April 1 is just around the corner and although there's a lot of industry talk, there's been little action. Speaking to clients, attending workshops, and following online sessions, most bankers fall into one of a few categories.
1. You have done some research but are still not yet well-versed in the finer details and restrictions of the bill. Some know they're in this group; unfortunately there are many who believe they have a much stronger understanding than they actually do.
2. You have a good understanding of the bill and are either looking for loopholes/work arounds, simply hoping the 4/1 date is pushed back, or hoping the GOP repeals it completely.
3. You have a good understanding of the bill but are struggling to figure out how to maintain both margins AND talented loan officers/managers.
I've yet to speak with or here of any firm who is confident they have a strong action plan and are ready for April 1. If they do, they're certainly keeping their plans a well kept secret. Some good ideas are floating around and there has certainly been increased attention given to the subject over the last month or so but many in the business are looking to each other for guidance.
No lender wants to be the first to make an announcement; nobody wants to be the first domino to fall. Bankers, especially those in competitive local markets or with numerous branches are afraid they're "missing something" - so they're anxiously waiting. Waiting for other ideas or for other firms to give them a little confidence their thoughts are in-line with the market. I have a feeling once one or two lenders make their announcement, the rest of their local market will quickly follow suit, just like a set of domino's.
Some additional thoughts...
-Have you appointed a manager or task-force to formulate your gameplan? Whether it includes employees or outside counsel, every business model is different and will require a different approach. I'm not even employed by a lender but I spent my New Years weekend thinking of how this bill changes not only rate sheets and compensation, but also margins, splits, overall revenue for the firm, policies, payroll cycles, employee reviews, reporting and oversight. It's a handful!
- Make sure you consult with a law firm or attorney who is well-versed in this matter. Going to a seminar probably isn't enough; if you think it is, give me a call.