The housing market is prone to fluctuations. This is far from earth-shattering news, and yet mortgage companies are still losing millions – and, in some cases, the entire company. Stay ahead of the ups and downs of the market, and create an operations and leadership approach where real-time immersion keeps your business moving forward.
Gone are the days of antiquated corporate practices such as monthly or quarterly meetings with a bunch of pipeline and delinquency reports that are too late to fully impact. Gone are the days of hoping a new hire is the right one without an ounce of training, expectations and corporate culture or ethos. Gone are the days of building partnerships based on price alone. There are too many opportunities to build a powerful company where a real-time immersive approach will drive insight into the right data, a pipeline and quality measures that measure up to a powerful culture and a company on a growth trajectory.
Here are three tips where a real-time immersion approach helps to create a successful operation in any type of lending environment.
Tip 1: Know what’s really running through your pipeline
Your mortgage pipeline is foundational for company decisions, especially when it comes to the secondary market and ensuring your pipeline is hedged properly. Do you know what is running through your pipeline today?
While leaders focus on pipelines, you may be focusing on the wrong part, obsessing over whether the hedge ratio should be 80% or 81%.
Instead, the focus should be on the status of the loans in your pipeline. Are there any inactive, stalled or duplicate loans? Having $10 million of loans in the wrong stage costs 10 times more than that 1% pull-through assumption.
To ensure the secondary marketing team and the production manager are hedging and funding the pipeline correctly, add an independent person, whether it’s an internal auditor, president or board member, into the process, who verifies the work.
On top of this, consider adding an extra layer of security with dedicated software systems to monitor the quality and stages of the pipeline.
These added security elements will…