Rick Arvielo is CEO of New American Funding, a family-owned, independent, national mortgage lender based in
Orange County, California. Arvielo was named Entrepreneur
of the Year for Orange County in 2016 by Ernst and Young
and given the Excellence in Entrepreneurship award by
the Orange County Business Journal. He sits on the board of
directors of the Mortgage Bankers Association (MBA) and is
the chairman of MORPAC, MBA’s political action committee.
Reach Arvielo at email@example.com.
The Future Belongs to You
Change is required to stay competitive in a market dominated by millennials
By Rick Arvielo
Technology is changing the world we live in. The mortgage process has rapidly evolved, becoming more modernized with the times, and with every change comes a new way of
doing business for both mortgage originators and real
As we step into the future, many want to know:
Will this evolution in technology make the role of the
originator and agent a concept of the past? Although
technology won’t likely replace them, it will require
changes to remain relevant and competitive in dealing
with the modern-day borrower.
Reach millennial buyers
There is a new wave of homebuyers already starting
to emerge. They are the millennial generation. This
massive age group is not only the largest generation
today, making up about one-fourth of the nation’s
population, they are fast becoming the most significant consumer demographic in the U.S. They are the
future of the housing industry.
As this younger generation enters their homebuying years, first-time purchases will become the norm.
Because millennials are just beginning their financial
journey, most won’t want to go through the homebuying process without expert input. They will need
a trusted adviser.
Buying a home is one of the biggest financial commitments people make, and most buyers still want a
professional alongside. Millennials are no different. In
fact, 83 percent of millennials seek financial guidance
when it comes to major life events.
Even though they may be tech-savvy, millennials
aren’t necessarily ready for a completely digital homebuying experience. And, in general, technology does
not provide the same confidence a buyer gains from
establishing trust with a professional and having that
adviser’s perspective to guide them through major
One key to gaining this new type of buyer’s business,
however, is understanding how to serve them. Most
millennials want a different consumer experience than
other generations. They look for a fast, efficient and
customer-centric purchase process. Therefore, originators and agents who want to succeed with millennials
must embrace a different approach to business.
Diversify your team
Like any other generation, millennials want to engage
with professionals they can relate to and who connect
with them. Therefore, part of future success depends
on mentoring the incoming generation. The mortgage workforce is aging while borrowers are getting
One of the best ways to attract millennial consumers
is by employing other millennials. You need mirrors in
any market — people who reflect the demographic
you’re seeking to serve — because customers like
working with service providers who are like them.
Millennials on your team become a resource to your
business. Not only do they have a mindset similar to
prospective millennial borrowers, which can help your
team better understand how to reach millennials, but
they can help build trust with that market segment.
Many millennials won’t respond to traditional marketing tactics, but they will do business with a professional they trust who can provide valuable information
relevant to their needs throughout the homebuying
Although most millennials aren’t looking for a totally
automated homebuying experience, many are looking
for the convenience provided by modern technology.
Millennials grew up in the digital age and are used
to on-demand information; therefore, anyone looking
to serve them should be armed with instant access
More than any other generation, millennials use the
internet and mobile devices when connecting with
businesses. That means having a user-friendly, mobile
website and easy-to-use apps is a necessity for mortgage professionals doing business in the 21st century.
Originators who can provide fast updates, create
transparency throughout the lending process and
efficiently close loans will have a competitive advantage when serving millennials. Today’s mortgage originators should be able to check a loan’s status, send a
prequalification letter and pull credit — all from their
Mobile technology provides the ability to get everyday tasks done anytime, anywhere, making originators
just as effective in the field as they are in the office. If you
don’t have this capability, you won’t be able to competitively market your services to on-the-go buyers.
Build an online reputation
This incoming era of homebuyers also tends to do
their research first, then do business next. According
to Adweek, 93 percent of millennials turn to consumer
reviews before making a purchase decision and more
than 97 percent of them trust anonymous reviews on
For more articles on
View these articles and more at
“The New Face of the Market,”
“Modern Homebuyers Have Arrived,”
“Moving Millennials Off the Wall,”
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