With homeowners scrambling to refinance and take advantage of exceptionally low interest rates, the mortgage refinance boom of the early 2000's was an era of unprecedented demands on Mortgage Originators' time and focus. By following-up on requests and managing loan files, top performing Mortgage Originators honed excellent customer responsiveness skills and loan file management strategies, essentially becoming excellent "order takers." After the refinance boom, Mortgage Originators found they were unprepared for the new purchase market where proactive selling and pipeline management disciplines separate average performers from high performers.

Our experience tells us that Mortgage Originators need to re-focus and develop their sales planning and sales skills in order to succeed in a predominately purchase market. Many who entered the industry during the refinance boom are not prepared for current market challenges. They are struggling with how to rebuild and sustain a successful mortgage sales pipeline at a time when competition is fierce and loyalties fickle.

We observe that many still depend on their existing book of business for new opportunities, often hoping for the phone to ring with the expectation that "loyal customer" or referral sources will provide new business opportunities. The phone may be ringing, but for rate and fee inquiries, not new business opportunities.

Maintaining and building referral networks has never been more important than today. The major referral network that continues to value long term relationships built on mutual trust and respect is the residential home builder. When trust and respect are created, Mortgage Originators can expect a high level of loyalty from builders, even in markets where builders are seeing a decline in new construction home purchasing.

The following are the essential planning and sales skills required for nailing long-term referral business from residential home builders.

Develop a Differentiated Value Proposition

A differentiated value proposition persuasively addresses your competitive advantages in your market. To be persuasive, it should reflect the builder's point of view and business needs. Builders are interested in achieving customer satisfaction and profitability goals, keeping costs down, and addressing challenges in a fluctuating interest rate environment. You can differentiate by highlighting:

What makes your product and services unique to the builderThe advantages your products and services have over your competitorsYour experience and commitment to the home builder industryCreate "Trusted Financial Partner" Relationships To develop "partnership" relationships with builders and provide the advice builders expect from financial partners, Mortgage Originators must gain a thorough understanding of the builder industry and prospective builder's specific business challenges, needs and vision.

Participating in local home builder associations and community functions will help you gain visibility and learn more about the builder business.To gain trust and respect, link your mortgage products to the builder's business goals.Follow a Plan to Maintain Sales Focus and Discipline Many small and large successful builders already have strong relationships with mortgage lenders and enjoy a "preferred lender" status.

To identify and build your builder business, you need a focused sales plan to gain access to key decision makers and influencers, including the builder's sales managers and sales agents.To reduce resistance and gain a foothold, one sales approach is for you to establish yourself as an alternative source to the "preferred lender," providing advice and unique solutions. This will give you an opportunity to develop relationships and prove yourself.Be persistent, have a plan for sustaining a calling effort beyond the initial appointment.Develop High-Impact Consultative Sales Skills Given the rapid pace and variety of product offerings in the mortgage business, even the most experienced Mortgage Originators can get caught up in pushing the latest product and rate, while neglecting valuable, needs-based consultative dialogues. Prior to meeting with builders, research the builder, the industry, current market conditions, and if possible, visit the builder's home models and talk to agents.When first meeting with builders, focus on their business goals, values, priorities and challenges, not on mortgage products.Once you have a thorough understanding of the builder's needs and priorities, you are in a position to offer your added value, ideas for supporting the builder's goals or your differentiated mortgage solutionsBe prepared to address questions and concerns.Be sure to gain feedback on any ideas or solutions discussed.