Mortgage marketing eBook - How to rock the purchase market

Mortgage Marketing Guide:
By Charles Warnock | Western Bancorp Marketing | www.westernbancorp.com | 408.578.8700

California Loan Originator’s Guide:
Get ready to rock the purchase market
The world of mortgage
finance sometimes turns
slowly, but it is turning
surely from a refinance
to a purchase market.
In fact, the shift from
refinance to purchase
originations has accel-
erated in 2013, according
to Ellie Mae's Origination
Insight Report. Purchase
loans made up 27 percent
of total loans in January,
38 percent in March and
42 percent of April
originations – the largest
purchase market share
since July 2012.
The shift in the market also means a shift in
marketing for LOs.The skills that so many LOs
developed to thrive in the refi business are very
different than those needed to win in the coming
purchase market.
Whether you're a newer LO entering your
first purchase market or a seasoned pro, take
advantage of this free eBook on how to prepare
and win in the coming market. Get tips and
strategies from some of today’s top lenders and
real estate pros and map your own path – and
get ready to rock the purchase market
today!
The path to purchase success:
Prospecting
Unique value proposition
Realtor partnerships
Coaching
Habits that win
Aligning activities
Social selling
Educating Prospects and clients
Here’s what you’ll learn:
• The secrets of powerful prospecting
• Standing out with unique value
• Starting mutually profitable partnerships
• Smarter selling with social media
• Creating unstoppable habits
• Show up as the trusted authority in your field
Lenders know the purchase market is coming. Some
are thinking about it. Few are proactively preparing
by creating a roadmap to purchase market success.
Be one of the few, the proud, and the prepared. Keep
reading to fire up your productivity and rock the purchase
market!
1Mortgage Marketing Guide Copyright ©2013 Western Bancorp, Inc

P – PROSPECTING is the first key to
winning more purchase business
How important is prospecting? It can be the difference between average performance and outstanding
performance. The study Mortgage Loan Origination: Reaching Peak Performance During ChallengingTimes
by industry researcher FirstUSA Data found a marked difference in the work habits of top originators
versus average performers.
Top originators dedicate about a third of their time to building relationships with prospects and clients,
while average originators only spend about a fourth of their time on these activities.
Outstanding originators consistently dedicate larger portions of their workday to prospecting than
average originators. So, will you dedicate 3 hours and 20 minutes of your workday to prospecting?
Top producers do. Some top-producer prospecting tips for LOs:
• Conquer fear of prospecting calls – some sales coaches say there’s no substitute for picking up the phone
and knocking on doors. Others like to say that cold-calling is dead in this age of technology and social selling.
In truth, you need to be where your prospects are, and equally skilled at old and new-school approaches.
Sharing news, congratulations, helpful resources or just introducing yourself are good reasons to call and
check in.
• Know your pipeline – Many top-performing LOs use a customer relationship management (CRM) system
to track prospect-to-sales conversion.Without a clear view of where your business is coming from and where
it’s going, it’s tough to succeed in a purchase market.A good CRM helps originators:
• Track leads and automate lead follow-up
• View status by prospects, pipeline and closed business
• Project revenue
• Determine value of various marketing activities and lead sources
Most LOs don't have large support teams so a good CRM can help keep marketing & sales activities aligned.
• Block prospecting time on your daily calendar –
whether you call it prospecting, rainmaking or business
development, block it or it won’t get done. Divide your
time between online prospecting and in-person activities.
Three hours and 20 minute a day will give you time to do
both.
• Author John Jantsch created what he calls a Customer
Touchpoint map that’s useful in prospecting. He says
customers must Know, Like and Trust you before they Try,
Buy and give you Repeat business and Referrals. Many LOs
try to skip straight to the Buy stage, but prospecting
consistently in the community and online can create more
consistent – and profitable – repeat and referral business.

U – Build your Unique Value Proposition
Are you down with UVP – the UniqueValue Proposition? That’s the answer to this question:
If I’m your ideal customer, why should I do business
with you rather than thousands of competing lenders?
An important step that’s often missed is to make sure your UVP targets your ideal customers.You probably
have a good idea who your ideal customers are and what they require, so don’t try to be all things to all
people.You will avoid creating a fuzzy, nonspecific UVP that resonates with no one.
What makes a good UVP? What can a UVP do for you? Here’s a great example – why do people choose Geico?
“15 minutes can save you 15% or more on car insurance. ”
Why is this so awesome?
• It’s short, memorable and easy to understand. Many people can even repeat it.
• It may be true of other car insurance companies, but Geico is the only one that created this great message
and promoted it consistently to millions of drivers.That’s unique.
• This UVP message does not waste time talking about what a great insurance company Geico is. Instead, it
quickly and clearly explains potential benefits to prospects – savings of 15% or more.
• The value exchange is clearly stated up front. Prospects know they are expected to spend 15 minutes on
the phone, providing information to a Geico rep to receive the potential savings.
Equally important is what a UVP isn’t. It’s definitely not a USP – Unique Selling Proposition. USPs are created
from the company’s perspective, not the customer’s. Many people don’t like or trust salespeople, and will wait
until the last possible moment before contacting one. People will talk about how you helped them or the value
you provided, but they won’t talk about how your selling skills put them in their dream home.
So, what do you and your business offer prospects and clients that they can’t get anywhere else?
• What’s unique about you, your services and your organization?
• Does your UVP clearly state how you help (not sell) your clients?
• Can you confidently state your UVP in one or two sentences?
• Does your UVP appear frequently in your marketing messaging, like Geico’s?
• Is your UVP written down?
Finally, your UVP should be authentic, not just an advertising slogan. Research firm Marketing Experiments says
your UVP:
“Has to be what you DO and what you ARE. It can't be just what you SAY or WANT. All too
often companies write value propositions and mission statements that attempt to cover up
the cracks in their actual business... with words. That doesn't work. Your value proposition
is not what you say...it is what you are.”

R– Realtor partnerships
Realtor® relationships may not be your highest priority in a refi market. But in a purchase market, these
connections can mean the difference between success or failure.
Because referrals are often the lowest cost, highest quality leads available, it’s surprising that many lenders
don’t pay a lot of attention to them.There are many reasons people don’t ask for referrals.
They may not:
• Want to be seen as “begging for business”
• Be confident enough in the products and services they offer
• Have built up mutually beneficial relationships or goodwill
• Have a network of peers who share the same prospects
• Maintain regular contact with their professional network
It’s easy to identify common issues…how do you fix them? It’s not about developing a better sales pitch to
reach your goals. If both lenders and agents had this approach, there could be no mutually beneficial
partnerships.
Instead, put yourself in the agent’s shoes for a moment.Would you be glad to see a lender waiting in your
lobby?
What if that lender consistently shared useful information with you? Brought you leads? Introduced
you to prospects and helpful contacts? Showed you tools and technology that help you build your online
business? Provided quality educational marketing content for homebuyers?
If you dread calling and asking for referrals, consider a mindset change suggested by Duct Tape Marketing
Author John Jantsch: If you have built a business worth referring and truly believe in the value of your
services, you are actually doing people a favor by asking them to refer you to their friends, family and
professional network.
If you’re an exceptional originator delivering the knowledge, service and professionalism people expect, you
are actually raising not just your own profile, but the reputation of the person who referred you. Most people
like to be seen as knowledgeable and connected insiders, and they actually enjoy giving and receiving referrals.
Reciprocity is a powerful concept and foundational to profitable agent / lender partnerships. But you can’t
jump-start your purchase business with the old model of calling all your friends, relatives and professional
contacts and asking them to refer business to you.
Instead, focus on how you can help Realtors and other partners get more of what they want – even if there is
no immediate payback. Provide value to your network every day and build a business and personal brand worth
talking about. It won’t be long until you’re confidently asking for and receiving the referrals you need to rock the
purchase market.

C– Coaching and mastermind groups
You have probably heard the expression that it’s hard to read a label from inside the bottle. So why do so
many lenders try to self-diagnose and fix problems that limit their productivity and potential?
Many lenders have had mentors and coaches their entire lives – teachers, tennis coaches, dance
instructors, personal trainers, and more. But some of those same lenders feel uncomfortable with the
idea of a business coach, or the value in hiring one. Is that you? If so, consider that a coach can help you:
• Develop the key skills needed for purchase market success
• Identify and overcome personal and professional roadblocks
• Improve prospecting and client acquisition
• Set appropriate goals and stay on track to reach them
• Identify highly productive activities and Improve delegation skills
• Improve accountability
• Create a Rockin’ Purchase Market business strategy
• Achieve greater work / life balance as you become more successful
Other originators have had great success with a mastermind strategy. A mastermind group is simply two or
more people dedicating to helping each other achieve a specific goal. Mortgage mastermind groups range from
a few co-workers meeting over breakfast to a glitzy LasVegas conference hosted by some of the industry’s
leading coaches and executives. Mastermind advantages include:
1. The advice and support of a group that’s focused on your success
2. Ideas, feedback and new perspectives on your challenges
3. Connections to people, programs and resources that can benefit your business
4. Shared accountability and friendly competition to motivate you
Motivated originators who surround themselves with like-minded people are sometimes able to grow their
business and reach goals they were unable to reach on their own. Pressed for time? Consider finding
(or forming your own) mastermind group online. Collaboration tools like Skype, GoToMeeting and
Google + make it easy to share tools, systems and strategies for success with people in your office or
around the world.
Why a coach or mastermind partner? In Bob Proctor’s book “It’s Not About The Money,”
he shares some research from a 1993 study conducted at BrighamYoung University:
• When a person commits to making a change and sets a deadline, the chance of successfully
making that change is 40%
• When the same person commits to someone else that they are making a change, the success
rate rises to 60%
• When the same person commits to a specific time to review progress with someone else, the
success rate rises to 95%

H – Habits that win
From Amazon to Zappos, today’s most innovative and successful companies are built on systems and processes
that are baked into the company culture and practiced each day.These companies have developed a culture of
achievement that helps them deliver superior results in product development, sales, marketing, finance and
customer care.These systems and processes put the organization’s values into action and enable them to
consistently outperform competitors.
How do you put your own values into action? Just as outstanding companies develop winning systems and
processes, outstanding individuals develop winning habits. Intero Real Estate Services CEO Gino Blefari
says developing the right habits is a key real estate and mortgage pros can use to create an unstoppable
mindset and massive success:
• To become successful, become fearless.To become fearless, understand how your brain works
• Your conscious mind is what you use to create and set goals
• But your conscious mind is limited and can’t follow through with the many actions necessary to achieve goals
• The power center of the brain is subconscious; it is where your habits reside and where your accomplishments
and achievements take root
• To be successful, you must
1. Set appropriate and measurable goals with your conscious mind
2.Turn them over to your subconscious mind to accomplish
• Do that by putting all the actions you need to accomplish your goals into habits that you internalize and
repeat every day, almost automatically
“When I began in real estate, I started by targeting a few specific habits – nothing to do with real estate and
everything to do with creating the right mindset,” Blefari says.“I designed a series of behaviors to keep me
calm, focused and fearless each day. I find that in business, these habits advantages can mean the difference
between earning tens of thousands on a deal or not getting the deal and earning nothing. One of the best
things real estate and mortgage pros can do to be more successful is to develop winning habits and routines,
and build upon them for greater and greater success.”
Starting small and winning big
Small wins - small successes in your personal and
professional life - can lead to habits that create
powerful change. Some researchers have found that
small wins have a powerful influence beyond the
accomplishments of the victories themselves.
Getting in the habit of regularly achieving and
recognizing small wins is a powerful way to create
momentum for repeated success. Small wins add
up to big changes by forming patterns that
demonstrate that even larger wins are achievable.

A – Aligning activities
“80 percent of what you do as a loan originator is not making you any money,” says Carl White of the
Mortgage Marketing Animals.The question,White says, is what’s in your 20 percent – what are these
important activities that produce so much of your income? What activities can you stop doing to make
more room for these high value tasks that drive revenue?
Driven by long periods of historically low rates, the refinance origination business has been booming for
some time. Many homebuyers who weathered the housing market crises and a long recession were eager
to take advantage of the silver lining offered by low rates. In these challenging times, many originators were
happy to have refi applications flowing in…after all, originators have their own mortgages to pay.
But some originators have unintentionally realigned their businesses to rely on refi market momentum, and
stopped actively prospecting for new clients. As refinance originations begin to slow and purchase volume
picks up, many originators will have to realign and relearn business building skills that may have become rusty
in the refi years. Top purchase market performers focus on:
• Helping clients understand their financing options and the origination process. Borrowers tend to regard
great LOs more as a trusted advisor than a salesperson.
• Trusting your support team to take care of tasks like gathering loan file documents, verifying employment
and running credit checks.
• Identifying activities that are valuable in refi origination, but not as important in purchase market –
basically a “delegate or stop doing” list for lower-value tasks – that makes room for the higher value
tasks that drive revenue.

S – Social selling
In today’s Web, mobile and social world, people make purchase decisions differently.Are you still selling the same?
Businesses who don’t get results from social media will tell you it’s a waste of time. In truth,
many LOs have found ways to use social media to accelerate their sales and increase repeat and referral
business. Should you focus on social selling?
• If your clients and prospects are active in social media, you should be active
• Social media tools provide an unprecedented source of sales intelligence
• Social networks are a great way build credibility and showcase expertise
• Reputation management has become increasingly important in the mortgage
business
Some top social selling tips:
Even if you've never tweeted, posted or plussed, social channels can be a powerful research tool to learn more
about prospects and clients.There is no reason LOs should make an uninformed cold call when it’s so easy to
listen to prospects who are active on social networks. LOs can check social networks like LinkedIn,Twitter and
Facebook to learn a prospect's:
Employment and location: Checking out a prospect's professional status can give you an idea of what type of
financing they may require.You may find out about connections you may have in common to accelerate the
know > like > trust process.
Education: You may have attended the same school or have a similar educational background as a prospect.
You may learn that you already know someone who attended the same school.
Updates, shares and comments: You can see what interests your potential prospects have by checking out
what they post and share. In some cases, you may see trigger events related to purchasing or refinancing a
home – new job, relocation, marriage, promotion, downsizing or retirement. It’s natural for people to ask their
online friends to recommend a good lender. Check out the people your prospects interact with for potential
referrals and opportunities to make connections.
There's no reason to start a prospecting call from scratch when you can use the social net to jump start
relationships and create more meaningful conversations with your prospects.
“Social media consultants will tell you that if you’re not Tweeting, Facebooking
and Linking In, you’re a dinosaur waiting for a meteorite.”

E– Educating prospects
In today’s crowded marketplace, it’s surprising how
many LOs still lead with a sales pitch that’s all about
themselves, their achievements and their company.
Borrowers don’t care about any of that…they want
to know what’s in it for them before they invest their
valuable time and attention with you.
To stand out from the pack, always deliver value and utility before delivering a sales pitch. Many homebuyer
prospects will be checking out your reputation online, so you should be sharing helpful content, answering
questions, and contributing to online discussions.
Introduce people in your network to other helpful people and resources. During your time online, stay tuned
in to what your prospects are doing by following them (in a non-creepy way), signing up for updates and
commenting when appropriate.
All these activities can help you build your brand, but you need to take other steps to get found online. You
should expect prospects to check you out the same way you are seeking information about them. Make sure
you have a complete, professional profile with a great photo and examples of your skills and experience.
One thing many top LOs have in common is how easily they can be found online, and how they show up – as
trusted advisors, not mere salespeople.
Be a powerful influence
Quick, think about some of the most influential
people in your life. Chances are, they were teachers
or mentors who challenged, encouraged and
inspired you to achievements you may not have
thought possible.
Now, when was the last time you
heard someone fondly recall an influential salesperson?
None of your prospects or clients are looking to be sold…they are looking for a trusted advisor who can
guide them through an expensive and complex transaction.There were many reasons why the housing
meltdown occurred, but one big one was borrower education.Whether educating borrowers is their own
responsibility or the lenders responsibility, many borrowers ended up with loans that were not affordable
or appropriate for their needs.
“It doesn’t matter if you think it’s stupid,
it’s free communication.”
– Gary Vaynerchuk, on Twitter marketing
“Deliver value first, and get in front of
people who can say YES to you.”
– Jeff Gitomer

Educating prospects enables you to:
• Build relationships on a foundation that’s far more meaningful than professional relationships that start
with a sales pitch.
• Deliver value first, which builds trust and reciprocity into relationships
• Help lower borrowers’ anxiety as they face the pressure of a large financial decision
• Ensure borrowers understand the legal and technical aspects of the mortgage process
• Create more satisfied customers who will refer your services to others
• Win new prospects through creating educational materials and events
Dedicating yourself to educating clients and prospects has and important side benefit.Taking an educational
approach also forces you to increase your product and industry knowledge, and how well you know your
audience.You may find that client relationships that start through your educational programs turn into
more loyal relationships than those that start with a traditional sales pitch. Smart borrowers get better
results – and so do smart originators.
Comments? Ideas on rocking the purchase market?
Speak your mind on Western Bancorp's Blog, Facebook,Twitter or Linkedin page.
We look forward to hearing from you!
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