The debate continues whether higher interest rates will significantly impact housing demand. However, as the mortgage refinance market continues to dwindle, lenders will need to refocus to compete in a purchase-driven market. According to the Mortgage Bankers Association, refinances, which were 83 percent of all mortgage activity in mid-December, are down to 63 percent. Economists at the MBA estimate they could decline to a third of the total by the third quarter of 2014.
Driven by relationships rather than price, lenders will need to adapt their lending strategies to remain successful in the fundamentally different purchase market.
Purchasing a home is arguably one of the most important transactions in one’s life. When seeking new purchase business while competing on the basis of price and service, it will be essential for lenders to prove their ability to do their job well, while at the same time establishing character and trust with their prospective buyers. It takes several interactions with a person to establish these foundations, and when looking at significantly growing your business, that’s a lot of relationship management ahead of you.
Automatically sustain these new relationships.
That’s where robust mortgage CRM and marketing solutions come in. From the moment a new lead comes in, it’s essential to initiate immediate contact, and continue to nurture that lead throughout the entire loan process. Mortech provides a number of relationship management tools, from our Dynamic Pipeline, which helps you prioritize your leads based on lead source, status, and loan characteristics. The Dynamic Pipeline will keep your contact management organized by retrieving prospect details and rates, logging actions, and setting reminders, making sure you get the most reach out of every prospect.
While most lenders tend to do relationship building via phone; social media, emails, and having an up to date web presence are also what it takes to remain in the foreground of the competitive purchase mortgage landscape. With Mortech’s lead management solutions, you can send triggered, automated email campaigns based on lead source, include real-time rates for a prospects specific loan scenario, and inform potential borrowers in real-time of any rate changes. Want to keep your buyer informed and provide the resources they need to facilitate the borrowing process? Mortech’s Lender Websites can transform your webpage into a consumer portal, optimizing your web presence with customizable 1003 applications, mortgage calculators, loan officer searches, real-time rates, and more.
Are you equipped to build better relationships with borrowers, and convert more purchase leads? Relationship building can be a daunting and time consuming process, but with the right mortgage software technology and best practices in place, your company can succeed.