Going Back to Basics

We ground ourselves in the things that matter most—support and communication for clients and partners, no matter the obstacles.

I’ve been in the mortgage industry for 25 years—starting as a loan officer right out of college—and this industry is the only one I’ve known. My position as national sales director of third-party originations enables me to help our brokers and correspondents deliver the American Dream and fosters an environment where that dream can continue. Technology will always evolve and change to make the process better, but at the end of the day, there are always people on the other end. Knowing this is what gets me excited on a daily basis. That is what I love about this industry and why I’ve stayed in it.

My role at Flagstar is to support our employees and business partners, and I view this in two ways. First, is helping steer the ship into the future with product, technology, and execution. We have a saying, “No loan left behind,” and it’s my goal to help prevent foreseeable obstacles to fulfilling this commitment. Second, and more importantly, my role is about listening to our business partners. The more I speak with clients, the happier I am. It’s my job to provide an environment where people can be successful, both partnering with Flagstar and being employed by Flagstar.

While the world is trying to find its footing during COVID-19, we shine because of our strength and stability. For over 30 years, Flagstar has managed through disruptive environments and come out on the other side. This speaks volumes about Flagstar and our culture. Especially now, when people are challenged, our culture rises to the top. For Flagstar, it goes back to strength, stability, and a 30-year commitment to the mortgage industry.

Our concern and care for others stem directly from our CEO and run through the organization. Every conversation starts with “How are you doing?” or “How are you and your loved ones right now?” While what we do is extremely important, there is nothing more important than the human interest factor, and that is our number-one priority both internally and externally.

What I also love about Flagstar is our commitment to transparency and how that translates into accountability. We all need to be held accountable for what we do inside the mortgage ecosystem and the role we play in it. So, if you’re a business partner of ours, you know our situation—our capital, financials, liquidity—everything you need to know on us is an open book because we are publicly traded. By holding ourselves accountable, we make the process more efficient and do right by our business partners, which ultimately means doing right by consumers.

In times of disruption such as we are experiencing today, it is important to remember the basics to keep your business on track. Things change and will continue to evolve in this industry, which is where Flagstar has a 30-year advantage, standing with business partners through thick and thin. Embracing change is critical to finding success now and moving forward. But the one thing that is core to being successful is acting on the priorities outlined below. I call it going back to basics.

The Power of Communication

During this busy time, loan advisors are looking to find balance and set workload priorities. They need to achieve a balance between generating new volume and managing their pipeline. Today, the pendulum has swung toward pipeline management, but these are ever-changing times. Loan advisors are inundated with changes—weekly, daily, even hourly—everything from new interpretations in guidance to new overlays impact their work on a daily basis.

In an environment that places such a heavy focus on pipeline management, clear communication is critical. This means communicating with all parties involved—the potential homeowner, the real estate agent, the referral partner, the title company, and the lender. The mantra is over-communicate and make sure that everybody in the mortgage ecosystem is updated. Over-communication cannot be undervalued right now. If you’re a good communicator, you need to be a great communicator. And if you’re a great communicator, you need to be an excellent communicator.

Quality Submissions and the Ultimate Cost

Now more than ever, at a time when guidelines have tightened, overlays are the norm, and turn-times are being extended, it is important to submit a complete, quality loan package to an investor. Small errors can sometimes lead to not being able to close a loan, and that is the ultimate cost.

Social distancing, remote work arrangements, and daily changes in employment status due to COVID-19, have resulted in some loan-application requirements being waived or modified. Loan advisors need to be hypersensitive to the employment-verification component, which is key to the ability to repay the loan. With unemployment rising to some of the highest levels ever, these conversations must take place to ensure accurate submissions. Verification of employment is one of the biggest items impacting accuracy that loan advisors are dealing with right now.

In this environment, small errors can quickly become large errors. Mistakes and errors lead to closing delays, unmet deadlines, and extra touches in underwriting to clear conditions. The smallest inaccuracy can disrupt the loan process. The more you can mitigate this by being detail-oriented and over-communicating, the better off you are.

The Importance of Maintaining Relationships

The people component is especially important when the industry is hot and loan advisors are busy with refinances. This is prime time to build purchase-referral relationships. Refinances come and go, rates go up and down, but purchases produce a steady state for the industry. Purchases might ebb and flow as far as the percentage of business, but at the end of the day, people buying homes fuels our success.

I encourage loan advisors to recognize how the environment is impacting real estate agents. We are all interdependent, and understanding the needs and concerns of our referral partners is what they will remember long term. Fostering relationships goes hand in hand with purchases. When you forget to focus on purchase-referral relationships, it’s usually because volume is through the roof, rates are low, and you’re swimming in refinances. However, this is exactly the time to be calling on real estate agents because few others are. The worst time is when rates go up, refinances dry up, and every loan advisor is calling on them. Don’t expect them to have time to talk to you then because every loan advisor in town is beating a path to their door.

Take the time to prioritize and seek opportunities to connect, especially in this new world we live in. Since you’re not able to walk in and build relationships face to face, consider the options that technology provides, particularly with video. Doing right by your referral partners and communicating in tough times is what separates a good loan advisor from the pack. If you are coming through for a real estate agent in this environment, meaning that you’re setting the right expectations, meeting deadlines for contracts, inspections, and loan approvals, and hitting closing dates—those actions will help cement your relationship going forward.

How are you staying connected and maintaining relationships with your referral partners at this time? Leave a comment below or message me if you would like to connect.