What strategies are working in the current mortgage market?
Why are some lenders growing like crazy?
Bill Rice
February 28, 2023
Buying leads is getting a little dicey. The FCC and CFPB aggressively signal their disdain for third-party lead generation (TCPAWorld).
Hedge your bets and secure a sustainable flow of new leads for your sales operations by generating your own leads with help from Kaleidico, the lenders' mortgage lead generation agency.
It’s a tough mortgage market, but why are some lenders growing like crazy?
There is a pattern.
Here are the notables (National Mortgage News):
Go Mortgage (disclosure: Kaleidico client)
Guild Mortgage
Union Home Mortgage
American Pacific Mortgage
Photo by Mourizal Zativa on Unsplash
Let’s trace the strategic framework.
1. Branch Acquisition
Acquisition of branches being jettisoned by flagging mortgage lenders to increase geographic retail presence and capture localized purchase business.
Go Mortgage snags 160+ loan officers and project $1 billion in originations (HousingWire) for grabbing Finance of America’s branches.
Guild Mortgage grabs 13 branches in 4 states (Yahoo Finance) to expand its footprint in the Southwest.
Union Home Mortgage is strategically increasing its footprint and adding to its servicing portfolio strategy (National Mortgage News).
American Pacific Mortgage projects a 25% increase in originations from acquired branches (HousingWire)
2. Product-to-market fit
Most of these lenders embrace non-QM to meet borrowers where the market is. Some of the products we are seeing headlining each of these lenders’ originations include:
New Construction Loans
Home Equity Loans & HELOCs
ARMs and Buydowns
VA programs
3. Modernizing and leveraging technology
As consumers continue to prefer online and digital experiences, mortgage platforms are innovating, but are you leveraging these advances?
Lead management systems have features that dramatically increase lead contact and conversion rates.
Make sure that you are getting maximum production from your sales operation.
Do an audit of contact rates and processes.
Layer in sales and marketing automation to increase contact rates (SDP Solutions) and nurture 100% of your leads to increase the LTV of your lead generation efforts
Layer in AI and machine learning (My Executive Brief) to score, prioritize, and optimize your sales and marketing operations for maximum production. ChatGPT is a tipping point, revealing capabilities already available and being deployed (ProPair) by the industry leaders surviving, thriving, and taking market share.
Make sure that your customer experience, from start to finish, is available online and from the client’s mobile phone.
The key is to challenge the status quo (Mortgage Professional America).
How can you make the customer experience and your internal operations smoother and error-free?