More loan originators are seeing the value of establishing strategic partnerships as a way to expand their overall business. It is to your advantage to develop reciprocal relationships with non-traditional partners, such as private bankers, attorneys, CPAs, and financial planners – so that you share loyal customers and long-term benefits. People tend to follow the advice that comes to them from their CPA, financial planner, or attorney. The key is to develop partnerships with people you find have similar professional and moral standards, and work to establish a mutually beneficial relationship with them.

A one-word answer for why successful loan officers chose to place emphasis on developing strategic partnerships - "Diversification." In this industry, we see refinance cycles come and go every couple of years. For this reason, you must realize that business partnerships are essential for leveling out the down-times. These referral relationships allow you to have an infrastructure to fall back on.

Private Banker
If you are looking to establish a clientele that is less susceptible to economic flux, it is a good idea to research private banking entities within your area. As bankers to higher net worth individuals, their typical customer is not only financially stable, but also frequently looking to purchase, upgrade, or refinance. Many banks don't often provide home mortgages or can't offer a competitive rate, and, in the best interest of their client, they will refer them to an alternative lender or loan originator. Private bankers have an exceptionally high service level for their clients and they typically cannot provide the best type of home loan, so they need someone they trust to whom they can refer their customer – and this is where you come in. The key is to be able to offer a competitive and quality loan so that the referral reflects well, not only on you, but also on the bank – an obvious incentive to continue to send clients in your direction.


Attorney
As an originator who focuses on working with homebuyers who have filed bankruptcy, you automatically had a connection to the attorneys who were representing these clients. Initially, you have established contact by referencing customer files, and calling the attorneys used. You can simply call and introduce yourself and mention that you have a mutual client. You can then try to arrange an appointment, at which time you can show them your portfolio, and a detailed report or information page about the products you have that would be of interest to their clients. Based on a "credential exchange," each party is able to make a judgment on their compatibility as referral partners. You’re going to them with business, simply based on a large percentage of your clientele. You have to be able to show them what the benefit is, how it is you are going to help them.

Financial Planner
While the financial planner may seem a more evident alliance to cultivate, the potential can easily be overlooked. These are the type of relationships you can develop in mass and is consistent business if you really work at it. They are not always easy to develop, but if you work to maintain them, they flourish. By approaching financial planners on an individual and corporate basis and present yourself as a prospective no-frills sort of business partner. After that initial partnership begins to flourish, you will become a strategic partner. View these relationships as a professional extension, and do not approach it as a mere solicitation for business.

No matter whom you chose to alliance yourself with, you must deliver beyond their expectations. It is absolutely elementary in a referral-based relationship to consistently demonstrate excellence –especially if your goal is to maintain strength in your purchase and refinance pipeline. Such efforts solidify the working partnership, and establish confidence in clients in the strength of your alliance.

Obviously, there are numerous avenues to travel when seeking alliances. One key is to customize your plan to develop strategic partners, and even allow room for a little bit of creativity. Loan officers do not tend to look outside of the box. Whether you expand your horizons and reach out in new ways to develop alliances, or you focus on furthering the relationships that already exist in your professional realm, strategic partnerships can be an essential source of business. Consider your sphere of influence and ask yourself ‘Who do I need to be dealing with?’ There are so many people who don't tap their own resources. Create it so that you are someone they want to know.

Source: Richard Larimer, CEO Champfund Mortgage. Rich can be reached at rlarimer@eleadcenter.com

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