As the economy continues to recover, mortgage rates are beginning to rise. This is good news for those who have been waiting to buy a home, but it’s bad news for those who are currently in the market. In the next few months, mortgage leaders are expecting profitability to start declining because of increased competition amongst lenders in a rising rate environment. When margins start getting thinner, loan officer commissions usually begin to drop as well. Soon after that, they may look for new jobs altogether.
In order to compete in today’s market, what do mortgage lenders need, and how do they keep their loan officers from leaving for greener pastures?
Mortgage Lenders Need Technology
Technology has always been a key differentiator in the mortgage industry. Lenders who embrace new technologies have been able to create efficiencies and scale their businesses quickly. The current market environment is no different. In order to compete, lenders need to employ technology that will create customers for life and automate value-adding actions. By using automation and artificial intelligence, lenders can provide a better customer experience, reduce operational costs, and improve compliance. Additionally, by leveraging data, lenders can identify new opportunities for growth and develop targeted marketing campaigns. The right technology can help mortgage lenders stay competitive in today’s market and position themselves for success in the future. This is especially important if they want a piece of the 800,000 projected sales of new homes in the coming year. This also allows them to make the lives of their loan officers easier and retaining them in your employ. This is a win-win; they have easier jobs and make more commissions, while you keep your business going.
In order to keep up with rising mortgage rates, lenders need to employ technology that will allow them to compete in today’s market. One such piece of technology is customer intelligence. Customer intelligence allows lenders to know when a past borrower is preparing to shop for a home, giving them the opportunity to contact the borrower before they begin working with a realtor. This gives the lender a chance to win back the business of a customer who may have been lost due to rising rates.
Looking Through the Borrowers’ Eyes
As anyone who has ever gone through the process of buying a home knows, it can be a long and stressful endeavor. There are so many different things to consider, from finding the right property to getting financing. However, one of the most important steps is finding a qualified and trustworthy real estate agent. After all, your real estate agent will be the one helping you find the right home and negotiate the purchase price.
That’s why it’s so important for lenders to have customer intelligence. Having customer intelligence allows lenders to know when a past borrower is preparing to shop for a home, giving them the opportunity to contact the borrower before they begin working with a realtor. This way, they can provide the borrower with information about their loan products and services and potentially earn their business. In today’s competitive lending landscape, customer intelligence can give lenders a real advantage.
Improving the Customer Experience
In addition to customer intelligence, lenders need to focus on providing an excellent customer experience. They need to invest in purpose-built platforms that are designed to meet the needs of their customers. By doing so, they will be able to provide a better experience for their customers and stay ahead of the competition.
Lenders also need purpose-built platforms that will allow them to automate value-adding actions. These platforms will help lenders save time and money by automating tasks that would otherwise be done manually. This enables them to improve their operational efficiency and reduce costs. Because technology can now engage in automated compliant co-branding, this will save you time in partnership finalization, design publishing, and referral attraction. Ease-to-value is a necessity for these types of relationships in the mortgage lender business.
By upgrading their customer experience (CX) with purpose-built platforms, lenders will be better equipped to succeed in today’s market. As a result, they will be able to provide a better experience for their customers while also improving their bottom line.
Final Thoughts
Rising mortgage rates are a reality that we must all face. In order to keep up with rising rates, mortgage lenders need to employ technology that will create customers for life and automate value-adding actions. The mortgage companies that successfully transition their systems, technology, and marketing teams will be the next success stories. Good customer service is always the best strategy, especially when others are still trying to compete solely on price. By doing so, they will be better equipped to succeed in today’s market.
