortgage industry needs a network of lenders who adopt and adhere to a service standard. That way, consumers and referral sources know that by choosing lenders from this network, they will receive a transparent mortagage experience. It is my belief the industry should use the power of the internet and web applications to accomplish this undertaking.

  12. Trace 16. Jan, 2009 at 9:53 pm #

    @Paul / Rodil: I agree guys… I think the most powerful component or facet of social media besides the ability to extend a message to a broader audience is the power you have to create and market your personal brand. I think building your personal brand while communicating efficiently to your audience enable LO’s to educate, show they are an authority on the subject matter and build trust. We will have to start discussing and defining more specific examples, but I think video is a great start with the ability it gives you to convey your message in a genuine and personal manner. There is immense power in showing your true self, warts and all in building trust and rapport with prospects if you are a master of the subject matter at hand and communicate your message concisely and in a clear way.

  13. Rose @ Noni Juice Goodness 18. Jan, 2009 at 3:45 pm #

    The video is very good. It is articulate because the message has gone through clear as crystal. Communication is the real key to get understanding on any problem, even about mortgages. Thank you for sharing such brilliant thoughts.

  14. Victoria Del Frate 18. Jan, 2009 at 9:37 pm #

    Just wanted to share some real examples of what I believe answers to some of “the changes” that your consumers are demanding in the Mortgage Industry, that a few of my clients (Mortgage Professionals) have implemented. I hope these ideas can be of value.

    Using http://www.jingproject.com with Mortgage Coach’s Total Cost Analysis-Record yourself going over the loan scenarios and is sent via email. Nice Wow factor and saves time, more personal than just an email.

    Using various Outlook signatures each with pre-scripted loan process updates for borrower and agents. Cuts down on incoming calls, efficient & effective, easy way to keep everyone in the loop.

    Webcam introduction of team-Sent via email to borrowers and agents so they can see who the Processor, TC, Assistant, etc. are. Again Wow factor and helps to build trust

    Inviting borrowers & agents to join LinkedIn and to subscribe to your blog-Gives them more insight into who you are, your expertise & interests. Again, helps to build trust.

    Anything you can do to further reveal who you are and strengthen the trust and cultivate the relationship is key. The biggest mistake I’ve seen is that after the initial conversation on the phone with a borrower, the rest of the communication comes via plain, old email and I believe this distances you from your customers. More phone, more face, more being vulnerable and sharing.

  15. Mark Madsen 21. Jan, 2009 at 3:35 pm #

    Trace – Go Fight Club! – Great video. Transparency, communication, continued education….. these are all things that will ultimately give us the competitive edge. I read 50 – 100 new articles a day in my niche so that I can confidently provide the best solutions for my clients and referral partners. Forming networking relationships with other mortgage professionals also helps keep me on top of the changing industry trends.

    Victoria – I learned about that custom Outlook signature idea a couple of years ago from Jason Womak. Happy you mentioned that, it is a huge time saver. Jing is awesome too.

  16. Trace Richardson 23. Jan, 2009 at 3:19 pm #

    Guys, you should already know this, but if you leave comments like, ” Check out my product at http://www.abc.com it’s awesome!” and aren’t contributing anything to the convo it’s going to get deleted. That’s called comment spam. We’re actually doing you a favor because the readers of this blog and anywhere else you spam will think less of you and are much less likely to use your product. Don’t do it. If you didn’t know, now you do.

    @Victoria: YES! Awesome ideas / points and you are soooo right about the importance of maintaining phone contact vs. simply email after initial convo…. especially in volatile markets where fall through rates can be scary high…. THANK YOU for your feedback!

  17. James Wedgeworth-Hiltion Head Realtor 31. Jan, 2009 at 10:58 pm #

    Great video! It seems vlogging is becomeing the “next step” in blogging and conntecting to clients! Also, I agree that keeping yourself educated in the market-esp now-is so vital for serving your clients! Finding a way to connect with them is great too; like by doing occational vlogs on your blog!

  18. Bill Rice 02. May, 2009 at 2:28 am #

    Trace,

    You are right on how us mortgage guys have always trailed real estate in working effectively online. I think a lot of it has to do with our fear of competition. The Real Estate folks are out there because they are social, they do collaborate. Their market is local. Whereas, many brokers are licensed in a handful of States. So, We immediately think, “If I talk to another mortgage broker they may steal a deal or one of my secrets to getting a client.”

    Good stuff–things are changing! We had better get there.

    Bill

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