MLO Update: How Are You Surviving the Refi Boom?

For those in the mortgage services industry on the East Coast and the Gulf of Mexico, hurricane season can be a disruptive time for growing a client base and closing on home loans. This year, is going to be even more difficult. According to the National Oceanic and Atmospheric Administration (NOAA), 2020 is going to see “above-normal” hurricane activity.

In addition to the NOAA’s prediction, The New York Times also recently ran a piece that details how rising sea levels are threating the institution of the 30-year mortgage because home buyers “are increasingly using mortgages that make it easier for them to stop making their monthly payments and walk away from the loan if the home floods or becomes unsellable or unlivable.”

Because of this trend, lenders are beginning to require larger down payments—sometimes as much as 40% of a home’s cost—and many are resorting to passing their losses onto taxpayers by selling the mortgages on their books to buyers like Fannie Mae.

These obstacles show that, as a mortgage loan originator, making yourself indispensable to your clients is more important this year than in previous years.

Start now with these tips.

Be a Source for the Best Mortgage Industry Information

Let’s face facts—your mortgage services business is just one of many. Borrowers could go anywhere to secure their home loans. What do you have to offer that sets you apart?

One way to keep your clients happy and set yourself apart is to keep them updated on the latest mortgage industry information. For example, flood insurance is essential for many homes in coastal areas. Did you know that the Federal Emergency Management Agency (FEMA) recently extended the grace period during which homeowners can renew their National Flood Insurance Program (NFIP) policies from 30 days to 120 days? The extension, which was announced because of the COVID-19 pandemic, applies to policies that expired between February 13 and June 15, 2020.

Whenever you come across information like the above, it’s important to share it with any of your clients who might need it.

Stay Up to Date on the Latest Weather Forecasts

Another way to make your mortgage services business an asset for your clients is to be aware of any storms that might be forming. Imagine this scenario.

You have just secured a home loan for a client and before they bind a homeowner’s insurance policy, a hurricane forms. It looks like it’s going to hit the area where their home is located, so the insurance companies decide to no longer bind new policies.

This is a terrible possibility for your clients during hurricane season. If you can save them from this type of scenario by informing them in advance of possible storms, they will be forever grateful.

Make Your Mortgage Services Available When They Need Them

Ready to take your mortgage services business to the next level? Visit our site to learn more about what we can do to help.