How to Lead, Create Certainty, and Maximize Your Clients Refinance OpportunitiesMar 16, 2020
In this special edition Business and Life Tip, Tim breaks down for you a powerful and easy to implement Game Plan and shares the Scripting to most effectively thrive during this unprecedented and historic Coronavirus driven market volatility.
Taking control of your time, your database, and ensure you are maximize this opportunity most efficiently.
Here is the written transcription of the video:
Tim Braheem, Performance Experts Coaching and Leadership 360 with a Special Edition of the Business and Life Tips Series. It's surrounding the significant events both in your personal life and in your business life right now.
I know that a lot of you are coming off of a very difficult week last week where there was a lot of whip lashing going back and forth with mortgage interest rates tumbling. You're getting a lot of people locked in, you feverishly trying to get ahold of other people, you're playing phone tag with them and some people you never even were able to reach out to cause you just didn't have the time. And it's certainly understandable. This was an unprecedented set of circumstances. So this particular Business Tip is to give you some direction going forward as to how you should be handling interaction and dialogue with your clients that you didn't get locked in.
So first of all, you need to make sure that you are accessing the material that is available within this industry that can have you articulating what the movement in interest rates has been all about. MBS Highway, Barry Habib has been the expert in the industry for over 20 years now on this subject matter. That's a terrific source. Those of you that are mortgage coach subscribers, I know that Dave savages crew provides information to help you. Maybe some of the companies that you work for might be providing you with mortgage backed security information, but you have be able to nail that part of the conversation.
So you're reaching back out to these clients that you don't have locked in. Some of them you never talked to, some of them you gave them a number and then they said, let me think about it. And then the next day it wasn't there anymore and you're not really sure how to have that conversation. You need to confront it head on. Okay?
You need to first start by educating them and articulating in a very clear and concise way, and if you need to use graphs and charts, I suggest that's a great idea as well. Make sure that they understand that you're an authority and you're knowledgeable on interest rates. A lot of the information out there right now is misinformation, right? So you've got to show them and share with them what really transpired with the volatility. A lot of the lenders pulling out of the market because they can't handle the volume. We have a whiplash and stocks every other day, et cetera, et cetera.
But after you've nailed that, you've got to most importantly set up a game plan going forward. So I want to talk to you about that game plan and I want to give you the script for it.
So first let me give you the script and then I'm going to give you some, some key points within the script. So it's going to sound something like this. Mr. Jones, I'm giving you a call because I want to share with you that the interest rate that we had talked about last Thursday is no longer available. That interest rate of 3% at no points on a 30 year fixed is now at three and a half percent. And I know that that might come as a huge surprise to you. Frankly it comes as a huge surprise to me. You're going to then go in and articulate and share with them what transpired in the market, but then you're going to divert to the game plan. So here's what we need to do as a partnership, we need to pick a target rate, a GO RATE, if you will.
I stole that phrase from a client of mine, Brian Case, he used that phrase, I liked that phrase, go rate. Okay, I need to know what your go rate is. If I can get you that 3% that we were talking about last week, I don't want to have to try to find you, leave voicemails for you, have you calling me back. It's going to be a very busy time when those rates return. Okay? I need to know what your go rate is and I'm going to watch it hour by hour for you.
Sometimes Mr. Jones, these windows of opportunity are very small. So when that rate is available, I need your permission right now to lock you in and to compile a short list of documentation that I did get from you in return. And we're going to have a finite period of time. We're going to have to close the loan within 45 to 60 days. So I need to know that when I call you and I tell you that it's Tim and It's Time, you're going to know what that means.
Now, in addition to you giving me the authority to lock on your behalf, Mr. Jones, the other thing that I need to make sure that we're clear on is what a lock is, a LOCK is a contract. So if you give me the authority to lock you in at 3% and I do, we have to deliver. The lender's not going to call us sometime in that 45 to 60 day timeframe and if rates have gone up and say we don't want to fulfill the commitment that we made you, and we can't do that to them. I can't do that to my staff, they're incredibly, incredibly overworked and busy right now and I can't do that to my reputation.
So I need to know that if 3% is the go rate, that that's going to be good enough for you. Okay. It might be that it goes down to two and seven eight but if we're trying to time this market, just as we have found out many times in our lives when we're trying to time stocks, it's an impossible endeavor to go about. Okay, so just like you know, maybe you said, Oh gosh, I wish I wouldn't have sold Apple at 210 because it ran up to 230 and now and now it's down to 220 I mean it's that volatile right now with mortgage interest rates. So I need to know what your go rate is and from there, okay, I will take action on your behalf and we will have to work together as a team to get this thing done quickly.
Now, a couple of side notes... Number one, notice I used the word contract. The reason that I'm wanting to make sure that Mr. Jones knows that if I'm given the green light to lock in, that it's a contract is because I don't want to have to be dealing with having back and forth conversations about, Oh, I heard that the guy down the street has 2 7/8's you're going revert right back to that conversation. Say, Mr. Jones, remember the conversation we had, we executed a contract with the lender and locked you in and you gave me the authority to execute that contract on your behalf. Okay, so you want to be holding them accountable to that. If they're not willing to make that commitment gang, then you need to move on and let them go play games with some internet lender or one of your competitors. There's plenty of business out there right now and the only way that I would be doing business (if I were you) is if you can establish that type of relationship with your client.
Now, a couple of other things. For those of you who have clients that didn't lock-in what you can be doing. And what I used to do in these busy times, myself as an originator, it was I would start to build up a war chest of applications. I wouldn't put them into my system. I would only have your team working on loans that are locked and that are ready to be to be processed and funded.
BUT... If you have the front-end support staff to be building up a war chest of applications of people who have said, yes, I want to move forward when that rate is available, there's no reason why you can't be getting those applications filled out, running them through your automated underwriting engine, getting the updated documentation list in place, collecting that documentation from the clients. And then one day, three weeks from now, or whenever it is, when rates drop, Ching Ching, you'll be locking in 11, 12, 14, 18 loans on that date and you already have everything ready to go and maybe you can even lock for 30 or 45 days.So that's a couple of different ideas for you.
Lastly, and a lot of my clients have been doing this per my suggestion. You need to be doing a similar video to this. You need to be setting up your tripod on your desk and you need to be recording a video that articulates for clients what's transpired as it relates to the movement of mortgage interest rates. If you want to get really slick with it and use VidYard or something like that and put some graphs in there, great, but if you just want it to be straight forward like this, that's fine to get that out there to a bunch of people. Let them know that if they want to contact you to pick the go rate with you and to get the process started. That's another efficient way to do it is by getting that, that email video out or that putting on social media, getting it out to all the people that are in your network, letting them know where you're at with interest rates and letting them know that you're ready and willing and able to start getting them established and set up. So when the iron is hot, you can strike.
I hope that you find this Business and Business tip, not Business and Life Tip helpful. Tomorrow we're going to have a Life Tip for you. Have a great day.