"You have to be a forever student in this industry"

Staying ahead of market fluctuations and ensuring that clients secure the best possible rates and terms is both an art and a science. For Tim Martin (pictured), originating manager and senior vice president of mortgage lending at Guaranteed Rate Affinity, the key to winning in this complex environment is a deep commitment to continuous learning and to client education.

“I think you have to be a forever student in this industry,” Martin said. “Even the guidelines for your basic product line are constantly evolving and changing.”

A guideline that may have been relevant five years ago could be entirely obsolete today, potentially leading to misguided advice if not updated. But Martin’s approach is not just about mastering the product line – it’s also about understanding the nuances within it. He points out that knowing the “sweet spots” in a product line can significantly benefit clients.

“A lot of borrowers call and immediately start with ‘I want to do 20% down. I want a 30-year fixed loan’,” he said, explaining how many clients are unaware that putting slightly more down could yield better rates, especially when purchasing specific types of properties like condos. This is where the expertise of the loan officer becomes invaluable, helping clients see beyond the standard advice they might have encountered online or through word-of-mouth. 

“If rate was all that mattered, the best rate is paying cash and the rate is zero”

One of Martin’s key strategies is not just to find the best rate for his clients but to find the best strategy that aligns with their overall financial picture. Finding the correct combination of cash needed to complete the transaction, paired with an all-in payment that they can manage, is the ultimate goal.

“The best rate is paying cash and the rate is zero, right?” he said - but quickly notes that this is not a realistic strategy for most. Instead, Martin focuses on educating clients about the pros and cons of different options. For some, paying a bit of PMI might be a better option if it frees up cash for other expenses.

“Some buyers are stretching to get to that 20% and they really shouldn’t be,” he explained.

To support his strategy, Martin relies on a robust set of internal tools and resources available at Guaranteed Rate Affinity. These tools allow him to quickly access detailed real time pricing on standard conventional and government products and on niche products, such as non-QM loans, renovation loans, and reverse mortgages.

“We have different matrixes to refer to and a scenario desk that we’re able to bounce situations off of,” he told MPA. “It’s about interviewing the borrower, and it’s knowing what ‘best’ looks like and means to them and finding that solution.”

Technology also plays a pivotal role in Martin’s approach to mortgage lending. Guaranteed Rate (now known as Rate) was a pioneer in the digital mortgage space, which has become the backbone of Martin’s process.

“The vast majority of my clients are starting with an initial conversation, go to the website, and are completing an entirely digital mortgage,” he explained. “We use technology to protect the borrower’s information, streamline the experience, but also to ultimately get that borrower the best pricing.”

As technology continues to evolve, Martin sees artificial intelligence (AI) playing an increasingly significant role in the mortgage industry. Already, AI is helping to speed up processes that once took hours or even days, such as income verification from pay stubs or tax returns.

“What used to take an underwriter hours, we’re now getting back in minutes,” Martin said, pointing out that this not only accelerates the process but also reduces costs, potentially leading to better rates for clients. 

Wire fraud exposure wreaks havoc on industry

But with technological advancements also come increased risks, particularly around fraud. Wire fraud, in particular, is a growing concern in real estate transactions.

“It’s becoming more and more prevalent... and with wire fraud, these fraudsters are getting craftier and craftier,” Martin warned. To combat this, education and training is key. Martin takes the time to educate his clients on best practices, such as always verifying wire instructions over the phone and being wary of any unexpected changes in communication patterns or methods.

“We tell buyers, [remember] you’re going to be transferring large sums of money,” he said, emphasizing the importance of vigilance. 

Martin also highlighted the importance of collaboration within the industry to combat fraud. He advises clients to work with professionals who have established relationships with each other, as this familiarity can make it easier to spot irregularities.

“Ask your real estate agent who their preferred venders, title companies and/or attorneys are,” he added.

In an industry as dynamic as mortgage lending, Martin’s approach - rooted in continuous learning, client education, technological innovation, and fraud prevention - ensures that his clients are not only getting the best possible rates and terms but also a tailored financial solution that fits their unique circumstances

“Educate and advise them on their options and let the borrower make the best well informed decision they can for themselves and their family,” he said.