A mortgage company pairs borrowers with mortgages to fund their housing goals. A business plan for that same mortgage company not only outlines the goals for that company, but has a set plan for how to reach those goals. By outlining the steps in the process, a mortgage production business plan sets standards and guidelines for the company, as well as creates a work environment positioned for success in the mortgage market.
Create a basic set of goals and standards for your mortgage production company. Set tangible realistic goals based upon previous performance and the area in which the business is located. Consider the population density, the number of new residents moving into the area, the type of mortgage loans you sell and the amount of foreclosures in the area.
Follow the business plan basics, as outlined by the Small Business Association. Describe your mortgage production business in great detail, outline current and future financing, document current financial standing and gather supporting documentation such as revenue projections and a company budget.
Incorporate your goals as listed in Step 1 into your basic outline of a business plan. Determine actionable steps to obtain these goals. List ways in which your sales force will increase its mortgage production, through such avenues as relationship building, contact with previous clients and advertising.
Ask staff to review your business plan to determine if the overall material is both helpful and relevant to the daily workings of your mortgage production firm. Determine if the goals, and the methods to reach them, are both realistic and attainable.
Ask mortgage production officers to help with goal setting. Determine the most popular mortgage products and population centers for your specific mortgage firm and insert that information into your report. For example, if a majority of your area’s population are military families, then most of your mortgage loans will be underwritten by the Veteran’s Administration. Focus your marketing efforts and training on the VA loan system to capitalize on this market.
Business plans are only useful if the company implements the strategies outlined in their pages. Be sure to review the plan on a quarterly basis to see if updating or realignment of goals needs to occur to make the plan worthwhile to your company as a whole.
Small Business Administration: Write a Business Plan [http://www.sba.gov/smallbusinessplanner/plan/writeabusinessplan/SERV_WRRITINGBUSPLAN.html]
All Business: How to Build a Mortgage Banking Business [http://www.allbusiness.com/finance/410200-1.html]