"Out of sight, out of mind": How loan officers can retain clients long after closing
Dale Vermillion (pictured), founder and CEO of Mortgage Champions, is clear on one thing: the balance between technology and human connection is crucial to the success of mortgage professionals. As he explains, CRM tools are essential for categorizing leads, managing referrals, and ensuring timely follow-ups.
"If you don't have a good CRM system that can categorize your leads and your calls and your referrals and then create follow ups," he said, "you're just not going to make it in today's marketplace."
However, Vermillion’s concern isn’t with the technology itself, but how it’s used. He sees a troubling trend in the over-reliance on online applications, where loan officers miss the chance to engage clients in meaningful ways. Too often, he said, loan officers send a borrower a link to fill out an application and then check out of the process.
"I train thousands upon thousands of loan officers every single month," Vermillion pointed out, adding that they often rely on automation in ways that lose them business. "They shoot them a link immediately and want them to complete the information before they'll really give them the time and the energy to complete that transaction. That's a mistake."
In his view, this approach ignores critical moments in the application process—like when borrowers are asked for their birth date or social security number or prompted to upload income documentation or authorize a credit pull—that can create natural drop-off points.
To avoid these pitfalls, Vermillion advocates for what he calls “co-piloting the application.” Loan officers should stay on the phone with borrowers, guiding them through the online application process to answer questions, prevent drop-offs, and protect the relationship.
He warns that without this hands-on approach, loan officers risk losing clients to competitors who are quick to respond to credit report triggers.
"If you're not on that phone with that borrower, they're going to get hammered by your competition. You're going to lose that deal."
In today’s challenging environment, conversion rates are paramount. Vermillion stressed that optimizing conversion strategies requires a “white glove service” approach. High conversion rates, he argued, are the most effective way to combat the rising cost of loans.
"You can cut expenses only so far,” he said. “You can lay off people, but that's not going to help your organization grow. The best way to attack the cost in today's marketplace is to increase your conversion rates."
For Vermillion, the key to improving conversion lies in building strong relationships with borrowers. He advises against leading with price, product, or program—what he calls the "3Ps" that kill deals. Instead, loan officers should start conversations with a value proposition, followed by a credential statement to establish trust. From there, it's about deepening the relationship and offering customized solutions that meet the borrower’s unique needs.
“Don't throw them into process and vacate the relationship,” Vermillion warned. “Maintain the relationship all the way to close.”
Automation in the mortgage industry
As for the role of AI and automation in the mortgage industry, Vermillion is cautious. He acknowledges the power of automated marketing and communications platforms but emphasizes the need for balance.
"You have to be high tech, high touch. That's the key to success." He pointed out that while CRMs and AI can help manage leads and follow-ups, they also create a temptation for loan officers to let the technology do the work for them.
“It’s like anything in life,” Vermillion said. “If you make things easy for us, we’re going to take the path of least resistance.”
This, he argued, is a mistake. While technology can help predict which customers are most likely to convert and maintain contact throughout the loan process, it should never replace human interaction. Vermillion believes that loan officers should be in contact with borrowers weekly during the process and then reach out every quarter after the loan closes to maintain the relationship. "Out of sight, out of mind is very true in the mortgage industry," he said. Automation, in his view, is a tool to enhance customer service, not replace it.
Long-term client retention is another area where Vermillion sees the need for a human touch. He cites what he calls the “9:10 principle”—the idea that the average homeowner will go through nine mortgages in their lifetime and has the potential to refer 10 other people.
“Every 10 customers you get, you’re going to close four more loans on average out of that,” he explained. To capture those future opportunities, loan officers need to keep detailed records during the initial application, including personal notes about the client’s family, goals, and financial situation. This information becomes invaluable in future interactions, allowing the loan officer to tailor their follow-ups and maintain the relationship over time.
Ultimately, Vermillion’s philosophy is that technology should be used to support human connections, not replace them.
“It's combining the human touch, making the phone calls, utilizing visual technologies, virtual technologies... to get connection with your consumers, and also leveraging the AI and CRM tools that you have available,” he said.
