The Grass is Always Greener Over The Septic Tank

My mom loved the author, Erma Bombeck who wrote the title above.  In the book Bombeck skillfully depicts Mrs. Cartwright’s growing realization that the grass is not always greener on the other side.  The phrase “grass is greener over the septic tank” looks like a hilarious take on the fact that if you think something is great about another situation, then probably something is rotting underneath, or things probably aren’t better elsewhere.

The “grass isn’t greener over the septic tank” for independent mortgage originators, in fact, the grass or the business, appears to by declining, decaying, or decomposing. 

So, what can we do if we suffer from the grass is greener syndrome?   We need to stop looking at the world of mortgage with rose-colored glasses and construct a better, more efficient way to originate, sell and retain our clients.

Let’s corral the elephant in the room.

Today, agents & loan officers provide stellar 1:1 service to borrowers during transactions.

The problem is transactions only happen every couple of years, and it’s easy for brands and agents to lose touch.  To add insult to injury, many companies sell the servicing on those loans to investors who not only compete for that borrower, but they also contractually preclude the loan officer from contacting the borrower in the future. 

The solution, in my view, is to contractually signup the “customer-for-life” at origination, confirm the client legally opts-in, making it possible to provide value in-between transactions.  “Customer-for-life”will be unobtainable without embedding valuable financial engagement tools into loan servicing with built-in retention benefits.  (Think Haven) 

Let me share with you some specifics. 

Several years ago, I created a Home Equity Advisor Services Agreement (HEASA) so that all-star loan officers could become Home Equity Advisors (Home Equity Advisors – HEA - is the compliant name most legal counsels approved) and have a tool to legally connect with their clients.   It is a simple agreement that outlines the nature of the relationship, any fees for services, term, and termination, and promises to be delivered.  Some HEA’s charge for this agreement, and many don’t.  It can be additional compensation, so it is governed by LO comp rules.      

Next, we embedded this agreement into a great engagement technology (think FinLocker or Rocket Money) that linked the client’s home loan to valuable financial tools offering a slew of benefits, additional products, and services.     

My mom and Erma Bombeck were right, the grass isn’t always greener over the septic tank or elsewhere.  There are better, more efficient, ways to do this business!  Next up…ideas to retain your LO’s and the servicing asset.