This section describes how Financial, Insurance, Financial Planning, Taxation or Legal Professionals could create benefits for their clients & themselves through lender relationships, & how many of these professionals are sacrificing client share & benefits to their clients, by not having these relationships in place.
As a result of our Preferred Providers and Clients for Life Program, we currently have over $126,000,000 in Mortgages Under Management. Those Providers have given us their trust by referring us their clients and they continue to benefit from exposure in our Clients for Life Program. Our Clients for Life Program accomplished this through the following steps:
We can help your
clients restructure debt, through "equity repositioning" that provides
cash flow for the purchase of your products and services.
We have an associate insurance agent who sells the insurance, not as insurance, but as a retirement planning tool. He has sent to us referrals, from those that needed to restructure their debt, for an "equity repositioning" refinance to free up monthly cash flow to allow investment into an insurance product that requires a monthly contribution. In return, we now ask our clients at closing if they have adequate protection in the event of an unforeseen disaster, there by returning the referral favor.
The same principle applies. “I can’t afford it” is no longer an acceptable excuse.
Wills and Trusts:
Without a will or a trust, when the client passes, their property may end up in PROBATE. What an ugly word. With every loan application a mortgage professional should ask the client if they have this in place. If not, (80% of them don’t) refer them to an attorney that can do this for them.
In conversations I have had with
family planning attorneys, many of them recommend to their client, “If
you are thinking of refinancing, do it now instead of waiting on this
process (establishing a new trust). It could cost you more in
the future to accurately reflect the trust.”
David Ward a well-respected marketing consultant for the legal profession recently received numerous emails with a common theme. What many attorneys wanted to know was “tips on how to accelerate payment for services rendered, politely, while retaining the client and in the process not turning into a bill collector or pushing the client away.”
His recommendation was to introduce a mortgage professional to the client for a debt restructuring refinance and in the process of the closing having the attorneys bill PAID IN FULL!
Top professionals use mortgage lenders as a tool for their practice. Check out point number 4 below! Having this type of relationship is not an option, it's a matter of economic survival!
Add Real, Non-Self Serving value while leveraging
your referral potential.
What good is a database if it’s not being marketed and communicated to? By networking with another professional and introducing the new professional's products, services or solutions to the client base, the referring professional has created another way to market and stay in contact with the client. Our Preferred Providers find this helps maintain their hard earned client relationships. Additionally, for those clients referred to us from our Preferred Providers, we help strengthen the Provider-Client relationship through our Client Retention Contact Program, wwhich helps our Providers increase their monthly business.
An example: A mortgage professional was introduced to a client from an Estate Planning Professional and the professional recommends that the client refinance and in the process have the loan documents accurately reflect “the new living trust” during the creation of the trust.
This could save the client time and money from needing to do this once the trust is created. A financial planner may want to semi-annually send out a joint marketing piece promoting a “debt evaluation check up.” During a refinance market this is critical. Please read item number 4 farther down this page.
Maximize your clients retirement planning potential.
Most financial planning professionals that sell mutual funds set up IRA’s or other retirement vehicles and continue to monitor those accounts as they accumulate wealth.
One financial planner that we worked with, recommended his clients to “Replace credit interest debt by refinancing and rolling credit debt into your mortgage (now a possible interest deduction) and deposit those monies into your retirement account.” This is a faster way for your clients to accumulate wealth.
Protect your relationships.
Recently a firm tele-marketed over 100,000 Legal, Financial, Taxation and Financial Planning firms across the country and one question they asked was; “in conversation with your clients does the topic of mortgage lending or refinancing ever come up” or “can refinancing be used as a tool for any of your clients needs?” Two out of three responded, “YES.”
They would then follow up with a second question: “Do you have a
strong referral relationship with an existing lender or do you let
the client select his or her own professional?” NINE out of
TEN respond; “I pretty much let the customer select their own
Hopefully, one can understand that by not introducing the client to an associate for their other professional needs, the client has the opportunity to develop a relationship with a non-competing professional that may have a strong referral relationship with your competitor. The professional that does not provide the referral solution for their client could be left behind or their services challenged by a competitor. Having a trusted mortgage professional to refer your clients to, and to guard your relationship with them is not an option, it's a matter of economic survival!
Small Community Banks
Why are small community banks anxious to establish relationships with local mortgage brokers?
If the community bank cannot provide a financial solution for their customer due to a limited supply of mortgage lending products, then that customer has to go to a competitor (another bank) for their solution. If the customer goes to a Bank of America or Washington Mutual, those companies will solicit all of their checking and savings accounts to be moved.
A local mortgage broker is a safe solution because they do not
provide checking and savings account services. From the
smaller banks point of view, establishing this referral relationship
is not an option, it’s a matter of survival and protecting their
existing relationships (deposits).
I have heard stories of Financial Planners referring their
customer to the large nationwide lenders with a presence in their
markets. Do these planners realize what a business risk this
is? Don’t they know that Washington Mutual, Bank of America,
Citibank and the other major financial institutions have divisions
that provide the same financial services the referring professional
If you are a non-lending professional reading this outline hopefully you can see the value in creating this type of referral environment and developing a strong professional relationship with a mortgage professional.
How Do You Select the Right Lender?
A common question is “how does one select the right lender?”
To find the answer we should look to the industry that works with
lenders the most, as they would have the most experience with a
lending professional. That would be a TOP Producing Realtor. I
didn’t say “any” Realtor, I said a TOP Producer. How do these
top producing Realtors select a lender?
First of all, top producing Realtors do not switch lenders very often. Why? Because good lenders are hard to find.
When we think of a lender, most consumers automatically think of
“lowest rate.” The lowest rate for a lender can probably be
found on the Internet. Just like the lowest rate for a stock
trade or direct mutual fund investing can be found on the Internet.
Just like the lowest insurance premium can be found on the Internet.
Just like the family planning “do-it-yourself” solutions can be
found on the Internet. Eliminating the middleman always seems to be
the least expensive route, but, be careful what you wish for, don’t
eliminate yourself in the process.
The best loan for a client, believe it
or not, many times is not the lowest rate available.
It’s always about matching the proper loan with the client’s life
style or finding a loan that can accomplish a more important goal
like retirement planning investment, adequately providing insurance
protection for ones family, refinancing to make the IRS go away,
providing conclusion to a drawn out nasty divorce, avoiding
bankruptcy, etc. A successful mortgage professional doesn’t provide
loans, they provide integrated financial solutions.
The most important elements in selecting a lender are:
* First, can they do what they say? Most don’t.
* Second, are they competent and professional? Most aren’t.
* Third, is the lender you are working with out to earn a quick buck or are they in the relationship for the long haul?
* Fourth, the referred professional is an extension of the referring sources of business...will they live up to the referral?
And last, from the referring professional’s point of view, will
the referred lender have a referral mindset as well as protect the
referring professionals interests in the relationship?
As hard as it is to find a good lender, the task of finding a good legal, insurance, taxation or financial professional is equally as tough. Just because a person passes the state bar exam, insurance exam or receives professional licensing doesn’t mean they are good.
We only team up with proven professionals with the highest ethical standards who have demonstrated a desire to work in their clients best interest. If you feel you meet these standards, feel free to contact us to arrange for an interview. Click Here for phone & e-mail information, or...