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Success with Subprime
by Brian
Sacks
Do you have a question for Mr. Sacks? E-mail
it to brian@loanofficersuccess.com.
Click here
for more articles by Mr. Sacks.
Monitoring your Progress
You'll probably feel a lot better about the time you take off from your "regular"
work to devote to marketing if you adopt the attitude that: marketing opportunities
are just applications waiting to happen. It helps to keep this bigger
perspective and acknowledge all the things you do that are important pieces in the "success puzzle."
It's really all one big continuous process, and you have to value each step along the way.
Monitoring Progress
Let's go back to the analogy of traveling to Kalamazoo to win a million dollars.
Wouldn't it be a good idea to monitor your progress along the way just to make sure you were staying on track?
If you monitor frequently and regularly, and make adjustments as necessary, you'll stand a good chance of reaching
your destination on time. Otherwise, you run the risk of looking up and seeing a sign that says "San Diego
City Limits" and realizing that your goal is out of reach - you have failed.
I use an Originations Log and a Progress Tracking Log to help me keep track of
whether my target client groups are providing the amount of business I projected and also whether the loan amounts
and revenue per loan averages are in line with my expectations. This chart will help you pinpoint problems quickly
and identify when and where you need to modify your goals and/or your plan.
Originations Log
(Please refer to chart which follows)
This log will allow you to see at a glance where your business is coming from,
what kind of loans they are, and how profitable each loan is. Use this information to determine if you are meeting
your goals.
- Application Date. Record the application date.
- Borrower. Fill in the borrower's name.
- Agent/Office. Record the name of the realtor or referral source and for whom
he or she works.
- Loan amount. Indicate the amount applied for.
- Type. Indicate the type of loan (FHA, VA, conventional, etc.)
- Income. Indicate the amount you made on each loan.
Progress Tracking Log
(Please refer to chart, which follows)
Keep this log with you, and you will always know the status of all your loans
in progress. Think of it as your "pipeline at-a-glance."
- Borrower and referral source. Fill this in with the borrowers name and, below
that, list the realtor's or referral source's name.
- Rate lock. Indicate (with a "yes" or "no") whether your borrowers
are locked-in or still floating.
- Date of lock-in. Record the date on which the rate was locked-in.
- Expiration date of lock-in. This should always be recorded to make sure that
it coincides with the contract settlement date. Our industry tends to focus too much on the closing date. However,
the most important date is the actual contract financing approval or commitment date. If this date is not met,
the contract may be considered null and void. In an environment of rising home values, this may allow the seller
to legally sell the property to another buyer for a higher price.
- Contract finance approval date. Record the date by which the loan commitment
must be obtained.
- Contract settlement date. Record the date by which the loan must settle (per
contract).
- Submit-by date. This date should be 10 days prior to the contract financing approval
date. This allows you to contact the buyers and let them know what is still needed. Realtors should be contacted
to let them know if extension may be needed.
- Termite/insurance. Put checkmarks (or date) to indicate that the termite inspection
and insurance have been obtained. You'll need these at least 5 days before settlement.
- Loan approval/actual settlement. Record both the loan approval date and the actual
settlement date.
- Rate. Indicate the locked-in rate.
Click here
for more articles by Mr. Sacks.
Visit Brian Sacks's web site at www.loanofficersuccess.com.
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