Thursday, May 29, 2008

Best Practices – Communication

I promised yesterday that we would continue with “communicating with the loan applicant,” yet, I’ll take a different approach than you might have imagined. We’ll come back to the returning phone calls, being up-front and honest, and returning phone calls, straight-talk; demonstrate respect, returning phones, etc.

Today, I want to emphasize Best Practices, Communication, and Initial Disclosures. While this will come up again in the near future, today let’s briefly consider how these disclosures are part of the Communication Process with the potential borrower.

So that you don’t think I’m taking too many liberties by bringing this topic into play here, we invariably find disclosure problems along with customer complaints about “what they were told, not told, or thought they were told.”

If you are a loan officer or processor you should know how to communicate effectively with the borrower. You must know which disclosures are to be sent and within what time frames.

To communicate effectively, you must know what constitutes “3” days (if a disclosure has to be sent within 3 days).

To communicate effectively, you must know if the disclosure are to be signed?

To communicate effectively, you must know the definition of “sent.”

At some point in time, your effective communication will be tested by a compliance auditor; Alethes personnel or state or federal. Do you know how they test to insure you communicated correctly?

Communicating all aspects of the transaction effectively is at the foundation of a good mortgage loan. Proper disclosures are paramount to a good mortgage loan.

References materials include:

www.alethes.biz : go to documents and see compliance folder
Various industry materials available at www.mbaa.org and www.namb.org


At the risk of being blunt, I’m not sure why any hard working and honest loan officer would NOT properly give out disclosures. The disclosures reinforce a great deal of what you’ve said to the applicant. These documents should be used to “clarify” your conversations and if there is a misunderstanding that needs to be cleared up, it can get cleared up now before you get too far into the deal and spend valuable time and effort.

Set yourselves up to win.


Communicate well,

Danny

Wednesday, May 28, 2008

Best Business Practices – Listening

Listening well is one of my many struggles. Studying this behavior the past few months has helped (I pray!). Stephen M. R. Covey describes it as: not only to really listen, but to do Listen First – to include understanding, respect, and mutual benefit.

Mr. Covey depicts Listen First as the 13th Behavior of “Leading at the Speed of Trust” and further explains its opposites and counterfeits.

Opposite:
• speak first - listening last
• not listening at all
• focusing on getting your own agenda
• not considering whether others may have information that could influence you
• ignoring other’s needs to be understood
• self-focused, ego-driven behavior

Counterfeit:
• pretend listening
• spending listening time thinking about reply
• waiting for turn to speak
• listening but not understanding the other person’s point-of-view

Listening well builds trust and is vital to good sound teamwork. Experts like Covey and Maxwell insists that listening is essential to building trust while Lencioni insists that building trust is paramount to well functioning teamwork.

Reference materials include;
• The 17 Essential Qualities of a Team Player, by John Maxwell
• The Five Dysfunctions of a Team, by Patrick Lencioni
• The Speed of Trust, by Stephen M. R. Covey
• Bible: 1 Samuel 3:1-3, 1 Samuel 26: 1-25, Job 2:11-13, Habakkuk 1:1-11, Luke 2:42-52, James 1:19

Are you listening to the message you are putting forth? Are you putting forth the clear message you want others to hear? What about silence? When another person is listening and only silence is the response - that too is heard.


Seek clarity in listening well (me too),

Danny

PS: tomorrow – Communication with the loan applicant

Tuesday, May 27, 2008

Best Business Practices – Communication

I’d like us to consider all the ways we communicate everyday; verbal, written, facial, body language, etc, and what communication, or lack of, says about us as an individual and company.

Here are some questions to ask yourself:

Am I purposeful in my communication? Do I project the tone of what I want people to think of me? Do I project the proper influence in my communication method?

Am I respectful in my communication? Do I offer win/win results?

Is my communication objective in nature? Am I open to listening in my communication?

Am I vulnerable and transparent? Am I instructive and insightful?

Is my communication dependable and reliable and trusted?

Am I engaging and empowering? What can I do to engage better; am I not just hearing but listening?

Does my communication coincide with my actions? What does my communication methods say about who I am?

Does my communication show character and competence? Is my message clear? What can I do to make my message more clear?

Without doubt, our communication and actions should go hand-in-hand. The number one complaint I’ve received in my entire mortgage career has been about communication; or lack of. From Realtors to borrowers to underwriters to processors to closers to……! I’m sure you’ve received the same complaint – “why won’t he/she return my phone call!”

Most of our communication is impulsive, but there are times when our communication is more mandated in nature. Such as disclosures; being in a regulated industry we are required by law to give out certain disclosures. Other mandates are deemed “normal business practices;” rate sheets, uw action sheets, web sites.

There are great books available on this subject. A recent book I’ve found interesting is “Lincoln’s T-Mail.” President Lincoln’s use of the telegraph during the Civil War and how he used it to “help” in his communication was revolutionary and a good example of basic, yet precise, means to achieve good communication. Mr. Lincoln wasn’t trying to use the latest fads, nor did he use it because it was innovative and new. He used the telegraph to help his communication.

I’m suggesting that we all consider the multiple ways we can communicate; phone, face-to-face, mail, groups, individually, email, etc, and how we are influencing each other in our methods. We each have our preferred methods, yet our preferred method is not always the best practice to achieve the desired results.


Look forward to hearing from you,

Danny

Friday, May 23, 2008

While my pondering (reflecting) normally runs to words starting with p’s, e’s and c’s, I’ve actually gotten hung-up this morning on b’s; best business, basics, backbone, boldness, blunt…hmmm.

Before I get going, I’d like to further express a previous comment I made ….. about writing this blog; “I want us to get to know each other.” If we don’t know each other; we’ll never get to know each other’s values; we’ll never develop a culture that survives, much less flourishes. And as John Glenn mentioned yesterday, “remember, this is our last rodeo.”

Back to Best Business Practices and the “B’s”….

Backbone: it takes backbone to practice Best business. Sticking to your Core Ideology (mission and values) because they are the right things to do, even when they don’t make money, takes Backbone. Making tough decisions takes Backbone; confronting others well, takes Backbone. Alethes’ upper management is going through a process where we are “evaluating forward” our abilities to do our jobs; evaluating forward takes Backbone.

Boldness: this is one I’ve done very poorly over the years. I’ve been bold with some, yet timid with others. Being consistent takes Boldness. Boldness, or lack of, is harmful when we let our temperaments miss-guide us; not confronting some while easily confronting others is not good practice. We need to do Bold well.

Being Blunt: this is another trait that can be used for good or bad. Personally, I’d rather someone just be blunt with me so we can get on into good conflict (a function of good Teamwork). Otherwise we tend to not want to hurt each other’s feelings and never get to the real guts of a problem. Many times I know I have to soften my bluntness and work through a series of questions (respond – don’t react, assume the best, go to the person, seek clarity). I also know that my Bluntness can cause others to not engage well with me and that is a problem if two people are going to Trust; I’d suggest reading the chapter on Smart Trust in the book Speed of Trust. Doing Blunt well can be the difference between being nice vs kind; “nice” is not telling someone about a piece of food stuck in their front teeth while being “kind” is telling them (I resisted much more graphic analogies). Bluntness can be rude and that is not what I’m talking about; good Bluntness is not being a bully. Bluntness can and should be kind. Do Bluntness well.

Basics: this is what I’d originally intended to focus on today; the basics I learned about the mortgage business. When I was hired by Lomas & Nettleton in 1984, my first week was spent reading agency manuals; FHA, VA, Fannie, Freddie (It took me 3 days to figure out the acronym things). They then had me filling out loan applications after loan applications after loan applications after loan applications.

From there it was good faith estimates; hundreds of them (or so it seemed). The most important thing they pushed was “fully disclose EVERYTHING to the applicant.” They didn’t say be honest, that leads to differences of opinions about honesty. L&N taught me to disclose everything; that’s Boldness and Being Blunt – it takes Backbone. Oh, and filling out the GFE (and TIL), was by HAND. I learned real quick how to work an HP 12C calculator.

Finally, the training I was sent into the field with was about disclosures; RESPA, TIL, ECOA, and FCRA. I believe HMDA came along later. L&N drilled me with disclosing these documents properly to the borrowers. My first loan application took 3 ½ hours because I was so intent upon getting the GFE and TIL correct (remember, no computers). And my processor tore me up because I’d made a mistake and she had to re-disclose; that’s accountability.

In summary, the mortgage business starts with the loan officer. I’m still a loan officer at heart and my Best Business practices starts with having Backbone and Being Blunt about the Basics of Becoming and Being a good loan officer; from there our Business grows outward well.

Best Business Practices at Alethes continues as we extend Smart Trust in building our culture.


I look forward to getting to know you,


Danny

Tuesday, May 20, 2008

Today begins a series of discussions titled “Best Practices.” We’ll be exploring in detail what that means in the coming weeks and how these practices are incorporated into our daily work.

I believe we’ll find that as we focus on these practices, we’ll become clearer about how we conduct our business for the “long-haul.”

Though I can not put my hands on the source of this data, I’ll go ahead and give the quote; “Less than 2% of companies make it to their 10 year anniversary and those that do are supported by a strong corporate culture guided by first be its values.”

Alethes’ corporate values of Trustworthy, Respectfulness, Uncompromising, Teamwork, and Healthy form the acrostic Truth. Hopefully, since you are all employees, you are all aware that Alethes is the Greek word for Truth and have read and agree with our Core Values Statement. When we were forming the corporation in 2001 and choosing the name, there was a serious “uh-oh” when I realized how convicted I was about this name. I was convicted to the point that I knew if I was serious about being grounded in values that I had to go with such a name.

Mortgage fraud is the #1 white-collar crime in America. It is my determination that we uphold the truth in all of our endeavors, small and large, and we can stay above this stigma.

There are many resources for how values play out, but the bottom-line is we should follow values because they are right, not because they make us money. David Moore, in his book “The Last Men’s Book You’ll Ever Need,” talks about this issue. I invite you to pick up a copy and read the two chapters about work; great lessons titled “Loose Your Job Everyday,” and “Be More Impractical.”

Best practices start with values. Obviously I can not know all of your personal values, yet hopefully, you have all paid attention to Alethes’ corporate values and know how important it is to keep those values in mind as you practice your work.

Let’s be the best in the business together,


Danny

Wednesday, May 14, 2008

5/14/2008

In today’s 1006 meeting we’ll continue a discussion that began in my office yesterday. The topic was along the lines of…”why are we all worked up over loan officers that only produce one or two deals a month?” While the statement was actually made by one person, it was more of “who” said it and how others responded with “yes, that’s what I’m talking about…that’s the attitude I don’t understand.”

I appreciate the honesty and how clarity was sought in this situation because it showed me the depth of a permeating problem that I was literally blind-sided by. What I did not even consider until later was how that statement was made after a meeting had already been requested to discuss a customer service problem. It was during this meeting and listening to the discussions, asking a few questions, and seriously seeking clarity, that I poised what had been asked right before the meeting.

Confused? We’ll discuss this more a bit later this morning and I’m sure for days and weeks to come!

Oh. My immediate, and calm answer was “this is not about the number of loans nor even a monetary value, this is about our living our value statement; this about a person.” The immediate response back to me was “oh, dang, I’m sorry. I don’t know what I was thinking.”

Enough said about that for now. I’ll move on to my original intention of this Focus and Reflection and move over to our Core Values Statement… http://alethes-values.blogspot.com/

Saturday, May 10, 2008

Message from Jesse

-----Original Message-----
From: Jesse Brookshire
To: danny.smith@alethes.biz

My duty as a marine is to protect the weak and helpless from the strong and violent, those who cannot protect themselves.

My...duty. Just like it is a cooks job to cook and a janitors job to clean, it is my job to protect, to be a warrior.

I chose to be the greatest warrior our nation has to offer. .5 percent of our population choose to be a marine and 90 percent of those marines are NOT infantrymen.

I am a warrior.

The values that have been instilled in me are what will insure my success.

These values are what have made and maintained the success of the United States Marine Corps. Ask yourself what makes America so special and great. Wealth? Entertainment? Oil? Cool cars? All of these things can be obtained all over the world. America doesn't own every last natural resource in the world making it some kind of superpower.

We are no greater in that aspect then many other places all around the world.

So, what is it?

Values.

The values that this nation was founded upon. The same values that become more and more flexible, lenient and materialistic everyday. The more our traditional values change, the more dangerous America becomes, the more America becomes less special and unique.

The true fight is not against terrorists or fascists, it is against ourselves and demoralization.

I fight to protect not only the weak from the strong, but also the values that we have worked so hard to establish.

I pray that the rest of America who just like me!

Jesse Brookshire
USMC

Friday, May 9, 2008

Whoa…that hit home. I opened the door to my hotel room and there on the front page of USA Today was “Mortgage Crisis Seeps to Prime Loans.” Now that’s a great way to start the day….NOT. Is it any wonder as to why I almost NEVER watch the news? Not that I have my head in the sand, I just don’t need to be focusing TOO much on sensationalism. Do I need to pay enough attention to develop strategy scenarios based upon certain news events? Sure, absolutely. Do I need to know about current events? Some, but seriously, what does 99% of it matter? Not too much. I have to ask myself, how much do I want to let this influence me? Does this really effect me…I mean really?

Ok, focus on something I can control….me.

Seriously, in somewhat of a liberal sense, this headline does relate to my original subject of this message. As you might know, I’ve been at a Speed of Trust workshop this week. I’m not sure what I expected, but I had not considered the direct and personal impact; almost gut wrenching. I had assumed that because I’d been reading the book and practicing and talking about the 13 Behaviors for almost a year, that there would not be any big AHAs. Wrong. I’ve had to remember that “I choose to be frustrated or not.” Errrrrr.

This morning I’ve been pondering and praying about what has struck me the hardest (and there has been quite a bit; what is my biggest aha? What was the WOW or WHOA? Well, there have been many, but it was something said in the first 15 minutes that has kept coming back to me – “you are probably not going to learn anything new this week. Everything we are teaching is common sense, just not common practice.”

Hmmm. Not sure that I'm in 100% agreement, but it all hits close enough that the fallout is causing some damage. There are many familiarities in the book to other aspects of what we've been learning over the years. For instance, Behavior #10: Practice Accountability. Now that sounds familiar. Or #3: Create Transparency, #2: Demonstrate Respect.

Two “reallys!!!” I’ve had were the whole “branding” aspect and the “trust taxes vs trust dividends.”

We’ll be talking a great deal in the coming weeks about branding.

As to trust vs dividends, but for now think about how Mr. Covey teaches that when trust goes down, speed goes down, and expenses (costs) go up, thus, less profit; expense = trust = >speed = profit

Another recurring part of this Speed of Trust thing is how it starts with “Self-Trust.” (Dang, why can’t I read a book or take a seminar about fixing others??).

How does the newspaper headline relate? The “I’ll be the same 5 years from now…..” theme is resonating, if not pounding away, at me. We can’t control the headlines but we can control whether we read them or not and what we do with them. If I want to be different 5 weeks or 5 years from now, and I do, I have to change; I need to trust myself more, and I then need to trust others more. I need to have a “propensity towards Trust.

Hopefully, you have all been reading the book. I trust you have.

Can you share some examples of trust dividends? I’d love to hear about them.


P.R.O.V.I.D.E. Leadership,


Danny

Wednesday, May 7, 2008

I’d like to encourage you to read 2 things this morning;

the book summary of “360 Leadership” by John Maxwell and
the Focus and Reflection dated 4/16/2008.


I’d then like to hear what you took away from these readings. You can either email or post as a comment on today’s blog. And the blog allows you to be anonymous!


Thanks, Danny

Monday, May 5, 2008

I was traveling yesterday, by air (I’d rather drive). While on layovers, I always head to airport bookstores. Bookstores are culturally challenged and I like to see what’s being pushed that’s different from the local Barne&Nobles.

This time it was more of a renewed perspective on an existing problem: change (imagine that!)

Standing inside the doorway, surveying the crowd, and wondering if I dared walk in, I was drawn to a book of previously published articles. In this book was a reprint of an article I passed around corporate last year by Harvard Professor John P. Kotter. The article was titled, “Leading Change: Why Transformation Efforts Fail.” Professor Kotter wrote a book back in 1996 with a similar title. In this article he lists “8 Big Errors” companies make when transforming (fancy name for CHANGE). I was struck hard by 6 of the 8, but in particular Error #1: Not Establishing a Great Enough Sense of Urgency.

Kotter’s “Error #1” has caused further reflection about Floaters vs Seekers.

As a quick definition, a floater is someone who is just passing the time, getting through the drudgery of work; waiting for 5 o’clock so he/she can….jingle those keys.

For the definition of a seeker, I’ll borrow from Os Guiness; "....true seekers are different. On meeting them you feel their purpose, their energy, their integrity, their idealism, and their desire to close in on an answer. They have become seekers because something has spurred their quest for meaning, and they have to find an answer. True seekers are looking for something. They are people for whom life, or a part of life, has suddenly become a point of wonder, a question, a problem, or a crisis. This happens so intensely that they are stirred to look for an answer beyond their present answers and to clarify their position in life. However the need arises, and whatever it calls for, the sense of need consumes the searchers and launches them on their quest."

Those of you who have read Guiness and the concept from which he writes about seekers could think I’ve taken a deeply intense subject and made light of it. But, I believe my correlation is totally relevant. Seekers are exactly what Alethes needs right now. A Seeker has urgency about his/her work and it seeking to change something; even if it is wrong! Seekers are engaged in robust evaluation and correction.

We, as a team and as an individual, don’t have time to float. The time is now for new AUS files; the time is now for creating WOWs with our clients. Our clients have choices. You have choices. I could write all morning about taking Personal Accountability for how you talk to people, how you answer the phone, how you return phone calls, how you CREATE URGENCY, how you walk around looking for someone that needs assistance, how you FIND a client that needs assistance.

What choices are you going to make today?

I Pray that you to have a Great Sense of Urgency; be a Seeker.

P.R.O.V.I.D.E Leadership,

Danny

Thursday, May 1, 2008

You might or might not be aware that today is the fortieth day after Easter; Christ’s resurrection. It was on the fortieth day that Christ ascended into Heaven to set at the right hand of the Father, our Lord God.

This event is recorded in Mark 16:19, Luke 24:50-53, and Acts 1:6-12. A summary of the test goes something like this…

So when they last met together, he led them out to the vicinity of Bethany. They asked him, “Lord, are you at this time going to restore the kingdom to Israel?”

He said to them: “it is not for you to know the times or dates the Father has set by his own authority. But you will receive power when the Holy Spirit comes on you; and you will be my witnesses in Jerusalem, and in all Judea and Samaria, and to the ends of the earth.”

After the Lord Jesus had said this to them, he lifted up his hands and blessed them. While he was blessing them, he left them and was taken up into heaven before their very eyes, and a cloud hid him from their sight. He sat at the right had of God.

They were looking intently up into the sky as he was going, when suddenly two men dressed in white stood beside them. “men of Galilee,” they said, “why do you stand here looking into the sky? This same Jesus, who has been taken from you into heaven, will come back in the same way you have seen him go into heaven.’


There are many amazing and awesome things about this event, but the two that is the most astonishing to me are;

Christ was flesh and blood, still, when this happened. He ascended into Heaven after walking around in a resurrected human body; He even ate fish when His apostles did not believe He was real and not a ghost or spirit.
He will come back the same way.


What a day that must have been!