Moneyball Mortgage Brokering

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Have you seen this movie yet? I watched it on the weekend and really enjoyed it. I am not a huge baseball fan but the parallels in the movie with what Brad Pitt did with his ball team and our business was quite interesting.

The central premise of Moneyball is that the collected wisdom of baseball insiders (including players, managers, coaches, scouts, and the front office) over the past century is subjective and often flawed. Statistics such as stolen bases, runs batted in, and batting average, typically used to gauge players, are relics of a 19th century view of the game and the statistics that were available at the time. The movie argues that the Oakland A’s’ front office took advantage of more empirical gauges of player performance to field a team that could compete successfully against richer competitors in Major League Baseball.

Brad Pitt plays the GM who tries to find ways to field a competitive team on a limited budget. In one of the scenes where he is meeting with his scouts and coaches trying to find a way to replace big dollar players that they have lost due to budget constraints he talks about identifying the problem. He talks about the fact that they can’t afford to pay anyone to ‘replace’ the lost players so it makes no sense to be looking for replacement players. Instead he insists that they have to start looking at the problem differently. “It’s time to change the game” he says.

In our business it is very similar. We compete against these mammoth organizations called the Banks. We do not have the same resources as they do.  We need to compete differently. We need to change our game. Forget about competing on rate. BMO currently has a 2.99% 5 year. We can’t compete on rate. We need to talk about strategies. How about a 4 year fixed with full privileges at 2.99%? How about the fact that the BMO product is fully closed except on a bonafide sale? We had an agent last year that ran into that situation and it ended up costing the client substantially.

In the movie my kids favourite part is when they are scouting this player who has never made it past first base on a hit.  He is scared to round the base and make a run for 2nd. In the scene they show a video clip where he is determined to overcome his fears and round first to run to second. As he rounds first his fears overcome him and he trips and falls then scrambles back to the safety of first base only to have the other players help him up and point out to him that he hit a home run!

Are we so focused on our own fears that we can’t see the home run waiting for us? Do you know how many times have I heard an agent complain about the big banks and losing customers, convincing themselves they can’t compete? You can compete. You just need to shift your mindset on how you compete. It’s time to change the game folks. It’s time to change the game.

 

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