Let’s cut through the noise: The mortgage market isn’t changing; it’s already changed. Volatility is the norm, margins are squeezed within an inch of viability and borrowers expect a frictionless experience every time. If your entire business still revolves around purchase and refinance, you’re not just playing catch-up, you’re being left behind.
Home Equity Investment (HEI) is a relatively new option for private equity real estate investors, and one that carries significant promise. Essentially, is a secured contract where a homeowner receives cash today for a share of the home’s future value at a refinancing or sale event. Unlike a loan, there are no monthly payments or interest. HEIs are attractive to homeowners because the payment comes in an interest-free lump sum, rather than being spread out over a period of time and including interest, and because they don’t carry the same stringent requirements as traditional home equity loans.
The expense associated with originating mortgage loans has been escalating, with the current average cost approximating $11,600 per loan. A substantial component of this expense is attributed to Loan Officer Compensation (LO Comp), which typically constitutes 1% to 2% of the loan amount and represents nearly half of the total origination cost. This heightened compensation framework is primarily propelled by the considerable cost of lead acquisition, further aggravated by the lower conversion rate of leads.
Today’s best loan officers operate differently and expect more.
We all know what we need to do to grow our business. It’s about making meaningful connections and creating a network of people who know, like, and trust you—not just as a loan officer, but more importantly, as a person.
Sounds easy enough. But how do you actually build that network?
The real estate industry is facing another change. This isn’t the first time, and it won’t be the last.
In the face of change, the industry has always innovated on behalf of buyers and sellers. This time, it’s about updates to the Clear Cooperation Policy.
Why AI in mortgage lending needs a smarter narrative
There’s no denying it, artificial intelligence (AI) has stormed into the mortgage industry in a variety of formats helping brokers and lenders create efficiencies, save time, and close more deals. From ChatGPT-powered marketing assistants to chatbot-driven customer support, generative AI has been the center of the conversation. And for good reason: these generative AI tools save time, boost productivity, and give mortgage professionals quick wins.
As a real estate professional, it’s fair to say that you’ll have plenty of opinions regarding the properties you show buyers. Depending on your time in the industry, you may have seen hundreds, even thousands of listings at a wide variety of price points. Over time, you’ll cultivate a personal opinion about properties, sometimes within seconds of stepping over the threshold. But when should you share your opinion with a buyer? It’s not always appropriate to tell them what you think, but in other cases, sharing your thoughts is required by law. Here’s how to walk that line.
There is a growing trend in the real estate industry that puts sellers at a serious disadvantage: private, or “off-market,” listings.
While many brokerages promote private listings as a premium service, sellers are being misled by sacrificing maximum exposure and higher offers in exchange for a strategy that primarily benefits the brokerage and agent.
A real estate agent’s guide to fearless proactive lead generation By Tim and Julie Harris
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