Magazine article Mortgage Banking

Subtle Indicators

Magazine article Mortgage Banking

Subtle Indicators

Article excerpt

THE ADAGE IN THE WORLD OF TRAINing is, "When times get tough, first they cut advertising, then they cut training."

Well, our industry doesn't do a lot of advertising, and what advertising we do is mostly local and inexpensive. So trainers in our industry are inclined to say, "When times get tough, first they cut training, then they cut training some more." It would be funnier if it were less true.

I think that the speed with which training budgets and people get axed when our volume drops indicates that top management considers training a luxury rather than a necessity, which is simply not true. Processors have to learn how to process, and escrow insurance specialists have to learn how to pay a hazard invoice. This is unarguable; the only question is, what is the most cost-effective means of imparting these skill sets?

In the long run, it is cheapest and most effective to bite the bullet at the beginning of the employment relationship and ensure that all new employees receive patient, thorough, consistent professional training. Unfortunately, our industry is not well-known for holding a long-term orientation. It is more common for an executive to simply fire the training department and say, "There. We saved $1 million."

And when this happens, to be sure, no catastrophic disasters happen the next day. Loans still come in, get processed and closed, and move into servicing. It takes six to 12 months for the effects of lack of training to become apparent, just as it takes that long for significant benefits to become apparent when a training program is begun. …

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