Archive for the ‘Sales’ Category

Want to Grow? Learn to Let Go

Posted by Joel pate in Leads, Sales. Tagged: , , , , , , ,

Let me guess, you’d like to make more money in 2014.  Right?  It seems every originator, no matter how successful, is always looking to close more loans and earn more income.

Raising your results from where you are now to where you would like to be (or should be at this stage in your career) is a goal that can be readily achieved.  More sales contacts, more personal marketing, more follow-up and more quality referral partners will generate more leads, more loans and more money for you every month.  But before you start to move forward in that direction, think about what you may need to leave behind.

1. Your loan files.  The first thing you may need to let go of is your love of your loan files.  It is extremely difficult, if not entirely impossible, to originate a large volume of loans every month if you spend the majority of your day working on your loans in process.

Too many originators will never grow their businesses because they spend far too much time babysitting their pipeline or coddling their borrowers during the process.  Their inability to “let go” and trust others to gather documents, clear conditions and manage the specifics of the loan transactions will forever hold them back.

The primary job of a loan originator is to originate loans, not process them.  Control freaks and paper geeks rarely make big money in this business.  Take a clean loan application, set the file up properly, hand it off to your support team, and go meet another customer.

2. Poor quality deals.  If the loan doesn’t close, you don’t get paid.  Added to that piece of profound wisdom, you also don’t get another client for your database, his return business or his referrals.

Working on poor quality deals and “science project” loans will forever inhibit your ability to grow your volume, your income and your career.  Learn to say a polite and professional “no, thank you” to bad deals and quirky situations that have a low probability of funding, and do it as soon in the process as you can.

Your time is money, and to make more money you must spend more of your time working on loans that are likely to close.

3. High-maintenance agents.  Some referral partners (real estate agents, etc.) will accelerate your growth with a steady stream of leads.  They trust you and your expertise, and in doing so, they recommend you to their clients, make the handoff, and step out of the way to allow you to do your job.

Other agents will drive you completely crazy with their endless questions and almost daily requests for status updates on their clients.  If the volume and quality of the business they refer you justifies the time and frustration you experience, so be it.

But if along with their neediness comes little or no real and regular business, it’s time to break free from these restraining relationships.  Go find better people to call your partners.

4. Old habits.  They say that old habits die hard.  While this is often true, it is equally true that your old habits may be impeding your career growth.

Let’s say, for example, you have been originating an average of four to five loans a month and you want to up that to nine or 10 loans a month.  Doubling your results will never happen by accident or if you continue to operate the way you do today.  “I’ll just work smarter,” is a well-intended strategy, but one that simply won’t make any difference.

You may need to change your work routine, the hours you put in every day, your prequalification or pre-approval process, even the way you take your loan applications.  There’s an old saying: If you always do what you’ve always done, you will always get what you’ve always got.  Be open and willing to change how you originate and run your business from start to finish.  Look to those producing more volume than you and mimic their customs and practices.  That’s what you need to be doing, too.

5. Your company.  Perhaps you work for a company that provides all the tools and support you need for success.  Congratulations!

But, if you now work for an outfit that: Does not have the loan products you need to be competitive in your marketplace; places excessive demands on their originators; will not staff the back of the shop to help you deliver smooth and timely closings to meet your contract dates; does not believe in providing its sales force with ongoing training, education and technology tools; and/or is priced out of the market, the thing you may need to let go of is your employer.  Especially if your employer is not willing to make the necessary changes.

It’s a bold move, but I’ve seen many originators over the years exit their current company, move to a new one that provides the environment to succeed, and seen their results soar.  But always make sure the problem is the company, not you, before you make that fateful decision.

6. Your ego.  It may be a big pill to swallow, but you may come to realize the biggest barrier to your growth in this business is you.

Some originators — particularly the most seasoned ones — think they are “too good” to attend a sales seminar or stop by an open house on the weekend.  They feel they shouldn’t have to prospect for customers, ask Realtors for appointments, make phone calls to their database, join local networking groups or ask their borrowers for referrals.  (If this critical comment hits too close to home for you, take notice.)

Understand that this way of thinking will forever hold you back from expanding your knowledge and skills, from meeting more people, finding more loan opportunities, and cashing bigger paychecks.  Perhaps it’s time to get over your own ego and put into practice the daily disciplines of $50 million and $100 million producers.  If they are not “too good” to do these things, neither are you.

Raising your results and increasing your loan production and income starts with leaving behind the things that have been holding you back.  Are you ready to let go?

 

By: Douglas Smith, www.nationalmortgagenews.com

 

 

About Scoreinc.com

Scoreinc.com, Inc., headquarter in Mayaguez Puerto Rico USA, with offices in Mobile Alabama, is a leading provider of services to the derogatory credit sector of the financial service industry through its Scoreway® Software Solution and credit report accuracy dispute services. The Scoreway® platform provides an end-to-end management solution that helps the companies that we serve manage the credit review and dispute process and to improve controls and profitability. Scoreinc.com services an ever growing list of mortgage company’s, banks, credit unions, Realtors®, builders and credit service organizations through its innovative technology and credit report accuracy service.

Contact Score for more information at 877-876-5921 or by visiting the following pages:
Credit Repair Merchant Service
Fair Debt Collection Practices-learn to earn from FDCPA
Credit Repair Business Training
Credit Repair Software
Credit Repair Solution
For more details please visit Scoreinc.com

The Art of Story Telling in Sales

Posted by Joel pate in Leads, Sales, Uncategorized. Tagged: , , , ,

Most of us can recall when, as children, we were captivated by a well-spun story.  Sitting on our uncle’s lap, or gathered before a parent with our siblings or cousins, we were entertained, amused, awed — and maybe even inspired by it.  It burned into our minds and our souls images, sounds, and feelings that, in some cases, have stayed with us for a lifetime.  And often there was, unbeknownst to us at the time, an important life-lesson embedded in that story.

So, what does all this have to do with sales?  Everything.

Think about it.  If you were in the audience for another sales person’s sales presentation, which kind would you rather listen to: one in which the presenter simply recited a list of features and benefits, facts and statistics, or one that included a stimulating, engaging, riveting, or inspiring story about how he or she helped another customer solve a problem similar to the one with which you had been wrestling, or achieved an outcome you’re looking to achieve?  Which one would move you, and which would bore you?  Which one would be memorable, and which would be forgettable?

You get the idea.

It all boils down to what it is you’re trying to accomplish with your sales presentation.  Are you trying to simply educate and inform?  Well, that’s certainly part of it, of course.  And the facts and figures you present will usually accomplish that part of your objective.

But that’s not enough.  Educating and informing may be a necessary part of your presentation, but it’s not sufficient for a sales presentation.  A sales presentation is not a mere lecture; its goal is much more ambitious: to move a typically undecided, often skeptical, sometimes confrontational prospect in the direction you want — towards the purchase of your product of service.  When you think of it that way, this all becomes really critical, doesn’t it?

The fact is that presentations that include stories are just more memorable.  They’re also more inspiring.  They’re highly motivational.  And, if told well, they’re also “actionable;” in other words, they get your prospects to do something — like sign up for what you have to offer them.

And isn’t that what you want?  Of course, it is.

So how can you use stories to make your sales presentation truly memorable?  There are two elements to consider when preparing and delivering a story: what your story is about, and how you tell it.

As indicated above, your story should vividly illustrate how you helped another customer solve a problem similar to the one with which your prospect has been wrestling.  So, you should have a handful of stories available for different prospect types or for each of your solutions.

As for how to tell them, good stories, like all good presentations, have a strong opening that sets up the story, the body — or “meat” — of the story, and a satisfying conclusion.

Begin (open) by naming the customer (be sure to get clearance beforehand from the customer to use their name), and what they do.  Then describe the situation.  What was their particular problem or challenge?  What were they trying to accomplish?

Then get into the heart of the story (body).  Take them through the highlights of the customer’s decision process — specifically, who else they had considered in addition to you and why they chose you.  This is your opportunity to create that strong emotional connection with your audience because, most likely, that’s exactly where they are in their evaluation process.  People find it comforting to know that they’re not the only ones who’ve faced a similar decision and found a satisfactory solution — namely, you!

Lastly (conclusion), what was the solution they bought and that you implemented, and what was the outcome for them?  Use figures, whenever possible, and weave in a direct customer quote or two if you can; make your story more tangible and significantly more compelling.

Keep in mind that, while this looks like a lot, the actual relaying of your story will likely take no more than 2-3 minutes.  If, in rehearsing it, it takes any longer, trim it down.  People like stories, but in business — unlike at the theater — time is precious.   Make your point, and move on.

Action Item:

Take a customer success and turn it into a 2-3 minute story, using the format described above.  Rehearse and practice your story on a colleague or significant other, or in an empty room with a tape recorder — whichever you’re comfortable with.  The key is to create and polish a compelling story you can embed into your presentation that will move your prospects towards closure.

Happy holidays, and good selling in 2014!

 

By: Craig James, www.salessolutions.com

 

 

About Scoreinc.com

Scoreinc.com, Inc., headquarter in Mayaguez Puerto Rico USA, with offices in Mobile Alabama, is a leading provider of services to the derogatory credit sector of the financial service industry through its Scoreway® Software Solution and credit report accuracy dispute services. The Scoreway® platform provides an end-to-end management solution that helps the companies that we serve manage the credit review and dispute process and to improve controls and profitability. Scoreinc.com services an ever growing list of mortgage company’s, banks, credit unions, Realtors®, builders and credit service organizations through its innovative technology and credit report accuracy service.

Contact Score for more information at 877-876-5921 or by visiting the following pages:
Credit Repair Merchant Service
Fair Debt Collection Practices-learn to earn from FDCPA
Credit Repair Business Training
Credit Repair Software
Credit Repair Solution
For more details please visit Scoreinc.com

Compucredit

Posted by Joel pate in Auto Loans, Banks, Business, Credit Cards, Credit Repair, Leads, Management, Mortgage Loans, Sales. Tagged: , , , , , , , , ,


Dear Friends,

In life we are fortunate when we can say that any court ruled in our favor but when it is the Supreme Court of the United States, it is definitely a great day.

As you may know, Compucredit was sued a few years ago under the Credit Repair Organizations Act.
The details of the case are important but the really important facts are that the Supreme Court ruled that Consumers can be required to be compelled to arbitrate a case, if the company has the proper provisions in their Contract.
So act quickly to make sure that your contract has the appropriate and legally binding clause to protect yourself against consumer lawsuit.

For more information follow this link.

Joel

Joel S. Pate, President

joel@joelsjolt.com

Ox Publishing

Execution-The Key to Un-Lock your Success

Posted by Joel pate in Auto Loans, Banks, Business, Credit Cards, Credit Repair, Leads, Management, Mortgage Loans, Sales. Tagged: , , , , , , , , ,

Execution-The Key to Un-Lock your Success

 

Execution is the key to your success. Without the systematic rigorous process of tenaciously following through, while ensuring accountability, your business and personal life will be less rewarding than it could be.

Of course you need to plan, and you need to prepare. Many articles on that subject. But without execution nothing happens. Without continuous execution, not enough continues to happen.

On a daily basis, I speak with mortgage companies and credit repair companies from all over the country. If I had a nickel for every time that I have heard “I’m about to do…..you name it” I would have a lot of nickels.

Every day I see business owners stuck in what I have deemed to be Work Avoidance Behavior.

Now these are good folks. Smart, well-educated but none the less stuck in some type of rut.

So if you are stuck in this type of rut, how to you break free?

Determine just like Microsoft has:

  • Good is good enough-there is always a 2.0 that you can roll out
  • Make your list today but tackle first the one thing that you are avoiding
  • Yes that’s right-don’t do everything else to “get it out of the way”
  • Execute on the one thing that you know you need to do-do it now
  • You will only change your behavior when you change it

Getting ready to get ready is another way of saying work avoidance behavior. It’s time to execute your plan, roll out your website, purchase those online key words, schedule presentation meetings, etc. Do it today, you will be glad you did.

To your Success

 

Joel

Join Joel for his Jump Start Business Building webinar held each Thursday at 3 PM CST by clicking on this link: https://www3.gotomeeting.com/register/393936198

Pro-Active vs. Re-Active Credit Repair

Posted by Joel pate in Auto Loans, Banks, Business, Credit Cards, Credit Repair, Leads, Management, Mortgage Loans, Sales. Tagged: , , , , , , , , ,

Pro-Active vs. Re-Active Credit Repair

 

What is Pro-Active Credit Repair?

Before I answer that, let’s define Re-Active Credit Repair. As the President of a credit repair backend processing company, I have the good fortune to counsel with mortgage and real estate professionals as well as Credit Service Organization company owners from all across the county on a daily basis.

Typically in consultive roles you are looking at the problems in a business. In nearly every conversation with both large and small operators they state that their greatest problem is:

CASH FLOW INSTABLITY

But is this the problem or a symptom of the real problem?

When digging deeper into these conversations, the real problem begins to surface. It is really a lack of ability to view the results being obtained by the industry professional on their customer’s files in a timely fashion. Why? The customers do not send in their results on a consistent basis, if at all. And, if you pull credit for credit repair from a mortgage company or other source you are violating their Terms of Service and they are subject to losing the valuable privilege with the Bureaus.

But how does this affect so many other areas of the business?

  • Since results are the primary driver of the business, the reason that consumers signed up with you and thus your deliverable, just in time delivery of this natural resource or inventory item is crucial to your business model
  • Your sales are affected due to the fact that you spend unproductive time chasing down bureau results instead of focusing on acquiring new sales and servicing the accounts you’ve already sold. Remember referrals are king.
  • Every un-planned contact from your customer is very time consuming. To increase profits you must develop a system that reduces customer communication interaction.

Whether your business is based on the Monthly Fee model or the new Pay For Delete model that is sweeping the industry, lack of control of the timely delivery of your demonstrable results impacts your ability to schedule your work and that of your production staff. Result: You have Cash Flow Instability.

Just imagine for a moment an auto assembly plant not knowing if they have enough steering wheels, bumpers or transmissions for today’s production. Can you imagine in today’s competitive landscape how that would affect their business? It’s the same for you.

So what is the solution? Credit Monitoring

It sounds ridiculous but it is true.

The timely access to credit monitoring allows you to systemize your work flow and thus drive your process without unproductive and needless contacts with you customers to chase down results.

Additionally, as you have experienced, the results arrive over a period of days if not weeks. As a result, the consumer is touching you up to three times and then you are required to examine three different reports at potentially three unique times.

Each of these extra steps takes time away from sales, meaningful customer touches and ultimately profits.

Only with a durable credit monitoring account can you plan your work and work your plan. How does it work?

Schedule the new credit monitoring pull in your calendar for each customer for a particular date. Or better yet push that down to a lower paid employee. By using your CRM platform to schedule your time to review the “results” allows you to become more productive-like a normal business.

This easy to implement process gives you “inventory” control over your work flow scheduling and thus the ability to manage your cash flow in a more businesslike fashion.

As always, many company owners were initially skeptical of this enhancement to their business and have had these objections: “That won’t work in my market….But then I’ve got to stop what I’m doing to log into the account….What if their credit card fails and I can’t access the report?… It’s too expensive… the customer cannot pay any more…”

These are all valid objections but ones that have been overcome by numerous successful operations:

  • In every market we have found that if you train your sales staff effectively you can overcome the objections from the customer of the added expense
  • The time it takes for one of your staff to log into a credit monitoring account is less than two to three minutes
  • Credit cards fail on approximately 20% of the accounts-but that is better than chasing down 100% of the consumers for results
  • The customer doesn’t want to help you do your job, the consumer wants results

Running a successful business requires that you become Pro-Active instead of Re-Active in your approach.

You do this by systemizing every possible event and by wringing out of the organization unproductive time wasters.

Ultimately you will find more time and energy for the growth drivers in your business:

  • Marketing
  • Lead Management
  • Affiliate Development
  • Sales
  • Productive Customer Interaction
  • Which leads to referrals

If you are ready to improve the results you achieve in your business, begin to implement this plan today on your next sales call.

To your Success

Joel S. Pate

Joel Pate is an entrepreneur and founder of multiple successful companies in the mortgage, real estate, and marketing space. For more information on Joel, contact him at joel.pate@scoreinc.com

 

PS: Plan to join Joel for his Jump Start Business Building webinar held each Thursday at 3 PM CST by clicking on this link: https://www3.gotomeeting.com/register/393936198

How To Get Organized In One Week-Part 1

Posted by Joel pate in Auto Loans, Banks, Business, Credit Cards, Credit Repair, Leads, Management, Mortgage Loans, Sales, Uncategorized. Tagged: , , , , , , , , ,

Are you tired of facing organizational crisis? bigstock_Crisis_4188304

Have you missed your last deadline?

Well join the ever growing crowd that is tired of it right along with you.

But here’s the real question: Are you willing to join the ranks of those that need you to do something about it?

It’s time to get organized. Shall I show you were to start?

Time to put first things first!

The first step is to step back from the day to day grind to determine what is actually important in your life. You know we are individuals before we are family of men and women. Yes that’s right, your job or business is not the most important thing in your life. Thus, putting first things first is the only place to start.

What does that mean? The fact is that life is pretty short so do what is important first and continuously.

Do it for yourself. That’s right put you first. At first, this seems selfish. In the wrong context it is selfish. Realize that you can only get organized when YOU take control of what is important. You’ve got to start with you. One example of this is deciding to get into shape physically.

That journey began for me two years ago when I made a ninety day commitment to hire a trainer. What does this have to do with getting organized? It has everything to do with it. I have found that when you organize the basic element of your life, then it centers you; thus empowering you to get focused. But unfortunately it takes more than the physical element.

Next, take time out for those you care about most

The next step is focusing on your family. The key here is to set aside time, time block INTO your day and week, the events that when you look back on your life, you will be proud that you spent that time. And then, get off the damn phone and be in the moment.

Until you accomplish these two critical elements of control, you will always have a mountain of regrets and a pit of unresolved issues to transverse before you can get down to real organization.

Now we can discuss the business. Whether you work in a large organization or you work alone or in a small organization, you are the CEO of your life. In today’s integrated world, even the smallest qink in your “just in time inventory” life style causes disruption. The key to getting and remaining organized is in the selection of vendors, partners, and customers you do business with that become an integral part of your organization and thus play a huge role in determining how “organized” your life can be.

As a former homebuilder I can attest to this fact. No matter how well I planned the schedule, if one person did not show up or complete their part of the project on time, everyone had to be rescheduled. Thus to maintain an appropriate level of organization, I had to build into the schedule the realities of the frailty of mankind and the fact that it rains sometimes.

The cold reality: you still must rely on others

Overtime, I understood that no matter how organized I wanted to be, I relied upon others and their habits, lack of organization, and even worse, the use of wiggle words and even outright lies that they used to “manage “ their organization to get what they wanted.

For example, one dirt contractor when asked would say “yes, the trucks are on the road.” I took that to mean that the trucks I had been waiting on were on the way. The man I was paying to install the dirt could do his job and the plumber could then do his job and the framer who was also on the road heading to my job could do his job. But no. I discovered over time he was essentially lying by telling me that the trucks were on the road. The truth, but they were not heading to my job.

It is impossible to get organized when relying upon vendors like this.

So what is your example? More importantly, are you doing this?

The bedrock material of our life and thus your ability to organize is dependent entirely upon words and agreements and the words and agreements of those around you. The more reliable everyone in your life is to their word the more organized you can become.

Real organization requires that when you commit to something that you have every reasonable expectation of knowing it can be done. If the accomplishment of a certain obligation requires the requisition of various resources beyond your current means, then, be honest with yourself and everyone that relies upon you for this affirmative statement. If manna from heaven is required, and you’ve never seen any manna, ever, then you should disclose this fact to everyone involved, BEFORE THEY RELY UPON YOU.

What does this have to do with organization? Everything.

Saying what you mean and meaning what you say is the bedrock of a solid organization.

It is the foundation of your effort to bring your most precious asset — your time — under control. If you make obligations that cannot be accomplished in the time frame that you establish, and others place reliance upon your claims, your organizations foundation is weakened by every unmet obligation. You can’t build a solid organization on empty promises to others or to yourself.

To build a solid organization and thus be organized, you must wring out of your organization vendors, contributors and participants that do not hold to this same standard of excellence. It is the only way to deliver on your own promises and commitments and thus make the most of your energy and effort.

Always remember that unresolved issues dam up your creative power, your organizational strength and make you ineffective. As a result, you accomplish even less.

Stay tuned for Part 2 next week…

To your success,

Joel

Joel S. Pate, Ox Publishing
Chairman & President

Would you like to receive more information from Joel? www.leadmachinesecrets.com. Joel Pate is an entrepreneur and founder of multiple successful companies in the mortgage, real estate, and derogatory credit industry. For more information on Joel, contact him at joel@oxpublishing.com

Fixation leads to death

Posted by Joel pate in Auto Loans, Banks, Business, Credit Cards, Credit Repair, Leads, Management, Mortgage Loans, Sales, Uncategorized. Tagged: , , , , , , , , ,

bigstock_Doorway_To_Heaven_88666You’ve got to look up and out. That is where you build your business.

According to world renown business management author Peter Drucker, “Growth for any company is found outside of its four walls, not from within.” That is where you will find the business – outside of your four walls.

Regardless of the size of your enterprise, it is easy to find yourself fixated on the details. Now, don’t get me wrong, you’ve got to focus on the details but not to the point that you do not have sufficient outward focus. There is a balance and you must find it. So I’m sure you’re wondering…

“How do I find it?”

Glad you asked. The only way is to time block activities into your day. Again, regardless of the size of your company, you will be required to focus on internal details, Key Performance Indicators as well call them. These KPIs tell you how your business is running. So, part of the day, you’ve got to time block out for review of the KPIs.

The same goes for your focus outside of your business. You need to literally block out appointment time on your calendar a week or more in advance when you will make sales calls, follow up with your existing and past clients, seek referrals, build new marketing campaigns, attend tradeshows, participate in webinars and of course give webinars.

But if you are like just about everyone else, you find yourself fixated (my word) either too much on the details or on the sales. You have a pre-disposition to either be internally focused or externally focused. But you can’t become fixated.

bigstock_Electronic_Altimeter_Close_Up_1571269Fixation for a pilot of an airplane will surely lead to death. A pilot must have a heads up display of multiple instruments-and not become fixated on just the compass for instance. Many pilots have crashed their plane by fixating too intently on the direction they are flying while losing focus on the altitude. They were indeed flying in the proper direction but straight towards the ground.

But as the CEO of your life, your enterprise, your department, to be successful it dictates a multi-faceted approach, a multifaceted approach is what you have to give it.

So, let’s start on Monday. Over the weekend, pull out the old day planner and time block in the things you need to do to grow your business. And of course time block in an appropriate amount of time for the KPI’s of your business. And time block in time for outward focus and for family time and for time for yourself too.

I say time block in because you can’t time block out time. You never started doing a new thing by ceasing to do anything. You must fill your day with activities on purpose in order to obtain the purpose for which the day was planned.

By next week, I promise that if you implement this approach you will have accomplished more and be on the way to making more money and keeping more of it too.

To your success.

Joel

Joel S. Pate

Ox Publishing

Would you like to receive more information from Joel? www.leadmachinesecrets.com

Joel Pate is an entrepreneur and founder of multiple successful companies in the mortgage, real estate, and marketing space. For more information on Joel, contact him at joel@oxpublishing.com

Risk-Based Pricing Guidance in Plain English

Posted by Joel pate in Auto Loans, Banks, Business, Credit Cards, Credit Repair, Leads, Management, Mortgage Loans, Sales, Uncategorized. Tagged: , , , , , , , , ,

bigstock_Law_School_2856177Information. It’s the key to knowledge and to success. I recently received this valuable information from a top law firm and top DC based political consulting firm. After receiving permission, I wanted to share it with you.

Understanding these changes will make you stand out as the expert in your field. Send me a note to let me know how you enjoy it. To your success…

RISK BASED PRICING NOTICES TO CONSUMERS PER DODD-FRANK

FACTS

If a consumer’s credit score is used in setting the material terms of credit, the risk-based pricing notice must provide the credit score and certain related information. These new content requirements also apply if a credit score of the consumer whose extension of credit is under review was used to increase the APR.

The final rule requires the following five (5) additional information to be included in risk-based pricing notices if a credit score of the consumer was used in setting the material terms of credit or in increasing the APR:

(1) the credit score used in making the credit decision;

(2) the range of possible credit scores under the model used to generate the credit score;

(3) all of the key factors that adversely affected the credit score. Note that the risk-based pricing notice generally may not list more than four key factors. However, if one of the key factors is the number of inquiries made with respect to the consumer report, up to five key factors may be used.

(4) the date on which the credit score was created; and

(5) the name of the consumer reporting agency or other person that provided the credit score.

The risk-based pricing notice also must include a statement that a credit score is a number that takes into account information in a consumer report and that a credit score can change over time to reflect changes in the consumer’s credit history. In addition, although the final rule is largely unchanged from the proposed rule, the final rule also requires the risk-based pricing notice to include a statement that the consumer’s credit score was used to set the terms of credit offered.

Credit score” is generally defined under FCRA to mean a numerical value or a categorization derived from a statistical tool or modeling system used by a person who makes or arranges a loan to predict the likelihood of certain credit behaviors, including default. However, the definition of “credit score” expressly excludes any mortgage score or rating of an automated underwriting system that considers one or more factors in addition to credit information, including the LTV ratio, the amount of down payment, or the financial assets of a consumer. Therefore, the final rule notes that some, but not all, proprietary scores would be excluded from the definition of a “credit score” and would not need to be disclosed to the consumer.

The final rule also provides model forms for situations where a credit score and information relating to the credit score must be disclosed. The FIRST NEW MODEL form provides a general risk-based pricing notice when a credit score is used in setting the material terms of credit. The SECOND MODEL FORM provides a risk-based pricing notice in connection with account review if a credit score is used in increasing the APR. The use of the model forms is optional. However, appropriate use of the model forms provides a safe harbor for compliance with the risk-based pricing notice requirements.

If the transaction involves two or more consumers, the lender must provide a separate notice to each consumer. However, if the consumers have the same address, and the notice does not include a credit score, lenders may provide a single notice addressed to both consumers. The final rule also addresses situations when multiple credit scores were obtained by the lender. If a lender obtains multiple credit scores but uses only one of the credit scores in setting the material terms of credit, such credit score that was used must be included in the disclosure. If a lender obtains and uses multiple credit scores (e.g., by computing the average of the credit scores), the final rule requires the lender to disclose any one of such credit scores. However, the lender has the option to include more than one credit score in the disclosure.

The final rule does not change the existing exception under Regulation V from the requirement to provide a risk-based pricing notice to a consumer whose credit score was used in setting the material terms of credit. Such exception continues to be available to lenders who provide a credit score disclosure exception notice to all consumers who apply for credit. (Dodd-Frank Section 1100Fand 15 U.S.C. 1681m)

 

ADVERSE ACTION NOTICE UNDER DODD-FRANK

The second final rule amends the model adverse action notices in Regulation B to satisfy the adverse action notice requirements under FCRA, as amended by the Dodd-Frank Act. Certain model notices in Regulation B include the content required by the adverse action provisions of both ECOA and FCRA so that creditors can use the model notices to comply with both statutes. The Board amended these model notices to include the disclosure of credit scores and related information if a credit score is used in taking adverse action.

FCRA requires a person to provide, in an adverse action notice, information regarding the consumer reporting agency that furnished the consumer report used in taking the adverse action. It also requires a person to disclose that a consumer has a right to a free consumer report and a right to dispute the accuracy or completeness of any information in a consumer report. The final rule applies to any person that (1) is required to provide an adverse action notice to a consumer; and (2) uses a credit score in making the credit decision requiring an adverse action notice.

Creditors also disclose additional information on certain adverse action notices. If a credit score is used in taking an adverse action, a FCRA adverse action notice must include the same information that was added by the Dodd-Frank Act with respect to risk-based pricing notices:

(1) a numerical credit score used in making the credit decision;

(2) the range of possible scores under the model used;

(3) up to four key factors that adversely affected the consumer’s credit score (or up to five factors if the number of inquiries made with respect to that consumer report is a key factor);

(4) the date on which the credit score was created; and

(5) the name of the person or entity that provided the credit score.

The second final rule is largely unchanged from the proposed rule, but the Board made the following clarification changes:

The final rule added optional language in Forms C-1 through C-5 that may be used to direct the consumer to the entity that provided the credit score for any questions about the credit score, along with the entity’s contact information. Creditors may use or not use this additional language without losing the safe harbor, since the language is optional.

On Forms C-1 through C-5, references to “credit report” have been changed to “consumer report”.

Official Staff Comment # 9 to paragraph 9(b)(2) was revised to clarify that FCRA requires a creditor to disclose, in addition to the credit score used in taking adverse action, up to four key factors that adversely affected the consumer’s credit score (or up to five factors if the number of inquiries made with respect to that consumer report is a key factor).

Thank you Weiner, Brodsky and Herman Thordsen for the updates.

To your succes,

Joel

Joel S. Pate

Founder & Chairman

Joel Pate is an entrepreneur and founder of multiple successful companies in the mortgage, real estate, and marketing space. For more information on Joel, contact him at joel@oxpublishing.com

 

Need to Jump Start Your Plan?

Posted by Joel pate in Auto Loans, Banks, Business, Credit Cards, Credit Repair, Leads, Management, Mortgage Loans, Sales, Uncategorized. Tagged: , , , , , , , , ,

To Jump bigstock_Jump_Start_The_Economy_2341107Start a plan or to get unstuck, you must accept that no matter how good the plan (to increase your sales) you will need to build into it The Law of Continuous Process Improvement for the plan to work over the long haul.

Every plan requires continuous analysis and adjustment to find the way forward. Even basic tasks require a plan and a process of continuous improvement. This is important.

In the mortgage and credit business there are a number of basic processes that must be developed for the business to become a business and not a complicated job. For just a moment, imagine the axle, the spoke, the tire, and for simplification the engine providing power for the movement of a vehicle. Now imagine yourself the person benefiting from the system that generated the advancement that began with the engine that transferred power to the axle, etc.

This example asks you the question: Would you prefer to be the device that spins the most (the axle) or at the other end of the spectrum, the person benefiting from the system/process that allows you to accomplish a goal without spinning around like crazy?

Well of course you don’t want to be the axle but if you are not very careful and plan NOT to be and actually place processes in place to take care of the axle’s job, you will be the axle!

Knowing that it is not possible to just wake up every day, open your bank account online to see money that was deposited directly into your bank account without you doing anything, let’s work to get as close to that reality as possible. But how?

Every great plan starts the same way:

  • Define the objective
  • Make a list
  • Now make a detailed step by step list (don’t be complicated just use pen and paper)
  • Even better if you use different pieces of paper
  • Tape it all to the wall in sequence
  • Begin to add details to each step and then more detail
  • Now STOP. Now you must spend the appropriate amount of time determining if this is the right plan and if you have the energy and resources to really pull it together before you go one more step.
  • Because if you do spend time and money working on a plan that does not work, for any reason, you would have been better off if you just simply stop right here.

It’s OK to stop right here until you can determine how to move forward.

Only after you have completed this exercise, assign the task with a deadline to a responsible and capable person whether that person is yourself or someone else

Yes, but you say, I work alone. It’s just me. Well it’s even more important that you have a process for everything. That may be why you are working alone and can barely afford yourself.

Since I am part owner of an outsource company, it has dawned on me that I should be outsourcing even more task of my business. I have my own IT staff, but we outsource special projects such as:

  • Website design
  • Email creation
  • Content creation
  • A contractor manages my Go to Webinar, JoelsJolt.com and other blogs
  • I recently used Elance to hire a person to find computer suppliers
  • I even outsource my daughter to add pictures to my Facebook of my grandson ;)

According to world renowned management expert Peter Drucker:

The best plan is only good intentions unless it degenerates into work”

Then he asks of every business that he consults when told of a new plan:

Which of your best people have you put on this work today?….if you don’t have any best people or you can’t afford to place your best people on a project then you are simply admitting that you don’t have a plan.”

All this sounds good right. But what do you do if you need to increase sales, build a new website, etc. but you just simply feel overwhelmed and don’t know the next step to take and thus you have paralysis:

  • Step away from the office (and email and Text) JUST SIMPLY STOP
  • Use paper and pen to make a list of what is really important and needs immediate attention
  • Determine what you can and cannot do today and this week
  • Make a list of the resources that you have AND THE RESOURCES THAT YOU NEED
  • Determine what is needed, what is possible and what is likely.

It’s OK to not be able to do everything today. Take a breath.

More next time.

To your success,

Joel

Joel S. Pate

Founder & Chairman

Joel Pate is an entrepreneur and founder of multiple successful companies in the mortgage, real estate, and marketing space. For more information on Joel, contact him at joel@oxpublishing.com