The pay of most mortgage originators depends wholly or in part on commissions generated from mortgage production. During economic downturns, fewer customers actively seek out lenders and the customers that are interested in applying for loans tend to shop around for the best rates. If you want to increase your mortgage pipeline, you need to establish reliable sources of referrals and contact prospective borrowers.
Expanding Your Influence
Businesspeople often attempt to establish networks of business contacts working in related industries who are able to generate customer referrals. Real estate agents, for instance, work with clients looking for home loans and mortgage originators work with prospective borrowers looking for real estate agents. You can form mutually beneficial relationships by forming close links with local real estate agents. Arrange to meet with local agents and explain the benefits of your mortgage products. Introduce some of your clients to the real estate agents to create goodwill.
Other Referral Sources
Builders are a reliable source of mortgage referrals because they come into contact with prospective homebuyers who are looking to get financing to build their homes. Insurance agents can refer clients with existing mortgages who are planning to refinance and lower their rates. You can also contact the local office of the state housing department. Many states provide grants to low-income families who are buying homes. You can arrange to meet with local housing authority representatives and attempt to build a working relationship. In order for referral networks to become productive you must also send some of your own clients to meet the insurance agents, builders and real estate agents that find referrals for you.
Contact Past Customers
Review mortgage files of loans that you closed in the past and determine if any of the borrowers could benefit from refinancing. You can easily calculate monthly savings by using the current mortgage rates to determine the new payment amount. Call customers and let them know how much they could save. Also whenever you close a loan, give the borrower a few of your business cards and ask them to give your card to anyone they know who needs a mortgage. Happy customers make good referral sources.
Most counties have a website that contains a directory of public records. You can view existing mortgage liens by searching the public records database. Look at records for high-end neighborhoods to find people with adjustable-rate mortgages. When fixed rates are low, people with adjustable rates are often keen to refinance. You can cold call customers as long as they are not on the "Do Not call List." You can also mail refinance flyers to people who you are not able to call.
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