4 ways to keep from sinking in today’s ugly market
Okay, this isn’t 2008 all over again but this is one of the ugliest housing markets we’ve seen in decades. We’re not going to try to put lipstick on the pig that is today’s mortgage market. However, as ghastly as the housing and mortgage market may be there are some practices mortgage professionals can put into place to weather the storm
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The U.S. is not alone when it comes to central banks hiking their interest rates. In fact, the Bank of Canada has hiked its overnight interest rate six times this year alone leading to the average home in Canada dropping by 22% in the last seven months. That’s why a recent article in the Canadian Mortgage Professional impressed me for avoiding a pollyanna-ish outlook while at the same time dispensing some constructive advice. Remember what’s bleak now will eventually improve. The question is how does one survive in today’s market? The first suggestion from the Canadian Mortgage Professional (CMP) magazine is one most salespeople fail at. Follow up. During the rush of HECM-to-HECM refinances here in the states it was easy to not follow up with our previous borrowers or professional connections. Generally, it was a capacity issue due to the glut of application activity triggered by historically-low interest rates. CMP says follow-up shows your existing clientele that you’re paying attention and that you’re not just in it for the money, but that you care. Borrowers who believe you care are more inclined to give you referrals. Automated reminders for follow-up can ease the burden which leads us to the next strategy. Mining your database. That is if you have a CRM or customer relationship manager you’ve made part of your daily business practice. If you have, then you can search for customers based on a defined value range of their home, outstanding mortgage balance, or location. Many may not qualify today but may in the future when rates eventually normalize or their outstanding mortgage balance has been reduced. Be sure to schedule a future follow-up each year. When it comes to CRMs the best one is the CRM you actually use day in and day out. That’s what our team here at Reverse Focus has said since we launched the industry’s flagship reverse mortgage CRM Sales Engine. To learn more click here. Next is to ask who may benefit by boosting their monthly cash flow. Those of you originating traditional loans could reach out to your younger mortgage clientele and ask how their parents are doing during this time of historic inflation and surging prices. Are they struggling to make ends meet? Are they drowning in credit card debt as interest charges surge? As noted in the article, empathy builds trust and opens the door to present potential solutions. Last is sales activity. The more interactions you initiate with potential borrowers or professionals the more likely you are to find sales opportunities. We can’t complain that we haven’t caught a single fish if we haven’t baited the line and cast it out into the water. Schedule meetings with area professionals, workshops in your communities, and outbound phone prospecting. In doing so you increase your odds of success. Certainly, it’s more painful in our ugly mortgage market, but the potential is found in sustained sales activity. Keeping one’s head above water in today’s market is no easy task, but it is achievable.
