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October 13, 2022

Helping Borrowers Understand a Changing Market

How does a lender’s people, processes and technology all contribute to a better customer experience, especially in a purchase money market?

We’ve said it, written it and read it so many times that it’s now an industry cliche: we work in a fast-changing environment. Anyone who has been tracking mortgage interest rates this year knows this to be true. Anyone who has been in this business for more than a cycle or two knows this has always been true.

Those who don’t know this, or have forgotten it, are the home buyers we serve.

Just a couple of months ago, the New York FED surveyed consumers and found that while home growth expectations had pulled back, inflation expectations also fell from 6.8% to 3.6%. Consumers were feeling pretty good about how things were going, however that was back when interest rates were closing in on 4%. Things have changed.

Those of us who have been here for a while know that as the FED continues to increase rates, lenders will have to follow suit. Sure, it’s the 10-year Treasury that acts as the primary impetus for rate changes in our industry, but again most consumers don’t understand this.

The Borrower Experience and Information

We spend a lot of time in our industry talking about how the lender’s people, processes and technology all contribute to a better customer experience and how important this is in a purchase money market. All of this is true but one key to a better borrower experience is better information delivered in a timely fashion.

Our modern LOS technology does a great job of keeping borrowers informed during the loan origination process. Loan officers and real estate agents also benefit from this functionality. But it’s the conversations that loan officers are having with potential borrowers that are really becoming important now.

New homebuyers have a lot of questions and the LO who does the best job of providing good advice that helps them understand this fast-changing environment will win their business.

More questions than ever

Today’s borrowers have more questions than ever. It’s not just about current loan programs and interest rates, it’s about student loans and possible loan forgiveness and home prices and more.

If the current administration takes student loan debt off the table, a lot of Americans who previously found it difficult to qualify for a loan could suddenly enter the market. It hasn’t happened yet, and prospective home buyers are watching this carefully. They want to know what it will mean if it does happen.

Change leads to confusion which makes it difficult or impossible for consumers to make decisions, especially very large decisions like buying a new home. Better information delivered by knowledgeable LOs in a timely fashion reduces confusion and wins lenders more business.

By Joe Camerieri, EVP, Sales & Strategy at Mortgage Cadence 

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Media Contacts 

Mortgage Cadence: 
Megan Martin 
EVP, Marketing 
(516) 480-6765