Growing Pains: Confessions Of A Mortgage Broker

It's not enough to get things done they must be done right. - Author Twining Hadley

As an business owner, investor and finance professional when I do something I really commit to it. I would love to say that through my skill, education, experience and level of commitment I consistently deliver the best client experience possible but I am going to tell you something you probably won't hear from any other finance professional; sometimes I get it wrong.

I like to think of myself as a great Financial Planner, Mortgage Broker and Business Owner. I believe if you are going to do something you might as well do it right but Rome was not built in a day so I would like to share with you a client experience that didn't go exactly to plan.

A long term client of mine was ready to purchase their dream home and was in a perfect position for the services of a mortgage broker. Similar to many mortgage broking clients they weren't unhappy with their existing lender but could have easily just walked into a branch for a new home loan. However we had an existing relationship and I was able to show the value of my advice. For my client the value was convenience and trust that someone they knew was able to handle one of the largest and most important transactions of their lives.

To set the scenario my business was in a growth stage and we had more clients than previously, an increase in new advice and to me things were looking very positive, but that was where the growing pains began.

After the loan settled and my clients moved into their new home I got an e-mail. This was the first time I had ever received negative professional feedback saying convenience and trust was lost throughout the process. They felt the process was too slow with too many obstacles for the loan approval, too much of their own efforts were needed to get approval and they didn't feel like a valued client of mine. They questioned if they were better off taking over management of their finances moving forwards.

As a business owner I found it difficult to separate emotion from my business as I was personally responsible and I felt it in my chest. The question became, what was I prepared to do about it.

I reflected and replied to the e-mail firstly apologising for letting them down. There was no point defending my actions and there was no point providing an explanation unless I was prepared to commit, take action and hold myself accountable for making sure it wouldn't happen again. So that is exactly what I did.

I provided a five step process I would take to rectify the dissatisfaction making sure they and my future clients would consistently have a better client experience. They included;

1. Hiring administrative support to assist with growing work loads so that I was able to spend more time facing clients and supporting them with the purchase of their dream home.
2. Allocating time towards monthly mentoring from a career mortgage broker and using my network of professionals to ensure my mortgage broking skills were relevant and up to date.
3. Providing all their latest policy information so they could self-manage their finances moving forwards.
4. Investing in money management software which would assist the client in meeting their debt and cash flow goals
5. Refunding the commission received as they were unhappy with services provided.

To my relief the clients returned my e-mail commending me on how professionally I had addressed their feedback, acknowledged their concerns and taken action to continue a long valued relationship. This was appreciated even more so as I provided them with updates as each step had been fully implemented.

These clients still come to me for Financial Planning and Mortgage Broking advice. I can say that while I am dissatisfied that the situation existed I am pleased with how the this event shaped the business and helped strengthen client relationships.

What you need to know

Constancy Wealth Management Pty Ltd ABN 51 168 427 361 trading as Constancy Wealth is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 Australian Financial Services Licence 232706 and Australian Credit Licence 232706.

If you acquire an AMP product or service, AMP companies and/or their representatives will receive fees and other benefits, which will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments. Ask us for more details.

This post contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.