At the June Mastermind Summit in Las Vegas, I joined industry experts, thought leaders, and top-producing loan officers from across the country in listening to cutting-edge strategies, equipping loan officers with the tips, strategies, and tactics to grow their business and to help them compete in today’s challenging market. Here are my top 4 takeaways.

The NAR settlement could be a golden opportunity for loan officers

There is much debate in the mortgage industry about whether the NAR settlement will fundamentally change the real estate business model. Most Mastermind speakers did seem to think that the settlement will be a disruptor – and that it could be an opportunity for loan officers to entrench themselves more deeply with real estate referral partners and even find opportunities to get in front of the consumer first.   

The real estate community is very much on edge about how the NAR settlement will play out. The sentiment at Mastermind is that it could be an opportunity for loan officers to demonstrate empathy for their real estate partners and tap into their own experiences with Dodd-Frank. To build partnerships, loan officers can reach out to real estate agents to be a sounding board and help them get through what may be a difficult time.

"Reach out to real estate agents to be a sounding board and help them get through what may be a difficult time."

In a time when buyer's agents may be concerned about how to show their value, loan officers can help them answer the question, “Why should I do business with you?” Loan officers who do this could differentiate themselves from the competition. A successful partnership includes your real estate partner teaching you how to sell them to the borrower and, in turn, you teaching the agent how to sell you. 

There was also discussion at Mastermind that the real estate environment created by the NAR settlement may allow originators to get in front of the consumer first and refer the borrower to an agent – the reverse of the traditional model. This would allow the loan officer to control the transaction and the buying journey. It could be an exciting development if loan officers can figure out how to capitalize on it. 

Loan officers need to get back to basics

I’ve talked with many sales leaders in the industry who fully recognize that many of their most seasoned loan officers lack basic sales skills needed for this type of market – or are maybe even unwilling to go back to the basics because they feel they’ve paid their dues and they shouldn’t have to pick up the phone to prospect anymore. Leaders recognize this is an attitude that has to change. Bottom line, most need to be trained. 

At Mastermind, top producers emphasized the following basics:

• Manage your database. It’s never too late to start your database, and you need to understand how to have your database work for you. Some loan officers may feel hesitancy about reaching out to clients they haven’t talked to in years, but successful loan officers create excellent scripts and bring value to past clients, even those who are currently locked in with low rates. Instead of talking business, build the relationship on a personal level and be interested in the client as a human. Today’s consumer wants that type of connection with whoever they do business with
• Be an advisor. Consumers want to find someone they can trust. As a loan officer, you aren’t just an order-taker. Be a leader and the expert they need. Provide options and guidance that can help a borrower truly make the best choice for their situation
• Go analog. Face-to-face meetings, including networking events, help you make a deeper impact with referral partners and borrowers. Personal, handwritten notes sent via “snail mail” will separate you from your competition
• Nail your value proposition and be able to present it in front of referral partners and borrowers

Looking for a way to get back to the basics? Download our Loan Officer Sales Playbook.

Don’t be afraid of video

The message at Mastermind was if you aren’t making videos as a loan officer, you’re falling behind. If you aren’t doing it because you don’t like how you look or sound, or don’t know what to say, get over yourself! Stop waiting and just do it.

Still nervous? Get tips from Kyle Draper or Mandy Phillips.

Be an educator for your borrowers and real estate partners

I heard this theme throughout Mastermind – that people in the industry and consumers lack the basic knowledge of the homebuying process and all that goes with it, including basic financial literacy. A loan officers who educates consumers and referral partners will be seen as a trusted advisor and can blow away the competition.

If you don’t do much education now, you may not know where to start, or may be hesitant about your ability to deliver that value. But there is a ton of content out there that makes it easy for originators to position themselves as experts on how to build credit, buy a home and get a mortgage. Check out MGIC’s first-time homebuyer resource library or Mortgage Connects to find materials and graphics that can help you embrace your role as an educator in the industry.

The opinions and insights expressed in this blog are solely those of its author, Jim Honeck, and do not necessarily represent the views of either Mortgage Guaranty Insurance Corporation or any of its parent, affiliates, or subsidiaries (collectively, “MGIC”). Neither MGIC nor any of its officers, directors, employees or agents makes any representations or warranties of any kind regarding the soundness, reliability, accuracy or completeness of any opinion, insight, recommendation, data, or other information contained in this blog, or its suitability for any intended purpose.