Broker relationships and outreach remain as important as ever
An eventful year in the US mortgage market is nearing a close, with mortgage professionals on both the lending and brokering sides already turning their attention to what’s sure to be an equally important year for the industry in 2025.
The prospect of interest rates falling further, and a possible subsequent upswing in activity across the market, are positive signs for lenders as they ramp up their preparations for the year ahead.
Top of mind for any lender worth their salt, according to RCN Capital senior partnerships coordinator Nate Zielinski (pictured top), should be ensuring as comprehensive a slate of product options as possible to meet the needs of borrowers in a given market.
It goes without saying, meanwhile, that broker outreach is also essential: making sure brokers are equipped with as strong a knowledge of a lender’s offerings as possible as they present options to their clients. “We’re a private lender for non-owner-occupied investment properties, so we want to make sure that if an investor stumbles upon RCN Capital, meets us at a trade show, finds us online, they love the options that we’re giving them,” Zielinski told Mortgage Professional America.
“That’s step number one for us. On the broker side, it’s the free educational resources that we can train a broker to learn while they’re on the job.”
Mortgage rates plunged at the onset of the COVID-19 pandemic, helping heat up the market – but a rapid series of rate increases since 2022 poured cold water on that surge, with higher borrowing costs forcing many would-be borrowers to shelve their plans.
While rates have slid in recent months – and are expected to fall further into the new year – challenges are likely to remain as brokers and borrowers alike navigate a turbulent mortgage landscape.
Michelle Dugan, owner at MS Lending, sees a shift in homebuyer sentiment as mortgage rates drop. Her team is reaching out to clients who had paused purchases due to high rates, now offering rates as low as the mid-sixes. https://t.co/iTTCLiSI2U
— Mortgage Professional America Magazine (@MPAMagazineUS) October 14, 2024
For lenders, that makes the educational focus doubly important, according to Zielinski. “We’re hosting webinars and live training programs,” he said. “We want to help brokers mitigate challenges that they’re currently facing and then within a community atmosphere we want to help them learn new things.
“We want to let them know that they’re not in this alone. There are other brokers that are doing this that can offer them advice and, with us as the private lender, they should never hesitate to reach out, to ask us questions, to take us up on an opportunity to learn more.”
Broker-lender interactions crucial to borrower success
The broker-lender relationship, always an important component of a customer’s successful mortgage journey, is set to remain as important as ever heading into the twists and turns of the 2025 market.
That’s one of the reasons top lenders are stepping up to the plate for brokers in the current market, Zielinski suggested, and will continue to do so looking ahead. “We really just want to go that extra mile for brokers in the industry and let them realize that they can learn this stuff for free,” he said.
“The opportunity is there for them if they want to take advantage of it. We’re not trying to stop them or slow down their progress. We’re trying to help them grow exponentially.”
Working through an industry association can also offer an invaluable way for lenders and brokers to strengthen their partnerships. The Association of Independent Mortgage Experts (AIME), according to Zielinski, has proven a strong resource for RCN to further its connections with brokers and other mortgage professionals.
How is a recent rebound in mortgage rates impacting the overall market?
Despite growing optimism on the future of the mortgage market, a mild rates resurgence over the past three weeks has underlined the challenges that still lie ahead for brokers and their clients.
The Mortgage Bankers Association (MBA) said last week that mortgage loan application volume had fallen by 17% in the seven days ending October 11, 2024 compared with the prior week, thanks in large part to that rebound in mortgage rates.
The 30-year fixed rate rising to its highest level since August, the association’s vice president and deputy chief economist Joel Kan said, “has put a damper on applications” with refinance applications also slipping by 26%.
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