From 2021 to Q1 2022, refinance volume has declined considerably. According to the MBA, refinances will plummet by more than 60%. As a result, brokers will have to turn to the purchase market to meet their volume requirements. The slowing refinances market and the current inventory deficit has made meeting volume demands even more difficult. As a result, there will be fewer buying transactions since fewer residences will be on the market. With that in mind, everyone will be working harder for a much smaller slice of the pie.
The main priority for brokers should be customer service and the capacity to close loans on schedule. Because brokers frequently operate with a referral partner in real estate, purchase-money transactions are especially delicate. The ability to complete loans as soon as the contract is signed is crucial for the consumer, and it also helps to establish ties with referral partners. To keep ahead of the competition, brokers must locate a loan partner who recognizes the value.
Another competitive advantage for brokers is coordinating with a partner who offers a full suite of products that can cater to a wide range of borrowers. A typical mortgage will not be available to all borrowers. Having the capacity to assist various borrowers can truly help a broker’s firm grow. Additionally, Lenders need to be able to provide traditional loan products and a host of non-QM products in a bid to strengthen the diversity status of their business. An example of a unique product in the marketplace that gives lenders a huge competitive advantage is the Community Mortgage Program. To read more on how lenders can weather the storm in the market, click here.
https://www.housingwire.com/articles/how-can-brokers-get-ahead-in-a-tight-market/
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