In my decades in the mortgage business, I have seen all the economic cycles that the industry has gone through. The cycles themselves are very predictable, but the length of each cycle is the unpredictable wild card. In the face of changing economies, it has been shown that mortgage brokers and their loan officers have multiple options for success, or one that will destroy their career if they choose to go down that road.
FREEZE
During difficult times, business owners or managing members must take a hard look at their expenses and how they are impacting the bottom line. Hard choices must be made to reduce expenses and keep the company viable. Frequently, this action has been shown to be insufficient to get the company into the black, as these actions can also reduce revenue. It has been said by folks much smarter than me that it is very difficult to expense your way into profit unless spending is way out of control. Multiple factors are at play in the mortgage industry. Rates, loan products, and available inventory. Additionally, we are involved in a war that affects our country’s economy, and, in general, businesses lack certainty, and markets always seek stability. Of course, there is always competition, but you need to market to your strengths, not your competition’s weaknesses. Those weaknesses will take care of themselves in the competitive marketplace.
FLY
This is where I think mortgage brokers really miss a huge opportunity. Most of the mortgage industry cuts back on, or even eliminates, advertising. This creates a void in that space, and this is when a savvy mortgage broker can enhance their direct marketing and grow their business and cash flow. You just don’t have much competition in that space, and you can really dominate with a well thought out marketing campaign that catches your competition back on their heels. When the market is struggling due to a variety of reasons, this is your opportunity to get a bigger piece of the pie.
FRAUD
When markets and business get tight, fraud increases dramatically. Mortgage brokers and loan officers have mortgage payments, car payments, families to feed, etc., and some have not set aside an emergency fund when times were good. Instead, they opted for a bigger house, newer cars, expensive vacations, and even high- cost jewelry. Obviously, this can be a poor decision not only for the loan officer but also for the mortgage broker. I have seen this countless times, and the result usually isn’t pretty. If you find yourself in this position, seek help, but do not commit fraud. You can ruin your career and lose everything, which is exactly what you are trying to avoid.
My market recommendation is that a comprehensive cost analysis, a strong, fiscally efficient compliance program, and an aggressive marketing effort will deliver the results you are looking for to stay relevant and profitable. We can help you. Just give us a call and get a complimentary analysis of both your compliance and marketing programs. The 30-minute call is complimentary, just ask for Neill, who has 35 years in the mortgage broker marketing and compliance community, and start winning!
Contact Neill for your call at Neill@mdefense.biz or 704-574-0364. There is no high pressure, just a desire to help you if we can. Contact us today; it costs you nothing and may be the first step toward turning your business around.
Neill E Fendly,
CMC
MortgageDefenseSolutions.com
Neill@mdefense.biz
704-574-0364
