We Must Go Beyond Loan Manufacturing
The mortgage industry is at a pivotal crossroads. Over 90% of lender technology budgets are consumed by loan manufacturing tech, with most of the technology spent on LOS, POS, PPE, and other technologies to manufacture loans. This underscores a significant industry-wide issue: professionals are not paying enough attention to essential processes that happen BEFORE loan manufacturing.
The Current State: Challenging Trends in the Mortgage Industry
The Status Quo is not the path forward. Time to Think Different and Revolutionizing Mortgage Lending for the Modern Era
These challenges raise an important question: How can mortgage professionals evolve from transaction-focused to data-driven mortgage advisors who significantly enhance the borrower experience and improve business outcomes?
It’s time for lenders to rethink and evolve their leadership and technology investments. From the time they take an app, the focus is traditionally on compliance and the ability to sell the loan on the secondary market—which is definitely essential. But in this profit-crisis market, it’s critical to go beyond the transaction, helping the borrower reach their financial goals while achieving overall loan processing efficiency.
I propose strategically reallocating leadership and tech resources to technology like Mortgage Coach and TrustEngine . These platforms allow loan officers to meet customers where they are and provide the best advice, transforming their focus from costs to coaching.
A recent case study by Matt Clarke with Churchill Mortgage over the past year. This shows that turning loan officers into TrustEngine -powered Mortgage Coaches on a large scale significantly boosts profit.
The Churchill case study, among many others, demonstrates how an enhanced focus on strategic tech increased gross margin by over 20 bps while improving the customer experience. It also helps Realtors by being a better conversion partner. It’s never been more important for lenders to achieve profitability and to help buyer agents during the NAR settlement changes.
Recommended by LinkedIn
Embracing the Moment of Truth
In the lending process, presenting a fee worksheet versus leveraging advanced tech to be modern advisors represents a critical 'moment of truth.' Those who pivot to help customers achieve their financial goals will be profitable in bad and good markets and they will gain market share going forward.
Industry leaders need to embrace these moments—these critical decision points—to redefine success in their field.
A Call to Bold Leadership
It's not enough to invest in technology for improving loan manufacturing. True leadership involves making strategic bets on innovations that extend beyond the transaction, enhancing customer experiences, partnerships, and operational efficiencies.
So here’s the key to going beyond the transaction with a strategic focus on profitability by improving customer experience:
For those interested in a deeper dive into this, I’ve created a playlist in our YouTube channel called “Beyond Loan Manufacturing.” see the link below in comments and please share this with other mortgage executives and friends
I am a Real Estate Entrepreneur with 30+ Years Experience, Offering Thoughtful and Smart Real Estate Advice - Senior Loan Originator NMLS 154062
4moThank you Dave Savage and agreed! Mortgage Coach and TrustEngine are integral to both my customer experience and the value we provide. Knowledge isn’t Power —> “Applied” Knowledge is Power
Division President & Director of Physician Lending at NEO Home Loans
4moI could not agree with this more Dave, we have to invest in technology and education of our internal teams to really drive ADVICE over PRICE and help borrowers choose better mortgage strategies. Up to us to play the role of the challenger sales person.
Chief Production Officer - Company NMLS 3277 - NMLS 294776
4moExcellent article Dave Savage. Couldn’t agree more.
Mortgage Success Coach | Helping Mortgage Professionals Achieve Seven-Figure Success Through Strategic Coaching and Personalized Guidance
4moGreat advice Dave Savage! Status quo won’t win this race today. And I wouldn’t be where I am today without adopting the differentiating tool like Mortgage Coach many years ago. And today, it’s more critical than ever. The opportunities ahead are so strong for those that adapt and integrate technologies that support education and the advisory role of mortgage loan originators. And I’m truly honoring the IMB’s who understand the importance of investing in their loan originators success in a time when it’s critically needed! Well done! 👏
🔥Founder | CEO | Executive Coach 💪 I help Professionals Lead with less Stress, Greater Clarity, and the right actions to Optimize Success. 🙌
4moHere's what I love about this article: 1) The critical nature of how important the experience is before loan manufacturing happens. This is now the tangible and critical value that must be provided or else risk losing that customer for life value if others will. 2) What got us here.....aint getting us there... How do we do it differently moving forward - how do we accept, adapt, and align to the 'new era'? How do we change our beliefs that we can adapt? 3) Churchill case study data highlights the results proving a positive revenue impact. Something that goes deeper than the organization, but also to the branches and LO's. Thanks Dave Savage for your continued industry leadership.