Who Is the Perfect Referral Partner for Loan Officers?
Tired of chasing realtors around, trying to buy them coffee in exchange for shitty leads? I feel ya. I don’t miss that at all. When a rookie LO starts on the job, the first thing the manager says is, “Go find some realtors to get loans from,” and it’s off from there. Every swinging Johnson with an NMLS license is chasing agents. They chase new agents, old agents and even your agents.
When it comes to getting loans from realtors, it’s a saturated market. And let’s be real, real estate agents are offered the world in exchange for their business. To the point that Congress has had to create laws to ban LOs from giving gifts or compensating agents for their business.
Same thing goes for builders. Loan officers chase builders like it’s 2005 all over again. Here in Dallas, Texas, where I live, it’s a boom market for the builder right now. I bet they get a steak dinner every night for free, from some LO trying to pitch them on why they need to use them.
Warren Buffett once said, “Be greedy when others are fearful and fearful when others are greedy.” Right now, the agent and builder markets are saturated and filled with greed. Don’t join the race to the bottom.
Start another marathon to the top.
I’m sure you’re probably thinking I’m gonna say this plan involves a divorce attorney, investor, credit repair company, or financial advisor. I’m not referencing that. All of those things have been said before on this blog. This time, I’m talking about someone who does something so easy to understand but that is unheard of in the industry.
Mortgage protection insurance (MPI) salespeople are the perfect referral partner for anyone who’s a licensed loan officer. I’ll break it down for you and explain it. The MPI person is the person who sells the fancy label life insurance. You know, all those official looking letters you get after you take out a mortgage? They usually come from an MPI company.
The MPI guy has access to every person who just took out a new mortgage. The big MPI companies pay to get the data and advertise to the new mortgagors. Each year, the MPI guy calls his client base and offers to upsell them. This is a standard procedure in the MPI world. This is crucial for you. More on this in a few…
Mortgage protection insurance salespeople are perfect matches for loan officers. You both deal directly with homeowners and have data that could lead to mutual sales. The MPI salesperson can offer you, the LO, a free mortgage audit annually. While auditing their mortgage, you can offer to refinance them. When you refinance them, you can roll the cost of the MPI policy into the note.
Each time you close on a home, you should inform your buyer of the importance of life insurance and protecting their home. It makes you, the LO, look super caring and informed and it’s also an easy way to pass a referral back to the MPI salesperson.
Think of this, the average realtor sells three homes a year. The average builder sells five homes a year, and an MPI salesman will close 30 deals in a good month. Going by the law of numbers alone, you’d do better to spend time trying to prospect MPI salespeople than you would meeting agents and builders for drinks and lunch.
Let’s be real, no LOs you know are doing this either. It’s rare. Yet it makes perfect sense. There are tons of MPI companies that are huge. You could be flooded with refis, purchases and even listings from people who pass away, which means the MPI company has to pay out to the family. The possibilities are endless. The only thing to it is to do it!
Now that you’ve read this, you have the information on who to spend time creating a relationship with. The next thing to do is to get on Google and search for mortgage protection agents. Fill out a lead form, see what the prospect goes through. Talk to the sales guy that calls you and offer he/she the opportunity to network. You’ll have more luck and less resistance than you would with a realtor, too! You’ll have your own niche, killing it!
If you’d like to learn fast ways to build your mortgage business, I’m inviting you to join us in the BFA Entourage. I’ll show you how I’ve helped hundreds of LOs add six figures to their annual income. I’ve even helped a few get to a million W2 annually. Join us at breakfreeacademy.com/entourage.