As we built JVM’s very unique model, we were advised by a large number of consultants and industry executives. None of them fully understood our model, and their advice (while well-meaning) was often comically counterproductive. This is b/c most were rooted in old ways of doing business and could not shake their pre-conceived notions.
Our advice to everyone listening to consultants: (1) Make sure they see and embrace changes in the industry; and (2) Make sure they understand your model.
Examples of Bad Advice:
1. “Call People Back Twice Per Day at 10 and 3.” This oft-repeated 1990s advice does not work anymore. People want prompt, 24/7 responses.
2. “Fire your processors and your margins will sky-rocket.” This too was repeated often. It is comical b/c our Processors are integral to our overall loan-process. The consultants didn’t explain who was supposed to do their work.
3. “All business must funnel through Heejin as the ‘face’ of the business.” This too is a byproduct of the old loan officer model. This could never work for us, as we get far too many referrals and transactions.
4. “All borrowers must come to the office so you can wow them…” This was from a coach who did great in the 1990s. It is comical b/c 95% of our borrowers have no desire to ever see our office.
5. “Websites and emails are over-rated; call everyone for connection.” We need a website and email obviously for convenience, and so we can effectively communicate and educate the above referenced “95%,” and show them who we are.
6. “You won’t survive without loan officers or sales people.” We heard this time and again. We survived.
7. “Set up a call center or hire “dialers” to drive leads to JVM.” Sales guys love this one, but it will never work for JVM. We get our business from referrals, and our culture revolves around a very soft sell.
8. “Have borrowers first meet with untrained “loan partners” so they can obtain basic information and save time.” This didn’t save time, and only frustrated borrowers. Everyone is highly trained at JVM.
9. “Increase internal interest rates; make your people sell higher rates and make more money.” We hear this every time we meet with a secondary guy, and we of course run screaming from the room.
10. “Join the Rotary Club.” Nothing against Rotarians, but not our highest and best use.
11. “Relationships trump service.” Strong relationships are very important, but service providers still need to be great at what they do. See “The Office,” Season 4, Episode 2 – it’s hilarious and educational.
12. “Go to Vegas.” Mortgage people have a thing about Vegas, and we are always getting invited or pushed to go. I’d rather visit Des Moines or Topeka, which says much about JVM, or me at least :).
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646