By David Lykken
Special to MPA
Let's pretend we're living in a hunter-gatherer society. We've just come back from a successful hunt. We've stockpiled enough meat to last us several days. We hold a feast in our village. Everyone is well-fed and sleeps soundly that night, without a care in the world. The next morning, we get up to go on our hunt. We've still got plenty of meat remaining from the prior day's hunt. How hard are we going to work to catch that game?
Contrast that with how hard we would work in a different scenario. What if we hadn't eaten for days? What if our families were starving and catching some game was a matter of life or death? How hard when we work in that case? My guess is that we'd work quite a bit harder.
Ellie Mae's latest report shows an increase in productivity rate among loan originators to 61% from 58% in July. The combined state of the struggling economy and the intense regulatory environment bring quite a few challenges to the industry. But the upside is this: loan originators work harder to take advantage of the opportunities that they have.
When loan originators work harder, borrowers also benefit. Those who might not otherwise have a chance of getting a loan are given more attention when the LOs' options are limited. So, I just want to encourage all the LOs out there trying to keep your heads above water. Continue to hunt like you're starving, and you'll do just fine.
David Lykken is 40-year industry veteran who consults on virtually all aspects of mortgage banking. David hosts a successful weekly radio program called “Lykken On Lending” (www.LykkenOnLending.com) that is heard each Monday at noon (Central Standard Time) by thousands of mortgage professionals.