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MortgagePoint ยป Your Trusted Source for Mortgage Banking and Servicing News 50 May 2024 E X P E R T I N S I G H T S Ron Vaimberg, President of Ron Vaimberg Interna- tional, is an international success strategist, and one of the mortgage industry's most renowned trainers and coaches of sales professionals. A former top produc- ing loan originator and real estate agent, Vaimberg coaches both Loan Officers and Mortgage Brokers who have ranked in the top 1% in loan production, and have earned more than $1 million annually. He began his career in 1984 as a real estate sales professional on the North Shore of Long Island, and in 1997, Ron created the New York Mortgage Institute, one of the nation's first training programs for mortgage originators. Ron can be reached at ron@ ronvaimberg.com. MortgagePoint recently had the oppor- tunity to chat with Ron about the crucial business skill of establishing relationships in the mortgage landscape. Drawing upon his years of expertise coaching, he outlines strategies to properly build and cultivate relationships that will last for years to come. Q: Why do you believe the dynamics of today's market make establishing referral relationships more critical than ever for loan originators? Ron Vaimberg: Developing relationships is ultra-critical in today's market. First off, real estate agents handle 86% of all purchase transactions and have significant influence over where someone might go for financing, because they know who will get the job done and make the transaction go smoother. Everywhere you look, the most successful originators are the ones with the greatest number of relation- ships. They're extremely profitable, because they are not paying an arm and a leg for advertising or lead generation. Another reason it is so critical is that when interest rates drop, most mortgage professionals ignore their referral rela- tionships to pursue the low-hanging fruit of refinances. If rates drop this year, real estate agents and referral partners will be abandoned once again. Our industry seems to never learn from this mistake. But, originators who continue to develop relationships, regardless of what rates are do- ing, will continue to bring in a lot of business because their networks keep growing and providing them with more opportunities. Q: What do originators most often get wrong about building referral business? Vaimberg: The number one thing originators get wrong about building their referral business is they approach it from a selfish place. They are too focused on what they are going to say to a potential partner, and they end up talking about everything and anything they can do when it comes to financing. But that in itself does not make them unique. Originators need to think about their potential partner's needs and master the art of asking great questions. I teach every one of my clients that the key to relationship building is not what you are going to say, but what you are going to ask. When you ask someone the right questions, they will tell you exactly what you need to know to meet their needs and serve them and their clients. It is really quite simple. Q: What is the most effective strategy for establishing and nurturing referral relationships with those in the industry? Vaimberg: There is never just one strategy. The key is finding out what is most important to your potential partner. When you ask questions that uncover an agent's pain points, frustrations, or the voids their current lenders have created, that opens the door. However, many loan officers lack a proper follow up. They leave their initial meeting without a real next step in place, or a strategy to stay engaged. Typically, they return to their office or their home, and wait for the phone to ring. A few days go by, and nothing happens. They start thinking, "If I call the agent, they're going to think I'm desperate. If I BUILDING REFERRAL RELATIONSHIPS FOR MORE CONSISTENT BUSINESS Veteran mortgage sales trainer and coach Ron Vaimberg shares with MortgagePoint, the coaching tips and strategies necessary to establish and foster enduring relationships in the mortgage marketplace.