What’s the deal with loan officer coaching?

Often I am asked questions like, “When should I hire a coach?” or “Is coaching a requirement to become a top producer?” Equally as often I hear originators make statements such as “I can’t afford a coach”. All three questions are great questions and each comes with its own unique yet boilerplate answer. So before I just jump into answer those questions let’s first spend some time peeling back the layers of professional business coaching by laying some groundwork. Now before we get started, you should know I have been professionally coached, and I founded a coaching company of my own in 2024. Therefore the below is the world according to me prefaced with “in my humble experience”.

Here are my five biggest takeaways about professional coaching.

You are the product:

Being a 100% commission mortgage originator is one of the few businesses one can launch into with very little out of pocket expenses and no real experience. For around $500 a person can take the 20-hour course, study for the exam, pass the NMLS and land their first career opportunity as a full-time originator. Thinking that this small up-front investment is how the game is played is the biggest mistake a new originator can make. And I witness tens of thousands making it annually.

That is not how business works. You cannot start your own food truck with just a $500 investment and no experience, nor could you launch a career in skincare, education or nursing with $500 and no experience. Originators need to invest in themselves as they are the product. They need to be taught how to generate leads, who to target, effective networking strategies, how to structure their day, which activities to track and what to say to perspective clients and customers. Mortgage sales professionals also need to budget for the costs associated with marketing and networking oneself. A great mentor or sales manager early on in one’s career is crucial for success. So is budget so that the originator can invest in their product and their marketing. If a solid mentor or sales manager is not available nor provided then a great coach or coaching program is recommended.

None of us have achieved success alone:

Study those who have “made it” and you’ll find a few things in common. In no particular order those things are:

• Above average intelligence
• Drive
• An entrepreneurial spirit
• Self-sufficiency
• Natural people skills  
• Thirst for knowledge

The knowledge they crave is held in the books they read, shared at the conferences they attend and is taught to them by their mentors and coaches. It is rare to come across a top producer who is not or has not been professionally coached. The fool thinks they know all the answers and the coward is afraid to ask for help. Top producers are neither fools nor cowards.

Shorten the learning curve:

A great mentor, sales manager or coach is there to provide originators with direction and shorten the learning curve. Few have an infinite runway. Meaning, if success takes too long to materialize, an originator will run out of time, energy, money or all three. Having a more tenured professional guiding a mortgage sales professional will allow them to learn from their mistakes and follow in their successes. What took them decades to figure out the hard way can be taught to an LO in weeks and mastered by the same LO in a third of the time it took the mentor, sales manager or coach.  

Look for value:

Coaching does not have to break the bank. Look for value but remember there is something to be said about “getting what you pay for” just like there is much to considered when factoring in the “law of diminishing returns”. For some, their manager is all they need assuming they found one of the “good ones”. For others, they can find all they need for free on YouTube. There will be many who attend a couple conferences and embrace all the complimentary masterclasses taught via webinar. But a handful actually grab the bull by the horns and go all-in.

Consider the source:

When choosing a coach, an originator should themselves why this person or company is right for them. Have they been in their shoes? Is the coach battletested? Have they had success doing what the LO is being asked to do? Who have they coached and where are those people now?

So, when should someone hire a coach? The minute they are ready. There is no better or best time in one’s career. If the originator is full-time, professional and in growth mode then chances are that LO will benefit from coaching. Is coaching a requirement to become a Top Producer? Technically the answer is “no”. However, hang out with enough top producers and you will pick up on a common theme. And to those that say they cannot afford a coach I typically respond with, “How can you not afford to invest in your product?”

Dustin Owen is the SVP of Growth and Division Sales Leader with Lower and the creator and host of “The Loan Officer Podcast”.