Total Expert executives discuss consumer expectations, strategies lenders can adopt, and more
As the mortgage market continues to shift to a high-interest-rate environment, lenders are facing more pressure to be strategic when it comes to meeting their borrowers’ expectations and growing their purchase originations.
In a webinar sponsored by Total Expert, the company’s chief product officer, Matt Tippets, and director of technology alliances, Josh Lehr, looked into the market pressures lenders face today and what moves they can make to cut through the competition.
“Overall, you can see total originations dropping by 33% in 2022,” Lehr said. “We all know what this means – there’s going to be fewer opportunities for everybody trying to resonate with these consumers. So, we have to be extremely targeted. We’re… making sure we’re paying attention not only to new acquisition customers but also taking advantage of those customers that we’ve had previous relationships with.”
Adding to these challenges, Lehr pointed out, is increased interest from investors. “Not only do we have consumers competing for these deals, but we also have investors for the institutional or those individual investors that are driving this volume,” he said.
When asked if this investor trend brings some advantages, Tippets said he doesn’t see a lot.
“It’s just that this advancement keeps driving that market higher and higher, making the homes less successful for people who are potentially trying to step up from their starter home into that second home,” he said.
Lehr then highlighted the importance of maintaining communication with consumers to ensure lenders are ready to help them when they’re ready to transact. “Because if we’re not there to help them and have a solid process in place to help them, then it’s just going to drive them out of those fields, and it’s going to increase that borrower frustration,” Lehr added.
Want to learn more about how rising rates and a purchase-dominated mortgage market affect direct-to-consumer channels and how your company can invest wisely and grow amid this big shift? Watch the webinar here for free.
