Companies and MLOs both want the same thing - production and profits. Management and producers have different roles in making this happen and face different challenges. Producers want to do what they do best - build relationships and close deals, and management has a broader scope of goals and concerns. Companies who have rolled out technology in an attempt to drive growth, increase efficiency and fulfill regulatory requirements have faced the frustration of poor adoption and MLOs defaulting to old habits that result in the very inconsistencies the new technology was supposed to correct.
Placing requirements on MLOs to engage with specific systems and manage execution of other activities outside of developing and servicing relationships with referral partners and clients doesn't play to their strengths. It's possible to achieve the powerful results that mortgage industry-focused technology can deliver, but it's not a magic pill. Success - increased production - requires mindful, day-to-day involvement by the company, MLOs and inside staff. This can be achieved by allowing the people who comprise your organization to focus on what they do best. Implementing and maintaining a properly-designed "Hub and Spoke" model will propel your people and company to make quantum leaps in profit, satisfaction and growth.
The Hub & Spoke Model Defined
At the center of the Hub & Spoke model is marketing and sales support for a team or region of MLOs and originators are the spokes extending out into the community. Depending on the size of your organization and number of loan officers, your hub may consist of one person or a team. Regardless of the size, your hub must consist of people properly trained in how to support top originators and their referral partners. Activities managed by your hub on behalf of MLOs include building out and executing systems and processes that make sure:
- New appointments to meet with leads and referral partners are set
- Social media posting and interaction gets done
- Automated campaigns and other marketing are going out to prospects and past clients
Having these and other tasks managed by the hub will eliminate the scatter that so many MLOs create by working across multiple systems and platforms that may not be compliant or properly represent your brand. Proper use of technology, eliminating distractions and removing tasks that can be performed by the hub will add velocity to a solid business plan that can be leveraged to maximize growth. The Hub & Spoke model is not something a company can dabble in - it requires commitment and oversight. But adopting it and systemizing your process to support sales in these ways will make your business model repeatable and scalable. Consider how many additional loans your organization will need to close to cover the cost of the hub you need. If you explore the increased production potential at different percentages that systemization can provide, you’ll find that even a conservative estimate will likely demonstrate return on investment that makes the Hub & Spoke model hard to resist.
At Total Expert, we have the honor of interacting with top mortgage companies nationwide on a regular basis. We constantly study the performance of top companies, MLOs and teams, and the best of the best are combining well-trained support staff, technology and cutting-edge marketing materials to experience game-changing results. We're developing training for our customers to build, improve and maintain the Hub & Spoke model as well as navigate resistance to change. Effectively illustrating the benefits and potential is key to getting the participation that creates the momentum necessary for increased production, profit and quality of life of your producers, staff and company as a whole.