The mortgage loan industry is always changing, and this year, not all of that change was positive. There was a national drop in volume in 2018. It’s more important than ever to learn from the best and keep your finger on the pulse of the industry to be successful. National Mortgage News surveyed the top producers in the industry to find out how they’re finding success and where the overall industry is headed.
Tips From the Top Loan Officers
The industry is facing uncertainty around interest rates for purchases and refinances. The overall volume in home buying is down, yet successful loan officers most often report that it’s a good time to work in the industry. How are they handling these challenges?
The top producers in the loan industry are more commonly located in specific markets, including California, Florida, and Texas. This isn’t just because these states are more populated but also because they have a stronger real estate market. Of course, you may not be willing to move markets, so how do you succeed where you are?
Well, the survey also revealed that the top producers focus on first-time homeowners and move-up homeowners much more than those homeowners who are downsizing. Focusing your business on first-time homeowners (that means millennials) can help you succeed. You should at least focus more on those who are buying a larger home than those who are downsizing.
The Heartbeat of the Industry
However, focusing on first-time homebuyers and millennials does present a challenge. There are concerns that there is not enough supply, especially entry-level housing, to meet demand. Two-thirds of the surveyed loan officers shared that concern, and the concern was more dramatic in the south, especially compared to the northeast where there is hardly any concern about supply.
Other issues in the industry are less clear cut. For example, loan officers are virtually split on underwriting standards and whether they are too stringent or acceptable. Loan officers also don’t have consensus about GSE reform. While some officers are concerned, others aren’t at all.
One change that is slowly making its way through the industry is a shift in compensation desires. More top producers now put more weight on their ownership stake over their base salary. If you’re in a position to negotiate, asking for more ownership stake could pay you dividends down the road.
Work With Lakeside Title Company
As the industry changes, it’s wise to have a partner who can make your business smoother and help you provide a better service to your clients. Lakeside Title Company can be that partner for any real estate lender, providing you with streamlined refinance and title closing processes. Our closing calculator can give you instant estimates, taking the guesswork out of closing and making your business run much smoother. Reach out to us today.