How to Avoid Being Part of the Mortgage Industry Mass Exodus of 2007

A recent survey showed that there are 502,000+ residential loan officers working in America today. And most are headed for trouble. In fact, it is estimated that 40% of you will be out of this business in the next 24 months. The next twelve months will prove to be very challenging for the average loan officer. If you are new to this business, meaning roughly 4 years or less in experience, you have no idea what is about to hit you. You have probably already started to feel the effects of what I am talking about, but the real tough times are still ahead of you. Rates are rising, people are reading the headlines telling them how bad things are (they really aren’t, but perception is everything), fewer homes are being built and sold, and the great equity run-up of the last several years has drastically slowed and even reversed in many areas.

Who will thrive in this market? The answer is simple. The winners will be those who have positioned themselves to provide expertise in a niche within our industry and know how to market to that niche. A niche can be in any number of areas, such as first time homebuyers with little money down, investment property purchase loans, construction to permanent loans, and many, many more. A niche is not “doing refi’s.” Doing refi’s for high wealth plastic surgeons in Beverly Hills who have 32% or more equity would be a niche.

There are too many reasons for why you should work in a niche to discuss here. Suffice it to say those who become trusted advisors as experts in a niche develop relationships with customers that those who offer a standard “laundry list” of products never will. Once you are the local expert at (you fill in the blank) you will start a flow of prospects to your door that will not stop. The key is doing something. Now. (See the bottom of this article to learn how you can get my free, no obligation report on thriving in any market conditions.)

Once you define your market niche, creating that path to your door is easy if you have the right marketing systems in place. The importance of following a proven system is essential to survival in the mortgage industry. Many people associate the words “having a system” as something negative. A “system” is not a shortcut or a get rich gimmick. It is very simply doing something, preferably something that works well, over and over. Following a proven system, and sticking to it, will allow you to survive and thrive in this business. In fact, it will allow you to survive and thrive in any business.

Of course, finding the right system and applying it to the right market is just as important as following it. There is no point following something to the letter, day after day, if it is flawed and won’t lead you to where you want to go. The key to finding a system, in this business or any other, is to find and duplicate the most successful people’s strategies and actions. Ignore what everyone else is doing! I’ll bet there are one or two loan officers in your town who seem “to get all the business.” I’ll bet the same is true for Realtors, insurance guys, doctors, lawyers, and every other profession. Why do they “have all the luck” and get “all the good leads?” Why do they “get all the lucky breaks?” Why aren’t you learning from them instead of hating them?

The key to finding a good system is simple: find the most successful people you can and emulate them. Do everything short of stalking them to learn as much as possible about how they conduct their business. This is where it starts to get a little tough. In almost any local area, that one “most successful” person is probably not likely to share his secrets with you. Why should he? He has the big piece of the pie right now and there is no reason to share it with some motivated young whippersnapper who is only going to reduce that piece of the pie for him. There are other ways to learn. Perhaps the best is by seeking the help of an expert outside of your market. Then, there is no fear of losing that piece of pie. The point is not to go to someone earning 50K a year, but to learn from someone earning 500K a year, who is working the same hours or less than that guy earning 50K a year. Invest in yourself. Seek out knowledge, implement it and watch that investment provide returns for the rest of your life.

Developing a niche and following a proven system does not need to be complicated, nor expensive. There is no voodoo or magic pill here -- just common sense that anyone can follow. If you want to survive and thrive in this business, you need to consider what you are selling and the quality of the system you are following. And for many of us, it will never be more important than in the coming year. Welcome to 2007, where only the strongest will thrive.

>>>Jon Esposito specializes in the niche market of Construction to Permanent financing. He has been responsible for over half a billion dollars in closed construction loans in his career. Today, he continues to originate loans while devoting a large portion of his time to helping other loan officers build high income businesses while reducing overhead and stress.

For his FREE NO OBLIGATION REPORT “7 Essential Survival Tactics Every Loan Officer Needs to Know. Now” please visit www.LoanOfficerSurvivalTactics.com or call his 24 hour toll free information line at 1-888-699-6075, ext 90252 to request your report. A special gift to Mortgage Pro News readers only will be sent to the first 87 loan officers who request his free report. Give yourself the gift of education in the New Year.