What one lender thinks brokers can do to survive a slower market
He said the math behind referring a second mortgage elsewhere has flipped from what it used to be, and originators who haven’t caught up to that shift are handing away business they don’t need to lose.
“We used to use second mortgages to develop a referral from a bank. You would send your borrower to the bank or credit union to do the second mortgage,” he said. “In today’s world, if you send your borrower to a bank or credit union, you may not get them back for that first mortgage. So why not stay in front of your borrower today? Help them out with the debt refinance or debt consolidation second.”
Staying in front of clients
It’s always important to build long-term relationships with your clients, but that becomes critical in challenging market conditions.
“You got to stay in front of your clients,” he said. “It’s amazing to see LOs that aren’t using a CRM, or even if they’ve set up a CRM, they don’t take full advantage of it. Borrowers will go online and start shopping for the best possible rate, and the best possible rate isn’t always the best possible loan for every borrower.
“But if the LO is not staying in front of them, there’s just too many avenues for those borrowers to shop. Whether it’s wishing someone a happy birthday or just checking in, if they’re not doing that, their chance of retaining that relationship gets smaller each day.”
