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Quicken Loans says, “Take off with its new Rocket Mortgage”, an easy online mortgage loan application and approval. Will this replace the traditional loan originator? Let’s examine that possibility.
Most say the consumer of today and tomorrow wants ease of communication and process through online applications. I believe most of us agree.
Does that mean they will make their mortgage applications alone without the guidance and assistance from someone more experienced in the loan process? Will consumers decide on their own which lender is best in rate and service? Who can they trust? After all, this is a pretty big decision.
Although prospective home buyers want this ease in the process, they still want the best rate for the best products. They also want good, timely customer service.
So, how do they decide which lender to use? In most cases, the lender is one recommended by the Realtor or Builder selling the home. This is usually the where the consumer will start when pursuing their financing. If that lender offers competitive products and rates, with ease of application and in future communication, they have a good shot at getting the business.
In today’s world, it’s still the LO who gets that referral. Through hard work in building and servicing relationships, they are the ones who will have their company recommended by their Realtors and Builders for the financing needed by their buyers. It’s not magic or luck. It’s no wonder that lenders continually pursue the best loan originators.
To stay on top and in demand, LOs need not just build these relationships, but continue to service them. You’re only as good as your last deal.
LOs must stay up to speed on the rules and regulations governing lending, the products they offer, the markets affecting rate movements and the technology used and needed to service their customers; Realtors, Builders and consumers. There is no substitute for knowledge and hard work.
To attract and retain top originators, Lenders must offer on-line applications, quick approvals, ease of communication for transmission of needed documentation, online status updates, minimal touch points, and on-time closings. All of this must be on a comprehensive product mix at competitive rates.
A tall order and one that only be accomplished realistically through a dedicated trained staff supported by technology and automation.
Quicken has the technology. Will their new Rocket Mortgage attract home buyers directly to their site to make loan applications? Or, will they still need experienced, knowledgeable LOs on the street pushing their products? Time will tell.
Regardless, to retain relationships, customers, and the best LOs, a company needs to deliver what they sell, on time. Whichever route they choose, consumer direct, use of the traditional LO, or a combination, customer service and quality is what will ultimately set them apart from the field. Technology can help, but it can’t do the job alone.
Good people supported by needed technology will ultimately win the day.
