“Take your online relationships offline and your offline relationships online.”

You also may be among the many who are soon faced with the prospect of having to uncover what’s next for your mortgage career. Real estate finance stands as an ever-evolving industry that is continuously influenced by market fluctuations, economic shifts and the dynamic nature of lending practices.

So, what do you do when you’re faced with a layoff or forced to make a change one way or another? Here are a few things to consider — regardless of whether you’re a mortgage originator or occupy another role in the industry — as you answer the question, “What’s next?”

Professional network

First, there’s nothing more important than expanding one’s professional network. In a world where connections are crucial, don’t underscore the fact that fruitful relationships can be cultivated outside the confines of one’s current workplace.

A common mistake is for mortgage professionals to believe they can’t have a relationship with a peer if they don’t work for the same company. Just because you aren’t on the same team doesn’t mean you can’t be friends. Team members sometimes leave and move on to other opportunities. How well you maintain these relationships is important to your future. You never know the bridges you may have to cross one day. With that in mind, don’t overlook opportunities to meet new people, expand your network and make connections just because you work with different companies.

You can achieve growth and thrive within the mortgage business by surrounding yourself with individuals who can challenge and elevate your skills. Those who are in your network may be able to hire you or know someone in a position to hire you.

Mortgage companies can often look very similar. They all tend to have great products, rates, tech stacks and culture, and they close loans on time. Don’t forget that people matter. It’s easier to align with people who are in your network because you’ll know whether or not you can trust them.

Be proactive and reach out to people with whom you haven’t previously crossed paths. Take your online relationships offline and your offline relationships online. Dispel the notion that professional relationships are confined solely to the workplace. Take the opportunity to learn from a broader array of industry experts, thereby expanding your knowledge base and perspectives.

Personal growth

The second step is the necessity of continuous learning. This business is about serving people. It doesn’t matter if you are in sales or operations. Everyone has a customer — it just may not be the end customer, the borrower. To be able to serve people at the highest levels, you need to continue to grow your skill set.

You can’t give people what you don’t have. It’s imperative to continually enhance your own skills to serve others effectively. Lending professionals, regardless of role, need to embrace various learning avenues such as reading books, articles and blogs, listening to podcasts and participating in educational events to remain at the forefront of the field. It’s important not just to be experienced but to be well rounded. The deeper you go in making a commitment to personal growth, the more versatile you’ll be in your specific role.

“In an industry as dynamic as the mortgage business, complacency is not an option. Your commitment to self-improvement illustrates that even seasoned professionals must continually sharpen their skills.”

Just like you create a business plan, you should also have a plan for growth. Identify areas of your personal and professional life that you want to improve, then generate a plan to help you grow in these specific areas. Make a commitment to read the books that will grow the skills you want. Decide which mortgage conferences you should attend and block off the time on your calendar now. Find other vehicles to help you learn the skills you want.

In an industry as dynamic as the mortgage business, complacency is not an option. Your commitment to self-improvement illustrates that even seasoned professionals must continually sharpen their skills.

Remain curious

Staying curious is the third and final element of this strategy. This approach involves questioning the status quo, being open-minded, considering alternative methods and challenging existing practices.

If you stay within the confines of one way of learning, you can confine yourself to a self-imposed box. Years of experience don’t always make you well rounded in that experience. Allow yourself to explore new possibilities and ways of doing things. You might be surprised to learn that you don’t know what you don’t know.

Just because you’ve done it one way for years doesn’t mean there may not be a better, faster or easier way that you’ve never considered. Expand your horizons, be willing to listen and be open to the idea that iron sharpens iron. Your peers have likely seen a thing or two in their experiences that could help you with an area of your business.

Put plainly, mortgage professionals should not shy away from exploring better ways of doing things. By maintaining curiosity, you can enhance your own practices while also contributing to the growth and innovation of your company and the industry. The mortgage business is not merely about adhering to established procedures; it’s about embracing change and being agile.

New horizons

Last year’s market conditions were as challenging as many have faced in their careers. There is a strong likelihood that it stays this way through the first quarter of 2024. The landscape will continue to change and you’ll continue to experience change across all echelons of the business.

No one will be exempt. Whether your role is mortgage originator, branch manager, underwriter, processor, sales support, marketing or leadership, these principles are universally applicable. The three pillars of this strategy — expanding one’s network, investing in continuous learning and staying curious — provide a clear road map for navigating the challenges of the mortgage business in 2024 and beyond. As the industry continues to evolve, it’s evident that adaptability and personal growth stand as the keys to success.

You should remind yourself that success in the mortgage business is not about competition against others; it’s a commitment to self-improvement and a willingness to explore new horizons. In this ever-evolving world, these qualities undoubtedly pave the path to success. ●

The post Look Inward to Answer, ‘What’s Next?’ appeared first on Scotsman Guide.

“When consumers use a housing counselor, they are more likely to obtain a mortgage and are less likely to default.”

Housing counselors prime borrowers for the costs of homeownership and help them retain their homes. Through either group or one-on-one sessions, counselors assist prospective buyers throughout the mortgage process, including the pre-application phase, the purchase search and the post-closing period.

Traditionally, housing counselors have played a particularly important role in helping borrowers avoid foreclosure by providing advice in default situations, but assistance is now growing in the pre-purchase space. Housing counselors are partnering with mortgage lenders and originators to help borrowers prepare for homeownership, creating home-ready clients who can work with lenders to fulfill their dream of homeownership.

Trained guidance

Housing counselors aid borrowers on a litany of issues, such as managing debt or improving credit, throughout the homebuying process. Counselors can connect consumers with key parties and give them the tools to become successful homeowners. Most importantly, housing counselors can help borrowers avoid foreclosure once they’re in a home.

On the pre-purchase side, housing counselors are trained to provide guidance on downpayment assistance programs and help the consumer understand the types of mortgages that are available. They help to build and maintain credit, and they also advise on the roles of the real estate agent and lender. They begin by getting an understanding of a client’s financial situation (including income, credit and debt) to best offer advice.

Their primary goals are to instill financial literacy; encourage budgeting and responsible financial behavior; provide information on the homebuying process; and prepare buyers for the unique maintenance challenges associated with owning a home. This information can help to promote the long-term sustainability of homeownership.

Counseling may be the best avenue for consumers who have been denied approval for a mortgage and require customized assistance. While there are many reasons that consumers would connect with a housing counselor, the two most common reasons are to find homebuyer assistance programs and to obtain help in qualifying for specific loan programs.

Inexperienced borrowers

Housing counselors are available to and used by people of all demographics, although they tend to be utilized more often by certain groups. African Americans, Hispanics, women and people from lower-income households tend to turn to a housing counselor more often than the general population.

The higher representation for these groups can be explained by their tendency to more frequently include first-time homebuyers or a limited family history of homeownership. This may also explain why these groups are more frequently subjected to predatory lending tactics.

While housing counselors have helped many consumers access homeownership, many Americans are unaware of these services. Additionally, the word “counseling” can provide a negative connotation to some people, as it indicates a problem that needs to be fixed and can be a deterrent to a consumer soliciting the services of a housing counselor.

Tangible value

Housing counselors play a key role for homeowners and renters alike, which is supported by studies that show the positive effects of using their services. The immediate positive effects of counseling are more responsible mortgage shopping and selection, better home maintenance, lower rates of loan default and more stabilized neighborhoods.

Another positive outcome of working with a housing counselor is support for groups who have historically had a harder time becoming homeowners. In general, counselors help to narrow homeownership gaps based on race, gender and income.

When looking at the tangible value that a housing counselor provides, buyers who receive guidance achieve significantly better loan performance than those who do not, all other factors being equal. Using delinquency rates as a primary measurement of loan performance, the Urban Institute’s 2001 study of mortgages originated through Freddie Mac’s affordable housing program found that individuals who received counseling were 19% less likely to have a 90-day delinquency, and they were 34% less likely to do so when they received one-on-one counseling.

A 2012 study from the U.S. Department of Housing and Urban Development (HUD) also showed that consumers who received pre- purchase counseling had better long-term outcomes. Furthermore, the earlier that counseling is started, the sooner people can do an affordability analysis and determine whether buying a home is the right option. A study released in 2013 through NeighborWorks, a nonprofit that supports community development programs, reported similar findings.

●●●

Housing counselors are an essential resource for many consumers during the home purchase and subsequent ownership processes. When consumers use a housing counselor, they are more likely to obtain a mortgage and are less likely to default. Additionally, historically disadvantaged communities are receiving assistance from counselors.

 In an ideal world, as consumer awareness expands on the benefits of housing counseling, anyone who wishes to consult with a counselor may do so. If you or a client wishes to find a housing counselor, visit the website of HUD’s Office of Housing Counseling. Increased knowledge about the value of this service would enable a larger percentage of the population to understand and feel comfortable using these services. ●

The post Many Borrowers Need This Extra Oomph appeared first on Scotsman Guide.

To increase Black homeownership, it is critical to address systemic issues such as fair housing laws, financial redress and inclusive zoning. Increasing Black homeownership is a social justice and economic growth strategy that can benefit everyone. Mortgage professionals can harness their collective expertise and influence to create change.

Through accessible loans, policy changes, affordable housing initiatives, credit score reform and community investments, mortgage professionals can make homeownership a reality for more Americans. More families can move closer to the American dream if lenders, originators and credit counselors work together to dismantle systemic barriers and promote inclusivity.

Positive optimism

Consumers are ready for change. Despite systemic barriers and bias in the housing market, a recent survey revealed that Black consumers (47%) are far more likely than whites (26%) to think that homeownership will become an option for them.

The online survey was conducted this past June by the National Foundation for Credit Counseling and was funded with a grant from Wells Fargo. The survey focused on 2,000 U.S. renters with household incomes of $75,000 or less. The parameters of the survey ensured that Black renters represented 25% of respondents.

The results were clear: Black consumers are open to homeownership education within their communities (e.g., workshops, financial counseling and affordable housing initiatives). Financial professionals of all types should look to connect them with the tools and resources to help them reach their goals.

Credit counseling can play a significant role in helping people secure a mortgage. Counselors are financial advocates who work to empower consumers to take charge of their finances through one-on-one reviews of credit card debt, student loans, housing decisions and overall money management. Connecting borrowers with certified credit counselors can go a long way to helping them achieve their goals.

Trust barrier

Mortgage professionals can support multicultural consumers in many ways along their path to homeownership. Buying a home is a major life decision that, for many multicultural families, involves everyone. Elders and children alike may attend meetings, ask questions, translate and offer opinions.

Mortgage professionals should listen to, learn about and embrace the unique cultural nuances of their clients. This can help make a traditionally stressful process less taxing. While cultural competency is good, cultural fluency is better.

Mortgage professionals should also confront the elephant in the room: racial bias. Along the journey to homeownership, your clients of color have likely encountered subtle and/or overt racism. Not only does this put them on guard, it also increases their skepticism of the lending process and makes the building of trust more challenging.

Acknowledging their lived experiences and fears is the first step in breaking this cycle. Avoid reflexive responses (e.g., “maybe that’s not what they meant”) in favor of statements like, “I hear you and acknowledge your experience,” to establish rapport.

Overall picture

Tell your clients about mortgage products designed to increase homeownership rates, especially among people of color. These programs aim to address the historic and systemic barriers that have limited their access to traditional home financing options. Such programs may have lower downpayment requirements, lower interest rates, flexible credit requirements and community support.

While retail banks issue the majority of home mortgages, there are a variety of funding sources that may better suit your client. Provide them with options that include government-supported initiatives. These can include mortgages through the Federal Housing Administration or U.S. Department of Veterans Affairs, as well as credit encouraged through the Community Reinvestment Act. Offer a complete overview of the loan products available to them.

Sometimes it’s best to press pause. If the client is simply not ready for homeownership, refer them to an accredited nonprofit housing and credit counseling professional who can work to get them financially ready. Counselors can work with clients on customized debt management plans that are designed to help them reach their goals.

These plans may include a review of the credit report, assessing their financial accounts, and preparing a customized budget to help them pay down debt and address areas of concern. These actions work to improve credit — and a higher credit score can make individuals more attractive to lenders, potentially qualifying them for better loan terms and interest rates.

Remain determined

Importantly, if a client isn’t approved for a loan product today, don’t give up on them. The current deficit on their financial record need not be permanent. Consumers often visit with credit counselors after being rejected for a mortgage. It’s best to encourage them to think of it as a “not yet” instead of a “no” and to get to work on reversing the trend.

Consumers need to establish a clear financial plan to better manage their expenses, pay down debt, and save for a downpayment and closing costs. These are essential components of the homebuying process.

Purchasing a home is a significant milestone in anyone’s life. It represents financial stability, a sense of accomplishment and generational wealth. Credit counselors and the mortgage industry can work together to help reduce homeownership disparities and promote economic empowerment in Black communities. ●

The post Your Voice Can Help Balance the Scales appeared first on Scotsman Guide.

“As a mortgage originator, you can instill confidence in your clients by offering a proactive solution that directly contributes to their financial well-being.”

Credit can be a minefield, but armed with the proper knowledge, you can help first-time homebuyers sidestep the money traps in wait. You’ll need to delve into the granular details of these traps, provide real-world examples, and offer practical solutions that empower you and your clients to make informed decisions.

Accurate assessment

Imagine a builder laying the foundation of a house without assessing the ground beneath it. Similarly, prospective homebuyers who don’t scrutinize their credit reports set themselves up for disappointment.

Encourage your clients to obtain credit reports from all three major bureaus — Equifax, TransUnion and Experian — and review them for inaccuracies. Even a minor error can lead to a higher interest rate or an outright loan rejection. Advise your clients to request their free annual credit reports and dispute any inaccuracies they find. A clean and accurate credit report is the bedrock of a solid financial foundation.

At the same time, many prospective homebuyers may neglect credit utilization. Think of credit utilization as the delicate balance between water and a boat. Too much water (high credit utilization) can sink the ship (credit score), while too little water can leave it stranded.

“Credit can be a minefield, but armed with the proper knowledge, you can help first-time homebuyers sidestep the money traps in wait.”

First-time buyers often fail to realize the impact of credit utilization on their scores. Encourage them to keep their credit card balances below 30% of the limit. Recommend they pay down high balances before applying for a mortgage. Doing so can improve their credit score and increase their chances of securing a favorable loan.

In the excitement of purchasing a new home, clients may be interested in offers for new credit cards or financing. Each new credit application triggers a hard inquiry, which can temporarily lower their credit score. Moreover, the average age of their credit accounts will decrease, potentially affecting their creditworthiness. Advise clients to hold off on opening new credit accounts until their mortgage is secured. Patience can pay off with a more robust credit profile.

Just as a homeowner wouldn’t demolish a structurally sound room, clients should be cautious about closing old credit accounts. The length of their credit history contributes to their credit score, and closing old accounts can shorten this history, potentially leading to a lower score. So, encourage clients to keep their old accounts open, even if they don’t use them regularly. A diverse and established credit history is a valuable asset.

Late or missed payments are like cracks in a home’s foundation, weakening the overall structure. One late payment can significantly dent a credit score and raise a red flag for lenders. To solve this, stress the importance of making payments on time, every time. Urge clients to set up reminders or automatic payments to stay on track.

Careful planning

Picture a homebuyer standing at the edge of a cliff, unable to proceed because they didn’t plan their route. Similarly, clients who don’t plan their credit moves ahead of the home purchase process might find themselves in a tight spot. So, suggest that clients get their credit in order at least six to 12 months before house hunting. This process may include paying down debts, resolving outstanding issues and building a solid credit history.

Some prospective borrowers, especially parents, may be inclined to co-sign loans for family and friends. Co-signing a loan might seem like a gesture of support, but it can have far-reaching consequences. The co-signed debt appears on your client’s credit report, potentially affecting their debt-to-income ratio and creditworthiness. Advise clients to carefully consider the implications before co-signing a loan. They must know their credit can be negatively impacted if the primary borrower defaults.

Closing costs can be a rude awakening for first-time buyers. It is essential to account for these expenses as they work to afford the upfront costs of homeownership. Educate clients about the closing costs of a home purchase. Advising them to have an emergency fund can help them navigate this financial hurdle.

Securing a preapproval is a green light for many clients to start shopping for their dream home. But they need to remember that their preapproval is based on their current financial situation. Warn clients against making significant purchases or taking on new debt after preapproval. These actions can alter their financial picture, jeopardizing the final mortgage approval.

Imagine adding extra support beams to a house, strengthening its foundation. In the realm of credit, first-time homebuyers often overlook an invaluable opportunity to fortify their profiles by including nontraditional data such as rent payments, cell phone bills and utility bills. While landlords aren’t obligated to report on-time rental payments, credit bureaus offer programs that make it a breeze to add this data. One such game-changer is Experian Boost, which opens the door to significant credit score enhancements by factoring in these previously unaccounted-for payments.

As a mortgage originator, you can be the bearer of exciting news to your clients. Have them explore options like Experian Boost to tap into this hidden potential. This tool allows them to grant permission for the credit bureau to access their bank account and identify eligible payments. Your clients can add up to 24 months of past rent payments to their credit history, potentially turning this often-missed credit-building opportunity into a formidable advantage.

Potential boost

Imagine a client, Emma, who is excited about purchasing her first home. Her credit score, however, is hovering slightly below the threshold for favorable mortgage terms. But there are ways that you can help her. Mortgage originators have an opportunity to introduce clients to an invaluable credit-boosting tool.

Upon your recommendation, she explores Experian Boost and adds 24 months of consistent rent payments to her credit report. Her credit score climbs by 40 points in only two months, opening doors to better interest rates and loan options. Emma’s journey is a testament to the real-world impact of proactive credit-building strategies on a first-time homebuyer’s dreams.

Here’s how it works: Clients grant permission to access their bank account transaction data. The access needed is solely to identify eligible payments that can be included in their credit profile. The credit bureau analyzes the transactions and identifies recurring payments such as rent, cell phone and utility bills. These payments are generally not reported to the credit bureaus through traditional means. TransUnion has a similar version called TruVision, while Equifax works with third-party vendors to report this information.

The credit bureau then presents a list of identifiable charges to the client for confirmation. The consumer has complete control over which payments they want to include in their credit report. Once the client confirms the charges, the data is incorporated into their credit profile. This additional information can have a notable impact on their credit score.

Experian reports that, on average, clients who use Boost see an instant credit score improvement of 13 points, but it can eventually range up to 50 points or more. This enhancement can lead to more favorable loan terms and interest rates. The increase doesn’t take years to materialize. Many clients experience the benefits within 45 to 90 days, making it a relatively quick solution for those looking to buy a home soon.

For first-time buyers, these credit-building tools can help create a more positive credit history. The inclusion of timely rent payments showcases responsible financial behavior that lenders appreciate. As a mortgage originator, you can instill confidence in your clients by offering a proactive solution that directly contributes to their financial well-being.

● ● ●

Mortgage originators are not only financial guides — they’re also navigators of the turbulent waters of credit and homeownership. With these insights, you can empower clients to make intelligent financial decisions.

Each avoided trap brings them closer to achieving their dreams of a new home without the credit quagmires that often sink the unprepared. So, go forth and be the beacon of credit wisdom your clients need to walk their homeownership path with confidence. ●

The post Stuck in Quicksand appeared first on Scotsman Guide.

If they aren’t addressed, these uncertainties can weigh heavily on the minds of borrowers and deflate their confidence in the lending process. In recognizing the transformative power of effective collaboration and communication, mortgage originators must prioritize both speed and quality in their interactions with borrowers.

“Each team member in the lending process should have a clear understanding of their role. This creates a sense of purpose, fosters accountability and builds trust.”

By breaking down silos and fostering teamwork, originators can navigate the challenges of today’s real estate market and set themselves apart from the competition. There’s power in collaboration — and there are tangible strategies that can propel you to claim that power with confidence.

Heart of success

Collaboration lies at the heart of success in the mortgage industry. By working together as a team, mortgage professionals can unlock a wealth of benefits and overcome the limitations of operating in silos. The power of collaboration stems from the collective knowledge, expertise and perspectives of individuals coming together to tackle challenges and achieve shared goals.

When originators work in isolation, it hinders progress and limits the potential for innovation and growth. They miss out on valuable insights and opportunities for synergy. Collaboration, on the other hand, fosters an environment where ideas can be shared, best practices can be exchanged and creative solutions can be developed.

“Cooperative community teams require regular strategy sessions to have open dialogue, exchange ideas and generate solutions.”

By embracing collaboration, mortgage professionals can enhance their ability to deliver exceptional client experiences. Collaborative teams have a broader understanding of the mortgage process and can provide comprehensive solutions tailored to the unique needs of their clients. This leads to improved client satisfaction, increased referrals, and long-term relationships built on trust and mutual success.

Collaboration in the mortgage industry is vital to overcoming the issue of declining home affordability and ensuing buyer uncertainty. Proactive and transparent communication between lenders, originators and other key stakeholders (such as homebuilders) can move borrowers away from fear and uncertainty and toward possibility and confident action. In short, concerns must be addressed head-on.

Clear and consistent

By establishing clear guidelines, defining roles and responsibilities, and creating optimal workflows, mortgage professionals can deliver a consistent experience for borrowers. Effective communication lies at the core of developing these protocols.

Clear expectations and channels for communication, such as regular meetings or dedicated platforms, allow information to flow seamlessly between all parties. This keeps everyone connected throughout the mortgage journey. Lenders must integrate into the entire process rather than becoming ancillary after the homebuyer has committed.

Each team member in the lending process should have a clear understanding of their role. This creates a sense of purpose, fosters accountability and builds trust. By working together in a coordinated manner, mortgage professionals can leverage their collective strengths and achieve common goals.

Creating a consistent and streamlined mortgage process is the ultimate objective of protocol development. By mapping out the steps involved, identifying potential bottlenecks and streamlining workflows, mortgage teams can be more efficient and make fewer errors. A consistent process ensures that borrowers receive a standardized and exceptional experience, regardless of the individuals involved.

Collaboration and input from all stakeholders are crucial in developing effective protocols. By engaging in open discussions, sharing best practices and leveraging the collective expertise of the team, mortgage professionals can establish protocols that are practical, flexible and aligned with industry best practices.

Power of community

One way to think holistically about collaboration is the concept of “community teams.” These are cross-functional groups consisting of mortgage professionals, real estate agents and other industry experts.

The purpose is to bring together individuals with diverse skills and perspectives to collectively tackle the challenges of the home purchase process. These teams facilitate effective communication, encourage knowledge sharing and foster a sense of camaraderie among all stakeholders.

Within community teams, mortgage originators have a unique opportunity to leverage the strengths of their peers. By collaborating closely with real estate agents, homebuilders and other parties, originators gain valuable insights into market trends, buyer preferences and challenges faced during the homebuying journey. These partnerships enable mortgage professionals to tailor their services, provide timely solutions and exceed client expectations.

Cooperative community teams require regular strategy sessions to have open dialogue, exchange ideas and generate solutions. Shared goals are developed in these sessions that promote a sense of collective responsibility and accountability while building relationships based on trust and mutual respect.

Mortgage originators can tap into a wealth of knowledge and resources with these community teams. It’s a nontraditional structure that should become the new standard of excellence in the mortgage industry by creating more personal and collective fulfillment.

Five practical steps

Enhanced teamwork among mortgage professionals is crucial for business success. By implementing practical steps to improve collaboration, they can foster a culture of teamwork and drive exceptional results. Here are five action items for achieving these goals.

Build open communication channels. Clear and open lines of communication solve the problems that break many teams. There’s no end to the networking tools that might work for your team, but technology evolves rapidly over time, so find what works without getting too attached. What matters most is to be prompt and consistent with team members and clients.

Align goals. This is vital to ensure that everyone is working toward a common objective. Clearly define team goals and objectives that align with the organization’s overall vision. Regularly communicate these goals to the team and emphasize the importance of collaboration in achieving them. This builds bonds that add greater purpose and unity for everyone involved.

Leverage shared knowledge. The purpose of collaboration is to expand access to information and ideas, which can snowball into an expansive vision beyond what any single person is capable of conceptualizing. Encourage the sharing of insights and best practices for the betterment of the group rather than glorifying gatekeeper behavior, which can isolate team members and derail everyone’s success.

Promote accountability. Create plans that communicate expectations and deadlines clearly and frequently. Accountability shouldn’t be viewed as micromanagement or limiting to someone’s sense of autonomy. Instead, view it as a system of support. Celebrate those who seek help since it’s a sign that people support each other and trust each other to perform well.

Cultivate cooperation. Encourage collaboration and cooperation by fostering a supportive and inclusive team environment. Recognize team achievements, encourage cross-functional collaboration and create time for team-building activities.

Avoid silo syndrome

The prevention of common and recurring mistakes can help to foster effective teamwork and communication. By recognizing the importance of open communication, breaking down departmental silos and leveraging technology, mortgage teams can navigate the challenges of today’s market and stand out from the competition.

In a complex and dynamic mortgage landscape, the industry demands seamless collaboration and effective communication among lending professionals, real estate agents other stakeholders. When it comes to the issue of affordability, lenders play a key role in reducing uncertainty. They have a unique opportunity to educate and engage homebuyers about the loan process, helping clients to feel informed and optimistic about navigating the journey.

By fostering a collaborative mindset and utilizing technology to bridge gaps and facilitate information sharing, mortgage professionals can break free from the silo syndrome. Embracing strong strategies will enhance efficiency, improve decisionmaking and ultimately create exceptional borrower experiences.

As mortgage originators begin to synchronize efforts with their teams, they position themselves to navigate market uncertainty with confidence. When they open themselves to these practical strategies, it won’t matter how much perceived certainty exists. The benefits of working together in a more integrated system cannot be underestimated. When you step away from an isolated mindset and lean into a truly community-oriented team, you can forge a path of success with untold rewards. ●

The post Make More Time for the Team appeared first on Scotsman Guide.

It’s highly recommended to dedicate these 14 minutes a day to reading. Knowledge is transformative, and reading is one of the easiest and best ways to begin improvement in your life and business. It’s remarkable how such a seemingly small commitment can lead to significant growth over time.

“Through reading, we can learn from the triumphs and failures of others, gaining insights that can propel us further on our own journeys.”

Whether it’s a captivating novel, a thought-provoking nonfiction book or even an informative article, reading can take you on a journey of discovery, opening your mind to new ideas, perspectives and possibilities. For commercial mortgage professionals, books can both broaden and deepen your understanding of real estate investment strategies, as well as loan variables and guidelines. Combined with the ongoing learning you do already — by reading industry news and taking professional development courses — the right books can help you predict industry trends, improve service and strengthen your knowledge.

Book benefits

When thinking about the vast array of books that exist, it’s awe inspiring to realize that almost any topic you can imagine has likely been explored and written about. These literary treasures enable readers to tap into the wisdom and experience of others, providing invaluable inspiration, guidance and life lessons.

One benefit of reading is that it doesn’t have to break the bank. You can access many of these resources for free; your local library likely has dozens of books on commercial real estate available in physical, e-book and audiobook formats. Librarians can also assist you with research if you want to dig deeper into a specific topic. If you find a book you’d like to keep, head to the bookstore and purchase it for your personal library.

Through reading, we can learn from the triumphs and failures of others, gaining insights that can propel us further on our own journeys. Instead of reinventing the wheel, we can stand on the shoulders of those who have come before us, absorbing their knowledge and applying it to our own lives. Essentially, you’re starting at a higher level of learning and accelerating the progress toward your goals.

Remember, alongside book reading, it’s crucial to stay up to date on industry news, regulations and trends. It’s helpful to regularly follow reputable financial publications, stay engaged with industry websites, and participate in seminars, classes and conferences. Pair these resources with a commitment to learning via reading and you can provide exceptional service, anticipate market shifts and elevate your expertise as a mortgage professional.

The impact of reading goes beyond professional growth: It benefits our communication skills, empathy and overall well-being. By engaging with different writing styles and diverse perspectives, vocabulary expands, critical thinking skills sharpen and the ability to connect with others deepens.

Reading also promotes relaxation and stress reduction. Especially when reading for fun, it can be a form of escapism, allowing you to immerse yourself in captivating stories and explore new realms. Moreover, reading before bed can improve sleep quality.

Spare moments

If you ever find yourself thinking that you don’t have enough time to read for just 14 minutes a day, consider the wonders of audiobooks. With their growing popularity, building an audiobook library can enable you to immerse yourself in captivating stories during your commute, during household chores or any time you have a free moment.

Speaking of commutes, that journey (whether it’s 15 minutes, 30 minutes or more) presents a valuable opportunity to absorb knowledge through audiobooks. Even brief daily sessions add up to a wealth of information over time, allowing you to explore a vast range of subjects and acquire new skills.

The brain is like a computer that functions based on what we program into it. By consciously choosing to fill our minds with positive, enriching content, we pave the way for personal growth and become more well-rounded individuals. Learning is a continuous process and every bit of knowledge gained adds to your overall understanding. So, embrace your commute as an opportunity to engage in self-improvement and expand your horizons through the power of audiobooks.

As author and motivational speaker Zig Ziglar said, “Your input affects your outlook, your outlook affects your output and your output affects your destiny.” Embrace this quote in your growth journey and understand how the books you read can get you to where you want to be.

Reading list

As a mortgage professional, it’s crucial to understand the importance of continuous learning and being informed about this ever-evolving industry. If you’re looking for books to enhance your knowledge and professional growth, here are some recommendations:

• “The Mortgage Encyclopedia: The Authoritative Guide to Mortgage Programs, Practices, Prices, and Pitfalls,” by Jack Guttentag. This comprehensive guide is a go-to resource for expanding your understanding of mortgage programs, regulations and industry terminology. It’s an invaluable companion for navigating the complexities of the field.

• “Commercial Mortgages 101: Everything You Need to Know to Create a Winning Loan Request Package,” by Michael Reinhard. This book offers a comprehensive overview to understanding the intricacies of commercial mortgages. It covers topics such as loan request preparation, underwriting, risk assessment and the overall process of securing a commercial real estate loan.

• “The Handbook of Commercial Real Estate Investing: State of the Art Standards for Investment Transactions, Asset Management, and Financial Reporting,” by John McMahan. While not exclusively focused on lending, this handbook provides a wealth of insights into commercial real estate investments, including financing strategies and the financial aspects of the industry at large. It’s a valuable resource for gaining a holistic understanding of the commercial real estate landscape.

• “Mastering the Art of Commercial Real Estate Investing: How to Successfully Build Wealth and Grow Passive Income from Your Rental Properties,” by Doug Marshall. This book explores various aspects of commercial real estate investing, including financing options and strategies. It offers practical advice for navigating the financing side of commercial properties, making it useful for those interested in mortgage lending.

• “The Real Estate Game: The Intelligent Guide to Decision-Making and Investment,” by William J. Poorvu. Not solely focused on mortgages, this book offers a broader perspective on real estate. Understanding the broader landscape and investment strategies can allow you to offer more holistic advice to clients.

There are many other books that are well worth the read. You can find further recommendations online, at the library, and in the collections of your industry peers and mentors.

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Embrace the power of reading and let it transport you to uncharted territories within yourself, your business and the vast realms of literature. Enjoy it, and remember, it only takes 1% of your day. ●

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The truth is that to be the best in your field, the competition is not your colleagues or other companies. You are your own competition. If originators focus on bettering themselves rather than comparing themselves to others, they will already be far ahead of others in their field of expertise.

“If commercial mortgage brokers strive to become 1% better each day for an entire year, the cumulative effect of their daily improvements can be remarkable.”

By viewing themselves as their own competition, mortgage originators embrace a mindset of continuous growth and development. They recognize that their progress is not measured by how they stack up against others but by how much they now compare to their past selves.

A process known as the “1% better strategy” is a simple yet effective way for anyone to build knowledge and abilities. All the program entails is for participants to spend 14 minutes per day — about 1% of each 24-hour period — focusing on improving their skills and know-how. If participants can commit to staying with the process, they will see results.

Daily process

Each day, people can implement this strategy to make incremental progress and become a little better than they were the day before. Ultimately, adopting the belief that “you are your own competition” allows them to focus on their own progress, development and happiness. It frees them from the constraints of comparison, and it empowers them to create a fulfilling and meaningful life based on their own unique aspirations and values.

By spending just 14 minutes per day to improve themselves, those who implement the 1% better strategy can experience numerous benefits. The following list of benefits are just some of the advantages that people who use the program experience.

One of the main benefits is continuous growth. Consistently investing time to improve yourself, even in small increments, can lead to significant long-term growth. By aiming to be 1% better each day, participants accumulate progress over time and develop a habit of continuous improvement.

The process works well with incremental achievements. Focusing on small, achievable goals helps participants build momentum and maintain motivation. The 1% improvement approach allows you to set realistic targets and experience a sense of accomplishment as you reach them.

It also helps in skill development. Devoting regular time to enhance your skills or learn something new can have a profound impact on one’s personal and professional life. Whether it’s learning a new language, developing a talent or acquiring new knowledge, 14 minutes a day adds up to considerable progress over weeks, months and years.

Personal improvement

As those working the program witness progress, they will experience many pleasant surprises. This may include the growth of their self-confidence and self-belief. Knowing that they are consistently working on self-improvement can positively impact their mindset and overall sense of well-being.

Spending time each day to learn and grow expands one’s knowledge and broadens perspectives. It allows you to stay curious, adapt to new challenges and be open to fresh ideas. Taking deliberate steps to better oneself can lead to a greater sense of personal fulfillment and satisfaction. This self-improvement journey, no matter how small, can bring a sense of purpose and meaning to one’s life.

The program can lead to long-term successes. Continuous self-improvement, even in small increments, can have a compounding effect over time. The accumulation of marginal gains can lead to significant advancements in various areas of your life, including career, relationships, health and personal development.

By dedicating a specific amount of time each day to self-improvement, people often become more focused and efficient in utilizing their time, making a positive impact on their overall performance. This increased productivity can spill over into other aspects of their life and make them happier people.

Impact over time

The 1% better approach is not just about the time you spend actively improving yourself but also about the mindset it cultivates. If commercial mortgage brokers strive to become 1% better each day for an entire year, the cumulative effect of their daily improvements can be remarkable.

By consistently becoming 1% better each day, they would reach a theoretical growth level many times greater than where they began. This represents substantial improvement over the course of a year.

It’s important to note that this process doesn’t assume a linear progression of improvement. There will be many potential fluctuations and plateaus. The process by which humans learn and develop skills can be complex and not always easily understood. Nonetheless, this process demonstrates the significant impact that small daily improvements can have when compounded over time.

Getting started

It may seem as if 14 minutes is being described as a “magic” amount of time. That is because 14 minutes represents about 1% of your day. And utilizing just 1% of your day for these self-improvement tasks can lead to a major increase in your abilities in only one year. One way to get started is to use this time in the morning to plan your day. This can be an effective time management strategy that offers several benefits.

First, it helps lead to an efficient use of time. Dedicating a period of time to plan the day allows people to make the most of their time. It’s a relatively short period that provides enough space to outline a person’s priorities and tasks without being overly time-consuming. By investing this small amount of time upfront, anyone can increase their productivity throughout the day.

Second, planning the day helps bring clarity to one’s goals and priorities. By spending a few minutes to reflect on what needs to be accomplished, you can identify the most important tasks, then allocate time and resources accordingly. This clarity enables people to focus on what truly matters, minimizing distractions and increasing their efficiency.

Third, planning allows for prioritization of tasks based on importance and urgency. By allocating time to critical activities, people can ensure that they address the most significant responsibilities first. This approach helps prevent procrastination and ensures that essential tasks are not overlooked.

Planning the day in advance can reduce stress levels. By having a clear road map and knowing what to expect, one is less likely to feel overwhelmed or caught off guard by unexpected events. The act of planning in and of itself can provide a sense of control and calmness, allowing one to approach the day with a more composed mindset.

Effective management

Allocating specific time slots for tasks during a planning session helps to manage time effectively. By estimating how much time each activity requires, people can distribute their available time more efficiently and avoid overcommitting themselves. This approach fosters a sense of discipline and helps participants stay on track throughout the day.

While planning the day, one can anticipate potential challenges or conflicts that may arise. This foresight enables more adaptable and proactive strategies for handling unforeseen circumstances. If unexpected tasks or disruptions occur, having a plan in place allows for adjustments to schedules and the ability to make informed decisions more easily.

A study by the University of California at Irvine found that it takes more than 23 minutes to return to an original task after being disturbed or interrupted. Having a plan gets you back on track in a lot less time.

Spending these 14 minutes to plan your day also ensures that your daily actions align with your larger goals and objectives. It helps you stay focused on the bigger picture and ensures that your daily activities contribute to your long-term aspirations. This alignment enhances your sense of purpose and keeps you motivated.

Remember, the specific time duration for planning can vary based on individual preferences and needs. The key is to find a dedicated period that works for you. It should allow you to efficiently organize your tasks, prioritize effectively, and start each day with clarity and intention.

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There is an old saying that “the best time to plant a tree was 20 years ago and the second-best time to plant a tree is today.” There is no time like the present for commercial mortgage professionals to start reaching toward their life and career goals by committing to a 1% improvement in whatever area they choose. Beginning today will start them on the road to winning the competition to be their best selves. ●

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“We needed to be brash and a bit aggressive to get people’s attention and make sure that they knew what problems existed.”

AIME has grown to a point that it’s being invited into “conversations that are meaningful,” said Katie Sweeney, the nonprofit’s CEO. For its first couple of years, she felt the group looked to garner as much attention as possible.

“We needed to be brash and a bit aggressive to get people’s attention and make sure that they knew what problems existed,” Sweeney said. “I think the last three years, we’ve really focused on moving on from talking about what needs to be fixed to actually fixing those things.”

Scotsman Guide spoke to Sweeney about the mortgage business, how brokers help homebuyers and how AIME supports brokers. She also discussed AIME’s annual National Mortgage Broker Day, which is held July 18.

What is the main challenge facing the mortgage industry at the moment?

We’re seeing challenges from all angles. Brokers are not immune to a lot of these struggles. Specific to the housing space, there’s a lack of inventory. There’s obviously been a change in interest rates from what people have been accustomed to over the last few years. So, there’s hesitancy on the consumer side.

How do brokers overcome that?

They tend to be much more agile. When you have a higher rate environment or purchase market environment, which is what we’re seeing right now, the overhead tends to be much, much lower than you see at large retail lenders. The ability to pivot and move quickly exists on the broker side much more often than you see with some of the larger retail lenders or the banks.

Why are you optimistic about the broker channel?

When you look at small businesses, and the tenacity and the grit that comes along with being successful, you don’t find people more passionate than the ones who serve their neighbors and work with their local communities.

How does AIME help with that?

We’ve got everything from education and training to advocacy efforts to make sure we’re protecting your business model. We have the ability to connect you with lenders that offer different products and to make sure that you have the community support that’s necessary.

One of your focal points has been to increase diversity in the business. How do you do that?

Our objective is to make sure the housing industry, and the mortgage industry specifically, look like the consumers that are purchasing homes today. Lots of people don’t even know this is a career path that’s available for them. We focus on training to make sure that we’re bringing people in from the communities that lack representation. Then the next step is helping to start businesses.

What other initiatives is AIME undertaking?

The focus is on making sure that our members have access to the best education available and that they’re implementing that into practice when working with consumers. AIME Academy, along with our advocacy efforts, are definitely the focus and the goal this year.

Tell us about AIME’s National Broker Day.

Typically, we’ve celebrated on July 18th in different cities across the country. This year, we are bringing our state captains, our VIPs, many of our most engaged members out to (Washington, D.C.). On National Mortgage Broker Day, we’ll be doing a full day of what we call ‘flooding the Hill.’ We have probably 50 meetings set up with legislators, talking about the things that matter back home.

There’s an online element, right?

We’ll have social media graphics and ways that you can engage with members from different areas of the country. We’ll have local happy hours that are taking place to bring our members together back home in their states, if they’re not able to join us in D.C. We really just want to spread the word and make sure that everybody is aware of the opportunity that comes with working with a mortgage broker. ●

The post Q&A: Katie Sweeney, Association of Independent Mortgage Experts appeared first on Scotsman Guide.

In Episode 005 of the Scotsman Guide Author Showcase, Carl White interviews Megan L. Stevenson of Preferred Systems Inc. about her article, “Hit the Books,” in the June 2023 issue of Scotsman Guide Residential Edition.

Megan L. Stevenson is vice president of Preferred Systems Inc. and is responsible for managing its national education programs. The company’s LendingInstructors program is a turnkey service that enables mortgage lenders throughout the U.S. to establish and manage a continuing education program. Preferred Systems handles all paperwork and administrative tasks, including instructor and course filings, course offerings notifications, credit filings for agents and ongoing customer support. Learn more at lendinginstructors.com.

The post Author Showcase: Megan L. Stevenson, Preferred Systems Inc. appeared first on Scotsman Guide.

Continuing education is a requirement for licensed agents to renew their credentials. These courses provide agents with the most recent industry updates, trends and regulations. They can be an excellent opportunity for originators to connect with agents and offer their services.

“Originators can offer courses on current mortgage options, the intricacies of loan underwriting, credit-score optimization, financial planning and real estate market analysis, among other topics.”

Originator-taught courses will satisfy some of the credit requirements for real estate agents. It all depends on the state, but most states have core and elective credits. In the states with the fewest requirements, the core content involves ethics and laws, which are not taught by originators.

In some states, however, originators will be able to satisfy an agent’s entire elective requirement. Other states have some lending topics in their lists of core courses, so in these locations, originators will be able to satisfy all of the elective credits and some of the core requirements.

Valuable information

Agents are constantly seeking to improve their knowledge and skills so they can better serve homebuyers. Originators can capitalize on this by offering courses that provide valuable information and insights.

To ensure that the content is relevant, stay up to date with the newest trends and changes in the real estate industry. Originators can do this by monitoring industry publications, attending industry events, and working closely with real estate agents to understand their referral partners’ needs and preferences.

The content offered should cover a range of topics. Originators can offer courses on current mortgage options, the intricacies of loan underwriting, credit-score optimization, financial planning and real estate market analysis, among other topics. These courses can provide agents with a broad range of knowledge and skills that they can apply to their work to better serve clients.

Remember, agents are busy professionals, and they need courses that are engaging and easy to understand. Mortgage originators can offer content in a variety of formats, including videos, podcasts, webinars and interactive online courses, which will make the learning experience more enjoyable and effective.

Trusted resource

Building trust is essential when marketing to real estate agents through continuing education. Originators and lenders need to focus on establishing themselves as useful resources. This is crucial because agents are more likely to recommend originators they trust to their clients, which can lead to increased business.

To do this, mortgage originators should prioritize providing high-quality content that is both informative and useful. Originators need to ensure that their courses and resources are relevant to agents and homebuyers, and they should provide value beyond simply promoting their services.

In addition to offering informative courses, originators need to create open lines of communication with real estate agents. They should be available to answer questions and provide guidance as needed. By providing agents with the information they need to better serve their clients, originators can establish themselves as experts in the industry.

It is also important for mortgage originators and lenders to be transparent and honest in their dealings with agents. For instance, if a lender offers a special incentive or program, they should be clear about the terms and conditions while avoiding any hidden fees or charges.

Lastly, lenders should prioritize delivering a positive borrower experience. By providing exceptional service, originators can build a strong reputation that can lead to more referrals and repeat business. This includes offering timely and efficient loan processing, being responsive to questions and concerns, and communicating regularly throughout the loan process.

Becoming a trusted resource requires a combination of high-quality content, open communication, transparency and exceptional service. By prioritizing these elements, mortgage originators can build strong relationships with real estate agents and establish themselves as a reliable partner in the industry.

Online presence

Creating a strong online presence is an important element of marketing to real estate agents through continuing education. With so much of the industry now operating online, mortgage originators need to ensure they have a professional web presence that agents can easily find and engage with.

A professional website is the cornerstone of a strong online presence. Lenders should ensure their website is easy to navigate, visually appealing and provides all the necessary information about their services. It’s important to ensure that the website is mobile-friendly since many agents rely on their mobile devices while on the go.

Social media is an excellent tool for engaging with real estate agents. Lenders can use social media to share educational content, provide updates on their services and engage in conversations with agents. Platforms such as LinkedIn, Twitter and Facebook can be particularly useful for reaching agents and building relationships.

“Incentives can serve as a powerful marketing tool. They can motivate agents to attend continuing education courses.”

Blogging is a great way to establish yourself as a thought leader in the industry. Originators can use their blog to share insights and opinions on recent industry trends, which can prove to be useful information for agents. A well-maintained blog can help drive traffic to an originator’s website.

Video is becoming an increasingly popular format for delivering educational content. Originators can create informative videos that cover a range of topics, such as the mortgage process, loan underwriting and credit-score optimization. These videos can be shared on the originator’s website, social media channels and YouTube, reaching a wide audience of real estate agents.

Search engine optimization (SEO) is the process of optimizing a website so that it ranks higher in search engine results. By optimizing their website for SEO, originators can improve their online visibility and make it easier for agents to find them when searching for mortgage-related services.

Industry conferences

Attendance at industry events is a valuable strategy for marketing to real estate agents. These events offer an excellent opportunity to meet and network with agents, establish new relationships and deepen existing ones.

Mortgage originators and lenders can offer continuing education courses at industry events, providing valuable content for agents. These courses also can cover a range of topics from mortgage regulations to underwriting guidelines and loan programs.

Industry events often feature panel discussions on relevant topics, such as market trends, industry regulations and best practices. Originators can participate in these discussions, sharing their insights and expertise with agents.

Originators and lenders can also sponsor industry events, providing financial support and resources to help make the event a success. This can help to build brand awareness and establish the originator or lender as a reputable partner in the industry. These events often include time for originators and real estate agents to meet in a more relaxed setting.

Originators can also provide marketing materials (such as brochures, flyers and promotional items) at industry events. These materials can help to promote an originator’s services while giving agents a tangible reminder of their interaction with the lender.

Door drawings

Incentives can serve as a powerful marketing tool. They can motivate agents to attend continuing education courses and engage with mortgage originators, building strong relationships that can lead to more business.

Originators can provide gift cards or prizes to agents who attend their continuing education courses or participate in other promotional events. These gifts can include anything from restaurant gift cards to high-end electronics. Originators can also partner with other businesses to offer joint incentives to agents. The value of the gift or prize should be commensurate with the effort required from the agent.

The Consumer Financial Protection Bureau generally prohibits gifts from originators to referral sources, but the prohibition does not include “normal promotional and educational activities.” Gifts cannot be given on the condition of referral business or defrayed expenses that would otherwise be incurred by the referral partner. As always, check with your internal compliance professionals.

Utilizing continuing education to market to real estate agents can be an effective strategy for mortgage originators and lenders in a stagnant market. By offering relevant and valuable content, establishing themselves as a trusted resource, creating a strong online presence, attending industry events and offering incentives, originators can connect with agents and generate new business. ●

The post Hit the Books appeared first on Scotsman Guide.