On Wednesday, September 27th, the Consumer Financial Protection Bureau (CFPB) released its most recent mortgage industry report. As expected, the CFPB’s report confirmed that mortgage originations are down while points and fees are up. Interestingly, it disclosed an uptick in cash-out refinances, most likely due to consumers seeking debt consolidation in order to reduce their overall expenses in the presence of lingering inflation.
As a mortgage professional who has worked in the industry for twenty seven years, I emphatically assure you that this is no cause for alarm. I have personally experienced and successfully emerged from my share of market fluctuations. In fact, I was a high-numbers, top-producing mortgage loan originator when the 30-year fixed par rate was 9.875%. The important thing to remember is to always see the forest for the trees.
Although overall numbers may be down, the creative and resourceful mortgage loan originator can still produce a flourishing pipeline by targeting the business that is not adversely affected by tightening market conditions. If the fish numbers diminish, the experienced angler knows that there are still plenty of fish out there to catch, but, to do so, he must adapt.
You too can adapt. Identify the markets that are still buying homes. Research their needs and wants. And then develop a marketing and delivery plan that can cater to those needs and wants. Learn about and offer the niche products and programs that meet their unique needs, some examples of which consist of:
- Doctor loans;
- Good Neighbor Next Door loans;
- Reverse mortgages;
- VA loans;
- USDA loans;
- Community lending loans; and
- State bond programs
By catering to consumers who remain unaffected by higher rates and fees, the resourceful mortgage loan originator will continue to produce respectable numbers. By following this advice, you’ll observe many others who choose to do little more than complain about their circumstances reel in fishless lines while you’re out there hauling in the big ones.
You may read the CFPB’s report here.