Mortgage companies this year will be forced to work harder than ever to stay competitive. The market is tightening, with rising interest rates stemming
refinances and rising prices shrinking the pool of
potential home purchases. That means that you
need to be faster than everyone else to procure and
To do that, you will need to develop a plan. If you
look at it, there are four essential elements to building
a successful mortgage business. You have to have solid
marketing, talent at every spot in your organization, a
will to work hard and competitive pricing.
Originators who address these areas well will profit
this year. Those professionals will excel, overcoming
the obstacles on the journey ahead.
Marketing and mindset
Being better starts with your marketing plan. You need
to know all about the latest in tech and look for a very
strong return on investment to get the most out of
your marketing dollars. These two go hand in hand in
successfully marketing your business.
Knowing the tech trends is a necessary part of your
marketing strategy. While almost everyone uses Twitter,
does advertising there help your demographic? How
many people on Facebook own a home? Is cost per click
for Google Ads lower than Facebook for my keywords?
Being able to see and interpret these numbers is key.
Not only will you decrease your cost per lead, you’ll be
able to make better-informed decisions about where
to spend your marketing dollars.
These data-based decisions also apply to traditional
media. Keeping detailed stats on whether leads come
in through radio, TV, billboards, or signage, etc., is a
great way to maximize the impact of your marketing
dollar. If you can determine the difference between
a lead that comes in from a billboard and a lead that
comes from TV ads, you’re well on your way to maximizing that ad potential.
Building your marketing campaign is important as
well. Anticipating what trends will develop nationally
will help to determine your advertising budget and
expenditures. Spend your money on the upcoming
trend, or you’ll always be playing catch-up.
Knowing the technology of the industry is important as well. You don’t necessarily need an app, but
your website needs to be mobile-friendly. There are
more applications through phones than desktops
these days, and more website traffic.
You have to ensure that a customer on his or her
phone can use your website properly. Your online app
has to send data to your customer-relationship management software and ensure that you never miss out on a
detail of a prospective customer. Your processing department and loan officers need constant access to all of this
information, so they need to be able to work from home
using the same software that they use in the office.
Remember though that not every new technology
will help you. For every new piece of tech you love and
use, there are 27 terribly designed apps or websites
that stop being supported or working at all. Choose
carefully. The right tech helps to cut costs.
Once you have the marketing plan down, you need
to find the talent. Talented mortgage professionals are
not easy to find.
It takes a certain mindset and desire to succeed in
this business. Every job requires a different skill set, from
loan-application takers and loan officers to closing and
post-closing specialists and underwriters, and you need
to be able to determine whether they can handle the job.
Big banks are spending their time right now trying
to buy up all of the talent in the industry. There’s a reason that they would rather pull in existing loan officers
and underwriters than train new ones. They know they
have talent and they want those loans. Your sales team
is everything, because otherwise you’re out of business.
Connections and cost
Having the talent isn’t enough. You also have to be
able to put your nose to the grindstone and be ready
to outwork the competition for every deal.
It’s putting in the time to make sure you hit or exceed deadlines for your customers, and that you
process your loans quickly, and get paperwork from
borrowers as efficiently as possible. It’s staying late to
meet with a borrower or going to meet with them if
they can’t make it to your office.
Don’t be afraid to continue to contact the borrower
after the sale to ask how they like the house or ask them
to write you a review. Use these connections when
rates drop to ask them about a refinance. Keep in touch
and create repeat customers. Prove that your company
is the best place for them to get a mortgage because
they know you.
When you make a borrower feel special, like they
know you and you are in it together, you have developed a relationship that not only leads to them doing
a refinance with you, but can lead to referrals. Every
referral cuts down your marketing costs per person. If
every borrower recommends that one person call you,
you have split your cost per lead in half. That’s incentive enough to take care of your borrowers and make
them lifetime partners.
They’ll also come back if you offer competitive pricing.
A number of local mortgage companies have gone out of
business recently, and a lot of it has to do with their pricing models. While you clearly have to build in enough to
make the loan worth it for you, are your points and fees
pushing you over what a competitor can offer? If you’re
too high, you won’t get the loan, no matter how good
your customer service or online platform are.
Borrowers are getting smarter and better informed
every day. There is so much information available
that they can learn about the mortgage process without you. They can shop around and find a lower rate
without much effort. You need to keep your rates low
enough to keep them from wanting to look.
n n n
If you can conquer these four major challenges, you
can build a mortgage business. Make it a priority to
work on these aspects of your company every day and
you can be successful. n
Ryan Kelley is the founder of The Home Loan Expert, LLC.
In less than a decade, Kelley has gone from selling mortgages door to door to his neighbors to running one of the
fastest-growing mortgage banks in America. Kelley rose
to prominence with hard work and dedication, along with
pioneering new techniques to get mortgages closed faster
than anyone else in the business. With the addition of
Hero.Loan, the rapidly expanding Veterans Affairs loan
product, his company is growing every day. Reach Kelley at
email@example.com or 800-991-6494.
Here’s the Secret to
Building Origination Success
Focus on these four areas to win at the mortgage game in the year ahead
By Ryan Kelley
How to overcome a
challenging origination year
n Align marketing strategy with technology.
n Keep detailed stats on lead generation.
n Place talent in the right spots of an organization.
n Follow up with borrowers after loan closing.
n Develop we’re-in-it-together referral relationships.
n Monitor your pricing and that of your competitors.