Podcast Summary: Realtors vs. Financial Advisors Mortgage Marketing Radio | Release Date: January 28, 2025

Introduction

In the January 28, 2025 episode of Mortgage Marketing Radio, host Geoff Zimpfer welcomes Todd Ballinger for his second appearance on the show. The conversation centers around leveraging Realtors and financial advisors as referral partners to navigate the current transaction recession impacting the mortgage and real estate industries. Todd, a seasoned mortgage professional and founder of Borrowsmart University and the Certified Liability Advisor (CLA) program, shares his insights on expanding referral networks beyond traditional Realtor partnerships.

Guest Background

[03:40] Todd Ballinger: “I'm kind of a performance coach meets financial literacy financial advisor person. Kind of most famous for creating the first mortgage industry designation back in 1997, which was the certified mortgage planner. And then we added some other designations that the one our main one CLA.”

Todd Ballinger brings decades of experience in the mortgage industry, having co-founded ten companies. He is renowned for integrating financial literacy into the lending process and aims to train a thousand loan officers as Certified Liability Advisors before retiring.

Understanding Certified Liability Advisor (CLA)

[05:04] Todd Ballinger: “...the CLA, it's like understanding that not only is there a different game to play, but you could actively be impactful in a totally different way with a client.”

Todd explains that the CLA designation focuses on managing the liabilities side of a client's balance sheet, contrasting with financial advisors who manage assets. This approach allows mortgage professionals to address clients’ debts, such as credit card debt and home equity lines, thereby freeing up cash flow and creating new opportunities for wealth generation.

Current Market Challenges: Transaction Recession

[00:30] Jeff: “We are in a transaction recession. Overall transaction volume is down.”

The episode delves into the challenges posed by the current market downturn, characterized by reduced transaction volumes due to factors like inventory constraints, rising interest rates, and tax policies affecting home sales.

Realtors vs. Financial Advisors as Referral Partners

[12:26] Todd Ballinger: “Realtors primary economic incentive is to close real estate transactions... if every client walked into their office to buy a house, paid cash, nothing, you could be completely disintermediated.”

Todd highlights that while Realtors are essential for closing transactions, their focus is limited to real estate activities. In contrast, financial advisors handle a broader range of financial needs, providing mortgage professionals with access to a larger and more diverse client base.

[17:38] Todd Ballinger: “You said realtors don't make markets. So what I wrote down is the loan officer needs to make their own markets.”

Todd emphasizes the necessity for loan officers to diversify their referral sources by incorporating financial advisors, insurance agents, and CPAs. This diversification helps mitigate the volatility of relying solely on Realtors, especially during economic downturns.

Strategies for Engaging Financial Advisors

Building Relationships

[25:05] Todd Ballinger: “Seek to understand before you seek to be understood.”

Todd advises loan officers to approach financial advisors with the intent to understand their needs and how they can mutually benefit each other’s businesses. Building authentic relationships based on mutual value is key to successful partnerships.

Warm Calling Technique

[26:11] Todd Ballinger: “If I talk to 100 advisors this year... you should have 32 referrals coming in on an ongoing basis from 100 advisors compared to the 23 sending me eight.”

Todd introduces the Financial Advisor Success Training (FAST) course, which includes practical tactics like starting with warm calls. He suggests calling existing clients to ask for referrals to trusted financial advisors, using a rating system to identify high-quality partners.

Script Example

[32:01] Todd Ballinger: “If you just call every client, put them in a sorting hat of I have someone or I don't, and then ask on a scale of 1 to 10, how do you rate them?”

Todd provides a sample script where loan officers can request referrals to financial advisors, leveraging client satisfaction to introduce high-rated advisors. This method increases the likelihood of productive meetings and ongoing referrals.

Overcoming Resistance

[33:19] Todd Ballinger: “We actually teach. So we call it the Wealth Team... it’s part of my script.”

To address potential resistance from financial advisors, Todd recommends positioning the partnership as a way to enhance both parties’ offerings. By clearly outlining the mutual benefits and demonstrating a genuine interest in collaboration, loan officers can effectively engage advisors despite initial skepticism.

Benefits of Diversified Referral Networks

[39:16] Todd Ballinger: “With accounting professionals, it's at least annually. With financial professionals, it's typically quarterly. Insurance agents, it's annually.”

By incorporating a variety of referral sources, loan officers can ensure a steady stream of opportunities that are not solely dependent on real estate transactions. This diversification leads to a more resilient and stable business model.

Building and Expanding Networks

[35:42] Todd Ballinger: “Conversations lead to contracts. You’re just simply having more conversations.”

Todd underlines the importance of continuous networking and having multiple touchpoints with potential referral partners. Expanding one’s network exponentially increases the chances of securing valuable referrals.

Providing Value Through Education

[40:14] Todd Ballinger: “We have newsletters, we send out every Friday. We have materials. I have a book that I'm happy to share that I wrote a lot of content, all free. And then we have a community where you can join for free and just learn from us.”

Todd promotes Borrowsmart University and his community programs, offering resources and educational content to help mortgage professionals enhance their skills and knowledge in managing liabilities and building referral networks.

Conclusion

[42:00] Todd Ballinger: “Take the lessons from today's episode on how to approach financial advisors. Add them as a pillar to your business. Make the call to your past clients like today, right now and ask the question.”

The episode concludes with actionable advice for loan officers to start incorporating financial advisors into their referral strategies immediately. By following Todd’s strategies—such as warm calling, using rating systems, and expanding their network—mortgage professionals can build a more robust and diversified business capable of weathering market fluctuations.

Notable Quotes

• Todd Ballinger [05:04]: “I'm kind of a performance coach meets financial literacy financial advisor person.”
• Jeff [00:30]: “We are in a transaction recession. Overall transaction volume is down.”
• Todd Ballinger [17:38]: “The loan officer needs to make their own markets.”
• Todd Ballinger [25:05]: “Seek to understand before you seek to be understood.”
• Todd Ballinger [35:42]: “Conversations lead to contracts.”

Resources Mentioned

• Borrowsmart University: Founder Todd Ballinger’s educational platform.
• Certified Liability Advisor (CLA) Program: A designation focused on managing client liabilities.
• Financial Advisor Success Training (FAST) Course: Training for loan officers to engage financial advisors effectively.

Final Thoughts

This episode of Mortgage Marketing Radio provides mortgage professionals with innovative strategies to diversify their referral networks beyond Realtors by incorporating financial advisors and other financial professionals. Todd Ballinger’s expertise offers valuable insights into building resilient businesses through strategic partnerships and financial literacy.

For more information and to access Todd’s resources, listeners are encouraged to check the show notes for relevant links.