Tuesday, February 27, 2007

Last month, just before I published the lead article for our free educational Newsletter in our February 1st edition, I posted it here first. Although I didn't receive any 'comments' here in this blog, I did receive a few phone calls about it from blog readers. So ... to continue that practive, here is the lead article for our March 1st edition; I hope you enjoy it before everybody else sees it:

HOW WE GO THERE- PART 2

In our newsletter last month in Part 1, I discussed several of the reasons that have lead the residential real estate mortgage industry to the crisis it faces; at it’s core in my view, is the whole notion of originators being commissioned sales type ‘closer’ personalities, a relatively recent concept. As we work our way through today’s industry wide mess, out the other side should emerge a wiser group of survivors, hopefully YOU will be one of them. The benefits of replacing LO’s and AE’s ‘big fat commissions’, and instead offer a more traditional salary + modest bonus structure, will result in a great number of improvements to the new organizations that ‘make it.’ Considering all that went wrong these past several years since ‘big fat commissions’ were common, history won’t repeat itself with the absence of such available excessive personal gain as has been commonplace, plus the positives will be numerous. On the plus side we have:

A). The effect of better management control over it’s employees, since as W-2 salaried people, owner/operators and managers will be more careful on who they hire and how much they’ll invest in training and how closely they’ll supervise their activities. Not so many loose cannons poking around in the unsupervised darkness.

B). With this payroll structure, those LO’s & AE’s won’t be so quick to “close’ every applicant on a STATED Wage Earner 100% Option Arm with a 4 point YSP; this difference will surely result in overall better quality originations in the long run.

C). These better trained and now salaried employees, will work towards creating an improved credibility environment for themselves and their employers, and move away from the ‘big fat commission’ concept of putting their own selfish interests ahead of the customer’s.

D). There will be far fewer thinly capitalized organizations, as this payroll structure will provide for a larger remaining checkbook balance for employers after payday. With that they can/will have better furniture, fixtures and equipment for their employees, better employee benefits and significant cash available to advertise their products.

E). This model also insures that new owner operators will begin their operations with a significant financial investment. Therefore their outlook will be to establish and maintain at the core, a more ethical and solid company than many of the fly-by-night operators we can see today on both the wholesale and retail sides.

This list I’m sure you can add to as well as I can. What I describe here isn’t a ‘pipe-dream” it’s what I saw with my own two eyes, my first 30 years in this industry; it’s how my first employer operated, and how I operated for several decades also.

Returning to this way of operations naturally is not the solution to all our problems, but it will mitigate future ones a great deal; as well as help restore the former luster we all had as home loan providers.

If on the other hand, you're left standing after this cleansing is over, and you are in a position within your own organization to make these payroll changes and you don't, then you can expect to not receive the benefits A thru E above (and others), but instead you'll be part of the problem next time.

Friday, February 23, 2007

Last night at the Irvine Improv Comedy Club (in Orange County CA), the headliner was comedian Gabriel Iglesias (maybe you've seen him on Comedy Central); as part of his act he had invited a couple of other 'professional' comedians to join him (my younger brother was one of them)! My oldest Son and his girl went, just now he told me he laughed so hard, his side still hurts this morning! He also told me, my brother was invited to come back tonight and do anothert set with Gabriel! I guess that makes him a legend (in his own mind).

Almost time for the March edition of our free monthly educational newsletter, I need to write one more piece for it, so I'm going to get to that, right now.

Tuesday, February 20, 2007

Well, it's FAT Tuesday for all of you who celebrate Mardi Gras today - 'have a good one' (as George Carlan once said).

Friday, February 16, 2007

Our industry is in terrible trouble, everybody seems to be suffering. This collaspe looks to be worse than 1998 to me, and that was a disaster! Lots of fingers pointing in every direction, but there's plenty of blame to go around. New Century and WMC I'm told could be the next to disappear, and Argent (if not purchased). Looks like no place is safe, except for maybe a small handful of the biggest players on the wholesale side. Gonna be a tough long week-end for a lot of people in the biz.

Thursday, February 15, 2007

There's been a little fed-back since last week when that former Mentor student BLASTED one of our Mentor/Teacher inside an industry discussion board. Both he and I have received a handful of e-mails in support of him personally, and our program as well! That made me feel better.

This week, I started to notice some icons in my Internet Explorer 'favorites' on some websites.; I like that idea. Now, all I gotta do is figure out how to do that - I peaked at some of their source codes and they look similar, but not sure yet. I will however.

Friday, February 09, 2007

Having a terrible day, the last few hours of the work day yesterday I was involved with an unhappy Mentor student who was going back and forth with one of our Mentor/Teachers (copying me) about how unhappy he was with his Mentor sessions. This gentlemen was seriously mean spirited, as I recall he was with me as well when he initially signed up. Well, early today he stated off on me and our Mentor progam, ranted on and on ... I apologized for the things I could figure out he was upset over (he had unreal expectations), and reminded him we offer a Money Back Guarantee, which he never asked me for his money back - just wanted to BLAST me via one e-mail after another. Later this morning, the Mentor/Teacher phoned me and told me this guy put a large negative post/testimonial about us inside one of the larger industry discussion boards (with the obvious intent to hurt our reputation); I took the time to find and read it ... it was seriously ugly ... and has had me upset all day.

And ya know what else? This is the first Mentor student that has ever complained to me about this program of ours, the very first one! Of course everybody has an unhappy customer/client etc./ from time to time, but this one really got to me.

Tuesday, February 06, 2007

Moments ago, I launched our Campus Store and YOU are one of the first to know that! I will be announcing it in our March 1st Newsletter, so only folks who read this blog will know about it for a while, plus naturally anybody who hunts around our main site and stumbles over it.

Even though it's only two items for now, if people get the good ol' school spirit - ya never know, we may have scores of logo items there!

Sunday, February 04, 2007

Tomorrow I'll be taking a look at our first Secret! University all new logo'ed sweatshirts, and plan on taking photos of it and also one of our logo'ed baseball caps -- opening up our Campus Store with these first two items Tuesday morning!

Last month or so I mentioned I was considering closing down our '900 number' Mortgage Broker/LO Hotline-Help Desk ... yesterday I made up my mind to do just that, it hasen't turned out to be the homerun I had expected from such a revolutionary idea, when so many of them need instant (cell phone available) help throughout their day!

I gotta go now, it's getting about that time to join the Superbowl party I'm going to, already in full force I'm sure .... GOOOOOOOOOOOOOOOOOO Colts!

Friday, February 02, 2007

Oh my GAWD! Our new Secret! University baseball caps just arrived from the manufacturer, and they're really sharp - Khaki / Navy colors (and I didn't order the cheap junkie ones either)!

Gotta get some photos and get them up on our new 'Campus Store' web page For Sale - $15 (FREE shipping & handling). Sweatshirts & tee shirts are next ....
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