Mortgage Loan Officer Business Plan

14 Feb Mortgage Loan Officer Business Plan

Planning is good. Putting your intention on what you’re here to give is good. Here is my mortgage loan officer business plan.

(Folks: I’ve updated this a little bit. You can find the new version for 2010 here.)

But tweaking your plans, then re-tweaking them quickly gets into procrastinationland. And I don’t wanna be part of procrastiNATION.

That said: Today is about one day’s worth of sincerely focused planning, thinking, and intentions. This is the last day this quarter (till 4/10) that I’ll do that. I’m mortgage loan officer business planning here:

Revised personal income goal (mortgage lending) $120,000. This would be fabulous on 12-20 hours a week. And it’s on the cusp of achievability. I think it’s possible; I know that some people are doing it. I want this with minimal overhead. No weeks with more than 25 hours in it.

I average $2,000 net to me, per file. That’s easy: 60 transactions. X 2k = 120k. Basic part done.

There are 10.5 months left; so if I can get 11 total units closed through march (I have 2 ytd, with a few about to close–January was a self inflicted bloodbath), I’m happy, and left with a gap of 5 to cover in 9 months. (I was in a funk–pretty uncool).

I’m a prospecting based originator: I work off of Realtor Referrals…and I work the phones to get them…and then knock the service out of the park.  We’ve got a process that I’ve created, and it looks like we can quickly use heapCRM to help with that.

Anyway–moving on: I close about 55% of my applications; many, many people can’t close, and that’s normal. I want to address that number as soon as I can Initially, I want to deal with “realityland,” and see what I need to do with present conditions to get my results.

So if I’m closing 55% of my aps…that means that I need to take 60/.55 = 109 aps.

And an ap? That’s defined as a FULL REAL AP with ALL of the data needed to close a loan. Anything else is a lead…and I’d say that I need about 2.5 qualified leads to get to an ap. That’s a guess though, and again, with HEAP I can figure it out pretty well.

Leads needed, then = 2.5 * 109 = 272.5 –we’ll call it 273 (A lead is someone with either interest in/benefited by a transaction). To get a lead, then I need to connect with 15 people. A connection is any voluntary engagement on their part. Whether it’s on the phone, or anywhere else. Getting to a decision on the lead (BattleCall.Com calls it sink or swim) is the key part of the equation.

15 * 272.5 = 4087.

That’s the contacts I need to make this happen. 4087 in a year isn’t bad. But let’s break it down; I can average 20 good contacts an hour. My basic scripts come from the old 1.0 Mike Ferry system–”Hi, this is a business call..I’m trying to help 100 families move this year…and I wanted to know if you had heard of anyone that may be moving…” And if I get a byproduct lead, that I can use to get more leads form the Realtor, that’s easily done.

So, the next part of the equation is 4087–if I’m taking 7 weeks off including holidays, then we’re looking at 52- 6 (time passed) -7 = 39 weeks. 4087/39 = 104 contacts per week.

If I’m working a three day week (and I will be) that’s M, W and Th as work days. (Tuesdays, Fridays and Saturdays) are spent on my next project. That’s 35 contacts/workday. That’s manageable; 2 focused hours x 3 days a week…then I can serve the hell out of my clients.

So, what I’m tracking:

  1. Contacts
    • Realtor
    • Non Realtor Professional
    • Consumer
  2. Leads (Source EEEEEEEEEEEEVERY lead)
  3. Applications
    • Purchase
    • Refi
  4. Submissions
  5. Closings
  6. Gross Fee
  7. Average Fee (derivative)
  8. Volume
  9. Turndowns (Should be under 5% of my submissions, our jobs as originators is front line underwriters)
  10. Cancels
  11. Emails sent (iterated marketing not spam)
  12. Marketing sent.
  13. Blog written (

I think this is it; i can easilly add more. That will appear in the sidebar on the far right (outersidebar) starting tomorrow.

I’ll have more of a concept of what I want the Tuesday-Thursday project to be, really really soon. There are a few projects I want to chunk out; and

Maybe I can Get Clients Now!

OH, BY THE WAY….(my links in case you missed them)

Seth Is friggin cool. You need to post this + add to your to do. Especially if you’re trying to learn photoshop as I am. – Deal with PDFs in a nifty way. Free–since Web 2.0 is making everything free.


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