With forecasters expecting 2024’s mortgage originations to lag slightly behind 2023, every deal counts. As your mortgage mentor, I want to be sure you have the resources you need to succeed in this challenging market, which is why I reached out to Arch MI for Credit Unions, a Gold Sponsor of this year’s Partner Conference. Check out their five solid strategies that give your credit union an edge with buyers. —Mort
The challenges mortgage loan originators face during 2024 are best summed up in Fannie Mae’s November forecast that predicts a mild recession — with home sales slipping from approximately 4.8 million in 2023 to 4.7 million during 2024.
As a result, many originators will embrace new strategies to meet their goals in a slowing economy. With that in mind, here are five ways you can maximize your mortgage volume in a difficult housing market:
1. Strengthen your online presence and emphasize a distinct niche. After searching for homes online, one in six homebuyers (17%) also found their mortgage lender online, according to the National Association of Realtors’ (NAR) 2023 Home Buyers and Sellers Generational Trends Report. In addition, 30% of buyers then pre-qualified for a mortgage online. Among younger buyers (24–32 years old), 41% pre-qualified online after their initial home search.
Start upgrading your social media accounts by visiting Arch MI’s LO Toolbox — a resource for loan officers with helpful solutions and tools, including our detailed presentation on improving your digital presence, Social Media Strategies for Loan Originators.
Our presentation includes steps for boosting your Google readiness to improve your chances of appearing at the top of homebuyer searches for area lenders. It’s also important to highlight a specialty that suits your business experience. Real Trends recently identified the most promising and “profitable real estate niches to explore now,” including:
- According to NAR, first-time homebuyers are responsible for 26% of home sales.
- Luxury homes, listed at $1 million or more, account for more than half of all home sales in four California cities — Los Angeles (64%), San Francisco (62%), San Jose (61%) and San Diego — and Boston, Massachusetts (53%), according to a report from Point2.
- Specialized client types, including investors, retirees or self-employed entrepreneurs.
2. “Give, give, give, then ask.” With this online marketing technique — also called the value-first approach — you provide value to prospective customers by regularly sharing insights on your mortgage specialty using Facebook or LinkedIn messages. The “ask” element is occasionally promoting specific products and solutions that could be valuable to your growing followers. Our Social Media Strategies for Loan Originators presentation lets you get more details.
Arch MI’s Social Media Templates are a good starting point for messages that current and potential members will value, covering topics ranging from “How MI Increases Your Buying Power” to “Beat the Down Payment Blues with MI.”
According to the Content Marketing Institute (CMI), successful B2C marketers are focused on specific types of messaging and favored platforms:
- The nonpaid social media platforms marketers used the most in the previous year include LinkedIn (93%), Facebook (88%) and Instagram (73%).
- In terms of effectiveness, LinkedIn was rated first as “Extremely Effective” or “Very Effective” by 53% of respondents. YouTube received top effectiveness scores from 41% of respondents, followed by TikTok (37%) and Facebook (35%), CMI reports.
- The types of content assets that produced the best results over the previous 12 months include in-person events (48%), short articles/posts (47%) and videos (45%).
3. Focus on affordable homeownership products that set you apart. For example, potential homebuyers say saving for a down payment is their top obstacle. You can offer Millennials and Gen Z buyers affordable low-down-payment loans insured with MIHome from Arch MI:
- Flexible MI guidelines that work with down payments as low as 3%; gifts and grants allowed.
- Arch Mortgage Guaranty Company (AMGC) programs provide MI coverage for loans with down payments as low as 1% or even 0% for eligible members.
- Manufactured homes, condos, co-ops, single-family and construction-to-perm are all eligible.
Learn more about MI Home from Arch MI at archmicu.com/mihome.
4. Build on your industry knowledge: Read HaMMR Digest weekly for the latest housing data and expert analysis of the numbers from Arch Chief Economist Parker Ross. Each new issue is an opportunity to share his findings on the most current economic data with your social media audience.
Arch MI offers professional training to help you compete in today’s lending environment and keep current with the latest requirements from the GSEs and industry regulators. Whether you prefer live webinars, videos or podcasts, you can access our resources on the Arch MI Training webpage.
5. Provide exceptional customer service: Building strong relationships with clients is crucial for success as a mortgage loan officer. Focus on delivering exceptional customer service by being responsive, transparent and proactive. Communicate regularly with your clients, keeping them informed about the progress of their loan applications. Going the extra mile to address their concerns and providing personalized solutions can help set you apart.
In a crowded marketplace with fewer origination opportunities, you win the deal by paying constant attention to what your customers care about. By embracing technology, building a strong online presence, providing exceptional service, staying current with industry knowledge and cultivating a referral network, you can position yourself as a top-notch mortgage loan officer in 2024.
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