If I’m in the Sea of Anonymity, where’s my Life Preserver?
The Sea of Anonymity
Today I carried my car in for a 10-minute oil change. While I was waiting in my car, the attendant asked me if I would like to apply for a mortgage. I thought how convenient, while sitting in my car waiting on Bubba to drain my oil pan and praying that he does not strip the plug, I can apply for a mortgage. I told him, “Sure I want the 10W30 and a 30-year-fixed.” The attendant offered rates as good as what I saw published by the local banks in last Sunday’s paper. I was just amazed. The attendant even told me that they had a special promotion going on now and since I was applying for a mortgage the oil change would be free. What a deal!
However outlandish this sounds, in so many ways it describes what many clients see when they get ready to shop for a mortgage loan. Considering there are currently over 3800 licensed mortgage loan originators registered with the Mississippi Department of Banking and Consumer Finance, it is easy to see how a consumer would struggle picking you out of that kind of a crowd. The process of mortgage lending in many ways has become so non-descript to the common consumer that they are beginning to pick their mortgage lender in the same manner that many of us pick our 10-minute oil change. Well, in real estate finance we know that not all companies operate the same and not all mortgage originators have the same level of competency, but in the eyes of the consumer we all have the same title (just like the “10-minute oil change shops), therefore we are all the same. Right?
How long can you dog paddle?
Today, mortgage professionals have access to life preservers to help lift them above the ever-growing ‘Sea of Anonymity’ in real estate finance. These life saving devices come in the form of professional certifications. Certifications are critical to the success of our industry and the growth of our future industry leadership. Our state and national associations seek to raise the standards and improve the practices of the mortgage industry through our certification programs. The certification programs promote expertise in our industry and establish benchmarks for those who choose to excel.
As with any form of leadership, not everyone is equipped to take that next step. Those that seek out these designations clearly are persons who can demonstrate their knowledge, understanding, and expertise in mortgage lending. Designees are labeled as industry leaders and at times are called upon as industry experts. Clearly, those with designations stand out in the eyes of referral sources, clients, and hiring brokers.
One size does not fit all.
Currently there are three designations that you can seek. The Mississippi Association of Mortgage Brokers (MAMB) offers the Mississippi Residential Mortgage Specialist (MRMS). The National Association of Mortgage Brokers (NAMB) offers two different certification programs: the Certified Residential Mortgage Specialist (CRMS) and the Certified Mortgage Consultant (CMC).
MAMB and NAMB both strongly believe in promoting the highest degree of professionalism for its members and providing ethical and professional standards against which mortgage professionals can be measured. To that end, MAMB and NAMB have developed these certification programs.
Mississippi Residential Mortgage Specialist (MRMS) - The MRMS program is designed to recognize industry professionals who can demonstrate at least one year of experience, adhere to a higher standard of professional development thru additional education and MAMB committee membership, attend the Residential Mortgage Lending School (RML), and take and pass the RML examination.
Certified Residential Mortgage Specialist (CRMS) - As stated on the NAMB website, “The CRMS credential demonstrates that the designee has met the standards of required knowledge, skills, and abilities established by the NAMB Certification Committee.” The CRMS designation requires at least two years of work experience in the mortgage industry and the documentation of at least 50 qualifying points through work experience, formal academic education, other professional designations, mortgage-related educational activities, and leadership and participation in the industry to become eligible. Once eligible, you must take and pass the CRMS examination within one year.
Certified Mortgage Consultant (CMC) - As stated on the NAMB website, “The CMC credential demonstrates that the designee has met the standards of required knowledge, skills, and abilities established by the NAMB Certification Committee.” The CMC designation requires at least five years of work experience in the mortgage industry and the documentation of at least 100 qualifying points through work experience, formal academic education, other professional designations, mortgage-related educational activities, and leadership and participation in the industry to become eligible. Once eligible, you must take and pass the CMC examination within one year.
Those with a Life Preserver tend not to drown!
Ask any mortgage broker or branch manager what their most difficult task is and you will likely hear, “Finding good loan officers.” Behind any successful mortgage company you will find a great group of loan officers. I recently read an article on attracting the “Best and the Brightest”. The author stressed the importance of ‘Quality over Quantity’. As a broker or manager it is critical to know that the candidates that you interview are competent in what they do and are true mortgage professionals when dealing with clients. Candidates that hold a professional designation are more likely to get an interview and have a better chance to get the offer.
Shedding the Life Preserver for a bar stool at Cheers!
As more and more people enter this industry and call on the same referral sources, your piece of the pie has the potential to shrink. How are you, a simple mortgage originator, ever going to separate yourself from the other guys on the same street? From the endless list of online competitors with slick ads on every popular website? From the huge national companies that spend more money on television and radio advertising than your entire office generates in annual loan volume?
Industry Leaders separate themselves through professional designations.
When given the opportunity to choose between you and three other competitors, why should the client choose you? Greg Frost likes to ask, “What is your unique selling proposition?” Your proven experience in the industry, as demonstrated through these certifications, will offer you a unique selling proposition. You might not have the lowest fee for a credit report, but that is usually not the deciding factor. When given a choice to use a person who holds a professional designation and demonstrates that knowledge throughout the application process, the choice will be clear.
Each different certification requires a different level of experience. As you grow as a mortgage professional, these certifications should be used as milestones. Multiple designations further elevate your status to an elite group of mortgage professionals. Those that have excelled to this level have moved out of the ‘Sea of Anonymity’ to the set of Cheers. You are no longer anonymous when everyone knows your name!
Sink or Swim…
As of January 2006 here are a few facts that you need to know about mortgage originators in the State of Mississippi:
There are currently 3817 Licensed Mortgage Originators with the MS Department of Banking and Consumer Finance, but only 846 are actually domiciled in the State of Mississippi.
There are currently only 25 mortgage professionals who hold the MRMS designation. That is only 2.96% of the 846 domiciled mortgage originators.
Nationwide there are only 252 mortgage professionals who hold the CRMS designation. The state of Mississippi has 3 CRMS professionals.
Nationwide there are only 108 mortgage professionals who hold the CMC designation. The state of Mississippi has NO CMC professionals.
The most elite group nationwide holds both national designations. There are only 41 mortgage professionals who hold both the CMC and the CRMS designation, nationwide!
In a recent national survey conducted by Thomson Prometric, it concluded that Mortgage Professionals who hold the CRMS designation were compensated 20.1% more income on average than their non-certified peers.
The Thomson Prometric survey also showed that Mortgage Professionals who hold the CMC designation were compensated 56.4% more income on average than their non-certified peers.
To find the Life Preserver that is right for you, please visit www.msamb.org or www.namb.org. For more information regarding a 10-Minute Drive-Thru Oil Change and Mortgage Lending Franchise, contact me at kmcneal@gumtreemortgage.com.
Kenneth McNeal is a partner with Gum Tree Mortgage in Tupelo, MS and currently is one of five mortgage professionals in Mississippi to hold the CRMS designation and one of the twenty-five mortgage professionals to hold the MRMS designation.
