Three Things Every LO Has To Be Trained For

As a leader in your mortgage banking organization, one of the primary responsibilities you have is training your loan originators. Every organization, of course, has a different culture and is faced with different circumstances that the training must take into consideration. But, regardless of the specific training program you are implementing, there are three essential components to every sales training session. Whether you provide the training yourself or you hire an outside trainer, you’ll want to make sure these three things are always covered.

First, you’ll want to make sure your LOs are trained on the products. They’ve got to know the loan options inside and out. They must know the latest industry news and the most current updates in legislation. Being able to understand and adequately explain the way mortgage products work is foundational for being able to sell mortgages to buyers. Even more so than many other industries, the knowledge of a mortgage banker is highly valued by buyers. People want to know that they are dealing with someone who knows their stuff. Whatever training program you are implementing, be sure to include an ample amount of material on bolstering product knowledge. That’s where it all begins.

Secondly, you’ll want to make sure your LOs are sufficiently trained on strong interpersonal communication skills. If your loan originators have all the knowledge in the world but cannot relate on a personal level to buyers, they aren’t salespeople; they’re analysts. Howard Schultz, CEO of Starbucks, once said, “We aren’t in the coffee business serving people; we’re in the people business serving coffee.” Likewise, your loan originators aren’t in the mortgage business serving people; they’re in the people business serving mortgages. Train your people how to be empathic and understanding. Teach them how to listen and express genuine interest in buyers. Just like in any other industry, people looking for mortgages want to business first with people they know, like, and trust.

Finally, you’ll want to train your LOs to maintain a positive mindset. When the economy is bad (and it inevitably will be from time to time), it can be easy for your salespeople to become discouraged. When regulation becomes stricter and fewer people can qualify for mortgages, LOs can easily slip into despair. But, as well as know, such a perspective often becomes a self-fulfilling prophecy. The worse off your salespeople think they are, the worse off they will become. Negative thoughts lead to negative behaviors that validate them. Conversely, positive thoughts lead to positive behaviors that validate those thoughts. As Henry Ford is credited for saying, “Whether you think you can or think you can’t, you’re right.” Always incorporate the importance of maintaining a positive perspective into your training programs.

So, there you have it. Three “P”s: product, people, and positivity. Whatever your circumstances are and whatever your training is about, try to incorporate these three items into your presentation. If your LOs know what they’re talking about, they can relate to buyers, and they stay positive, your organization will continually have what it needs to be successful in a tough marketplace.

About The Author

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David Lykken has garnered a national reputation as a visionary, entrepreneur and business leader within the mortgage industry. He has also become a regular guest on the FOX Business News with Neil Cavuto, Stuart Varney, Liz Claman, Dave Asman and others. He has been a special guest of Governor Mike Huckabee on FOX News’ #1 weekend rated program “Huckabee”. He has appeared several times on the CBS Evening News, Bloomberg TV & radio, NPR and many radio shows. On matters related to the economy, housing and mortgage lending, David is frequently quoted in leading newspapers across the country as well as the Wall Street Journal and the New York Post. Additionally, David has his own national weekly radio program called “Lykken On Lending” that can be heard each Monday at Noon Central time by going to www.LykkenOnLending.com . As co-founder and Managing Partner of KLS Consulting doing business as Mortgage Banking Solutions, David Lykken has over 37 years of management experience as an owner/operator with in depth expertise in real estate finance and housing. His knowledge and skills comprise a unique blend of technology and business strategy. Above all else, David loves helping business owners and executives navigate through extremely difficult business circumstances helping them overcome seemingly insurmountable obstacles while rediscovering themselves and their passion for life and living. Dave is married, has two daughters and currently resides in the beautiful Hill Country of Central Texas near Austin, Texas. David received a bachelor's degree in 1973 year from Pacific Lutheran University in Tacoma, Washington.