Executive talks focus areas and challenges in current market
It’s a question that mortgage professionals are grappling with across the industry: What’s the best way to guarantee that clients keep coming back for business in an ever-competitive market?
A maxim frequently repeated by entrepreneur and mortgage market expert Barry Habib posits that quality, meaningful contact is the key to ensuring repeat custom.
Around 19% of clients will come back with no contact whatsoever. That figure rises to 38% with medium-quality contact – and further to 57% through consistent, valuable communication.
Keeping that “intentional” approach in mind has been a key focus for Mike Rankin (pictured top), president of Clearpath Mortgage Solutions, in navigating a turbulent 2024 market that’s still presenting plenty of opportunity.
On the refinance side, with mortgage servicers intently surveying the market to snap up potential new business, staying alert to existing customers’ needs is currently a top priority for loan officers. “We want no client left behind,” Rankin explained to Mortgage Professional America.
“We want to see that 57% Barry Habib talked about returning to us. We don’t want clients refinancing with somebody else – and so we’re calling every past client, letting them know, ‘Hey, refis are coming. Opportunity is going to come to refinance and we’re going to be the ones to help you with that. I want you to know that we’re monitoring rates for you, and we’re going to reach out when it’s time.’”
What are prospects for America’s mortgage refinance market?
Falling mortgage rates in recent weeks have offered a glimmer of hope that a market upswing is around the corner – but fourth-quarter growth is still likely to be driven by refinances, Rankin emphasized. “Anyone not ready is going to miss out,” he said.
Continuing to eke out business, even in a refinance market that’s less lucrative than the purchase side, should be top of mind for loan officers throughout the remainder of the year, according to Rankin.
That’s an approach based on the adage that part of something is better than all of nothing – and a determination to do right by the client, he said. “We’re focused on what’s best for the consumer and that’s what we’re going to do,” he said.
“And we believe it’s best for the consumer to refinance through us. So that means making less money but they get a great level of service. I’m in it for the long haul. I’m in it for the referral down the road. I want their business 10, 15, 25 years from now – not just today.”
When will purchase business pick up pace across the US?
Purchase activity is still muted, but there have been encouraging recent signs with applications increasing 1.4% for the week ending September 6 – the fifth time in six weeks they’ve ticked upwards.
US mortgage rates are falling, and Kurt Brandly of Greenside Capital sees a surge in activity! With the Fed expected to cut rates, now might be the time to act on refinancing or buying. https://t.co/ijcNIKPWN0
— Mortgage Professional America Magazine (@MPAMagazineUS) September 11, 2024
Clearpath is keeping a close eye on the refinance side – but its overall focus remains the purchase market, Rankin said, and an approach that “makes the most of every at-bat.”
That means looking for an opportunity to get a referral or review with every client phone call, and getting the chance to bring value in realtor discussions and connections, ultimately strengthening and growing the relationship.
Rankin noted August as a consistently strong time of year for brokers, with loans closing from the spring and summer months, and a seasonal “pop” likely between September and the end of October.
The fact that rates are on the way down – with potential further drops on the way – is giving hope for buyers who want to step off the sidelines, although for existing homeowners they likely haven’t fallen far enough to convince many that now is the time to sell.
While a flood of buyers may be appearing, “I don’t think these rates are coming down low enough where sellers are like, ‘Let me go sell,’” Rankin said. “They have a 2.49% interest rate, a 3.1% interest rate. They don’t want to sell [to take a] 5.9% rate. So I’m not looking at the lower rate as a means to see the purchase business boom. I think we’ve got an inventory problem that’s statistically not going away.”
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