The challenges mortgage loan originators face over the remainder of 2024 are best summed up in Fannie Mae’s downgraded August forecast that projects 4.78 million home sales this year — similar to 2023 — and 5.19 million in 2025.
As a result, it’s vital for originators to close as many deals as possible in this year’s remaining months to meet their goals. With that in mind, here are five ways you can maximize your mortgage volume in a slow housing market:
1. Strengthen your online presence and emphasize a distinct niche.
After searching for homes online, more than one-third of homebuyers found their mortgage lender online in 2023 — a 10% increase from the previous year, according to Zillow’s latest Consumer Housing Trends Report.
Start by visiting Arch MI’s LO Toolbox — a resource for loan officers filled with helpful solutions and tools, including our detailed presentation on improving your digital presence, Social Media Strategies for Loan Originators.
Our presentation includes steps for boosting your Google readiness to improve your chances of appearing at the top of homebuyer searches for lenders in your area. It’s also important to highlight a specialty that suits your business experience. Real Trends identified the most promising and “profitable real estate niches to explore now,” including:
- First-time homebuyers — who are responsible for 32% of home sales in 2023, up from 26% in the previous year, according to NAR.
- Upscale properties, as nearly one in 10 homes (8.5%) are currently listed at $1 million or more, according to Redfin. The total number of homes worth at least $1 million rose to 8 million in June from 7.2 million homes one year earlier.
- Specialized client types, including investors, retirees or self-employed entrepreneurs.
2. “Give, give, give, then ask.”
With this online marketing technique — also called the value-first approach — you provide value to prospective customers by regularly sharing insights on your mortgage specialty using Facebook, Twitter or LinkedIn messages. The “ask” element is to occasionally promote specific products and solutions that could be valuable to your growing audience of followers. You can get more details in our Social Media Strategies for Loan Originators presentation.
Arch MI’s Social Media Templates are a good starting point for messages your customers will value, covering topics ranging from “How MI Increases Your Buying Power” to “Beat the Down Payment Blues with MI.”
According to HubSpot’s 2024 The State of Direct Marketing Report, successful B2C marketers are focused on specific types of messaging and favored platforms:
- The types of messages that produced the highest return on investment include short-form video (31%), images (22%), blogs (15%) and audio podcasts (14%).
- Facebook stands out as the most popular platform for marketers (57%) — followed by Instagram (55%), YouTube (52%), TikTok (44%) and LinkedIn (37%), HubSpot reports.
3. Focus on affordable homeownership products that set you apart.
For example, potential homebuyers say saving for a down payment is their top obstacle. You can offer Millennials and Gen Z buyers affordable low-down-payment loans using Arch MI’s Buy with MI.
- Flexible MI guidelines that work with down payments as low as 3%; gifts and grants allowed.
- Arch Mortgage Guaranty Company (AMGC) programs provide MI coverage for loans with down payments as low as 1% for eligible borrowers.
- Manufactured homes, condos, co-ops, single-family and construction-to-perm are all eligible.
Learn more about Arch MI’s Buy with MI at archmi.com/buywithmi.
4. Build on your industry knowledge.
Read HaMMR Digest weekly for the latest housing data and expert analysis on what the numbers actually mean from Arch Chief Economist Parker Ross. Each new issue is an opportunity to share his findings on the most current economic data with your social media audience.
Arch MI offers professional training to help you compete in today’s lending environment and keep current with the latest requirements from the GSEs and industry regulators. Whether you prefer live webinars, videos or podcasts, you can access our resources on the Arch MI Training webpage.
5. Provide exceptional customer service.
Building strong relationships with clients is crucial for success as a mortgage loan officer. Focus on delivering exceptional customer service by being responsive, transparent and proactive. Communicate regularly with your clients, keeping them informed about the progress of their loan applications. Going the extra mile to address their concerns and providing personalized solutions can help set you apart from competitors.
In a crowded marketplace with fewer origination opportunities, you win the deal by paying constant attention to what your customers care about. By embracing technology, building a strong online presence, providing exceptional service, staying current with industry knowledge and cultivating a referral network, you can position yourself as a top-notch mortgage loan officer in 2024.
Interact with us! Send us an email about strategies you’ve had success with this year. We’d love to share your experience with other Insights readers.
