Forum: Mortgage Lenders: The 2023 Market Is Your Time

Joe Welu, CEO and founder of the Total Skills.

It’s time for mortgage brokers to stop comparing 2022 volume and 2023 volume to the refinancing record numbers of 2020 and 2021. The pandemic is long over, and homebuyers are required mortgages that continue to increase the price of this year, the worst. the US inflation that caused the inflation is also said to be over. Heading into 2023, there are three market trends that will shape the smart, personal loan market.

First, rates are up more than 0.5% from the October 2022 high of 7.375% the economy is cold.

Second, the MBA project will have 3.5 million mortgages made to home buyers in 2023.

Third, It’s been nine months straight for existing home salesand New home sales have fallen in six of the past nine monthswhich slowed down the improvement of housing prices in some local markets especially the heat and brought down prices in other local markets.

So, the 2023 real estate market is all about connecting with these home buyers who need loans, showing them how lenders (rather than headline ads) value homes. , communication and real-time real estate pricing information throughout their home buying process. and maintain their composure as customers become more willing to negotiate.

The most savvy philanthropists blend human advice with digital tools to navigate this playbook.

The Time to Connect with Home Buyers And Owners

In this market, the support of loan officers with high experience is at the forefront because of their skills, communication and processes that are valued by borrowers today.

Lenders must make up for the steep decline in refinancing rates by finding and recruiting new customers, as noted it’s up.

They should also find and contact buyers who are listing their homes for sale, asking for credit or having a loan-to-value ratio that shows more than 20% equity.

This is the fun part because, with the record highs of recent years, there are a lot of home buyers to contact again. Even with housing corrections in some markets, the recession years were so kind to home prices that there is still $10.5 trillion in tappable equity (equity that is available to homeowners but still leaves the 20% equity in the home) in the American home.

Connecting and communicating with these consumers about their choices is the priority for 2023. Consumers love to learn new information about in their local market, the value of their own houses and the level of prices and price developments. Loan agencies can access all this information and processes for communicating this information at the right times to win in all market cycles.

This is how it works in today’s market, where lenders have high rates and low returns.

Budget Impacts of Customer Interaction Technologies

According to MBA, loan costs for borrowers reached a high of $11,016 in 3Q22, and lenders reported a loss of $624 per loan. When it’s particularly challenging in this way, it may seem like the wrong time for lenders to invest in technology to help consumers.

But according to the MBA, about one-third of the 3Q22 loan costs mentioned above are for consumers, and less than 5% of the loan costs are for technology. So if you can use technology to better engage these customers, the tech investment is justified.

So what is the job of technology lenders to give to sales teams (called loan officers)?

Borrowers should look for opportunities that loan officers may miss. By monitoring various trends and information in customer profiles, these ads can alert loan officers when customers show signs that they may be considering a purchase. Those signals, such as recent home listings or mortgage applications, allow lenders to monitor and anticipate potential buyers—which opens the door for faster connections.

Investors need more “easy win” opportunities. Another example is debt consolidation by bringing in customers who have both home and expensive non-home loans such as credit cards. credit or personal loans. Even though mortgage rates are high this year, some debt refinancing options are worth it (along with the first plan or two) if you look. to customer information.

Lenders should look for these loan opportunities and then solve another problem: automating a small-but still important-task on the bank’s desk. loan office. Getting rid of manual processes for beginners isn’t just an upgrade for today; a positive benefit that increases their access to borrowers and their overall performance, which directly affects lenders.

Loan officers can also use smart technology to strengthen relationships with business partners and partners.

For example, loan officers who have developed good relationships with real estate agents can use technology to offer unique information to prospective homeowners as they evaluate the market. Agents often have relationships with many lenders; however, lenders who are able to share information about customer behavior and recent opportunities may see a distinct benefit to brands.

Bottom Line: Technology Markets Set to Expiry Price Grants By 2023

To recall, lenders are certainly feeling the pinch right now with all-time high rates. As we have noted, consumer prices are high, but technology prices are low. So, the right technology can increase the sales of the customers.

And buyers really need more value in a stock market like the one set for 2023. The easing of climate, mortgage and home prices will eventually bring people back. buy in the market, and there are 3.5 million loan buyers for the lenders to win next year. These deals take a long time to close while the buyers are shopping, and smart technology is the best advice of a smart loan officer.

The information provided here is not investment, tax or financial advice. You should consult a licensed professional for advice regarding your specific situation.


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