in Achieving Goals

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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