Since the mortgage market is constantly changing, many lenders may be wondering what to expect from 2023. What’s more, they may be looking for ways to set their business up for success this coming year.
To answer these questions, the Certified Credit team interviewed several industry experts at this year’s Mortgage Bankers Association (MBA) Annual Conference in Nashville, Tennessee. During these discussions, we received many helpful tips for new mortgage lenders looking to kickstart their careers, as well as savvy suggestions for staying in compliance on social media.
If you want to benefit from these cutting-edge insights, just keep reading.
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What Are The Best Ways to Find Success as a New Lender?
Currently, the average age for loan officers and real estate agents is 54 and 59, respectively.[i] As more mortgage professionals reach retirement age, there’s a massive opportunity for young people to enter the industry.
So, how can new lenders find success early on in their careers?
We spoke with Roy George from MOR Lending to find out. Here are a few of his recommendations for new lenders:
Tip 1: Focus on Establishing Relationships
As all mortgage professionals eventually discover, the industry revolves around relationships.
While borrowers may only ever interact with real estate agents, lenders, and title companies, there are countless other players behind the scenes. Many of these professionals work closely together to make the residential mortgage process run smoothly.
If you want to make it in the mortgage industry, getting a head start on developing these relationships will serve you well. Not only will you get to learn from people who were once in your shoes, but you may even develop connections that lead to job offers down the line.
Tip 2: Attend Industry Events
An easy way to engage with established mortgage professionals is to attend industry conferences and trade shows. Just search for mortgage and real estate events in your area. Since these events are made for networking, you don’t need to feel shy going up to industry experts and asking them about their experiences.
Tip 3: Stick With a Company For a Few Years
Once you’ve secured a position in the mortgage industry, it’s important to soak in all the experience you can get. This often involves staying at the same company for a few years.
These days, many young people change jobs every year or so.[ii] However, job-hopping early on in your mortgage career isn’t recommended. The reason? Since the industry is so diverse, gaining experience in a specific position can help you clarify what you like and what you don’t like. You can also build strong relationships within your company and bolster your resume with consistent experience.
Once you’ve learned more about what the industry has to offer, you can confidently carve out a thriving career in the sub-sector that best suits your interests, preferences, and priorities.
Tip 4: Be Cognizant of Different Demographics
Not all homebuyers are the same. Age, in particular, can affect how borrowers prefer to communicate with you and move through the lending process.
For instance, younger homebuyers often prefer to talk over text and social media. They also desire a highly-digitized lending experience.[iii] In contrast, older borrowers still appreciate phone calls, emails, and in-person meetings.
By understanding these differences, you can tailor your services to various borrowers accordingly.
#5 Remain Top of Mind With Everyone At All Times
Since the mortgage industry is so relationship-driven, it’s important to make a name for yourself. When you have an active presence in the industry, you’ll be more likely to garner business from new prospects, past clients, and fellow mortgage professionals alike.
A simple way to stay top of mind is by cultivating a strong social media presence.
How to Navigate Social Media Compliance
Speaking of social media, let’s take a look at the ins and outs of remaining compliant while posting on popular social platforms, such as Facebook, Instagram, LinkedIn, TikTok, Youtube, and beyond.
Social media has become an integral part of day-to-day life for most people. The average person spends two and a half hours on social media every day.[iv] Thus, social media offers massive potential for mortgage lenders who are interested in attracting new prospects. Unlike typical influences, though, mortgage lenders must comply with all of their state and federal regulations.
We spoke with Blake Boss from Active Comply to find out how mortgage lenders can navigate the social media sphere effectively and compliantly. Here’s what he had to say:
- Post consistently – To grow and maintain an engaged audience on social media, you need to post consistently. Right now is a wonderful time to focus on building out your social media strategy. It can help you reinvigorate your relationships, which may have stalled out during the recent refi-heavy, order-taking environment.
- Be authentic, but keep it professional – You can use social media to showcase your personality and offer your followers a behind-the-scenes look into your work as a mortgage lender. However, it’s important to keep certain professional boundaries in place. For instance, you may want to avoid posting photos of yourself or others where there’s alcohol in the background or things along those lines.
- Avoid high-risk topics – Sharing videos on social media regularly is a fantastic way to educate borrowers and gain a following. However, you want to be careful about the topics you cover. Some are more likely to draw scrutiny from regulators than others.
As a general rule, you’ll want to steer clear from talking about your company’s products or rates. Instead, focus on promoting your personal brand. You can also post educational content about the evolving market conditions and share interesting conversations with other real estate professionals.
- Always include the required disclosures – As a mortgage lender, you’re required to include your and your company’s Nationwide Multistate Licensing System (NMLS) ID numbers on your public social media profiles.[v] States may have additional regulatory requirements too. Leaving out this information can leave you vulnerable to citations.
You may be wondering how you’re supposed to fit all of the required disclosures within a social media bio if the character space is limited. An easy solution is to create a landing page with all of the relevant disclosures. After that, you can simply link to this landing page within each of your social media bios and captions.
What Can Mortgage Professionals Expect From 2023?
It’s no secret that 2022 was a challenging year for the mortgage industry. As we approach a new year, you may be wondering what’s in store.
Here are some insights we gleaned from speaking with Kevin Peranio on the topic:
Many Homebuyers Are Eagerly Waiting on The Sidelines
In response to the Federal Reserve’s recent interest rate hikes, many would-be homebuyers have put their home search on pause temporarily. However, these people still want to purchase homes. They’re just waiting for slightly better market conditions.
These aspiring homebuyers may come out of the woodwork if interest rates drop in the Spring. In turn, the industry could experience a notable increase in new mortgage originations in the coming months.
With this optimistic outlook in mind, now is a great time to engage future borrowers online. By getting on their radar now, you’ll be ready to win over their business when the market takes a positive turn, whether that’s this Spring or later on.
It’s The Right Time to Invest in Technology
While business is still slow, it’s the perfect time to upgrade your workflows by investing in innovative tech tools. The right lending solutions can cut costs, speed up the loan manufacturing process, and reduce friction for your borrowers.
By implementing these new technologies now, you’ll be ready to scale up your business in 2023 and beyond.
Here at Certified Credit, we specialize in developing tech solutions that address common workflow inefficiencies. Here are just a few of our automated offerings:
- Cascade Alerts – Cascade Alerts can identify timely leads within your existing customer base by monitoring which borrowers are in the market for a new mortgage.
- Cascade Leads – Cascade Leads helps you generate customized, segmented marketing campaigns so you can enjoy a better marketing ROI.
- Cascade Prequal – Cascade Prequal automates the prequalification process so you can compare leads’ creditworthiness to your pre-set credit thresholds.
- Cascade Undisclosed Debt Monitoring (UDM) – Cascade UDM monitors your active applicants’ credit reports continuously during the origination process to ensure they still qualify for the loan at the time of closing.
- Cascade Verification of Income and Employment (VOE) – Cascade VOE automates the verification ordering process, so you can enjoy more free time and lower verification costs.
Set Your Mortgage Lending Business Up for Success With Certified Credit
If you’re looking to give your mortgage lending business a competitive edge this year, Certified Credit has you covered. By partnering with us, you can use our innovative solutions to enhance your efficiency, reduce your costs, and amplify your customer retention.
Our advanced mortgage lending products and services include:
- Automated loan manufacturing solutions
- Lead generation tools
- Affordable credit reports
- Flood zone determinations
- Fraud and risk support
- Settlement services
[i] MPA. Are mortgage originators too old?
[ii] Gallup. Millennials: The Job-Hopping Generation.
[iii] National Association of Realtors Research Group. 2022 Home Buyers and Sellers Generational Trends Report.
[iv] Oberlo. How Much Time Does the Average Person Spend on Social Media?
[v] NMLS Resource Center. Required Use of NMLS ID.