Atlanta Home Loan

Topics: Employment, Mortgage loan, Management Pages: 2 (657 words) Published: March 2, 2014
ATLANTA HOME LOAN
I. Devices that Al used to control his business
Before he went back to school
a. Result control:
- Al paid each telemarketer a combination of an hourly wage plus a performance bonus ($10.00) for each lead produced.
- Al paid the loan officers 40% of the total loan revenue on loans that AHL originated and 60% on loans they originated.
b. Action controls:
- Al bought leads from list brokers, then telemarketers called people on the lists to assess their interest in refinancing, gave Al the potential clients’ names to Al, Al then distributed the names to AHL’s loan officers.

- Al monitored the activities of his loan officers by tracking the number of credit inquiries each requested.
- Al also monitored the loan application/lead ratios and their trends.
c. Personnel/ cultural controls:
- Al hired four (4) telemarketers and eight (8) loan officers to work for his firm. - Al decided that all the employees would work from their homes due to heavy traffic of Atlanta. After he went back to school:

a. Result control:
- Al agreed to pay Joe 100% of the fees earned on loans that Joe closed to end their partnership.
- Al made commission payments to Wilbur at 100% on all loans closed less than a monthly licensing fee of $5,000 or 10% of all revenue, whichever was greater.
b. Action controls:
- Al tracked the employee head count, the number of leads produced, credit inquiries requested, loan application funded, office expenses, and bank activity.
- Al contacted his employees, especially loan officers, 3-4 hours daily.
- Al had all of AHL’s corporate mail forwarded to his California address, and this action helped him when Wilbur signed his checks against uncleared funds and the checks bounced.
- Al gave his four blank, signed checks to Letitia but still keep the authority to sign checks against the main account.
c. Personnel controls:
- Al selected Joe and Wilbur to be his partners.
II. What went wrong?
Things went...
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