Sepi Ghajar
Founder & CEO
PHONE:
(650) 524-5454
EMAIL:
ceo@taygo.com
ADDR:
433 Airport Blvd, Ste 106, Burlingame CA
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CEO's Message:

The Loan Officer Dilemma

It's an absolute pleasure to meet you in this digital world!

Since you are already reading this message, I presume you may relate in one way or another to the subject of this article. So, let's take a few attentive minutes together to go over the details.

In this article, I shared the insight that we gained through 12 months of deeply engaging with and studying the business operation setup of Independent Mortgage Loan Originators. We are a technology company based in Silicon Valley, with solutions for Digital Marketing and Consumer Acquisition for Independent Mortgage Industry. We have years of experience in digital and online top-of-funnel automation for all range of businesses. In the past 12 months we helped Loan Originators better set up and manage digital marketing channels and consumer direct strategies. This experience exposed us to an in-depth understanding of the day-to-day operations of Loan Originators (LOs). We discovered a fundamental operational inefficiency in the way LOs execute. If you are a Loan Originator who believes the future success of your business relies on adopting modern operation principles, this information is for you.

I have 17 years of experience in running a broad range of digital marketing and online pipeline automation projects, in both Enterprise (B2B) and Consumer Retail (B2C) sectors. Considering my background, when I was exposed to the current state of Loan Originators' business operation, I noticed a striking operational issue that oddly has not been much talked about. I believe it is one of the most important pullbacks in the way of attaining a self-sufficient business pipeline automation for independent Loan Originators. We believe this issues is resolvable by the right setup of tech and services. The content of this article is the foundation that forms the core of the technology and services we offer to the industry.

The Loan Officer Dilemma

Before we go over the problem statement, I would like to highlight two facts that are commonly known and agreed upon when it comes to marketing and sales operation characteristics. Any successful sales and marketing department (small or large) puts these fundamental facts into perspective when setting goals, establishing customer channels, adopting engagement strategies and recruiting personality types.

FACT 1: B2B vs B2C - It is broadly known that the process of generating and closing business deals are significantly different if we approach it from a B2C versus a B2B perspective. The marketing channels, presentations, follow-up processes and engagement strategies take completely different directions in each case. This is to the level that if you seek advice from wise B2B marketing experts for a B2C approach or vice versa, they would say they know nothing about it.
FACT 2: Demand Gen vs Closing Deals - Any business operation (small or large) requires at least two persona types to collaborate for achieving its goals gracefully in time and in budget:
  • Demand Generator
  • Deal Closer
The career trainings, attitudes, skillset, and communication strategies of these two personas are fundamentally different (if not opposite). The operations in which only one person covers the job of the two, are identified as highly inefficient.

Why am I telling you this?

In our deep dive into the day-to-day business operations of Loan Originators, we discovered a convoluted operational model that LOs deal with on a day-to-day basis without knowing the root cause. This problem appears to be commonly accepted as the nature of a Loan Originator’s job, though I disagree with this consensus based on my analysis of the two facts mentioned above. Hence, I call it the Loan Officer Dilemma. Let me tell you why...

One reality is that the LO's customers are home-buyers or homeowners, hence consumers. This indicates the need for a B2C Marketing Operation or a Consumer Direct approach in order to acquire new customers. On the other hand, the size of the deal is very large, as some say it is often the largest purchase an American household would make in their lifetime. Not only that, it requires so much nurturing and management of collecting and processing the right information and documents, as well as putting the effort to make sure the follow-ups fall through smoothly and timely in order to close a loan, so everybody gets paid.

Hmm... That doesn't sound like an average consumer purchase that falls through Social Media Ads. Instead, it exhibits the attributes of a B2B Deal Closing type of operation which brings us to the second reality: the skills required for closing Mortgages share the characteristics of the skills needed for B2B Deal Closing operations. This means a Loan Officer needs to perform like a B2C Marketer to fill top of the funnel while at the same time he/she is required to deliver professional B2B Deal Closing qualities to close the loan and earn a living. I think now we have a grasp of what the problem is. A Loan Officer has to perform in 2 full-time types of jobs that require completely different skillset and personality types.

The Current State

The current work structure of Loan Originators requires them to perform in two significantly different roles. However, in the rapidly evolving technological and digital world, this model is not sustainable and creates a high level of stress and inefficiency. Having said that, we have observed for example LOs with B2C marketing skills have more success with developing top-of-funnel but attain lower customer satisfaction results at closing. On the contrary, those with B2B style Deal Closing skills usually struggle with growing top-of-funnel, but achieve high levels of customer satisfaction results. In our studies, we learned that most LOs have better skills at processing and closing loans than at Consumer Marketing and generating top-of-funnel demand. That is simply due to the intense career training the Loan Originators go through to acquire their license. They are trained to process and close loans, but they don’t receive any training on Consumer Marketing unless self-learned.

The Problem

The Loan Originator’s daily operation is a 2-fulltime-person operation type:

B2C Marketer + B2B Deal Closer

This work structure creates a high level of stress and inefficiency. The solution might sound simple, hire a fulltime Consumer Marketer to make it a 2-Person operation and remove the headache. The challenge, however, is that the pay is not enough for two.

Where to Find Solution

The solution is to keep the top-of-funnel concern (B2C Marketing) separate from the operations and activities required for closing a loan (B2B Deal Closing Type). The question is: How?

Firsthand Experiments:

Our studies show some Loan Originators have intuitively recognized this issue and taken an experimental approach to resolve it. Below are the two most common ones:
  • 1
    Realtor Referrals: Some LO’s have concluded to outsource the Consumer Marketing work to Realtors to solve this issue which sounds reasonable in a way. However, it is not sustainable. Realtors come and go and don’t have the same incentives as Loan Officers. If you count the time and effort that goes into building and maintaining relationships with Realtors, it is not so cheap. In fact, looking at it more closely, it seems that Realtors benefit the most of this relationship than LOs.
  • 2
    Self Learning Digital Marketing: Some other LOs decided to self learn digital marketing skills which is a good skill to learn for a marketer, but what is the real job of a Loan Originator? Why would one spend so much time, money and effort to learn a whole new skillset which is completely irrelevant to the requirements of their jobs?

Obviously, neither of the two options above offer a scalable, universal and industry wide solution. They may work to some level for which we should not rule them out completely out. However, we can’t deny that any healthy business requires a self-sufficient and scalable demand generation system. To do so, best practices suggest finding a technology partner with the right expertise who can do it for you in a scalable model at a reasonable price. This is what any high performing executive would do.

What Is The Best Solution?

If you are wondering who is the right partner, I'll tell you without a shadow of doubt it is TAYGO. TAYGO is the only service in the industry that provides a platform with centralized effort around consumer pipeline development for Loan Originators. We are committed to help you apply the right strategies, practices and toolset to develop a self-sufficient and thriving consumer pipeline. TAYGO takes over the tech work so you can stay focused on your real job of helping American households find the best path to their homes!

What to Expect from TAYGO?

  • Consumer Outreach
  • Digital Marketing
  • Funnel Development
  • Strategy & Direction
  • All-in-one Platform
  • Automation Tools
  • Domain Expertise
  • Quality of Work
  • Competitive Pricing
  • Professional Services
  • Content & Design
  • Diligent Delivery
  • Industry Focus
  • Reliable Service
  • Responsive Support

How to Start

Schedule a meeting with us. Our professional team will show you how far you can reach with us. You need this information whether you use our service or not, so let's talk!

We look forward to talking with you soon!
WORD OF WISDOM
“Don’t be a wandering generality. Be a meaningful specific.”
- The Sales Genius, Zig Ziglar.