Mortgage Needs A Long-Term Strategy For Non-Transactional Times


Let’s do the math:
Typically there are 5-6M real estate transactions in a given year.
Current forecasts are estimating that transaction volume could be down 30-40% in 2023.
So we’re looking at 3.5-4M transactions next year.

On top of that, “consumers are increasingly pessimistic about both homebuying and home-selling conditions,” and the major real estate portals and nationwide lenders are ramping up efforts to bundle services, and cross market their portfolio of companies.

The funnel has narrowed, consumers are nervous, and competition is more fierce than ever.

Mortgage professionals are facing a new challenge in the current market. With fewer transactions taking place, lenders need to develop a strategy for maintaining their business during these non-transactional times. Lenders need to focus on maximizing their customer base and improving efficiency. By implementing the right strategies and technology, mortgage lenders can maintain a strong presence in the market even during slow periods.

Recently LenderLogix CEO Patrick O’Brien posted things he’d like to see less of from typical mortgage marketing. The full post is here, but he sums it up nicely:

Posts I’d like to see less of:

* “Did you know that you don’t need 20% down to buy a home?” (hint: yes, we know)

* “Now’s still a great time to buy a house!”

* “Don’t forget to turn back your clocks this weekend!” (we won’t)

* “In times like these you need an experienced loan officer…”

* “It’s National Cat Day!”

(He goes on to offer several very fine examples of excellent marketing ideas btw)

For the foreseeable future, this type of marketing will either (a) make you look like an outright buffoon; or (b) make you look insensitive and out of touch with reality. And, I think we can all agree that it’s time for all mortgage and real estate professionals to nix any “National <insert something here> Day” from their marketing arsenal.

Homeowners deserve more credit than typical mortgage marketing gives them.


Building Trust, Solving Problems, and Providing Value At Scale

While many mortgage professionals will buckle under the pressure of the current market headwinds, this is an opportunity to double down on providing value to your past clients (i.e. homeowners).

Building off of what O’Brien wrote, here’s a list of negatives that are actually opportunities (with the right mindset and technology in place):

  • The cost to acquire new customers is going to be insane.

No doubt, but good thing I have a database of amazing past clients (i.e. homeowners) that already know, like, and trust me.

  • Transactions could potentially be down 40%! Ugh!!

I am going to capture what transactions do exist by forming deeper relationships with top-producing real estate professionals, and being there for my clients no matter what life throws at them.

  • Zillow & Rocket are spending millions of dollars cross marketing their products and “Super App’s,” controlling the narrative, and picking off my clients.

Luckily I have technology, which allows me to provide the exact same one-stop-shop experience to my homeowners.

  • What am I supposed to talk about with my clients? They don’t want to talk about buying because interest rates are so darn high.

Good thing I have a platform that offers my clients education about the market and their equity, provides home services at the click of a button, and positions me as the trusted advisor for all things home.

Mortgage Business Decision Makers

As a decision maker for your mortgage business, consider how Milestones can support your growth in 2023. Competition is fierce and customer acquisition costs are on the rise, but that doesn’t mean you should throw your hands up in despair. This is the time to push the gas on growing the relationships you already have.

Areas Of Focus:

✅  Most people will simply be living in their home next year. Give your customers the  tools they need to focus on home management and equity building.

✅  Go beyond coffee & donuts, and provide your real estate partners with a one-stop-shop toolset that offers way more than equity monitoring. 

✅  Quit frustrating your clients with multiple tools to log into. Streamline your point solutions with a one-stop-shop for all things home.

✅  Solve problems and provide value through automated solutions that create two-way conversations at scale.

✅  Give your LO’s the opportunity to turn massive databases of refi customers into future purchasers.

✅  Life doesn’t care about interest rates. Sh*t will happen to your clients. Keep them educated about solutions to whatever life throws at them (e.g. HELOC’s).

Stop using multiple point solutions to help your clients understand their equity, or get moving-related services. Milestones offers a one-stop-shop platform for the entire homeowner journey, and is built to reflect the true nature of the mortgage business…relationships.

Your clients are more than just transactions. Show them.

Ready to learn about using hubs for your prospects and clients? Schedule a demo to learn more.