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Index arrow Spotlight Article arrow Articles by Dave Hershman

Managing In The Mortgage Maze
January 07, 2008
I can still remember being promoted to manager of production at my mortgage company some twenty-five years ago (of course, I was 12 at the time…).  Dave HershmanI had just produced and closed almost 600 loans in my first eighteen months on the street. As a matter of fact, I produced more than the whole company had produced the year before I started. So why not make me a manager?

What does a manager in the mortgage business do? I sure did not know. So I called the Mortgage Bankers Association of America and asked them to send me any books they had on mortgage management. There were none. They had a bunch on secondary marketing and more on underwriting. But management—that is something you just did.

So within two years I had written the first text on management for the industry—Managing a Branch Office. It was published by the MBA. Now I was an expert and heading production for an even larger company. And teaching at MBA management conferences.

Fast forward twenty-plus years later. My MBA book is now out of print. That is the ultimate acknowledgement of my age—having books out of print. No matter, I have written the sequel and self-published. But the point is—there is no more direction now for a manager in the mortgage industry than there was twenty-five years ago.

What does a manager do in the mortgage industry? Theoretically they produce their own loans as well as recruiting, training and coaching a sales staff. If they also own their own firm, they may be doing accounting and a host of other administrative jobs. If they work for a large company—they could have tons of company meetings, reports and conference calls.

The problem is that every one of these tasks represents a full time job. So in reality what the manager does is produce their own loans, beg people to work for them, hope they will train themselves and fire them if they don’t work out. Sadly, the manager’s time is typically spent fighting fires started by recruiting the wrong people and not training them. Or just ignoring the problems while they close their own pipeline.

Doing two or three full-time jobs for a living is very, very tough. It is even tougher with no training and no direction. I am here to give you five very clear-cut rules for successful management in the industry (or anywhere, for that matter). They follow very clearly the outline of my book and training on the topic—

  • Hire the right people. If you don’t hire the right people, I don’t care if you are the most talented person in the world, you will be a terrible manager. This rule is followed by many sub-rules—for example, to hire the right people, you must increase your choices.

  •  Fire the wrong people. Many managers stay with the wrong people because of inertia or because they feel that they can change a person. Wrong, wrong, wrong. If you have ever had a person resign and felt relieved, that is a very bad management sign.

  •  Let the right people know what their job entails. If you don’t set expectations, the first stage of miscommunication will have started. Great communication is a sign great leadership. If you fail to set the tone at the beginning, the world will never right itself.

  • Help the right people do their jobs. Here is where your leadership skills are put to the test. From orientation to training to sales meetings to coaching and more, what are you doing to help put the right tools in the hands of your people? Are you adding value to their lives? It is not has hard as one would think—especially if you know what resources are at your disposal. For example, many managers think they have to train their people themselves. But they don’t have the time and training never gets accomplished. In reality, there is a multitude of ways to get the right training done.

  • Let the right people do their job. If you think that a good manager “rides herd,” you have not followed the first four rules.  Most likely, it is time to start over. Wouldn’t it be nice to stay out of your people’s way and the job will still get done right?  

After spending over twenty years training managers, I have decided that is time to take a comprehensive approach to helping managers accomplish these tough tasks with less stress. Less stress is a worthy goal for every manager. And it starts with a comprehensive recruiting plan. That is why Mike Baker and I present the National Mortgage Management Conference two times per year. If you would like more information regarding this conference—email me at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it   It is time someone started treating mortgage management as the discipline it is—instead of a place to retire high producers such as myself.

ABOUT THE AUTHOR

Dave Hershman is the leading author and a top speaker for the mortgage industry with six books—including two best sellers for the Mortgage Bankers Association of America.  His mortgage school is the only comprehensive advanced curriculum in the industry.  For a schedule of classes, free marketing samples, speaking information and articles by Dave, visit www.originationpro.com or call 1/800-581-5678.

This article is provided courtesy of www.mortgagepronews.com. MortgagePro News is dedicated to providing you the resources to keep you on top of what is happening and the training to help you make your business Thrive Now!!

You have permission to publish this article electronically or in print, free of charge, as long as you leave the above information about MortgagePro News, the article title, author name, body and resource box in tact (that means NO changes) with the links made active and you agree to our posted Terms Of Service.
 

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This article is provided courtesy of www.mortgagepronews.com. MortgagePro News is dedicated to providing you the resources to keep you on top of what is happening and the training to help you make your business Thrive Now!!

You have permission to publish this article electronically or in print, free of charge, as long as you leave the above information about MortgagePro News, the article title, author name, body and resource box in tact (that means NO changes) with the links made active and you agree to our posted Terms Of Service.

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