A willingness to work complex deals yields dividends – especially in a challenging market
It might be a tough market in the mortgage industry, but that doesn’t mean brokers should avoid the tough deals.
That’s become something of a mantra for Ross Sykes (pictured), of Homefront Lending LLC. The slowing market yields opportunities for seeking further education, but it also affords time to take on the tougher deals of which many brokers are averse.
“The tough deal makes you a better loan officer,” he said during an interview with Mortgage Professional America. “A lot of times, people stay away from the tough deals. When you do those, it builds confidence and that’s when you get more business.”
In taking the tougher deals, he noted, a broker forges stronger relationships with customers. In the end, those same customers will reemerge for return business or referrals. “It comes down to people,” he said. As long as you take care of people, they’ll take care of you.”
MPA spoke to Sykes during the recent FUSE conference organized by the Association of Independent Mortgage Experts (AIME) in Las Vegas. The three-day gathering was replete with panel discussions touching on issues affecting brokers interspersed with motivational speeches from the likes of AIME CEO Katie Sweeney, United Wholesale Mortgage chief Mat Ishbia and others.
Taking controllable actions in a volatile climate
While it may seem in a market like this that there are factors beyond one’s control, there are controllable actions one can take. Sykes zeroed in on conversations with clients as an example. He urged his counterparts to delve deeper in talking to clients to ascertain what their needs are.
“As a loan officer in this industry, timing is everything,” he said. “Don’t allow other people to control your time. It’s OK to not take that phone call if you’re talking to a client. Sometimes, we don’t focus on who’s in front of us and finding out how their lives are and spending time with them. If you’re having conversations and getting ‘yes’ or ‘no’ answers, it’s not working. You want to find something more involved. You need to learn more about them but then they learn more about you. And then they feel more comfortable doing business.”
Given the more challenging climate, a growing number of people have left the industry to pursue other livelihoods. One statistic posits that the number of loan originators will be halved by year’s end compared to the number in 2022. Sykes said this yields opportunities for those still in the game, including the ability to gain market share.
“Don’t allow what’s happening right now from a rates perspective to control whether you decide to continue to be in business or not. A lot of people got into the business because it was a quick buck. We had a refi boom and had all these deals. There was so much business out there. As long as you hone in on being a better person and develop the needs and focus on the long-term gain, which is the purchase business. The originators you see now closing deals, it’s because they are relationship-based and they put the work in over the last year. It’s a long game. It’s sad to see people leave the business but it also makes you wonder if they were in the business for the right reasons.”
Giving advice to industry newcomers
His advice to those just now entering the field: “Relationships, consistency and stick to what you know,” he said. “Stay involved with your niche, but also don’t come in and sit behind a desk. Make action items every day. Whether that action item is picking up the phone and calling a previous client to see how they’re doing, or picking up the phone saying: ‘you’re a real estate agent and I see you everywhere, I’d love the opportunity just to meet you. I want to see how you’re winning in this business. I want you to teach me’. You may not get a deal from them, but you’re not doing that for the deal. You want to learn so you can be sharper, better, faster, more efficient and be able to take on more business in the future.”
A deep involvement with AIME
Illustrative of his deep involvement with AIME, Sykes is one of two so-called state captains for his home base of Alabama. As part of an initiative launched earlier this year, state captains are volunteers who are active in their local community and are a driving force for state-level legislative efforts. Community state captains, for their part, are volunteers who are active in their local community and are a driving force for amplifying AIME’s initiatives on social media.
“It’s really to raise awareness, reaching out to state legislators and people who are in charge when it comes to making decisions that directly affect homebuyers. Being a part of that, I love that we’re standing up for the veteran and getting their property taxes waived for them if they’re 100% disabled – that’s huge. It might not seem like a lot, but a retired vet isn’t making a lot of money, so any amount counts. Also, allowing them to get qualified for a house and not making high rent payments anymore.”
As part of a broader AIME effort, Sykes is also helping bring legislative change to mitigate incidences of trigger leads in his state. Trigger leads occur when a borrower applies for a loan, which essentially triggers the drawing of a credit report toward an inquiry. Credit bureaus are then made aware the borrower is searching for a loan and can sell that information to various lenders.
Once that information is shared, it invariably unleashes the gates with a bombardment of calls from lenders seeking business. AIME has added the issue as part of its lobbying efforts to eradicate or substantially mitigate the practice.
He praised AIME, voicing how beneficial his membership in the association has been for him. “It’s actually saved me more money than I’ve spent to be a part of it,” he said. “That doesn’t always happen with products. But this isn’t a product, it’s a relationship. It’s the sense of one mission. We could easily be competitors and be on each side of the room looking at each other, but we’re not. We’re coming together, getting better, growing our business and making an impact. And in the end, the consumer wins.”
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