Working with a diverse pool of lenders means brokers can tap into specialized loan programs
In today’s mortgage landscape, working with multiple lenders is not just a competitive edge – it’s a necessity. Mortgage brokers who build strong relationships with a variety of lending partners gain access to more loan programs, better pricing, and increased flexibility in structuring deals.
For Evan Einhorn (pictured), mortgage broker and founder of Modern Home Lending, this approach has allowed him to secure financing for clients who might otherwise have been turned away.
“Working with more lenders ends up giving you more loan programs for your consumers," Einhorn told MPA. "And it's not just the initial consumer – if you're able to help someone that was turned down elsewhere they're more likely to be what we call a ‘walking billboard’ and a ‘raving fan.’"
Beyond pricing advantages, working with a diverse pool of lenders means brokers can tap into specialized loan programs that traditional retail banks may not offer.
"We have had situations where we shopped it around and more than a dozen lenders said no, and one said yes,” Einhorn said. “To be able to close that client – again, if they had talked to any other loan officer they probably were rejected – came to us, and now Evan is the go-to guy to get it done."
Technology is crucial
Managing loans across multiple lenders can be complex, but technology plays a crucial role in streamlining the process. Research from Borrower and Lender, 90% of professionals said that digital technology is a must for an enhanced customer experience, with 70% adding that using these tools helps reduce closing times.
"Our systems are more fragmented than working at one retail bank, so it's even more important for mortgage brokers to focus on their tech stack," Einhorn said. "Technology helps keep every mortgage broker organized. Whether it is onboarding technology like LoanScape to sign up with multiple lenders, or project management software like Monday.com, or pipeline management tools, they're all important because a mortgage broker has loans at five, 10, 15 potential lenders at any point."
One of the most valuable tools is a pricing engine, which allows brokers to compare loan programs across lenders in real time.
"LoanSifter is a big pricing engine out there that sorts through all the programs. Now you still need to do some deeper dives after that into their guidelines, but it helps narrow things down," Einhorn said. "There are some startups out there with AI that are helping, trying to solve [challenges]. I haven't seen it solved 100% yet because mortgage is very nuanced, but we'll be there."
Artificial intelligence is becoming more integrated into the mortgage industry, but adoption remains mixed. While some fear AI will replace human expertise, Einhorn sees it as an opportunity to enhance efficiency.
"I'm optimistic about it. I think you can't ignore it, because you may get left behind," he said. "My gut feeling is it will drive down margins, which will end up being good for consumers. You just have to realize that will also save the mortgage brokers and loan officers time."
‘There’s no one same process’
While AI can optimize pricing models and document processing, the mortgage broker space remains fragmented.
"There’s no one same process, and that's where mortgage brokers as small business owners really need to focus on – how can we build our own tech stack?” Einhorn said. “How can we buy this software, connect it with that software, and make it work together?"
One of the biggest advantages of working with multiple lenders is the ability to find solutions for challenging cases. Einhorn recalled a specific scenario where lender flexibility made all the difference.
"There’s been several examples, and we probably had at least – almost 5% of our deals are rejected by multiple of our lenders. Not only rejected because of guidelines, but rejected by the underwriter, where one underwriter may say no, and another may say yes," he said.
In one case, a client involved in a lawsuit needed financing, but most lenders refused to take on the risk. "It was a very, very unique case,” Einhorn said. “Many lenders said no, but one lender saw the opportunity and said yes. That decision not only won the deal but also helped the client in a legal framework where if they didn’t get this done, it would probably cost them over $100,000 elsewhere to sell their house."
Beyond closing difficult deals, working with multiple lenders gives brokers leverage when negotiating pricing and loan terms.
"A lot of our lenders will give us a slightly better deal than if you went to them directly, which seems backwards," Einhorn said. "But for wholesale lenders, it's great for them, because they can have low overhead and work with mortgage brokers."
Because his firm partners with over 30 lenders, he often sees lenders competing for business. "We do see times that one or two lenders will offer special pricing, and we’ll see the rest of the market come and have to chase that, because they know we have over 30 lenders to shop with.
“You don’t need to be the best price. There’s always value. Who’s going to get it done in the most timely fashion with good service without any hiccups for the client? I’ve paid more on my mortgage by a few hundred dollars in fees to go with the lender that I know would make sure we can close on time, versus a lender that’s going to be painstakingly slow. But on the flip side, we don’t always go to the cheapest, and we don’t always go to the easiest. There’s a value metric there in between."
Looking ahead, Einhorn believes that technological advancements will make it easier for brokers to manage multiple lender relationships.
"I think it will be easier over time, with technology, to work as a mortgage broker; to sign up and renew with lenders, send loans to lenders, shop different lenders. The technology is getting better and better," he said.
Compared to when he first transitioned from retail to brokering in 2018, the process has already improved significantly. "I do also think you’ll see more wholesale lenders improving their technology to compete with other wholesale lenders," he said.
With a few major wholesale lenders investing millions in digital tools, Einhorn expects software vendors and mortgage lenders to continue developing better platforms.
"The value proposition for wholesale lenders is rates, programs, and service,” he said. “But also, how easy is it to send the loan to them? On our side, it’s become easier and easier over time, and I think that’ll only get even better to work with multiple lenders."
