Welcome back to our discussion of creating a comprehensive and effective training program to maximize performance within your organization.  You may access part one and part two of this series at www.reversereview.com in our February and March issues.

In our last segment, we reviewed the sales process in great detail.  We learned that the first part of the sales process was a fact-finding mission to uncover the borrower’s wants and needs; this is achieved through strategic listening and asking of open-ended questions.  We spoke about the second part of the sales process where the loan officer will match the features of the loan to the benefits it will provide specifically for the client.  We said that by using the best loan structure to customize the loan to a particular borrower’s situation, the loan could become a vehicle to meet those wants and needs. In this part, the loan officer will be vividly describing each element of the loan in a meaningful way to the borrower as well as explaining how each aspect should be important or exciting to them.  Here is a wonderful exercise to teach the loan officers to maximize success with each sale.  Have them fold a piece of paper in half lengthwise. On the left hand side, let them list all the features of the loan.  On the right side, directly across, have them list the benefit directly derived from that feature.

It would look something like the list below.

Now teach about bridging features to benefits.   A bridge is used to perk up a borrower and have them give you their full attention.  Here are some great bridges:

Using our example above:





Ask for Feedback: Isn’t that exciting?

Elaborate: You won’t have to move your recliner ever again!

Using the borrower’s name in the bridge is very helpful.

It keeps them focused and lets them know that some important information is coming up. 

Have your loan officers practice bridging features to benefits while in class.  The best salespeople do this naturally, but it is a practiced technique that creates an expert!  Speaking in this format can become second nature.  It creates a design for the sales call.

While training, watch for the structure of the presentation, making sure the feature is tied properly with a bridge and give accolades for using the proper emphasis, the client’s name, vivid description and great bridges that really call attention to the benefit.

To further enhance effectiveness, a salesperson can order the benefits in the presentation to have the most impact.  Lead with something exciting like, “Congratulations!  You can quit your hated job at Wal-Mart!”  Let that sink in.  It’s like winning the lotto!   Then go on to explain slowly and carefully bridging each feature to benefit.   A great way to lead into the close is to choose which benefit will cinch the deal and lead into the application.  Let it be the cherry on top of the cake!

Loan officers will encounter objections during this part of the process.  Teach them to embrace objections!  Answering objections is a part of establishing trust.  If a customer didn’t trust you, he would be reluctant to voice his objections.  These are great opportunities to help the borrower better understand the product.  If a customer cares enough to voice an objection, he wants to be sold. So, in a real way, this is actually a buying signal.   If he didn’t want to progress, he would just thank you and hang up.

Once you teach your loan officers to expect objections, you must help them to be prepared.  Here’s a great workshop idea that’s fun and competitive. 

Collect the most frequently heard objections amongst your staff and form teams.  Have the teams work individually on outlining the best way to address each, then hear them out and all can vote on which ones are best.  Further refine them if needed by sometimes combining two great answers.  Create a collection of all the best counters for each objection giving credit to the team that came up with the winning ones.  Combine all the objections and answers into a booklet which can be used as a great job aid and for future trainings. The loan officers will have taken pride in creating it and will be excited about refining it.

Closing costs should be mentioned in the sales presentation.
I don’t think you can move to the application stage without having the client agree to these charges.  I train the loan officers to group the settlement charges into three parts, The MIP, the origination fee and the third party fees.

Have the loan officers practice explaining that the MIP goes straight to HUD and is the most important closing cost since it provides for the unique non-recourse feature.  The origination fee encompasses all the lender may charge as they are regulated and restricted by HUD and the third party fees such as title, recording, appraisal, etc. are charged to the borrower exactly as they are charged to the lender and are necessary to the transaction. 

While a loan officer should know how to explain all fees on the GFE, they should not have to do so unless prompted during the disclosure review.  Here is a way to assume the next step.   If a client is hung up on settlement charges, assure them that when they go through the documents, they will have an opportunity to review the good faith estimate, which will detail all fees. 

The objective of the second part of our sales process is to close the sale by setting an appointment to take the mortgage application.

Set the table for the application.  As borrowers ask questions during the sales presentation, say, “Later, when we go through the loan application, I can show you where this is described in great detail”.   This is also great for addressing objections and, therefore, serves a dual purpose.  For instance, if a client was concerned about what prompts a maturity event, we would want to address this concern during our sales presentation briefly, but set the table for the loan application by explaining that later during the application process we will be perusing the Important Terms document that describes in detail all that we are speaking about. 

 If we were to begin with the end in mind, we would set about this process with the thought that we are listening carefully for buying signals from the client as well as leading them into the application process.

If the feedback from the borrower is that they understand and are enthusiastic about the benefit the HECM can provide and it is believed that all objections have been properly addressed, moving on to the next stage of the process is in order.

Our process will look something like this:




Post your sales process in your training room.  It is a road map for success.  Make sure to train the goal for each part.

The loan application or ‘disclosure review’ should be a confirmation of everything in our sales presentation and borrowers should be eager to see this in writing.  Make application appointments only when the borrower is fully sold with the full expectation of signing.  The borrower should be fully prepared for their appointment by the loan officer’s prompting for collecting the necessary documents.  The loan officer should explain the application process to the borrower in detail as the next step and move to make the in-person or phone appointment.  All necessary signers should be present for the appointment and have ample time set aside.

A separate appointment for the disclosure review is wise and very necessary when the application is being taken by phone.  It should be confirmed the day prior and the docs should arrive on time.  Here are a few helpful hints for sending the docs through the mail.  Put the borrower’s copy in a separate envelope taped shut.  Provide the client with a prepared return envelope and your company pen to sign.  Clearly indicate where each borrower should sign and date.   Fill out the application and have the loan officer sign where they should before sending the package out. Give the borrower a list of the documents they will need to return with the application. This promotes borrower confidence.  Make sure the names are spelled correctly.  These details really count!

Help your loan officers have fabulous disclosure reviews by training them well.  Create a disclosure review workshop.  Go through the process in class by providing the students each with a sample application.   Let them mark it up properly.  Have them sign where indicated.  Have them X where the borrower signs.  Ask questions about each document and have them answer.  Have the loan officers read the Important Terms Disclosure.  They need to know what’s on there including where to find the history of the index.  This is helpful sales information. 

I’ve created a wonderful disclosure review tool and you can too!  Just put an application in a three ring binder.  As the pages are turned, the left side will be blank.  This is where the quick explanation for the page to the right can be written.  You can also list important points to remember on this page. For example the “quick explanation” to the left of the TALC might read:  “As you can see, the longer you keep this loan, the more cost effective it becomes.  This disclosure is provided for just this purpose.  It wouldn’t be a great loan for you if you were keeping it just two years, but look at how the annual loan cost decreases as time goes on.” Let the loan officers highlight those items that they want to draw attention to during the disclosure process.   This book is especially helpful to new loan officers and gives them amazing confidence for getting through those long disclosure reviews. 

If you have the technology, record a particularly great review and play it for your staff.  Listening to call recordings is a great way for loan officers to learn and can be really fun!

When the application is done, the expectation for counseling should be set.  Make sure the loan officer is aware of the counseling process and how to correctly explain the procedure.  Here are some helpful hints to get through counseling.  Ask the borrower to write down any questions that may result from counseling or anything that they don’t understand.  Call the borrower when the counseling is done so that these items can be reviewed.  Provide the borrower with a stamped self-addressed envelope to return the Counseling Certificate to you.  Put a bright sticky on the envelope reminding them to sign the certificate!

I know that there is great debate about whether to do counseling prior to the loan application.  I am fond of doing counseling after the loan application.  My thought here is that I want the primary relationship to be between the loan officer and the client.  A counselor is not a sales person, nor should they be.  I always think it’s best for the borrower to understand the benefit of the loan before entering into the realm of counseling.  I’ve seen borrowers scared and confused by counselors too often and then the borrowers are unreceptive to what the loan officer might have to say.  That is a great shame.  Better to build trust by letting the loan application be a confirmation of everything they were told by the salesman on the phone.  Then, the borrower can go on to tell the counselor why they want the loan!

If our goal is to cultivate clients for life then communication must be the name of the game.  The borrower should hear from you frequently.  Call to say you received the Counseling Certificate.  Call to say when to expect a call from the appraiser and how payment is to be made.  If at all possible, attend closings and always call to congratulate your borrower on closing.  It’s cause for celebration.

Celebrate the completion of training as well.  Present your employees with training certificates and let them be a badge of honor.  Document all the procedures you can and let everyone have a hand in refining them.  Allow leadership to prevail by having those who are great in some aspect of the process make their own training presentations and promote them so they will be well received.  Create a culture of education and excellence to thrive and remember to have fun along the way!