Discover how the latest technology revolution could change the mortgage industry.
Whether you’re new to the mortgage industry or have been in business for a while, you surely know one thing—it is nothing if not unpredictable. While it can be exciting to ride the wave when the industry is thriving, it’s also important to think of your long-term strategy for continued success during the unavoidable mini-dips and booms. Here’s how to make the most of the mortgage industry’s ups and downs.
Don’t Panic
Above all else, don’t panic when rates inevitably start to climb. In the first few months of 2021 alone, we’ve seen rates at historic lows, rise to over 3%, and then drop back down below 3% again in April. David Fiorenza, assistant professor of practice in economics at the Villanova School of Business, told NextAdvisor that “I don’t see this as a trend, I see it as more of a roller coaster.”
Take this chart from Mortgage News Daily, Mortgage Bankers Association, and Freddie Mac for example:
What this shows us is that if history is any indication, mortgage industry ebbs and flows are inevitable. When faced with the next downturn, remind yourself that it’s likely only a matter of time before things begin to stabilize.
Develop a Referral Base with Real Estate Agents
When it comes to winning business regardless of the industry’s status, local agents will be your friends. The real estate industry never entirely grinds to a halt, as home seekers will still purchase even in the worst of times. In fact, March 2021 saw record-high home prices and record-low days on market, despite the fact that the current market characterizes arguably one of the worst times in recent memory to buy a home.
What’s more, in 2019, The National Association of Realtors (NAR) found that a whopping 90% of buyers would definitely or would probably use their agent again or recommend them to others. With such a significant level of trust, those buyers — and their network — may also be receptive to working with the agent’s recommended mortgage professional (aka you!).
Real estate and mortgage can also have an inverse relationship. In other words, when home sales dip, refinance requests may skyrocket. Maintaining close contact with local real estate agents may mean you’re the first one they call, whether their client needs a new mortgage or a refinance.
Invest in Tech
Whether you take to social media or opt for a mortgage technology platform, leveraging tech can also help you weather the storm. A downturn may free up time and energy to invest in and learn new programs, helping set you up for success when the industry peaks once again.
The right mortgage technology platform seamlessly manages demand, allows for automation, streamlines communication, and nurtures your referral network. Investing in powerful technology can help you close your next loan quickly and efficiently, setting you up for success through all the highs and lows of the mortgage industry.
For example, at wemlo, we’ve created one of the best and most efficient loan processing experience for mortgage brokers. The first third-party mortgage processing network to include an all-in-one digital platform, wemlo has a sleek, easy-to-use dashboard. Our loan processing offers unparalleled speed, security, and efficiency for your business. If leveraged correctly, technology like ours can become yet another tool to grow your business even in an unpredictable market.
At times, the mortgage industry’s many peaks and valleys can feel overwhelming. Luckily, there are concrete steps that you can take to help your mortgage business stay stable no matter the state of the market. With a cool, calm, and collected demeanor, a solid referral base, and the power of technology, you may be able to even grow your business even in times of uncertainty.
