The CFPB announced that “Our goal with these is to provide an overview of the rules in a plain language format that makes the content more accessible and consumable for a broad array of industry constituents, especially smaller businesses with limited legal and compliance staff.”  Originators are also encouraged to review the complete rules, which they can find at: http://www.consumerfinance.gov/regulations  “Although the videos and guides give an overview of the rules, they are not a substitute for the underlying rules. We hope you’ll familiarize yourself with the rules we’ve issued and the resources available.”

You know that without extra attention, credit-impaired prospects often aren’t able to obtain a mortgage. They may have already been turned down by one or more lenders when they talk to you. Of course, it can take extra time to discuss their situation, review the appropriate actions, and follow-up until they are ready to qualify.

You also know that by helping them overcome their credit obstacles and become a homeowner, you should have a loyal customer who is anxious to refer future prospects.

Offering Hope

The key is to be able to encourage prospects with credit issues that they can eventually be able to purchase a home if they’re willing to take the necessary steps. “You can create some of your most loyal followers if you can help an applicant who isn’t currently qualified get on the path they need to be qualified down the road,” said Mark Maimon, Sterling National Bank (Residential Mortgage Division), Brooklyn, N.Y. “That’s because most people in our industry don’t give them the courtesy to explain what the challenges are and how to overcome them.”

“Everybody deserves to get a loan,” said Laura Sosa-Rocha, the Truth and Lending Mortgage Team at Heritage Bank of the South, Atlanta, Ga. “People with credit issues aren’t always treated fairly. I often get the most difficult loans and I enjoy helping these customers.”

Different Approaches

Basic Guidelines and Referrals—Some originators have found that providing some basic direction early on can make a big difference. For example, after determining that a customer has specific credit problems, Matt Tierney, Guaranteed Rate, Chicago, suggests a few key actions. “The first step is identifying whether they must wait a set time based on a bankruptcy, foreclosure or short sale,” said Tierney. “I have a flyer that I e-mail to them that shows waiting times required for conventional, FHA and VA for the specific derogatories. If there is no required waiting time based on major derogatories, I then discuss more about how credit scores are calculated and together with the customer determine whether there will be a chance to get the credit scores higher by paying down on revolving debt. For customers who need more assistance, I give them contact info for a credit repair expert I work with.”

Maimon will offer the basic directions for enhancing their credit profile and refer them to a specialist. “I definitely help credit-impaired prospects get on the right path, which typically involves referring them to a qualified credit repair specialist and explaining to them the steps that need to be taken in order to get the financing they are looking for,” said Maimon.

Mike Meena, Augusta Financial, Santa Clarita, Calif., lets clients know early on how he can help. “It is very important for them to understand that I do not do credit repair,” he said. “I will send them to credit repair agencies and let them work that way. I usually give out three numbers and let them decide which company they would like to use. Clients usually choose to try to repair their credit on their own for a little while and when they find that is too difficult, they usually resort to calling someone to do the credit repair.”

Additional Support—Sosa-Rocha first suggests that such prospects contact Credit Assure (www.creditxpert.com), a service that “automatically scans credit files for opportunities to raise credit scores based on accuracy or credit management updates.” The program offers customers specific guidelines and notes the time usually required to raise their credit score. “They’ll have a basic idea of how long the specific actions will take to accomplish,” she said. “I make a point to ask if they will be able to accomplish the task in the specific timeframe, advise them to follow the directions and let me know how they progress.”

In addition, Sosa-Rocha offers to help customers when they need to discuss a potential discrepancy with a creditor or credit bureau. “For example, I’ll join them on a phone call with a creditor/bureau to help resolve the issue and this can make a big difference in changing their credit score. Obviously, the customer appreciates my support.”

Follow up–To ensure that prospects become customers, some type of ongoing contact is essential. “We typically follow-up at least quarterly with every prospect, even if they aren’t qualified at that time,” said Maimon. “This keeps you at the forefront of their minds and shows them that you are invested in getting them to where they need to be.”

“While the borrower is working with a credit repair specialist, we stay in touch to let them know we are interested in helping them with their loan,” added Meena. “We’ll e-mail them notes to ask about their progress and make periodic calls as well. This can make a big difference when they are ready.”

Sosa-Rocha keeps track of her customers’ status and the need to follow up in her Outlook program. “Based on the suggested action step schedule in the original Credit Assure report, I’ll place a reminder to call them at specific times. Then I’ll check with them to see if they have completed the various steps. I will continue doing this until they are ready. I will also keep them in our database until such time as they have become a customer or a referral source.”

An Evolving Process— Many originators have likely modified their approach after working with some credit impaired borrowers. “When I was newer in the business, I spent more time proactively, personally trying to help customers improve their scores,” said Tierney. “I have found that using an outside professional and giving customers access to information where they can either be proactive or not is a better use of time. The potential borrowers who take the initiative to improve their credit with the resources and information provided are those most motivated to buy and result in a closed loan.”

Other Ideas

In addition to referring borrowers to credit repair specialists and staying in contact with them, there are a few other potential strategies.

*Hold a seminar for borrowers and invite a credit repair specialist to talk.

*Provide fliers/other material that provide resources to help borrowers address their problem.

*Add tips and resources to your website.

Key Considerations

Working with borrowers’ credit issues can be a lengthy process. “You have to place value on the longer-term impact of your time spent with these prospects rather than discarding them for opportunities that will pay off more immediately,” said Maimon.

Another area of concern is how to properly communicate the credit support service. In the last few years, terms such as “restoration” and “repair” have been closely reviewed as unscrupulous firms took advantage by promising borrowers unrealistic results. It’s essential that you are careful how you represent your offer to help and make sure companies you refer are qualified and reputable.  “Some credit repair companies can be untrustworthy and I am very careful who I refer and I always refer them out with a disclaimer,” noted Meena.

It’s also important to keep Realtors apprised of the borrower’s status, but you should ask permission first. “If the potential borrower has been referred by a Realtor, I always ask if I can let the Realtor who referred them know the status,” noted Tierney. “Realtors appreciate the effort that is being made to get the potential buyer qualified down the road.”

Benefit

Originators who take the time to give credit-challenged borrowers some type of direction do so because they feel everyone deserves a homeownership opportunity and also because such help can result in future business. “While you may not see an immediate payoff for your time spent on these prospects, you will likely have a tremendous advocate who is happy to sing your praises to others and that can turn into several transactions to temporarily replace the one that isn’t currently viable,” said Maimon. “There’s no question that these prospects have well-qualified family members, friends and co-workers who can’t wait to tell their story about how you were the only person they spoke to who would give them the time of day.”

“If a client does get their credit repaired, they are generally motivated to purchase the property and they usually become a client for life if you sent them in the right direction,” added Meena.

While it does take more time to prepare these borrowers for a mortgage, the investment is definitely worthwhile.

David Robinson is associate editor of Broker Banker.

Even if your first seminar was a great success, there were undoubtedly aspects of it that could be improved. Just as the mortgage industry is always evolving, your seminars need to be constantly evolving and improving as well. Here are some tips to help upgrade your seminars, so that each one is an improvement over the last.

Develop Appropriate Program

Of course, the most important element of a successful seminar or workshop is fitting the right topic with the appropriate audience. During the last several years, loan originators have developed different types of programs to interest their target groups. This is often a result of the changes in the mortgage lending industry. For example, in addition to the common First-time Buyers workshop, timely topics include “Navigating Today’s More Challenging Home Financing Process,” “Is A Short Sale Right For You?” and “Low Rates Offer Great Refinance Opportunities.” The point is to always tailor your seminar topic to the current market and your specific audience.

Review Feedback

Although nobody likes to receive criticism, when given constructively, it can play an important role in helping mortgage originators, team leaders and managers to improve their presentation skills. Ideally, at the conclusion of your seminars, you will have requested feedback from the attendees. However, if you neglected to ask for it, e-mail or fax a questionnaire, requesting their honest opinion of your presentation. Inform all attendees that you truly need their help to improve future seminars, and in order to do so, you need them to be truthful, even if the criticism seems harsh.

Questions to ask your attendees may include:

•What topic did you find most insightful or interesting?

•What topic did you find least insightful?

•Did you feel the information was presented clearly, or were there times when the material was unclear?

•Did the provided materials enhance or detract from the presentation?

•Was the venue comfortable?

•Was the seminar too short? Too long?

•In your opinion, how could I improve upon this seminar?

You’ll need to be prepared for some unfavorable feedback. That way it won’t come as a shock if you find out that a topic that you thought was fascinating actually bored your attendees. On the other hand, if you find yourself lucky enough to receive overwhelmingly positive feedback, that’s a great sign that you hosted a valuable and informative seminar. But, keep your eyes open for thinly veiled criticisms that may not leap out at you at first glance.

For example, say you’ve hosted a seminar for home buyers and covered a variety of loan programs. After the seminar you receive feedback from a homeowner complimenting your presentation but pointing out that they didn’t understand some of the terminology you used. This is a good reminder to always provide detailed explanations and to refrain from using industry lingo or jargon that some attendees may not be familiar with.

If you find yourself receiving more negative feedback than positive, you may need to revise the entire format of your presentation. Feedback that indicates that your seminar was too short or too long, for example, will necessitate that you restructure your seminar accordingly.

Invite Others to Participate

Don’t assume that all of the information presented in your seminar must be entirely your responsibility. For example, if you’ve selected one of your local title companies’ conference room as the venue for a presentation you’re hosting for REALTORS®; invite the manager or owner of the title company to give a brief presentation of new services that they are providing.

This will add variety to the seminar, and you’ll relieve yourself of the pressure of entertaining for the duration of the seminar.

You may also consider seeking out a sponsor or sponsors, as your seminars begin to draw larger crowds. Title companies, real estate offices, or even the company you work for, may agree to sponsor your seminars. Explain that sponsoring your seminars can be as simple as allowing you to use their office space for hosting or possibly providing refreshments. Having a sponsor will also lend extra credibility to your seminar, thereby potentially increasing the number of guests.

Expand Marketing

In addition to listing your seminar in any free outlets at your disposal (such as the calendar of events section in the local paper,) you can improve your turnout by ramping up your marketing efforts ahead of the seminar. If you’ve secured a sponsor, encourage them to invite appropriate contacts in their database. Similarly, if you’ve invited a referral partner to co-host the seminar with you, ask them to notify their clients, friends and family members who would benefit from the material you’ll be presenting.

Take advantage of the variety of social media strategies. Mention your seminar on your Facebook and Linked-in pages and tweet about it to your target audiences. Regular e-mail notifications of the event to desired attendees should be implemented as well.

You may also want to purchase a small advertisement announcing your seminar. You’ll have to decide if purchasing an ad is in your budget and if so, determine the best media outlet to advertise in. Do not forget to mandate in your ad that all attendees must RSVP. This will ensure that you have ample printed materials for all in attendance.

Upgrade Handouts

One way to improve upon previous seminars is to make sure that printed materials you disperse appear more professional than those at your last seminar. When you held your first or early seminars, you may have opted to have very plain or basic printed materials.

But, as you continue to improve, your materials deserve to be upgraded as well. The upgrade can be as subtle as binding the materials, as opposed to stapling. You may decide to put all of materials into a folder, and affix a label with all of your contact information on the front. Materials can also be made to look more professional by color coding sections or using plastic tabs to separate topics.

Follow Up

It is important to note that your work is not quite done at the conclusion of your seminar. There is an easy and valuable way to make sure that your name and presentation leaves an impression on your attendees long after the conclusion of your seminar. Send personal thank-you cards to all attendees the morning after your seminar. This is not to say that you have to manually write a lengthy letter of appreciation to each person, but at least sign your own name, and try to personalize the card a bit. This will show that you value their time, by using your time to thank them.

Any sponsors or co-hosts should also receive a thank-you note, or other token of your appreciation. This will encourage them to consider sponsoring or participating in future seminars.

Every time you host a seminar, you’ll learn additional ways to improve for the future. By studying the feedback you receive, you’ll be able to improve and streamline your presentations. Inviting colleagues or sponsors to participate in your seminar will lend additional credibility to your seminar, and will likely result in more attendees. Ramping up your marketing efforts and upgrading your printed materials will further convey your professionalism, and your follow-up efforts will demonstrate how much you value your attendees. A concerted effort to improve these crucial components of a successful seminar will ensure that each one you host will be even more successful than those that preceded it.

Ed Craine is CEO of San Francisco based Smith Craine Finance, an award winning mortgage brokerage and publisher of Broker Banker. He is former president of CAMB and also serves as an Executive Director for BNI.

So we decided to ask people who are actively involved in networking their opinions of why other business owners continue to resist what is so widely known to work. There were over 100 responses to the query, and the answers were really insightful.

In general, we were able to identify four major reasons given by the respondents, as to why other business owners resisted the benefits of networking:

1. Lack of confidence
2. Lack of time/too busy
3. Impatience leading to early failure
4. General lack of understanding about the benefits networking

Lack of Confidence

This was the most popular reason people gave, but what is interesting is that there were quite a few different ways that they described the “lack of confidence” that kept people from networking. Here are a few of the responses…

• One reason is often fear of not being able to contribute with referrals
• The initial thought of meeting and interacting with strangers of a professional or social nature is paralyzing to many
• I think there is a fear of being in a room of strange people and going to a new place, so the comfort of their office and home is where they stay – stepping out and networking takes courage!
• Some are afraid they won’t have anyone to talk to and it’s uncomfortable to reach out to talk to someone themselves
• People resist networking because the thought of going into a room full of people they don’t know is truly scary
• It’s a mix of self-confidence, shyness and under-estimation
• Fear of rejection…it’s outside their comfort zone
• They’re afraid if they get rejected, it’s because of who they are and the fact that their services may not be needed at that time…they take every “no” very personally
• Shyness or fear of not being able to contribute

Lack of Time/Too Busy

Being busy, or not having time to devote to networking, is one of the excuses use a lot when people ask about growing a business and they are encouraged to get involved in a networking organization. Using “too busy” as an excuse also means that a person is really not clear on what they stand to gain by directing some time toward networking. Once they learn that breaking out of the routine is also an enriching experience, they find ways to make it work in their schedules. Here are the responses we received:

• Sometimes people just don’t think it will be worth giving up something else to network
• Networking takes people away from the gym, or working through lunch or getting home to help the kids and make dinner
• People are too busy to take on the responsibilities arising out of networking
• Many times they are not confident about the outcome of networking, so it seems like a waste of valuable time
• Misunderstanding: I don’t have time for my friends; you want me to socialize with strangers?
• Stress: On top of everything I already have to do, I should learn to network, too?

Impatience Leading to Early Failure

We live in such a rushed society these days, expecting – even demanding – immediate feedback from our efforts. Networking is not a “get rich quick” scheme. A successful networking effort is much more like farming than hunting. You have to cultivate good relationships that pay you back over the long-term, year after year.  Here are the responses received regarding this excuse.

• Quality networking or even networking demands time, and so many are in a hurry and want a “networking capsule” so that we race ahead and get immediate results
• Denial to the fact it will work because it has hard work – they think it is a waste of time because they did not follow up with the people they connected with, so they got no results
• They’re impatient and don’t understand the value of taking the time to build fruitful relationships
• Networking success takes work and commitment, and if it doesn’t work out then they have to admit they played a part in the failure…it’s so much easier to write a check for advertising and then blame someone else
• They don’t have a plan, and no real goal with their networking; therefore it seems like a waste of time
• It hasn’t worked for them in the past, because they go for the “close” as opposed to establishing trust and the relationship first

General Lack of Understanding About the Benefits of Networking

There is really no good education on the values of networking for entrepreneurs. Most people sort of “stumble” upon a networking organization and learn as they go. Imagine if all of the scenarios that the respondents shared below were eliminated simply because there was better education in universities (and even in high schools!) about how to network for professional growth.

Here are the last responses from the very astute networkers who answered the original query as to why some people still resisted networking:

They don’t realize that networking isn’t something you do to someone. It’s something you do with them; it’s a conversation you have. It’s more listening then telling or sharing (i.e. making sure you’re letting the person you’ve just met share about themselves, etc.).

They think networking is selling. They are frightened about being sold to, or they don’t want to pitch their sale in a room full of competition. They don’t understand that networking is about building relationships.

They think it is like “cold-calling.” No one would ever say they like cold calling! However I had a great businessperson once tell me that every time you reach your hand out and say, “Hi, nice to meet you!” you could consider that the same as cold calling. I thought, hmmm, that’s not so bad. I really enjoy meeting new people, so I guess you could say I love cold calling!

Most don’t really know what networking is. Remember, we never got educated in school about networking; it’s always been a hands-on experience.

Finally, here is one of our favorite responses that is certainly very true.

They’re afraid of real success, afraid that their business might actually grow beyond their comprehensions. This is a scary, misguided thought, but one that is held by many of my friends, which is why they fail to start their own businesses. Sad…

Sad, indeed. This last response really sums up what it takes to succeed and break any barriers to successful networking:

Those among us who can put aside our “self-absorption” and “absorb” others, while holding a clear picture of the desired outcome of networking, are the ones who dive in, enjoy, grow, and come out winners!

By: Dr. Ivan Misner

Called the “father of modern networking” by CNN, Dr. Ivan Misner is a New York Times bestselling author. He is the Founder and Chairman of BNI, the world’s largest business networking organization. His newest book, Networking Like a Pro, can be viewed at www.IvanMisner.com. Dr. Misner is also the Sr. Partner for the Referral Institute, an international referral training company.

Ed Craine is a bestselling author, the publisher of Broker Banker, and has over 25 years experience as a loan originator and CEO of the award winning San Francisco based Smith-Craine Real Estate Financing. He is also the Executive Director for BNI San Francisco.

In 2012 Google made a major update to their algorithm that has come to be known as the Panda Update. In short what this update did was try and eliminate spam by providing more relevant results  based on good quality content . Here is the way Google put it:

The Panda update was designed to improve the user experience by catching and demoting low-quality sites that did not provide useful original content or otherwise add much value. At the same time, it provided better rankings for high-quality sites—sites with original content and information such as research, in-depth reports, thoughtful analysis and so on.

Here is a blog post I wrote talking specifically about how to be found on Google.

The other search engines (Yahoo, Bing, Ask etc…) have their own algorithm in place but relevant content is top with them as well. When Big Papa talks (Google) the others follow.

What should you write about?

Write helpful information that might help a potential client. In the how to be found on Google article, I used the example of a mechanic wanting to gain more transmission clients. Here is a short excerpt

My plan of attack would be to make it a point to publish at least 1-2 articles per week on transmission care, how often to change your fluid, cost of transmission repair, how to make your transmission last etc…

I would write each article from a “helping” perspective rather than a “profit” perspective. In other words, write it to help and not to solicit business.

The same thing goes for mortgage professionals. Can you think of information you can publish that might be helpful to people looking for a loan in your area? Is there something specific borrowers should be looking out for? Are there programs available that can help a first time buyer in your city obtain a loan?

So I write relevant articles, now will search engines find me?

Possibly. There are many other things that have to be taken into account such as sitemap submission, valuable and credible links and directory listings  just to name a few but without providing relevant content you don’t stand much of a shot.

Where you will rank will depend on the search engine themselves but if you cover your tracks and do the right things in the right ways you give yourself a fighting chance to compete. Become an expert and a resource and the rest will fall into place.

This is not an overnight success approach but it is one that will yield you positive gains over your career. Being helpful, professional and consistent pays off in business and the same holds true in the eyes of search engines.

Good selling.

Byron G. Torres

Byron G. Torres is the founder at Pritzer Media. Byron works with clients from around the country helping them implement  marketing plans that will increase online presence, productivity and their ROI.

Pritzer Media is an award winning agency that specializes in local online marketing, video production, animated business videos and website design.

Pritzer.com | Facebook.com/pritzer

Thaxton developed a military marketing campaign of “Zero to the Hero” (Zero closing cost to military buyers) and began providing Realtors with brochures and flyers that had a patriotic theme; incorporating the American flag, eagles, and key words such as “serve,”  “freedom,”  “hero” and “team.”  “We marketed to the Realtors on both sides of the sale,” she explained. “I was attending all of my closings, meeting agents and title reps, making weekly sales presentations and promoting our ‘Zero for the Hero’ theme.”  She has also sent hundreds of special care packages to armed forces customers serving in Iraq or Afganastan.

When Thaxton began offering VA seminars to area Realtors, she knew it had great potential. The initial “lunch and learn” sessions designed to educate agents regarding VA loan programs were quite popular. “It has provided them with the information they need to better understand how to work with the military borrower,” said Thaxton. Of course, she also emphasizes Fairway’s capability to close a VA loan in less than two weeks, a significant benefit to military homebuyers.

Based on her experience working with military borrowers, Thaxton recently saw an even greater opportunity—to create a Military Mortgage Specialist certification for her company’s loan professionals, of which she was named National Director. There is an initial mandatory attendance at a “boot camp” (or basic training) where an overview of the Military Mortgage Specialist program is outlined, along with a follow-up 90 day period of coaching, mentoring and training, whereby individuals are coached and instructed on how to meet the specific home loan needs and requirements of United States military service members; both active military and veterans.

With the significant support of her company, she was encouraged to create additional resources to benefitreal estate agents as well. Working with Terri Murphy, a long time Realtor, speaker, author and trainer, Thaxton has developed a special program for Realtors that will provide them with certification as a Certified Military Residential Specialist (CMRS).

The new certification also will include “boot camp” training sessions to offer Realtors more extensive instruction on serving military clients. “The objective in offering the Certified Military Residential Specialist Program is to provide a platform whereby real estate professionals can be trained and equipped to handle with excellence the home purchase needs of active duty and former military clients.” she said. “We will address all the basics as well as examine the military culture, including for example, how to work with deployed buyers, and the fast turnaround needed by many military borrowers.”

The first CMRS boot camps are scheduled for April, with more planned for the future. (For more information : www.CertifiedMilitaryResidentialSpecialist.com )

David Robinson is Associate Editor of Broker Banker.