Accountable Portland Mortgage Brokers
Posted On: July 22nd, 2010 by James Posted In: Financial Health • Local Interest • Mortgage Programs • Mortgages
I was listening to the Adam Corolla show the other day and he was off on some rant about how horrible the airline industry has become. Horrible customer service, zero pride or respect from airline employees. I also heard an anecdote about the airline industry that each flight only makes an average profit of $100 dollars or so after all the expenses are backed out. It got me thinking about my mortgage industry and how many new regulations will likely point us towards this type of experience in the future with getting mortgages.
Conversely, I also began to fantasize about what might happen if some of the current mortgage business model were applied to the airline industry- particularly that of the “commission only” sales model. What if flight crews, and ground crews could pick their own members, and work together to create a fantastic customer experience. They would make their own websites, and try to make it easy for their customers to buy tickets, arrive, check-in, get through security, and get to where they need to go. They could actually form real relationships with the passengers, and come up with all sorts of ways to create added value to the traveling experience. Think of it- packing tips, special parking deals, curbside attention, I bet it would get very creative. If these crews were compensated directly by repeat bookings, customer feedback, or just tickets sold, wouldn’t you imagine that these employees would be aligned perfectly with what needed to be done? Wouldn’t you imagine that these employees would take so much pride in trying to do their best? Given a choice which would you make?
This is what I love about doing mortgages, and particularly the “commission only” model of being compensated. At first it was a huge fear, and a huge problem. It takes a while to get the hang of what goes into accomplishing a loan closing, and during that learning curve you are simply NOT MAKING MUCH MONEY. But once you focus on what is really important, its amazing what starts to happen.
My fear for the mortgage industry is that it becomes so commoditized, and so suffocated by regulations that the profit is wrung out of the product completely. If this happens, getting a mortgage will become more like cross country air travel. You’ll randomly select the cheapest mortgage you can from some website, and fight your way through a pre-recorded 1-800 labyrinth, and totally herded through the signing process completely. All of the humanity and initiative will be surgically removed. Hopefully this never fully happens or is a long way off, and I may be off base. I would love to hear your thoughts on this if you have them.
One of the major benefits with working with me, or any other true professional in this business is that you will have a single person who is totally accountable for the outcome. Even though there is a team of people at work to make it come together for you, its my ego, my reputation and ability to receive future referrals- literally my livelihood that is at stake every time. I wouldn’t have it any other way. Wouldn’t it be awesome if the folks on the ground in the airline industry had this much accountability?
Excellent comments James. Working strictly on commission, like most loan officers and realtors do, is a challenging a sometimes scary proposition; you can work hard and still not make much money.By putting our client’s needs first,and focusing on what is important to them to achieve the desired outcome, we all win.Our livlihood depends on our client’s being happy with our service, and rewarding us with their referrals. It would be interesting if many other industries were out to the same test.