Hello to all my credit union mortgage industry friends and subscribers! I’m very excited about bringing you a special guest post from Arch MI’s Blaine Rada. He’s been featured in this blog before and consistently has some of the most read posts. I’m also very grateful to Blaine and Arch MI for providing this because I thought I wouldn’t have an opportunity to run a post this week.
You see, being a resident alien comes with civic duties that I happily take on, including jury duty. After all, I want to be able to experience every part of Earth living and culture. While most of my week was consumed in the jury box, I was enlightened by learning more about the legal process. Quite impressive. I’m genuinely surprised how many humans dread this event because it was enlightening, educational and most memorable.
So, let’s dive into mortgage industry veteran Blaine Rada’s post, where he describes what Realtors® expect from informal referral relationships with credit union mortgage loan officers and how essential these partnerships can be for originators. Enjoy – court is now in session! –Mort
What do Realtors® want from mortgage loan officers (MLOs)? It’s a question I’ve been studying since I was an originator early in my decades-long career.
In my current role as Arch MI’s Senior National Trainer, I help loan officers differentiate themselves and thrive with these informal partnerships. I’ve also questioned Realtors many times while moderating real estate panel discussions at industry functions across the country. A couple of years ago, I became a licensed real estate broker, in part, to gain a deeper understanding of what makes Realtors succeed.
Spending time with fellow real estate agents has been very enlightening and provides surprising professional insights. One thing that’s clear is that these informal, non-paid referral relationships can be crucial to originators when home sales slow.
The Power of Referrals
According to real estate technology company Market Mobility Intelligence MMI:
- Approximately 87% of homebuyers make a lender decision based on a referral or existing relationship.
- When real estate agents refer clients, the homebuyer applies to the recommended lender 76% of the time.
- When choosing a lender, 39% of first-time buyers and 27% of repeat buyers use their Realtor as a referral source.
1. Delivering Value
If you ask top-tier Realtors, “How can I become a credit union you refer homebuyers to?” many will respond that you have to articulate the value you offer. Additionally, your value must be something they don’t already have.
Some Realtors may not be familiar with the advantages of a credit union mortgage, so it’s important to talk through CU benefits like lower mortgage rates and fees in many cases, excellent service, more flexibility and a large membership of potential homebuyers.
Be ready to tell the Realtor the problems you can solve for their business — and it has to be measurable. Instead of simply saying you can close quickly (which most of your competitors will also claim), calculate an accurate days-to-close figure to compare to the current national average of 47 days, according to ICE Mortgage Technology.
Trust is another element of value. Realtors need to trust your capabilities in terms of delivering on your promises and that you’re committed to their success as well as your own.
2. Expertise
The second thing Realtors want is for you to be an expert in manufacturing their client’s mortgage loan. Additionally, the member must be wowed by the experience. To do this, you need to set proper upfront expectations with the Realtor and the member, execute the promise without errors and provide clear communication.
It’s funny that we have so many ways to communicate, including calls, texts, emails and videos, but we communicate more poorly than ever. Part of setting expectations is asking the Realtor and the member for their preferred communication methods (including time of day) and updating everyone accordingly.
3. Grow Their Business
Finally, your real estate partners want you to grow their business. A key step in learning more about the challenges your potential partners face is to join their local associations, attend their meetings and subscribe to the local real estate newsletters. Instead of selling yourself, ask them questions. As a loan officer, I requested to make a presentation at Realtors’ offices where I’d discuss new rate developments, changes in conforming loans and other relevant topics. It’s a great opportunity to help them be more effective, while you’re learning what real estate agents are concerned about — and how you can help them overcome those obstacles.
Friendships
In addition to those three elements, I was initially surprised to learn from my conversations with Realtors about the strong role of friendships in these business relationships. In my early days as a loan officer, I mentally maintained a separation between business and after-hours friendships. As I ask Realtors about their lender partners, virtually all of them tell me their top lender is also a friend. It’s important to note that they didn’t start as friends, but their business connection evolved into a valued friendship.
If you’d like to dive deeper into these topics, you can access a series of seven podcasts I did on Reviving Realtor Relationships. While these aren’t new, they offer a good starting point for more about how to choose prospects to work with and how to establish a referral network that can boost your career over the long term.
Blaine Rada, a mortgage industry veteran who began his career in 1985, is currently an Arch MI Senior National Trainer and Instructional Designer. A gifted trainer and coach, he helps individuals and organizations differentiate themselves and achieve their goals in a highly competitive mortgage environment. As an accomplished thought leader, public speaker and debater, Blaine earned the title of America’s Greatest Thinker in 2005 and 2022 and holds the National Speakers Association’s highest earned designation, Certified Speaking Professional (CSP).
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