For some contract processors, growing your pipeline happens naturally as the word spreads about your services. For others, it will require a consistent marketing campaign and lots of planning. If you fall in the second category, there are a few things to consider before attempting to expand your reach:
- What group of originators can you target easily and with the least expense? - What enhancements can you make to your current scope of services to lure them? - What modifications or improvements will you need to make to your current system to accommodate the additional growth? - What financial resources must be available to make the expansion a success?
Let’s take a deeper look into each point:
TARGET MARKET - Like ice cream, originators come in all flavors. It’s a matter of choosing which flavor (or market) you like best – experienced, inexperienced, urban, suburban, high end, low income, conventional, government, internet only, local, or nationwide… Often, reaching out to a new niche is all it takes to bring in a ton of new business.
SERVICE OFFERINGS – What can you add on to your current scope of service? What is it that your clients look for but don’t find readily available from their corporate office, the lender, or other affiliates. If you know what that is, launch a pilot program to test interest and reaction. If the project is a hit, make it permanent. If not, scrap it and move on to something else.
INTERNAL SYSTEM UPGRADES – One of the first things to consider along with thoughts of expansion is whether or not your current system can support an increase in business volume. Do you have an adequate phone system? Are you properly staffed? Is your computer system and business equipment up to par? If not, pull back the reins! Your influx of business will be short lived if the word gets out that you can’t deliver.
FUNDING YOUR EXPANSION – More often than not, new expenses will precede new fundings. In determining the true cost of expansion, you will want to factor in the capital it takes to service these new clients until the revenue begins to flow in. It will take an accurate expense projection to make sure you’re still around to reap the fruits of your labor.
After working out these elements, you’re just about ready to forge ahead. Now you just need to decide what vehicle you’ll use to attract the attention of new prospects. A few possibilities include: •Newspaper and industry journal advertising •Direct Mail •Fax and e-mail campaigns •Speaking engagements •Community events Whatever option you choose, just be sure to present yourself or company as the best solution for the problem your target market faces. For more business expansion tips, take a look at our marketing kit at www.completemortgageprocessing.com/workbooks.html. ___________________________________________________________
INDUSTRY NEWS
On August 24, 2005 the Greater Gulf States Mortgage Convention (GGMSC) will be held at the Marriott Hotel in New Orleans, LA.
Freddie Mac has revised its guidelines to require that its servicers automatically extend a 90 day period of forbearance to borrowers recently released from active duty with the armed services. This means that servicers cannot initiate or resume foreclosures for at least 90 days from a borrower’s military release date.
Q. I plan to process both A-paper loans and subprime loans. What differences can I expect to see? A. There are quite a few differences. The most common differences are found in the following areas: • Borrower’s profile -The subprime borrower may have bruised credit or good credit with high debt ratios. There may also be other circumstances that render the deal ineligible for an A-paper rating
• File documentation – The A-paper deal will normally require less documentation. Some A-paper deals can be done with just a verbal VOE while a subprime deal may require two paystubs, two W-2s, and a verbal VOE. • Underwriting – You may also see longer underwriting time on a subprime loan because there is more to review. A difficult subprime loan may require a manual submission and underwriting while the A-paper loan may be expedited through the lender’s automated underwriting system.
NEW PRODUCTS If you haven’t already done so, check out our new products: 1. The Marketing Fast Start Report (for processors) 2. The Accelerated Coaching Program (ACP) 3. The Processor’s Training Trio (our workbooks plus great bonuses) Stay tuned, we’ll enhance our product line every month to provide you with the resources you’ve asked for most.
TELL US WHAT YOU THINK
If you have already purchased our Loan Processor In-A-Box™ workbook or used our other training resources, we’d love to hear from you. Let us know what has helped and what you’d like to see more of. Leave a message at our Feedback line at 1 (800) 609-9006 x2128 or just click here to submit your comments online. The feedback link is also be found on the bottom of our website homepage at www.completemortgageprocessing.com. You can also send us an e-mail to processinghelp@aol.com or fax us at (702) 543-5397. ==============================================
Contact information can be found at www.completemortgageprocessing.com
