Non-Traditional Strategies to Generate New Business in a Purchase Market
The cyclical nature of the mortgage market provides opportunities for loan originators that are willing to adapt and be flexible with how they position their business. 2020's epic refi boom is now squarely in the rear view mirror. In fact, Freddie Mac is predicting that refinance volume will crater this year – dropping from $2.7 trillion in 2021 to just $1.3 trillion in 2022.
But as the market as shifted, loan originators now find themselves operating within a highly competitive and fast-moving purchase market. Purchase volume is expected to tick up from $1.9 trillion in 2021 to $2.1 trillion in 2022.
While some LOs are already well positioned to succeed via their established network of referring Realtor and builder partners, other originators will find it much more difficult to generate new business in this environment.
For these LOs it is key to get more creative with the way they market their business and go beyond repeated appeals to Realtors or spending money on expensive social media advertising campaigns.
There are many ways to increase an LO's visibility, build awareness for their services, and generate some additional business. Here are a few of our favorite non-traditional strategies:
Partner with Local Businesses
Businesses are always looking to add to their employee benefits package in order to make themselves more attractive to prospective hires. This is an opportunity for crafty LOs to develop an exclusive offer for the business' employees.
The offer could really be anything such as discounted closing costs, crediting fees at closing, or even working with a Realtor on a co-branded offering to expand the benefits further, helping not only secure more business but also growing a potentially fruitful referral relationship.
Many businesses will not only jump at the opportunity to add to their benefits package at no cost, but will also allow you to send periodic communications to their employees in order to introduce yourself, talk about the services you are providing to the company, and offer educational information.
Cultivate Relationships with Business Professionals as Referral Partners
Developing relationships with potential referral sources that are outside the traditional Realtor/builder box is a great way to expand your network as well as generate new business opportunities.
There are many conversations about real estate and real estate investment happening every day with financial services professionals, accountants, divorce/estate attorneys, etc.
They may not be as direct an industry fit as a Realtor or builder, but these professionals have the ear of their client, and with the stock market volatility and home equity values reaching record highs they're having more conversations than ever about investment and diversification.
Help Plan or Sponsor Local Events
Every community has a calendar of events or social gatherings, whether they're for a charitable cause, a holiday, or to celebrate the community's most treasured qualities and pastimes.
All of these events require planning and most will require fundraising or sponsorship. These are opportunities for an LO to get involved with their local community and get themselves and their company some visibility in the process of doing good.
If you have a budget for sponsorship, these events can be a great way to get your brand in front of a group of people from your area.
Don't have a budget? Offer the skills you've honed running your own business to aid in planning or to help fundraise and call potential sponsors.
Whatever you can do to get involved, be visible, network with other stakeholders, and get the side benefit of contributing to your community in a positive way.
There's Still Great Reasons for Borrowers to Refinance
Sure, many people have already refinanced their home to take advantage of the last few years of historically low interest rates, but there are still some opportunities in this market to work your database.
Toward the end of last year, tappable home equity had reached $9.4 trillion and surging home prices only serve to increase that number even more.
That tappable equity can be used for home renovations, to help fund the purchase of an investment or vacation property, and a myriad of other potential uses. And the nice thing about developing a cash-out refinance campaign is that it's free and can be run while the majority of an LO's resources go into generating new business.
Book a personalized demo of our mortgage automation platform
During your demo, you'll see how Floify can help you streamline your lending by securely collecting documents faster, accepting more applications with less effort, automating loan status updates to save time, and more.
Complete and submit our secure demo form and a member of the Floify team will contact you to schedule your demo day and time.