PEOPLE MAKE MISTAKES

That much we know, but how we handle situations when mistakes are made can be sincere and productive or it can be just another mistake that makes things far worse.

To avoid the "double mistake" of alienating the mistaken party try the following...

First, please remember that anger of the mistake will only make matters worse. You may be annoyed, disappointed or even downright mad, but you have to let it go because your anger over the situation will immediately erode your credibility and put others on the defensive.

A very enlightened friend of mind has this tag line at the bottom of his emails, which serves as a great reminder for all...

“Let nothing be an inconvenience to you, not even the smallest thing. It is in this that true life begins.”

Do yourself a favor and read that statement over as many times and for as many days as you need to let it soak into your attitude. Post it everywhere you go if necessary. Because when we look back upon our "inconveniences", none of them really matter in the grand scheme of things anyway.

SAM'S TRUCK

Everyone knows who Sam Walton was, but what few know is that Sam Walton drove an older model pickup truck and wore clothes from his stories long after Wal-Mart took off and made him a billionaire. To those who asked why he drove the "eyesore" when he had such wealth at his disposal, his answer was that his truck reminded him of where he came from and it still got him where he was going. (His other answer was "where am I supposed to put my dogs in a Rolls Royce?") Whether you liked him and what he stood for or not, Sam had his priorities straight.

Outward symbols of wealth are expected from society, but never a necessity for the truly wealthy individual. Our real wealth comes from within and is demonstrated in the actions of our hearts, not our possessions. 

HONOR DEFINED

Honor is defined many ways in the dictionary...

It is personal integrity.

It is strong moral character or strength.

It is an adherence to ethical principles.

It is respect and admiration.

It is reputation, dignity and a good name.

It is a source of pride to you and to others around you.

But most importantly...

Honor is a gift you give to yourself!

DO YOU REALLY WANT TO SAVE 10% TODAY?

One of the fastest ways to tank a credit score is to sign up for a department store charge card and use the card to take advantage of an instant discount.

This single, well-intentioned act can do a "quadruple whammy" to the score because such charge cards usually start with very low credit limits, so any purchases likely will result in a high ratio of balance to credit limit.

Next, the score drops because you have opened up a new line of credit and then again because of the department store's inquiry.

And to top it all off, the credit scoring system looks less favorably upon store charge cards, which give limited buying potential, than it does on major credit cards.

Instant savings is great but the long term cost can be downright painful!

COLLECTION CONUNDRUM

Another little known fact is that if a borrower pays off an old collection account, it updates to their credit report and once again becomes a recent event that is highly damaging to the credit score. For example, a collection account from the year 2000 that is paid off in December 2006 is re-scored in December 2006 by FICO as a very recent and detrimental entry to the score. So even though the account may show "paid in full", the recentness of the "delinquency" will hurt the score more than leaving the old unpaid account alone.

Therefore, while it's best to pay off very recent collections, and sometimes essential to loan approval, strictly from a credit-scoring perspective, it is quite often better not to pay off an old collection account and to let it drop off the credit report at the seven-year limit. 

This is why many experts feel that minor collection accounts unfairly drag down credit scores and undeservedly make people look like greater credit risks than they really are, especially those who pay off such accounts in good faith.

BOULDER BOLDER

Working on a loan that has no chance for approval. Trying to "fix" a person that refuses to help themselves. Wishing that you could be two places at once.

The above issues are all ones we would love to be able to resolve but there is no resolution.

The issues that you spend your time and energy on should be both important and improvable; otherwise you are just wasting precious time.

Consider the mythological story of Sisyphus, a very naughty figure who has punished for all of his misconduct by being doomed to the endless task of pushing a boulder up a hill. Just before he got to the top, he would inevitably lose hold and the boulder would roll back to the bottom of the hill. Then he would do it all over again and again and again. It was just a torturous death sentence.

His story is that of an image personifying vain labor and demonstrating that we should all avoid wasting time or even dwelling on un-winnable issues. 

So why approach our issues as if they were Sisyphus's boulder? The "boulders" are our own creations and the immovable ones will disappear if we just stop pushing.

WHO WANTS TO WIN THAT?

Another way to have more fun at work (and at home) is to stop competing and comparing yourself to those around you. Such comparisons do little but generate negative internal feelings, which are of no benefit to you whatsoever.

And while a little healthy competition is good, too many people tend to internalize secret competitions with their co-workers, friends and even family members. We size up their home, their car, their lifestyle and even their clothes and children. Meanwhile we torture ourselves inside with thoughts that we should be somehow be going just a little bit better than them.

Would your life be better if their car was repossessed, their child was in trouble or they had to move to a smaller home because of economic circumstances?

Would you be happier in the office if the number one producer in your office lost their best referral source? inside you might be thinking that you just gained some ground in your imaginary competition, but the reality is that your circumstances are completely unaffected by such events. 

So have ore fun this year by ending any "secret competitions" because your life and your work expectations should never be based on those of others. Base them on your own values because that's what truly matters. 

FINDING THE HUMOR

There are several ways to bring more healthy laughter into your life and to those around you. The first is to watch and listen to that which is funny. Whether it is movies, television or audio recordings, the world's comedy library is growing daily and exposing yourself to comedy is an easy way to get laughter into your life on demand.

But the best way to find more laughter is to simply stop being so serious and find the humor in your life. Rather than complaining about life's frustrations, try to laugh about them. Complaining doesn't do you any good anyway and it certainly won't impress whoever is on the receiving end.

If something is so frustrating or depressing it's ridiculous, realize that you could, should and probably will "look back on it and laugh." Think of how it will sound as a story you could tell to your friends, and then see if you can laugh about it now.

With this attitude, you may also find yourself being more lighthearted and giving yourself and those around you more to laugh about. Approach life in a more jovial way and you'll find you're less stressed about negative events, plus you'll achieve all the health benefits of laughter.

Another way to find more laughter is to simply fake it. Just as studies show the positive effects of smiling occur whether the smile is fake or real, faked laughter also provides the same benefits. So smile more often, and sometimes even fake it if need be. You'll still achieve positive effects, and the fake merriment will lead to many more real smiles and laughter.

THE GREATEST DISTRACTION

You've read it here and many other places before that it's not what happens to you in life, it's how you react to it that really matters and laughter is the best distraction there is from negative emotions like anger, guilt, and frustration.

Our responses to stressful events can be altered by whether we view something as a "threat" or a "challenge" and a little humor and a little less taking ourselves so seriously can lend a more lighthearted perspective and help us view events as mere "challenges", making them less threatening and far more positive.

And laughter connects in an undeniably positive fashion with others. As they say laughter is contagious, so if you bring more laughter into your life, you can most likely help others around you to laugh more, and realize the benefits, too. By elevating the mood of those around you, you can reduce their stress levels and improve the quality of social interaction you experience with them. But we can't all be comedians, so how do we laugh more and cause others to laugh?

To be continued...

LAUGH FOR LIFE

A recent study showed that pre-school aged children laugh up to 400 times a day, but by the time we reach adulthood, the average person laughs only 17 times per day on average.

This, my friends is a laughing matter!

Laughter is indeed one of the greatest medicines known to mankind and a fantastic way to enjoy yourself more at work. The health benefits of laughter include strengthening the immune system, increasing our threshold for pain, more rapid healing and even reducing food cravings. Not to mention what laughter can do to reduce stress and enhance both our personal and business relationships.

Laughing is also a great physical and emotional release as we experience the renewed and refreshed feeling after a good laugh. Plus a good chuckle exercises the diaphragm, contracts the abs and even works out the shoulders, leaving muscles more relaxed afterward and it even provides a good mini workout for the heart. Can you think of a more fun way to get a little exercise?

BREATHE DEEP

We all experience some forms of stress and upset in an ordinary day and how we respond to them define us as a person and a co-worker. Some people can shake it off and move on without interruption, but for most mortals, when something really upsets us, we need a little time to cool off and relax.

In order to rapidly cool down, nothing works better than deep breathing.

But simply taking a few deep breaths won't usually make you feel much better because you have a very little chance of taking a few really good deep breaths while in a distressed state. 

To do it right you need only a few minutes and here's how...

Close your eyes. Put your feet flat on the floor. Sit with your spine straight. Place your hand on your stomach. Inhale slowly to the count of six. Feel the air inflate your rib cage. Relax your chest and lower your shoulders. Hold for at least two seconds in the fully inflated state. Slowly exhale to the count of six. Think or say a happy word as you exhale. Feel your hand sink closer to your spine. Let the tension out of your neck and shoulders. Repeat five or more times. By using this technique you will find a whole new outlook on work and life within just a few minutes. 

FRIENDS

“Wishing to be friends is quick work, but friendship is a slow ripening fruit.”

— Aristotle (384-322 BCE)

“Met a man on the roadside crying, without a friend, there’s no denying, you’re incomplete they’ll be no finding looking for what you knew.

So anytime somebody needs you, don’t let them down, although it grieves you, some day you’ll need someone like they do, looking for what you knew.

Mmm, I’m telling you now, the greatest thing you ever can do now, is trade a smile with someone who’s blue now. It’s very east just...”

— Led Zeppelin (1968-1980)

From Aristotle to Zeppelin and for thousands of years, friends are acknowledged as one of the greatest gifts life has to offer. So this weekend give your friends a little extra gratitude and praise and stay tuned for more about the wonderful f-word.

CRASH AND BURN

Another important fact to point out to your customers is that historically interest rates go up considerably faster than they go down. And while we haven't seen any calamitous drops in the market recently, every long time veteran of our business can attest to that fact.

Crashes in 1987 and 1994 and to a lesser extent in 2003 have all claimed millions of dollars in Loan Officer commissions and made tens of thousands of borrowers curse their propensity for bad luck. This is also the reason that when we have intra day price changes that they should lock whenever rates are at a level where they can feel comfortable with their rate and payment because holding out for something better has a very limited upside and huge downside potential. 

Tomorrow we will look at how you can turn odds that are definitively 50/50 into your favor. 

HUMAN NATURE AND THE SLOT MACHINE

It's the million dollar question in our business. And like all investment decisions hindsight is 20/20.

And while the decision is ultimately the customer's to make, you input and expertise on the subject has a tremendous affect upon that choice or at least it should.

There are few key points that you should always cover with your customer when discussing the lock versus float choice. The first is that history has shown that few people are able to successfully time the market to lock at the absolute lowest rate. This is just trying to time the stock market. Reality is that it can't be done on a consistent basis by anyone. 

Another great analogy for your customers is that floating a loan is very similar to playing a slot machine. Most people will start pulling the lever and quite often they will get ahead for a time, but unfortunately most people don't know when to stop playing until they have either hit their self imposed loss limit or they are completely out of money!

Just like the person who floats for a few days and get a 1/8% improvement. Very few of them will be happy with their small gain and human nature tells us that they will "let it ride" until the rate is worse than what they could have locked in the first place.

More on this subject tomorrow...

BABY STEPS

The second reason that we miss our goals and fail on our New Year's resolutions is unrealistic goal setting.

It's easy to say we would like to get in great shape, make millions of dollars and have better relationships. We all do it because we all want it. And even if we are 100% committed, if the goal is unrealistic, it is also by definition unattainable.

The key to achieving your goals is to think and write them out carefully, and pan them by setting smaller attainable goals that can be achieved step by step. Most goals are resolutions are just too large in scope and concept to the point that when the inevitable realization that the task is too massive hits, then procrastination tends to move in.

By setting smaller "baby steps" goals, we are fare more likely to build the necessary momentum that will take us where we ant to go. So, if you want to lose fifty pounds, start by losing ten and if you want five more solid referral partner relationships, start by gaining one.

You don't have to lose sight of the ultimate goal, just set your sighs on the prize-one step at a time. 

NEW YEAR'S FEARS

January 1 is fact approaching and for billions of people, New Year's represents a fresh start with new opportunities and new goals. These goals, known to most as New Year's resolutions, make our pulses go up just thinking about them.

But do our hearts beat faster because we are excited to set those new goals? Or because we know we're heading into another year of unattained resolutions and un-kept promises to ourselves?

Just the though of New Year's resolutions can make a calm person nervous and set fear into the hearts of even the bravest of souls. Naturally, we would all like to lose some weight, save money and spend more quality time with those we love. Not to want such things would be downright inhuman. 

Yet here we are again in the middle of December, we haven't lost a single pound, saved any more money and people we love still complain that they don't see us enough. Sound familiar?

So while we all would like to have the body of an Olympian, the bank account of Bill Gates and relationships that would make Dr. Phil proud, our own realities are likely destined for something less than the world's greatest. And nobody can be the greatest in all facets of life anyway. Bill Gates is certainly no Olympic athlete, and anybody who spends all day working out doesn't have Gates money either. This is all fine because less than the very best still has plenty of room or greatness and all greatness starts with improvement... one small step at a time.

To be continued. 

UNIQUE SKILLS

Almost anyone can become a Loan Officer, and many Processors make excellent Loan Officers because they have the perfect knowledge background, but taking the risk of starting up a new business on commission only is not for everyone.

Take an athlete for example. Some people are shocked when a ballplayer signs a contract paying them millions of dollars a year, but they make that kind of money because they play a game that millions of other people play, but at a level that only a select few individuals can achieve. And most of them have spent the majority of their life playing and training to reach such a level while foregoing other opportunities.

Originating is much the same. And while originating mortgages is easier than hitting 95 MPH fastball over the fence or slam dunking over a seven foot center, originating big numbers on a consistent basis is a kill that only a select few while achieve after years of effort and they will deservedly be well compensated for their skills. 

IGNORANCE IS NOT BLISS

The best Loan Officers anticipate issues in their files so that they don't become issues.

Probably the most effective means of doing this is to write notes in the file about any documentation still needed from the borrower and any red flags or unusual circumstances so that the Processor has a "heads up" on the file and isn't forced into detective work that you should have explained from the start. 

Then follow up with your Processor and/or customer to insure that unusual circumstances are handled early so that they don't become gigantic land mines at the end of the process.

It's kind of like when the little red light goes on in your car. It isn't going away until you take action, so it only makes sense to address it immediately before it becomes a full-on, metal to metal, overheated calamity. 

DOING IT RIGHT FROM THE START

The mortgage loan process begins at the point of origination; therefore the quality of work that begins a loan application will directly impact the quality of the customer experience all the way to the closing.

Some things will never change and the number one way a Loan Officer can please their Processor is still to take a complete loan application that is turned in promptly. Not coincidentally, a complete 1003 is also a must for all top producing Loan Officers because if the application is not complete, issues will arise that will inevitably steal away precious time that could be used to bring more business in the door. Doing a job right the first time is something our parents tried to teach us many years ago and it is still great advice!

The best Loan Officers are knowledgeable about their client's desires and the product that they have selected for them and they have a back up plan for challenging loan applications to avoid scrambling at the last minute for financing options.

Please keep in mind the "garbage in, garbage out theory" and that great originating can still work even with sub par processing, but even the greatest of processing will rarely fully compensate for bad originating. 

THE RIGHT ATTITUDE

Problems.

We all have them and thankful so do our customers. For without them, there would be no need for Loan officers or Processors. Imagine a world where borrowers could just originate and process their own mortgages, the underwriters would trust everything they see and anyone could obtain any loan they wanted for little or no cost.

Such a world is of course beyond imagination, so thankfully we have gainful employment in the mortgage origination business helping our customers and our Processors solve problems.

The key for Loan Officers is not to run away or procrastinate over the problems that will arise in their files. Problems should first be anticipated if possible and when the unanticipated ones happen, they should be dealt with immediately if not sooner.

When there is a problem, the wrong attitude is "who messed up or who is to blame?" The right attitude is "how do we reasonably fix this for the customer and how do we change the process so it doesn't happen again?"