Market Proof Your Origination Business [Repost]
The rate of change in the mortgage business is accelerating. While history rewarded hard work, the future will pay the most adaptable. The MLO that wants to compete and win must build a market proof business.
A successful mortgage practice is dynamic enough to pivot and focused enough to drive volume. The proper strategy allows community-based originators to compete and win for years to come.
A stool doesn’t stand on two legs, and neither does your business. The traditional self-sourced mortgage planner depends on their database and referrals from Realtors. A market proof business markets its database with omnichannel communication manages consumer-direct leads effectively and maximizes referrals by adding value. Ultimately, your focus on the consumer buying cycle from exploring to mortgage management is the key to winning the multi-pillar game.
How many originators do you know that were refi experts that struggled to adapt to the purchase market? What about the MLO that took the job with the builder and went from 10 units a month to zero. Lead source diversification is the first key to market proof originations.
Pull Your Volume Levers
Once you master the Client journey and have your pillars clearly defined, you decide where you invest your time and money. The goal is to dedicate attention with results where the market demands. When it is time to dig into your refinance business, how clean and accessible is your database? Once we transition to an investor based market, do you have the tools to identify the NOO properties in your area and effectively generate closings? A market proof origination business can pivot its focus and create meaningful results in a week.
Know Your Numbers
What works and what doesn’t? I talk to MLOs every day that tell me that digital leads don’t work. Are you taking into account the long tail and the fact that you can leverage those leads into future organic business? Are you providing home loan services to more than 5% of your database every year? Having the right data gives you the power to adjust your focus to maximize your opportunities. The market proof origination business uses data to help you decide where to spend time and money.
Most MLOs are guilty of “chasing” the next hot market. The trick is to pivot without sacrificing your core business. I know far too many MLOs that chase Realtors every day but don’t wish their clients happy birthday. The market proof originator works their database and core business while adding new pillars for incremental business. The key is integrating people, process and systems that keep your core intact while maximizing opportunities.
A client of Nextview Group successfully diversified and market proofed their origination business. Adding 25 Consumer Direct loans and partnering with Realtors on their digital leads. They also used social to maximize database business. Leading to a 140% increase in production.
Like death and taxes, market change is inevitable. The most successful originators have strategies for working their book of business, receiving referrals from service providers and targeting consumers directly. While not an easy task, the proper people, process and systems make it possible.
To learn more about how Nextview builds market proof origination businesses, start by downloading our digital assessment.