Both children and adults will often talk about things they're most scared of. Whether it be clowns or monsters, flying or growing old, most people know what they're scared of as this emotion is typically rooted in some kind of perceived danger.
In the business world, and especially in the mortgage banking industry, it's what I don't know that scares me the most. How is this so? It's quite simple actually, I see danger in what I don't know. That is the real scary stuff.
-Do you really know if your core business channels are being run in an efficient manner?
-Do you know where rates will be next month, next quarter, next year?
-Do you know how your sales force will react to whatever pricing and commissions adjustments are put in place starting 1/1/11?
-Do you know how these new pricing policies will affect your margins and overall revenue?
-Do you fully understand your hedging platform?
-Do you have accurate LOS reporting?
I can go on and on here.
If being TRULY honest with themselves, I think most business owners and management would have to answer no to most, if not all of the above questions. Think about how scary this is...and what's even scarier? I don't think these are topics on anyone's radar - most are too focused on originations. How many are in the dark and don't even know it? Some know what they don't know and have concern. I think that those who don't know what they don't know are in the worst position of all.
Scarier than the Boogie Monster if you ask me!
It's tough to look at yourself in the mirror and ask the hard questions, especially when rates are low and volume is up. To be on top you always need to assess yourself and your business, always looking for areas which could use improvement and additional focus. If you truly want to maximize your potential and reduce your risk and exposure - turn the lights on and ask yourself those tough questions.