Top 10 Tips to Help You Manage Through Refinance Mania!
Written by: Tammy Butler, Master CMB – Publisher
Refinance mania has hit, and this is a great time to make a little money to cover the lean times. However, in doing that, it is essential to be aware of issues that can cause your business problems after the market has settled down a bit.
- Remember that the refinance mania will pass as our business is very cyclical! This is likely to be a temporary blip, so do not forget the purchase market, which is where your long-term income comes from. Time block refinance time and purchase marketing time and stick to it! Those who ignore their purchase business or the progress they made in marketing will live to regret it.
- Keep the money you earn. Sure, it’s nice to treat yourself, just don’t treat yourself too much! Anyone who has been in the business for any length of time will tell you that it’s nice to have a cushion when all of the excitement subsides, or times get a little leaner.
- DELEGATE HARD!! This is the time when all of your delegation skills will be tested and refined. All of you DIYers who consistently say things like “I can research that,” “I can keep up with guideline changes,” “I can call all of my customers to give them updates” are doing yourself a disfavor and stressing yourself out by allotting time to things you can easily delegate. Focus on what you do best and shovel off the other tasks to people who can help you. Subscribe to services that can help you get answers faster like Mortgage Currentcy, employ the services of a virtual admin who can keep up your database, use the services of someone to call/email your clients for status check-ups. All of these are low-cost ways to manage your business and your sanity. Mortgage Currentcy has a ton of charts to help you get answers fast on refinancing scenarios, and if you cannot find the answer quickly, you can always “Ask the Expert.”
- Investors who traditionally offer lower rates/competitive options and frequently “buy the market” will quickly raise rates/prices in order to stem the flow of business. When there is too much business, and they cannot handle the volume either in secondary or underwriting you could be dealing with expired locks due to the time lag. Consider other lenders who may not be as competitive but are more likely to close your client’s loan on time.
- Warehouse lines are created for average markets, and investors do not have unlimited money to fund closings. When your investors are getting close to maxing out their warehouse lines, your closings will be pushed until more funds are available. And yes, they will prioritize their larger volume clients who send them the most business when making the decisions about who closes and who gets postponed.
- Set your client’s expectations appropriately. Don’t try the standard market message of “we can close your loan in 10 days” and then blow the deadline. Under Promise/Over Deliver!
- Stay off of social media except for business purposes. It’s a rabbit hole that too many of you fall into. Stay in your business lane and focus on your clients and tasks. Quit worrying about what others are doing, or taking the time to post “I’m so busy and stressed,” “How much production are you doing?”, Memes or other subjects in groups. It’s just a big-time waster, and right now, you need your time! Each of you gets 24 hours a day, and top producers will tell you they spend it well!
- Use tools that help you communicate with your clients better, such as Mortgage Coach. Set up your TCA [Total Cost Analysis], do a quick little video, and let your clients know why this is an excellent time to refinance. You will spend less time answering questions and more time doing business. After all, who wants to spend time reading through all of those disclosures and trying to sort that out. Customers like visuals, not writing!
- Mind your compliance manners. It’s tempting to short-cut compliance during high-volume times, but this is the type of period that causes the most buybacks, examiner issues, and other compliance problems. Do it right the first time to prevent anguish after the excitement is over.
- Take care of yourself and your family! Yes, you want to make hay while the sun is shining, and you can do this without sacrificing your health or your family in the process. As tempting as it is to not do the right thing for the sake of “I’m just too busy,” remember the “why” of your business, which is your loved ones. This little bit of advice will save a lot of you from marital issues, which are very rampant in this industry.
I hope that this quick little article helped you to put some perspective into your life during this hectic time!
Mortgage Currentcy has all the tools and resources to help you find answers fast! Subscribers rely on our Refinance Charts, Program Comparisons and our “Ask the Experts” feature to keep them Smarter Than the Competition! If you’re not a subscriber, find out how economical it can be for your business. As our subscribers often say, “this subscription is by far the best money we spend on any tool and we couldn’t do business without it”.
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