CHOOSING BETWEEN TWO ROADS:  The Transactional Loan Officer vs. The Mortgage Planner

CHOOSING BETWEEN TWO ROADS:
The Transactional Loan Officer vs. The Mortgage Planner
As the refi market winds down, loan officers must make a decision:
How are they going to generate new business going forward?
Will they stay in the transactional trap of the average originator – or break through
to new levels of respect, referrals and residual commissions by becoming mortgage

planners?
www.mortgagecoach.com
CHOOSING BETWEEN TWO ROADS:
The Transactional Loan Officer vs. The Mortgage Planner
As the refi market winds down, loan officers must make a decision:
How are they going to generate new business going forward?
Will they stay in the transactional trap of the average originator – or break through
to new levels of respect, referrals and residual commissions by becoming mortgage

planners?

EXECUTIVE BRIEFING
You’re facing more challenges today than ever before...
For starters, interest rates are rising, refis are drying up and the overall market is shrinking.
To make matters worse, realtors now have more
loan officers knocking on their doors than ever

before, most real estate companies have an in-
house lender and most home builders have an in-
house mortgage division. Add to that the fact that
more and more borrowers are shopping only for the
best rate and it means you’re not making as much
commission on each transaction as you would like.
Plus, you’re not generating enough referrals and
new purchases to replace what you’re losing.
Bottom-line: You need to generate more business,
fast. But how?
Answer: By changing the game and becoming a Mortgage Planner. Mortgage planning will help you generate new
leads and referrals, reduce rate shopping, and get realtors and other financial planners to bring new business right
to your door. In fact, becoming a Mortgage Planner is as close as you can get to being paid residual commission
on each loan you close.
In this white paper, you’ll discover how mortgage professionals are using Mortgage Coach to become Mortgage
Planners, generating new incremental business and referrals, and simultaneously reducing rate shopping. You’ll
hear from Paul Davidson, Mortgage Planner at McLean Funding, McLean, VA; Stacey Harding, Senior Vice
President and National Production Manager of Cherry
Creek Mortgage in Greenwood Village, CO; Mark
Klein, Mortgage Planner and President of Pacific
Coast Lending in Agoura Hills, CA; Dylan Kramer,

Mortgage Planner and Agency Director of Starpointe
Mortgage, Chicago, IL; Randy Luebke, Mortgage
Planner and Principal of First Reliance Mortgage in
Newport Beach, CA; and Joe Mrowiec, Mortgage
Planner at Professional Mortgage Partners in Chicago.

CHOOSING BETWEEN TWO ROADS: The Transactional Loan Officer vs. The Mortgage Planner
“[Customers] develop a lot of trust in my
advice and are willing to move forward
in the plan, where they otherwise might
be skeptical, hesitant or opposed. With
Mortgage Coach reports, they say, ‘I get it.
That’s how it works. I like that.’ ”
RANDY LUEBKE, PRINCIPAL, FIRST RELIANCE
MORTGAGE
Mortgage originations and refis projected to drop in
2006 from 2005
Source: Freddie Mac
0.0
0.6
1.2
1.8
2.4
$3.0
$2.62
$2.35
2006
2005
Mortgage Originations
(in
trillions)
0
20
40
60
80
100%
42%
32%
2006
2005
Refis
(in
of
all
mortgage
apps)

From their experiences, you’ll learn:
• How to reduce rate shopping;
• How to increase credibility and engender trust;
• How to quickly generate more leads and sales;
• How to generate more referrals from existing customers and partners, and…
• How to turn your mortgage practice into a residual commission business.
You don’t have time to invest in tomorrow’s relationships – you need new business now, yet you want today’s

customers to remember you for their future needs, as well. Combining a mortgage planning strategy with Mortgage
Coach can help you lock in new purchase business and generate more referrals today, from customers who will
keep coming back tomorrow.
I. CHALLENGES:
FEWER OPPORTUNITIES + MANY ORIGINATORS = LESS BUSINESS FOR YOU
Last year was a record year for many mortgage
originators and loan officers. Even with lots of
competition, the healthy refi market kept rate-
driven businesses going all year long. But now,
with refis drying up and less business to go
around, mortgage professionals are concerned
about whether they’ll be able to exceed or
even meet last year’s healthy income level.
“Competition in the Chicago market is

ferocious,” says Dylan Kramer, mortgage
planner and agency director of Starpointe

Mortgage. Kramer worries about what business he has in the pipeline and how he can tighten up that pipeline
to close business more quickly and effectively.
Concerns such as Kramer’s are valid. In addition to a shrinking market, the Internet is complicating matters by
equalizing the mortgage industry and making all loan officers look the same. In fact, nothing could be further
from the truth. While some are content to offer the lowest price, complete the transaction and move on, there are
others who take the time to evaluate a mortgage strategy that best meets a homeowner’s unique financial goals
and integrates the mortgage into their personal financial plan.
“Inthepast,originatorssimplyprovidedaloan transaction,”saysStacey Harding,seniorvicepresidentand national
“Some of my customers would probably rather
get a root canal than a mortgage loan. There are
so many different options. What’s the best thing to
do with the down payment money? Am I getting
the best deal, or just the lowest payment for the

moment? ”
STACEY HARDING, SENIOR VICE PRESIDENTAND NATIONAL
PRODUCTION MANAGER, CHERRY CREEK MORTGAGE

production manager of Cherry Creek

Mortgage in Greenwood Village, CO.
“Today, our mortgage originators have
to be more financially savvy than that.
They must be better financial advisors
as to what the right mortgage is and
the lowest cost mortgage, not just the
lowest payment at the moment. And
they need to be able to do that quickly
and efficiently without needing a Se-
ries 7 license.”
Meanwhile, inexperienced home

buyers’ lack of knowledge and trust
pushes them toward rate shopping,
feeling that the average loan officer
who gives the lowest up-front rate
or lowest cost is actually offering the
best deal. With their guard up, their
fears often prevent them from seeing
the mortgage professional as a trusted
advisor.
“Some of my customers would

probably rather get a root canal than a
mortgage loan,” Harding adds. “There
are so many different options. What’s the best thing to do with the down payment money? Am I getting the best
deal, or just the lowest payment for the moment?”
Looking out on the horizon, the 2006 market is forecasted to be down over 2005, according to Freddie Mac,
creating an even tougher future landscape. Mortgage originations are expected to reach $2.35 trillion, down
11.5 percent from 2005’s $2.62 trillion. Refis, which they anticipate will end 2005 as 42 percent of all mortgage
applications, will be just 32 percent next year, while home sales will drop from 7.21 million to 6.73 million and
new housing starts will shrink from 1.99 million to 1.83 million.
All these challenges are creating an intense competitive landscape. Loan officers who want to stand out in the
crowd must capture home buyers’ attention quickly, or lose the sale and the residual commission of a valued
relationship.
0.0
1.6
3.2
4.8
6.4
8.0
2006
2005
7.21
6.73
Home Sales
(in
million
transactions)
0.0
0.4
0.8
1.2
1.6
2.0
2006
2005
1.99
1.83
New Housing Starts
(in
millions)
0.0
0.6
1.2
1.8
2.4
$3.0
$2.62
$2.35
2006
2005
Mortgage Originations
(in
trillions)
0
20
40
60
80
100%
42%
32%
2006
2005
Refis
(in
of
all
mortgage
apps)
Mortgage originations, refis and home sales are projected to
drop in 2006 from 2005. This means mortgage professionals
will have to work harder to obtain new business, and keep the
customers they have.
Source: Freddie Mac

II. THE SOLUTION:
GENERATEMORELEADS,SALESANDREFERRALSBYBECOMINGA MORTGAGE
PLANNER WITH MORTGAGE COACH
Which would you rather be, a loan officer or a mortgage planner? The role of a loan officer is transactional in

nature. It provides the shortest route in taking a loan application and closing the sale. On the other hand, the
role of a mortgage planner is to build relationships that keep working for you, driving continual referrals and

ultimately delivering the Holy Grail – “residual commission.” The difference is the way you position your

business and the experience you deliver to your clients. With the former, you are continually seeking new

business. With mortgage planning, your business is continually seeking you.
By transitioning from a loan officer to a mortgage
planner, you will be able to:
• Reduce rate shopping;
• Increase credibility and trust;
• Obtain more leads;
• Get more referrals; and
• Close more sales.
The key to making the transition from average
loan officer to mortgage planner is the Mortgage Coach. Mortgage Coach is a suite of mortgage planning tools
and services that allows you to quickly and easily show potential customers the mortgage plan that is right for
them. These tools include reports on Total Cost Analysis, Rent vs. Buy, RateWatch, Debt Consolidation Analy-
sis and Equity Repositioning Analysis.
Reducing the “rate shopping” problem
Very often, when a potential new customer calls, he has one thing on his mind: “What’s your lowest rate and
cost?” Rate shoppers focus the entire mortgage buying decision on the rate and loan fees. At this pivotal point,
the potential borrower has no ties binding him to your firm, and unless you can quickly earn his trust and

respect, he will hang up and get away, never to return your calls again.
“Rate shopping goes on at all levels,” says Mark Klein, mortgage planner and president of Pacific Coast Lending
in Agoura Hills, CA. With Mortgage Coach, he is able to move the conversation to a higher level. Someone can
come to me and say, ‘What is your best 30-year fixed rate?’ I can answer, but then I ask, ‘Why do you want a
30-year fixed? Have you thought about a 10/1 or a 5/1?’ Then I can use Mortgage Coach to show the difference
and show how that equates to the life of the loan. In addition, I can take the difference in that payment and,
if they put that monthly savings into an asset accumulation account, at the end of six, eight or 10 years, I can
show how much they have gained. The fact that we can show that information and make it clear and precise
“Sending RateWatch regularly and consistently
helped me win 48 transactions last year totaling
$9.2 million in personal production valued at
more than $135,000 in commissionable
revenue.”
DYLAN KRAMER, AGENCY DIRECTOR, STARPOINTE

MORTGAGE

is different than simply saying you’re going to be

saving $20 a month. Most loan officers just sell loans; I
change lives. The Mortgage Coach empowers me with
the automation and systems to quickly and effectively
deliver mortgage advice that changes the lives of my
clients, rather than just quoting rates and fees with an
average good faith estimate.”
“Sending RateWatch regularly and consistently helped
me win 48 transactions last year totaling $9.2 million
in personal production valued at more than $135,000 in
commissionable revenue,” adds Kramer.
Paul Davidson, mortgage planner with McLean

Funding (McLean, VA) also has been able to reduce rate

shopping using the Mortgage Coach. Since McLean is
a LendingTree partner, Davidson doesn’t have to seek
out leads. Potential home buyers fill out applications at
lendingtree.com, and leads in Davidson’s local area are
directed to him and the other originators in his firm.
Those potential borrowers “tend to want to shop for the
lowest rate,” says Davidson, but with a push of three
buttons, all that application information goes directly
into Mortgage Coach, where I can create a mortgage
plan and send it out quickly. It is amazing how much
valued insight I can deliver to a prospect within 60

seconds. Whenever I send out a good faith estimate, for
instance, I usually attach a Mortgage Coach report to it.
If they’re a first-time buyer, I always send out the Rent
vs. Own report, and I always ask, ‘Has anyone else
ever sent you one of these?’And 899 times out of 900,
they say no.” The strategic side-by-side comparisons
provide Davidson’s customers with information they
can easily understand. “Plus,” he says, “I think the

perception that I took the time to do it also helps solidify
the relationship. Mortgage Coach makes it easy for me
to create a big impact with very little effort.”
Davidson’s number of closings has gone steadily up in
the past six months. “It’s a culmination of everything
Burning Questions That Keep
Home Buyers UpAt Night
n “They’re concerned that interest rates are going up.”
PAUL DAVIDSON, MORTGAGE CONSULTANT,
MCLEAN FUNDING, MCLEAN, VA
n “They worry about the unknown. They would prob-
ably rather get a root canal than a mortgage loan because
there are so many different options. They wonder what’s
the best thing to do with their down payment money, are
they getting the best deal or just the lowest payment for the
moment.”
STACEY HARDING, SENIOR VICE PRESIDENT,
CHERRY CREEK MORTGAGE, GREENWOOD

VILLAGE, CO
n “I believe our customers and any customers who are in
the process of obtaining a mortgage are all worried about,
first, getting approved, and second, that they are not going
to have any last minute surprises. That can be changing
terms, getting what was promised or what they thought was
promised.”
MARK KLEIN, PRESIDENT, PACIFIC COAST

LENDING, AGOURA HILLS, CA
n “I think they’re worried about getting a fair deal. The
fact that you can provide a total cost analysis allows you to
explain that in black and white and I really think that’s criti-
cal for clients – to have something in writing. The second
thing clients are often worried about is the market.”
DYLAN KRAMER, MORTGAGE PLANNER/AGENCY
DIRECTOR, STARPOINTE MORTGAGE, CHICAGO, IL
n “A large percentage of baby boomers are walking
around knowing they’ve earned great incomes but haven’t
saved enough and retirement is approaching very quickly.
They’re concerned that they’re not going to be able to
retire.”
RANDY LUEBKE, PRINCIPAL, FIRST RELIANCE
MORTGAGE, NEWPORT BEACH, CA
n “They wonder if their deal is going to go through. Did
they put their money on the right person? Can I get the loan
done?”
JOE MROWIEC, MORTGAGE PLANNER,

PROFESSIONAL MORTGAGE PARTNERS,
CHICAGO, IL

– sending out Mortgage Coach reports, fol-
lowing up and having something else to talk
about other than the rate,” he says.
Increasing credibility, engendering trust
Klein first started using Mortgage Coach to
counteract a lack of trust and credibility with
his customer base. “We’d get calls saying,
‘My CPA told me to call.’ And within five
to 10 minutes, if you can’t invoke trust and

credibility in that phone call, you’re probably
not going to get that client.” The ability to

provide consultative advice, he says, helps the
firm build trust and credibility instantly, “but
mostly it helps us translate the different mortgage processes for a client who doesn’t understand it well and puts
it in simplistic terms where they can see the savings for themselves and understand why we recommend one
product over another. Previously, that was difficult to convey. Mortgage Coach gives us a presentation in which
they can see the savings clearly and can make informed decisions.”
“Since 2000, we’re up 400 percent in annual volume,” Klein adds, “which is attributable to our ability to

maintain and increase existing relationships and really become the mortgage lending source and mortgage

planners.”
Playing an advisory role has enabled Randy Luebke, mortgage planner and principal of First Reliance Mortgage
in Newport Beach, CA, to communicate fairly complicated concepts in a simple way that his clients almost

always immediately understand. “They trust in my advice and are willing to move forward with the plan, where
they otherwise might be skeptical, hesitant or opposed,” Luebke says. With Mortgage Coach services and

reports, “They say, ‘I get it. That’s how it works. I like that.’ ”
Adds Harding, “Mortgage Coach creates a great experience for people who might be meeting with us for the
first time, and it causes the person borrowing the money to come back and get the loan refinanced. We also get
greater referrals from real estate agents because of the good comments they hear.”
Joe Mrowiec, a mortgage planner at Professional Mortgage Partners in Chicago, feels the Mortgage Coach tools
have given him credibility. “Customers question less whether they picked the right mortgage professional, and
I don’t get questioned that much on rates. The conversation is usually about, ‘What are you trying to achieve
financially? What are your life goals?’ things of that nature.”
For example, “I just had a client who is buying a $900,000 home,” he continues. “They have 10 percent to put
down and they wanted to go with an interest-only ARM. I said, you can, but let’s think taking that unused equity
in your home and making it work for you. Mortgage Coach shows you how to pull that equity out and invest in
“If you don’t have the Mortgage Coach, then
get it. This tool has the name of ‘Competition
Killer’ in our office (we joke about it). The
Mortgage Coach allows you to put the offer in
black and white, and unless the competition is
using the Mortgage Coach, it is hard for your
competitor to show the facts and compete like
you.”
Joshua Reed, Agape Home Mortgage,
Manchester, MO

a safe earning asset, then have the value of your home working for you.”
Generating more leads and referrals
In addition to reaching potential borrowers directly, Mortgage Coach also helps mortgage professionals start a
dialogue and open a door with valuable partners. “We’ll meet with CPAs, financial planners and realtors, and
they’ll ask what makes us different,” says Klein. “We’ll show them how we work as consultants and present
a loan to a client, the benefit of paying points,
not paying points, show them a debt consoli-
dation analysis and turning non-tax-deductible
debt into mortgage debt. By showing all those
things, I can walk into any meeting and have
something to say. Many times, when you meet
someone, you can talk about what you do, but
it’s different showing what you do. They say
seeing is believing, and Mortgage Coach helps
make difficult decisions visually obvious.”
Mortgage Coach helps Klein continue in an

advisory role well past the first loan. “We promise our clients that we’ll manage their mortgage for life,” he
says. And RateWatch is an important part of that step. With RateWatch, we’re able to do an annual mortgage
review with all our clients. We can let them know what the market’s doing, inform them in a downward market
and let them know it’s time to renew their loan. That feature helps us generate new business and manage exist-
ing relationships. The firm has a 90 to 95 percent renewal rate.
Keeping customers coming back
Mortgage Coach helps you keep your name in front of your customers after you’ve closed the sale, so they
refer you to their family, friends and business associates, and come back when they need to purchase another
product.
In fact, you can increase your loan production by an additional 10 percent of your customer database through

referrals from existing customers and partners. For instance, let’s say you have 500 mortgages under management.
A 10 percent increase in loan production would be 50 additional loans per year. Depending on your average
commission per month, this would equal an additional $145,000 on the low end (with an average $2,900

commission) to $195,000 on the high end (with an average $3,900 commission). The system that created these
results is the RateWatch module in Mortgage Coach.
“With RateWatch, I’m able to send out a monthly letter to clients with a trusted advisor kit and their loan stacked
up against five or six other loan options,” explains Mrowiec. “It keeps people informed and keeps my name in
front of them. It positions me more as a guy who’s providing value instead of a postcard or newsletter that just
says hi and isn’t personalized. This is a personal way of touching the client.”
“I used to struggle with producing $1 million
monthly. Integrating Mortgage Coach into my

business plan has helped me become a consistent
$30 million producer. Additionally, I closed over
$60 million in 2003 with Mortgage Coach as the
cornerstone of my client retention program.”
DYLAN KRAMER, AGENCY DIRECTOR, STARPOINTE

MORTGAGE

“We do no advertising, but we do send out RateWatch every month,” adds Luebke. “All our customers come
from our existing client base or from professional referral partners, which include financial planners, attorneys,
business managers, realtors, CPAs, stockbrokers and insurance agents. Our existing client base is by far the
most valuable. If we give them a great experience, they’re going to tell everybody about it.”
He continues, “We have an annual debt review that we do with our customers. A large percentage of baby
boomers are walking around knowing they’ve earned great incomes, but haven’t saved enough and retirement
is approaching very quickly,” says Luebke. “They’re concerned that they’re not going to be able to retire. We
take that weight off their shoulders.”
III. CONCLUSION:
HOW TO BECOME A MORTGAGE PLANNER
The mortgage industry today is confusing and highly competitive. And it’s only going to get more so. For a

potential home buyer, trying to find the right mortgage professional is like trying to spot a friend’s face in a crowd:
all heads look alike. To rise above the crowd, loan officers must become mortgage planners—going beyond the
rate-driven transaction to help borrowers choose the mortgage that is right for them.
There are two ways to become a mortgage planner:
1. Constantly conduct research; educate yourself and learn as you go; maintain lots of data; take hours and hours
to build your own spreadsheets over and over from scratch for every customer, requiring an incredible time

commitment—valuable time that could cause you to lose a sale.
2. Buy Mortgage Coach software. Install it. Run reports in minutes. Deliver by email, fax or mail. Close higher
sales.
It’s that easy. “I used to struggle with producing $1 million monthly,” says Kramer. “Integrating Mortgage Coach
into my business plan has helped me become a consistent $30 million producer. Additionally, I closed over $60
million in 2003 with Mortgage Coach as the cornerstone of my client retention program. In 2004, we won 48
transactions worth $9.2 million that generated commissionable income of over $135,000, directly as a result of
sending the RateWatch report alone.”
Mortgage Coach’s reports—Total Cost Analysis, Amortization and Asset Accumulation, RateWatch, Equity

Repositioning Analysis and Equity Repositioning and Asset Accumulation—can put you on your way to closing
more sales…today. To order Mortgage Coach, or to learn more, contact 800-951-2696 x704, or take the Quick
Tour at http://www.mortgagecoach.com/products/quick_tour.aspx. n

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