As I mentioned in a recent blog, we all have every reason to not make a plan for 2010. We have every reason to just make it through another month, week, and day.
This industry is a shadow of its former self. You don’t spend your time thinking about how to beat the competition but instead how to defend against relentless government intervention through complicated handouts and immense regulatory changes from ever agency short of the Forest Service. You don’t brainstorm about creating new products when you have contracting guidelines from only four finite sources of money –GSEs, FHA, State Housing and bank portfolio. The implosion of Wall St and the elimination of its entire structure eliminates the shadow banking structure that created most of the bad but also the ability to expand and adapt in any lending capacity; without the secondary markets rebirth, we are stuck in a never ending groundhog day of paranoid bankers haunted by incompetent, over-reaching government.
So just like I said…you have no reason to plan…BUT YOU MUST. I don’t know but for my sanity I just have to do it. The feeling of floating through the days a victim to the whims of the market around me is wearing me down. From every change there is loss of course but there is also opportunity. It is time to come out of mourning, shed the black while respecting the memory and lessons of the loss, and move on. This is not the time to double down and blindly surges ahead—don’t misunderstand me. But it is the time to tighten up what you do have, prune back to your core strengths, and prepare for certain outcomes and opportunities so you can confidently take advantage and succeed.
Start with answering “who are you?” Today. Not in the past but today. I still see too many people stating that their company or they are a certain size or production number, but when I get the specifics for 07/08/09 I get the excuses. I know, I do it too. But be honest, what are you today, in this new world we are in. Where is your business coming from? Too much refi from a dwindling database of people with increasingly poor credit, employment and shrinking equity? HVCC didn’t take your equity away, we all did by equity farming through cashout and Helocs compounded with overbuilding and over lending.
Assuming you are a veteran of this business, your Rolodex and database are a shrinking pool for repeat transactions but they are still valuable for networking. Networking will help you go deeper to find those who haven’t been helped in debt management for a variety of reasons. But more importantly your network can help you beat the drums about why it’s a great time to buy for those who are in the position to do so. Whether it be a first home, second home or investment now is the time depending on your overall financial picture. Offer your personal free analysis and include your other members of your financial team like attorney, CPA, CFP, Insurance, etc or offer to work with their existing team.
This is the time to meet other professionals with influence through those you have built up good will from. You may not be able to help them with their situation but you can remind them that the choices you made together were good and that they are safe but maybe they have those who are not as fortunate and should give you a call. The amount of orphaned Realtor, Attorney, CPA, CFP, etc is astounding. If those folks go to their Rolodex under Mortgage now they see a name that flies them into a rage or that isn’t in the business anymore. It’s your job to fill that void. Only new blood built through warm calls will carry you into 2010 successfully.
Douglas Smith’s article in December Origination News gave some good specifics as to “how to “plan for 2010. His first key was to get beyond the big number goals and to chunk down to daily/weekly goals. I can’t tell you how huge that is to do. It is measurable and achievable and therefore realistic. It also creates habits and changes behavior. Large unruly goals allow for sloppy behavior in pursuit of the larger Grail that takes you far off course, making it better to never have a goal in the first place.
Second key to success in 2010 is to break the habits that living in survival mode allow. Look in the mirror now and ask what has to change. Ask others in a 360 view – those above, to the side and below you, you’ll be surprised! Some examples DS gave:
– stop micromanaging files, take a better app, know your changing guides, and institute weekly exhaustive pipeline review
– exit high maintenance and low performing relationships, prune and shift energy
– pepper your schedule with visits to a variety of people of influence, with good planned follow up after
– find greater efficiency through outsourcing or technology; nothing too crazy, just implementable and realistic
– form a better relationship with your support staff and vendors, improve communication
If you want change, change those things you can control and just be aware of those you can’t like the government, the economy and FHA. As part of your 360 if you’d like my opinion, please drop me a line. I’d be happy to discuss.
Happy Holidays to you all and best wishes for a safe and rewarding 2010!!
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