THE ADVANTAGE
Your monthly recap of the most important
mortgage-related news, perspective, and advice
August 2022
Slow on lead volume? Prepare for the next rush.
6 minute read
If you’ve noticed mortgage leads taper off through the last few months, you’re not alone.
As you probably know, the market has been reacting to Fed rate hikes aimed at curbing inflation. This sent average rates on a 30-year fixed loan above 6% in mid-June, which had a considerable effect on real-estate contracts and mortgage originations.
However, we may already be seeing a turn around. According to the Mortgage Brokers Association, mortgage rates have eased a bit, while housing inventory has continued to grow and prices continue to level off.
This means an uptick in mortgage leads may be just around the corner. We may even be headed into another boom.
With that in mind, we’d like to share our tips for maintaining your mortgage business, including being prepared for when members reactivate their interest in buying a home.
Stay informed
The mortgage market and industry as a whole is moving at a fast pace, especially these past few months. Staying apprised of changes and trends is one of the best ways to help your member base stay informed as well.
If you’re reading this newsletter and are already subscribed, we’ll make sure we keep you up-to-date on everything critical to maintaining your mortgage business.
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Make time for your members
While “new” leads tend to get the highest priority, when they’re not coming in, it’s time to focus on relationship building with your members.
Simple check-in conversations with members can often lead to mortgage inquiries, especially if you’re able to address their concerns and hesitations.
While many potential homebuyers are risk-averse and staying out of the market, there are a few things you can do:
- Remind them the market is always fluctuating
- Rates are still attractive compared to long-term averages and ARMs can be an effective way to control interest expense over a short-term time horizon
- Remind them that home price appreciation is slowing, but home prices are still expected to rise in the coming years, meaning it’s not a bad time to buy.
One of the best ways of knowing when to steer the conversation toward these topics is by knowing the signs of when your members are ready to buy.
Educate your staff
Teach your staff to know how to tell if a member is ready to talk about homebuying and how to start that conversation.
For our full, in-depth articles on these topics, click the links below.
- Article: How to Start a Mortgage Conversation
- Article: Five Common Member Mortgage Concerns
When your staff knows how to start these conversations, your leads will become more solid and, over time, more consistent.
Here is a brief list of opportune times to open the mortgage conversation:
- Recently married
- New child or one on the way, including starting a 529 or similar savings account
- They’ve been in their current mortgage for three years or more
- Obtained a loan for a bigger vehicle
- Steadily employed for 2 years or more
- Great (or good) credit
- Plan on staying local for three years or more
- Renting for several years
- Low debt
Ensure resources for the next boom
Demand for homes is not disappearing. It may briefly slow down, but it will boom again.
What’s the best way to prepare and ensure you can scale quickly?
When the next wave of mortgage applications comes, how do you provide the best service, widest range of offerings, and not over-extend your organization if the market slows down again?
In next month’s newsletter, we’ll discuss the two most common ways credit unions scale for mortgage booms, and which might be best for you.
At Member Advantage Mortgage, we know better mortgages mean better member value. As your partner, we ensure your members gt great products, competitive rates, and personalized service. To learn more, visit us online >
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Who Is MAM?
Member Advantage Mortgage (MAM) is a Credit Union Service Organization (CUSO) that helps credit unions increase revenue by offering mortgage solutions to their members.
We achieve this by finding the mortgage solution that is in each individual member’s best financial interest.
What We Do
Since 2006, MAM has offered first and second mortgage origination and fulfillment services to credit unions. We also provide marketing tools (like our Mortgage Payment Calculator) to increase lead generation.
How We Can Help You
We’ll help you improve member satisfaction and deepen member relationships by offering or streamlining your mortgage delivery process. You’ll be able to serve current members so they don’t need to turn to the competition, all while increasing your mortgage revenue and generating non-interest income.
How You Can Learn More
This page goes into greater detail on exactly how we provide support and partner with credit unions.
You can also call Del Smith, our Senior VP of Business Development, to get answers to any questions about partnering with MAM.
Disclaimer:
This information is solely for credit union and mortgage professionals and should not be distributed or provided to consumers or the general public.
Member Advantage Mortgage LLC (MAM) is a subsidiary of CUSO Development Company (CDC), which is owned and operated by credit unions for the benefit of credit unions and their members. Member Advantage Mortgage, LLC NMLS #1557. Visit www.nmlsconsumeraccess.org for complete licensing information.