The mortgage industry has fundamentally changed over the previous 10 years, particularly as weíve shifted from a refinance-driven environment, to focus more on purchase originations.
A number of lenders have built successful businesses around the last two decadeís historically low interest rates, and while rates will likely not increase dramatically in the coming year, the Fedís steady pace is projected to continue well into 2019 and beyond. This will put pressure on lenders to explore new opportunities and approaches to working with borrowers.
In particular, itís not going to be enough for lenders to tout their rate as the "lowest around," and expect that approach to drive business through the door. Whatís going to set lenders apart is the additional value they bring to the table with each and every transaction. This means providing more than just a commoditized low interest rate, instead, relying on strong partner and community relations, an efficient operations team, and the ability to engage with borrowers on a personal level to guide them through the process and craft the best loan for their individual financial situation.
Just as lenders will need more than a low rate to engage borrowers, they will also need to understand how to effectively leverage the latest technology for more than just reducing friction and speeding up the mortgage process. Technology can, and should, streamline the process for borrowers, but keep in mind that mortgage lending should really be a relationship-driven business. Any tools in a lenderís kit should always be aimed at helping them build lifelong, meaningful relationships with borrowers that set the lender up as a trusted guide and mentor. When used properly, technology can serve as a catalyst for achieving that goal.
About the Writer
Mike Hardwick is president and founder of Churchill Mortgage, a full-service and financially sound leader in the mortgage industry. For more information, visit churchillmortgage.com or follow the company on Twitter, @ChurchillMtg, LinkedIn at https://www.linkedin.com/company/churchill-mortgage/, Instagram at https://www.instagram.com/churchillmortgage/, and Facebook at facebook.com/churchillmortgage. Contact Hardwick at [email protected]