Customer Satisfaction versus Loyalty - Mining Your Acres of Diamonds - 05/30/07 11:42 PM
Jeffrey Gitomer makes a very interesting distintiction between "Satisfaction" and "Loyalty." In fact he will ask salespeople if they would rather have their spouse be "Satisfied" or "Loyal?" Think about the question and turn it around from a client standpoint. 
Now the million dollar question is how to build customer loyalty?
How can you be assured of the best possibility of capturing those repeat and referral customers? Research has shown that 85 to 90 percent of mortgage customers are "very satisfied" with the service they received. However, only 10 to 15 percent of past customers are typically loyal and come back or give … (2 comments)

Great Thoughts To Ponder (5/30/07) - 05/30/07 12:58 AM
"How wonderful it is that nobody need wait a single moment before starting to improve the world" -- Anne Frank
"Facts do not cease to exist because they are ignored." -- Aldous Huxley
"Discovery of a solution consists of looking at the same thing as everyone else and thinking something different."  -- Albert Szent-Gyorgyi
"Show me a man who cannot bother to do little things and I'll show you a man who cannot be trusted to do big things." -- Lawrence Bell
"The greatest thief this world ever produced is procrastination, and he is still at large."  -- Henry Wheeler Shaw
"Some people procrastinate … (2 comments)

Don't Let This Happen To You! - 05/29/07 10:46 AM
While we all agree our past clients represent our greatest asset for long term sustainability and income potential, often we take our past clients for granted.
This short video clip (The Break-Up) is a powerful metaphor representing what happens far to often between loan originators and their past clients.
The Break-Up' – is about the relationship between an advertiser (You) and a consumer (Past Client). They've agreed to meet in a restaurant. The man's feeling perfectly happy, until the woman makes a painful announcement: she wants a divorce. In the course of their conversation she makes it clear to him … (10 comments)

What Makes A Good Mortgage Blog - 05/29/07 10:43 AM
What makes a good blog? Given that mortgage and real estate blogs are starting to proliferate, I get this consistent question from my readers. First, I do not claim to be an expert...far from it. I can however give my my opinion on what I enjoy in a blog.
Honesty Readability Transparency Sense of the bloggers voice and personality Non corporate and making sure it doesn't sound like a PR machine Fun, interesting and relevant content BrevityAdditionally, I have compiled a list of informative and helpful links you should find interesting and helpful while providing you an excellent overview of what makes … (0 comments)

Cicerone's Favorite Posts Last Week - 5/28/07 - 05/28/07 09:11 PM
The Dirty Little Secret in the Title Industry   - Title-OpolyLicensing is Just Plain Selfish -  America's Most Opinionated Mortgage BrokerFeel Sorry for Mozilo Yet? - California Housing ForecastThis isn't a Country Song... - Mike Mortgage MinuteWhy I Hate My Industry Sometimes - Quick Loan Funding - Blown MortgageBusiness Killer - Beat CanvasIt Took 17 Years, But Milli Vanilli May Have Been Right - The Mortgage ReportsSan Diego Mortgage Broker Questions Transparency in Lending  -  America's Most Opinionated Mortgage BrokerAdventures in 1st Time Homebuying: "Are We There Yet?" - SoundBiteBlogHow "Repair Credits" To The Buyer Can Sabotage Your Home Sale - The … (7 comments)

Rediscovering FHA - The Loan Programs - 05/28/07 05:17 PM
The following are the most commonly used FHA loan programs along with their characteristics.
There are multiple sections of "The FHA Act," these however are the primary programs currently used:
203b (Regular)
Most widely used section of the actCan be used for 1-4 unit properties, PUD's, manufactured housing, but not condosRequires up-front and annual renewal MIHas a fixed rate on interest234c (Condo)
Used only for condominiums (not PUDs)Unit must be in an FHA-approved projectQualified spot condo approvals may be availableRequires up-front and annual renewal MIRate may be fixed or adjustable251 "ARM" (Adjustable Rate Mortgage)
Caps of 1% per year and 5% lifetimeMargin 2.25% (most popular option)Index … (0 comments)

Turning Lemonade Into Mortgage Leads - 05/28/07 04:26 PM
Just read a post that had a great marketing idea for originators calling on Open Houses. When I was starting out, one of the most effective ways I found to get Realtor business was calling on open houses. Recently I was speaking to a gentleman who started in the business thirty short months ago and last year he funded $40,000,000 (80%  Realtor referred) with an average loan amount of $209,000...now that's a lot of loans for someone who just recently started in the business. When I asked him how he had build his Realtor based business so fast, he told me … (2 comments)

Always Remember... - 05/28/07 04:09 PM
In observance to Memorial Day I would like to thank our veterans for everything they have done for us.
This post is not meant to make a political statement, it is however is asking you to REMEMBER your friends, family and neighbors that have or are serving in the Armed Forces.
I have had relatives that served in the Armed Forces since the Civil War to present. My prayers go out to my nephew Michael Giberti who is currently serving in the Air Force.
My wife was a military brat and I would like to acknowledge her father … (0 comments)

Architect Claims to Solve Great Pyramid Secret - 05/26/07 10:25 PM

They just don't build them like they used to. Wonder what the economic remaining life on this structure is?
A French architect has claimed to have uncovered the mystery of how Egypt's Great Pyramid of Khufu was built - with use of a spiral ramp to hoist huge stone blocks into place. It makes for an interesting read, especially for those interested in ancient Egypt.
Also, watch computerized 3-D mockup showing how workers would have erected the pyramid at Giza outside Cairo
Source: LAURENCE JOAN-GRANGE, Associated Press Writer
… (0 comments)

Rediscovering FHA - A Few Benefits - 05/25/07 09:30 PM
The are many advantages to providing an FHA solution to a borrower.
These include:
Lower down payment (1.25% to 2.75%). The lower down payment requires a minimum cash investment of 3% which may be a combination of down payment and borrower paid closing costs. FHA loans are not credit score driven - There is NO minimum FICO score requirement. Seller may pay ALL of buyers closing costs, or the closing costs may be paid by the lender through "premium pricing." Seller financing concessions and contributions are allowed up to 6% of the sales price. Cash reserves are NOT required - The only exception … (0 comments)

The Option ARM Is Akin To OxyContin - 05/24/07 09:00 AM
First, the Option ARM IS NOT an inherently evil or bad mortgage product. In fact, for a select group of financially sophisticated borrowers the Option ARM is a great fit, however for the average consumer it is not the appropriate financing vehicle for them to utilize. One of the best metaphors I have ever heard regarding the Option ARM product comes from America's Most Opinionated Mortgage Broker, Brian Brady. This is what Brian has to say:
"The option ARM can be likened to OxyContin; very powerful and effective when used as directed. The problem is that it was dispensed like aspirin; often, … (6 comments)

Great Thoughts To Ponder (5/23/07) - 05/23/07 11:38 AM
"We must combine the toughness of the serpent and the softness of the dove, a tough mind and a tender heart." -- Martin Luther King, Jr.
"To solve any problem, there are three questions to ask yourself: First, what could I do? Second, what could I read? And third, whom could I ask?"   -- Jim Rohn
"Every problem has in it the seeds of its own solution. If you don't have any problems, you don't get any seeds..."  -- Norman Vincent Peale
"The problem is not that there are problems. The problem is expecting otherwise and thinking that having problems is a problem."  … (3 comments)

Three Mortgage Veterans at an Irish Pub - 05/23/07 11:34 AM
What an enjoyable night! Last night Brian Brady, Dennis Geist and myself met for a few beers at Tom Giblins Irish Pub in Carlsbad, CA.. Between the three of us, their was a total of over 70 years experience sitting at our table as we swapped war stores and pretty much fixed all that was wrong in the mortgage business.
It is always a treat getting together with long-term mortgage veterans that have been through several business cycles and are still thriving. Best of all, both Brian and Dennis are down-to-earth guys with an incredible sense of humor.
As we left … (0 comments)

Is The Customer Always Right? - 05/22/07 10:59 AM
Is the customer always right...no matter what?
My first years in the mortgage business, I believed the answer was emphatically yes. After all, that's what my business professors taught me in college. However, after a few years of dealing with more than a few difficult customers, I seriously began re-thinking the customer service mantra "the customer is always right."
Have you ever had a customer who was impossible to please? No matter what you did, nothing made them happy? I have and below are a few other facts I realized:
They were typically my lowest profit loans (if they closed at all) Allocated three … (8 comments)

American Dream Becomes Nightmare - 05/21/07 10:18 PM
Morgan Brown at Blown Mortgage has a blog series titled "Why I Hate About My Industry." While he did not cover this particular story, I immediately thought of him when I read it.
I get incensed when I hear about rogue mortgage brokers and lenders taking advantage of borrowers all in the name of making a few bucks at the consumers expense. From my inner-core I feel arranging a home loan for a client should be a win-win proposition and if it should not be, YOU the mortgage professional should walk away. Yes, its a hard thing to do when you know someone else … (0 comments)

Favorite Real Estate and Mortgage Posts Last Week - 5/21/07 - 05/21/07 01:11 PM
Podcast Interview With Brian Brady - Part 1 and Part 2 - Blown Mortgage What's Next For Real Estate - Inman Blog Credibility In A Can - Just Add Water - Lending Clarity Industry Moons Real Estate Consumer - Inman Blog Why Did the Housing Phenomenon Spread? 3 Key Reasons for a Social Epidemic: Housing Connectors; Mavens; and Salespeople.  -  Dr. Housing Bubble Recanting An Earlier Statement: The UofM Survey May Be Meaningful This Week - The Mortgage Reports Loan Originator Leftovers - The Mortgage Porter Thank You Sir, May I Have Another - Inman Blog A Crazy Thing Happened On … (2 comments)

Increase Your Likeability Factor - 05/20/07 08:55 PM
Tim Sanders gets it! When people like you, they are more likely to refer and do business with you. Do you put people's needs first? Do you do stuff for individuals without keeping a scorecard? Are you a selfless resource for your friends, clients and co-workers? Do you make yourself emotionally attractive to others?
Listen to this clip from Tim and let him inspire you like he has so many other salespeople! Scroll down the page and click on video.
Likeability Factor
… (8 comments)

The Value of Testimonials - 05/20/07 08:51 PM
Lately I've received numerous questions regarding the value of customer testimonials. Thus, it occurred this would be the perfect issue to address for my next article. While gathering my thoughts and researching the subject, I came across a Mortgage Originator Magazine article written by Bliss Sawyer regarding testimonials. Immediately, I knew Bliss had already written the article I intended to write.
Bliss has done a masterful job (as always) addressing the value of integrating customer testimonials in your overall marketing efforts.
If you are serious about your career, take the time and read Bliss Sawyer's article.
Read Article
… (3 comments)

Free & Robust ARM Index Analyzer - 05/20/07 08:45 PM
Dave Savage and his group at Mortgage Coach are awesome! They continuously come out with new and improved tools for loan originators. As an originator, I highly recommend you consider becoming a member of Mortgage Coach. Since becoming one, almost every day I wish I would have had the tools contained in Mortgage Coach from day one of my career.
While talking to a friend last night, we were analyzing the different indices and suddenly I remembered the Mortgage Coach ARM Index Analyzer. First, you don't have to be a member to use it and it will give you a taste of … (2 comments)

Mega Producers: Four Cornerstones of Success - 05/20/07 08:41 PM
Found a very interesting article in Realty Times and realized how similar the cornerstones of success are in both real estate and mortgage origination. Click hyperlink below:
Four Cornerstones of Success
… (0 comments)

1% Mortgage - It Will Change Your Life! - 05/20/07 03:30 PM
Imagine being on a business trip sitting in a your hotel room bored stiff at 10:30 pm...what's a person to do?  That's right, start channel surfing and hope something of quality is on. Well, while in the midst of an extended business trip to the San Diego area that person was me.
Needless to say, I was shocked when right before my eyes a local mortgage company was running an infomercial hawking 1% Option ARM's. While this would not have surprised me a year ago, one would think with decreasing property values in California and all the news about option … (7 comments)

Flip This House Scam - Reality TV Not Reality - 05/19/07 01:30 PM
After seeing the story of Sam Leccima’s Atlanta renovations on "Flip This House," hopefully people will understand wealth accumulation is rarely an overnight process and that reality TV is not necessarily reality.
It's well worth watching the two part investigative reports by Fox 5 Atlanta (see hyperlink below)   
Fox 5 Atlanta investigated "Flip This House" flipper Sam Leccima and found countless dupped investors that have filed complaints to state regulators. They further document numerous lawsuits against Leccima claiming he took their money and ran. This series of investigative reports will also provide fuerther details behind what really happened with his … (7 comments)

The Giant Sucking Sound of Velocity - 05/17/07 12:19 AM
What is that giant sucking sound? It's the sound of the subprime industry losing velocity.
The key word hardly ever mentioned or associated with the subprime implosion is VELOCITY. Yet, it has everything to do with both the runaway growth and recent constriction of subprime.
In 2001, the subprime industry started gathering momentum as property prices accelerated. As  investor appetite for high yields increased, a whole league of mortgage banking entrepreneurs willing to feed the monster (Wall Street and consumers) and make obscene profits gladly dreamed up new exotic products to meet market demands. Best of all, it was a fool proof … (6 comments)

Great Thoughts To Ponder (5/16/07) - 05/16/07 10:45 PM
"Fear of failure or success is one and the same. Both are fear of exposure. Not of our strengths, but of our weaknesses." -- Kevin W. McCarthy "Never follow the crowd in what you do; the crowd has never produced anything of lasting quality, value or beauty." -- Denis Waitley
"A person is the causer (though nearly always unconsciously) of his circumstances, and that, whilst aiming at the good end, he is continually frustrating its accomplishment by encouraging thoughts and desires which cannot possibly harmonize with that end." -- As A Man Thinketh
"If you wait for inspiration you'll be standing on the … (9 comments)

Do You Ever Feel Like Michael Jackson's Plastic Surgeon? - 05/15/07 09:49 PM
Over the last 20 years, I've seen far too many people financially over-extended. Fortunately, I've helped countless clients consolidate their debt utilizing strategic equity management strategies and have placed them in a situation to both save and payoff their remaining housing debt (or accumulate enough money to payoff if needed) in 10 to 20 years. Many clients did just that and today are financially set; however, some didn't and ran up their debt again and again and again. Since early in my originating career, I always kept in contact with my clients and in doing so, discovered both success and the … (3 comments)

Are You Chronically Late? - 05/15/07 09:35 PM
Wow, did you know employees showing up late to work, meetings and appointments cost the National GNP 1% every year? Forget the macro implications to the national economy, how much is being late costing you personally in relationships. respect and income?
Have to admit, being late is a bad habit I've struggled with my whole life. Fortunately, it is something I now manage, however, when younger it seemed I was always one to two minutes late to everything. Being a chronic multi-tasker, I always tried to sqeeze in one more thing, resulting in rushing off late to meetings...sound familiar?
During my … (3 comments)

Maxed Out - 05/15/07 09:27 PM
As a professional mortgage originator/planner, part of our job is to put our customers in a better place financially. On March 5, 2007. I made a post titled "Do You Ever Feel Like Michael Jackson's Plastic Surgeon?" The article spoke to a financial crisis touching millions of consumers across America and the role we as professional originators/planners play in solving this financial crisis.
We are now seeing the results of this crisis with the current state of subprime. Don't get me wrong, I'm not against subprime products. Millions of homeowners have benefited from being able to either purchase or consolidate their … (0 comments)

How Not To Succeed In Sales - 05/15/07 09:22 PM
Found another Ben Stein article packed with common sense sales advice. Stein has a running series of articles he calls: "How Not To Ruin Your Life." In it, he hands out advice from a negative perspective. Instead of telling his readers "what to do", he instructs them "what not to do."
In his article "The Art of (Killing) the Sale," he outlines 22 Principles of what not to do if you are in sales. I will add, these principles also translate well into other areas of your professional and personal life.
Continue reading "How Not To Succeed In Sales" »
… (6 comments)

Favorite Mortgage Related Posts Last Week - 5/14/07 - 05/15/07 11:44 AM
Every week at The Mortgage Cicerone I get emails asking what my favorite sites are and what posts I recommend. Being the brilliant person I am (ha, ha), I thought heck, why don't I publish my top picks from the previous week every Monday!
This is the first of my weekly "Top Cicerone Picks."
How Much Does A Good Reputation Cost - SoundBiteBlog
Debt and Your Mortgage (Part 1) & Debt and Your Mortgage (Part 2)  - The Mortgage Porter
PMI for Subrime (5/10/2007) - Mortgage Matters
Saturday Rock Blogging - Calculated Risk
East Coast Money Lent Out West - New York Times
How Realtors Get Leads From … (2 comments)

How To WACC A Lower Rate - 05/15/07 11:36 AM
Brian Brady at America's Most Opinionated Mortgage Broker wrote a masterful article explaining how to use Weighted Average Cost of Capital (WACC) as a financial tool to calculate whether or not a borrower should refinance to consolidate their mortgages and consumer debt. Many times a potential client has an extremely low rate on their first mortgage and possibly a HELOC and other consumer debt. By calculating the WACC of the borrowers total debt, you (a mortgage professional) can help your clients better determine if a refinance makes sense.
Go to Brian's full post where he goes on to explain how to … (0 comments)

Realtor Numbers Continue to Grow - 05/15/07 11:30 AM
Despite the slowing real estate market with an ever growing inventory, shrinking margins and less income opportunities, the number of Realtors in the nation continues to grow.
Quite frankly, when I read that at Inman News, it surprised me.
My guess is the real estate industry has seen great numbers leave the profession, yet an even greater number of newbies enter. My second guess is a second wave exodus will happen within the Realtor ranks over the next 12 months and the trend will be reversed.
Just like the mortgage industry, I believe the seasoned professionals along with the ethical and aggressive newbies … (3 comments)

IRS - The "Kick 'Em While They're Down" Rule - 05/11/07 02:12 AM
In his weekly syndicated column, Kenneth Harney pulled back the curtain on a nasty piece of IRS tax code that can penalize homeowners with foreclosures and short sales. 
Because the IRS treats canceled debt as ordinary income, homeowners that "work something out" with their lender may inadvertently add tens of thousands of dollars to their annual tax liability.
According to the tax code, when a creditor agrees to cancel a personal debt of $600 or more, it is required to submit a 1099-C, Cancellation of Debt form to the IRS.  And, when the IRS receives this form, it treats the canceled debt as … (33 comments)

Where Does Your Town Rank of America's Top 100 List of 2007? - 05/10/07 10:48 PM
Relocate-America.com selected Asheville, NC as their #1 city in the annual report "America's Top 100 Places To Live".  This is the second time that the mid-size city of 70,000 ranked in the list's Top 10, compiled since 1998.
Rounding out the rest of the Top 10:
Asheville, NC Traverse City, MI Ithaca, NY Chicago, IL Cary, NC Portland, ME San Francisco,CA Stevens Point, WI O'Fallon, MO Spencer, IAYou can view this year's complete list at http://top100.relocate-america.com/.
… (4 comments)

Liar Loan Dilemma - Should I Lie? - 05/10/07 10:11 PM
Morgan Brown at Blown Mortgage posted a great article regarding "stated loans" from a consumers viewpoint.
Below is an excerpt from his post. I highly recommend you read it in its entirety:
"I wanted to look at this issue from both the consumer perspective and the mortgage professionals point of view.  We'll focus on why it is bad (for the most part) from a borrower's stand point in this post.
As a consumer:
Using stated income always sounds like a good idea, because it lets you qualify for a loan that you otherwise would not be able to get.  While it sounds exciting to … (2 comments)

Is The Subprime Disaster Really A Disaster? - 05/10/07 10:09 PM
News Flash - Even though there's trouble in subprime land, lenders haven't stopped lending to SOUND borrowers buying real estate that isn't overvalued.
Much like the Dot Com implosion a few years back didn't ruin the Internet or the technology sector, the subprime correction will not ruin the real estate or mortgage industry. In my opinion, it's macro long-term effect is more of a fender-bender in the economic parking lot.
I remember shaking my head in the late 90's when the dot-com companies were hemorrhaging red ink on their P & L's and investors in a frenzy chasing high-yields continued investing … (4 comments)

Would Warren Buffet Buy A Home Now? - 05/10/07 10:08 PM
Warren Buffet is renowned as one of the worlds savviest investors. In fact, his investment strategies have made him one of the wealthiest individuals in the world.
What is his investment strategy?
Primary focus is on investments with strong intrinsic value Buy investments for the long-term that will grow in value over the long haul Reflect on the nature of the investment and its future Rather than selling an investment when everyone else is dumping it, he prefers determining if a market downturn provides a good (undervalued) investment opportunity Invest in something you he knows and understands Avoid herd mentality investing In … (6 comments)

Increase Your Loyalty by Increasing Your Value - 05/10/07 10:00 PM
We all want to increase our value, yet how does one do it?
I believe it lies with FOCUS and putting the needs of others before yours.
By focusing on the business you want, the people you want to connect with and the behaviors/actions needed to succeed, you are drastically increasing your value and loyalty.
There is a saying:
"If you chase two rabbits, both will escape."
What this means is, you have limited time and resources and by trying to be everything to everyone and not focusing your activities, you become like a rudderless ship in the ocean.
The problem with most loan originators is … (0 comments)

The Key To Being Successful - 05/10/07 09:59 PM
There are literally hundreds of marketing and business systems available for real estate and mortgage professionals. I've personally reviewed and used several of them and many are fantastic tools. In fact, I wish many of them would have been available when I started originating over twenty years ago.
However, I'm thoroughly convinced the most important thing you have as both a person and professional is YOUR REPUTATION.
Yesterday, Rich (aka Sparky) at Soundbite wrote one of the best blog posts I've read this year. It is titled "How Much Does a Good Reputation Cost?"
In it, Rich goes on to say:
"...of all the marketing … (3 comments)

HUD IG Seeks Elimination Of Seller Paid Down Payments - Is That The Easy Answer? - 05/10/07 09:57 PM
The Inspector General (IG) for HUD is again seeking the elimination of seller provided down payment assistance programs (DPA's) provided through non-profits such as Nehemiah and AmeriDream that provide the down payment and are reimbursed by the seller.
According to a recent Bloomberg article:
"The U.S. Department of Housing and Urban Development plans to seek a ban on down payment assistance programs that have grown sevenfold this decade and contributed to a surge in foreclosures of government-backed mortgages."
Where The Bloomberg Article Fails
While on the surface DPA's appear to be the reason for the surge in FHA foreclosures, when one digs deeper … (0 comments)

 
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Tony Gallegos

Marietta, GA

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Cognicorp Mortgage Banking Advisory

Address: Marietta, GA

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