Paying attention to the regulation scrutiny we are all under reveals the need in the mortgage industry to perform efficiently; if we are to maintain profit margins and pass a CFPB exam without cost or penalty.
If any of you are familiar with W. Edwards Deming or the Six Sigma program, you know that the processes taught and implemented have served many companies well.
Once upon a time our industry was free to do pretty much as we pleased, until this fairy tale became a nightmare. Expectations have changed, regulators are more serious, and as such we either embrace this change or move onto brighter horizons.
I’ve heard many people say that you will not be able to make a profit in this industry anymore and I kindly disagree with them. In fact, it is possible that through the rocky path we must travel we will end up with a higher degree of proficiency, efficiency and integrity. Ultimately this weeds out the ones who have no interest in doing business the way we are now required to.
This next series is directed at the executives who guide their company and processes. I’ll be taking you on a journey through “Manufacturing a Mortgage”. This journey will require planning, work and action on your part and your staff. It will take time to do but it will save you time and money in the end. Certainly by this point in our careers we have learned the value of this lesson. My goal will be to get you the information that you need to be prepared for the onslaught of regulation in January. I cannot do it for you, but I can provide you with some best practices that are working for others.
To start I ask you to ponder a few points:
- Pull yourself out of the mindset “we have always done it this way” and approach this series with an open mind. I’m going to blow it apart and put it back together again.
- See the glass as full and decide to embrace the change to see where it takes you.
- Commit to setting the example and not being the example.
- Encourage ideas, sharing and wisdom from the people who perform jobs for you every day. It is those people who can give you the greatest insight. Your reward will be good intel and employees who feel like they are valued and not a cog in the corporate wheel.
- Decide that training throughout the company will not be a “have to” but will be a “love to”.
Allowing yourself to go through this process will guide you to a company run with efficiency and profit. Living in the past with what we used to do will leave you in the past. I also recommend that you share this process with your staff and production people. If they see how this can benefit them then you will truly have a win-win on your hands.