Industry veterans dispense their advice
Those in the mortgage industry are painfully aware of the doldrums in which the industry now finds itself. While platitudes may ring hollow in lifting spirits, insights from others might prove a better salve.
Take Eric Hines (pictured left), co-founder of West Capital Lending, for example. An industry veteran who went through the Great Recession, he said preparation in overcoming a down market is key.
“You have to just plan for the ups and downs and expect the unexpected,” he told Mortgage Professional America during a recent interview. “It’s kind of unpredictable. What’s known is it definitely goes through cycles. A lot of loan officers will fall flat on their face the first time they hit a down market, but those who have been around for a while know it’s just part of the game. You need to be able to prepare for the bad market because it’s just a matter of time.”
It shouldn’t be about the profit motive
Tied to Rocket Mortgage, Hines pointed to the company’s corporate values – a series of 20 philosophies dubbed ISMs representing the firm’s core principles – in offering further advice to those enduring the tough market.
“One of my favorite ones is that money and numbers don’t lead, they follow,” he explained. “I don’t think they should be your first priority – money and numbers. I think you should try to focus on other people. If you help enough people get what they want, you’ll get what you want in life. That should be more of the focus rather than money or compensation.”
Focusing on the process and helping people
His colleague and fellow co-founder, Danny Iskander (pictured center), agreed. “Focus on your process,” he told MPA. “Figure out how to help more people. The more people you help, the more you’ll be successful. Your income isn’t always going to remain constant or stable – that’s not why we’re in this business.”
Still feeling morose about the market? Consider the case of Alec Hanson (pictured right) for inspiration. Despite a heady charge after his recent appointment to senior vice president and divisional manager of loanDepot’s Pacific Southwest division, Hanson was palpably excited about his new role.
But here’s the rub: His task of helping the company’s originators optimize their volume comes on the heels of significant losses for the company – revenue of $207.9 million, down 58.7% over the same period last year for the fourth quarter ended March 2023. Total revenue declined from $3.7 billion during 2021 to $1.3 billion during 2022, largely attributable to lower market volumes and an exit from the wholesale channel.
Undeterred, he is determined to help achieve a turnaround for the company – market conditions notwithstanding: “All of us are pulling on the same side of the rope when it comes to dealing with this market,” he told MPA in a recent interview. “Some stuff is just the wave you own. That’s the ocean that we’re all in – every mortgage company – and they need to figure out their strategy in terms of how to navigate expenses to revenue, etc.”
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Bringing in business like riding a bike
Understanding the assignment, Hanson is intent on righting the ship “I am going to move the needle, and I believe in significant ways,” he said. “I’m going to help our loan officers become more productive. I’m going to help them market in unique and new ways that attract new customers and bring new business to our company. I’m going to help our brand, loanDepot, do the same thing.”
It’s like riding a bicycle: “Even when I was a loan officer, my job was to bring loans for the company,” he said. “I haven’t forgotten that. Our job is to make human connections and help people have homeownership. We’ve got great originators here who are hungry for it and great people joining every day who see the same thing. So this is just part of the ecosystem I get to support.”
Which is all to say the storm will eventually subside. In extending such meteorological analogies, one might remember the words of British author Vivien Greene: “Life isn’t about waiting for the storm to pass. It’s about learning to dance in the rain.”
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