Mortgage pro on the steps needed to flourish
For new mortgage brokers and loan officers breaking into the industry, recent years have been an eventful period in which to take their first steps.
The frenzy of the COVID-19 housing boom gave way to a protracted market cooldown as interest rates began to surge – but whether an established pro or a newcomer to the sector, there are clear steps mortgage professionals can take to eke out business in the current market, according to a two-year industry figure.
For David Kakish (pictured top), of Anchor Home Loans, locking in a rate in the fives has been a rarity during the days of rapidly rising mortgage rates and borrowing costs. That’s meant “tough sledding” on the origination front since 2022, but a clear focus on simplicity and scalability has helped weather the storm.
Kakish’s top advice for brokers: “Number one, don’t chase commissions,” he told Mortgage Professional America. “Build systems. Everyone wants more production, but if you chase production you won’t get it and, even if you do, it’s a seedless watermelon. Yeah, you ate. But where does it go from there?
“I think most brokers will waste the first year trying to hustle to get every deal, talk to every realtor, and they’ll end up burning themselves out. Instead, they should be focusing on creating an excellent, responsible process that gets results consistently.”
That’s the best way to build a strong reputation in the industry, Kakish argued. Top of mind for his team is taking the approach of farmers rather than hunters – planting seeds with every deal, rather than moving in ruthlessly for the kill. “It’s just a clean-cut process,” he said.
“Realtors will tell other realtors about you, and you start snowballing from there. [Too many brokers] are trying to get business to work on a process, but that’s the first thing. Outwork everyone, but do it in a smart way.”
To boost their market share in the US, mortgage brokers should focus on community strength, branding, and client education. Hunter Bolling of Grow Mortgage emphasizes the value of staying positive and supporting each other.
— Mortgage Professional America Magazine (@MPAMagazineUS) September 25, 2024
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Social media an essential tool for brokers in growing business
It goes without saying that a strong presence and visibility on social media can also go a long way. As borrowers increasingly gravitate online for their mortgage experience, a solid digital reach can help snag business and place brokers front and center in the eyes of potential clients.
That begins, according to Kakish, with defining a target client as specifically as possible. “Once you know who that avatar is – what are their life circumstances? What are their concerns financially? How many kids do they have? What questions are they having about the homebuying process or financing?
“Put yourself in the mindset of your avatar and whatever questions that avatar has, that’s your content, your social media. Because what you put out, you will get back.”
Another important factor to consider: social media isn’t necessarily a strong lead generation tool. A broker might get two million views on a post, Kakish points out – but a significant portion of that might come from abroad. “Even if it’s domestic views, I don’t want my DMs blowing up with people in states I’m not licensed in, asking all sorts of loan questions,” he said.
Establishing a strong regional reputation is key – especially with borrowers typically keeping, at most, two people in mind when it comes to needing help or advice in a specific category. “When they think lending, I want them to think me – because every time they get on social, they see something,” Kakish said.
How is the market shaping up?
Those approaches will help brokers and LOs boost their business in a down market – and prospects for the industry looking ahead are bright, Kakish said, with mortgage rates on the way down and borrowers increasingly willing to step off the sidelines.
Rates dipped below the 7% mark during the summer, with a cut by the Federal Reserve last week also spurring hopes of a resurgence in homebuying activity.
What’s more, a growing segment of the borrowing populace appears to be having its eyes opened to the merits of using a broker. “Rates are going to make it even easier. I’m super optimistic,” Kakish said. “The broker channel is growing because people are understanding the differences – so I’m optimistic for that, too.”
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