“We have to understand that interest rates in the fours and fives are still not bad interest rates. It is [simply] a different time now than what we have been used to for the past two years”

Lisa Lund, Lund Mortgage Team

“It’s going to be a survival-of-the-fittest environment for a while. We need to cinch up the belt buckle here a little bit”

Christian Griffin, Maverick Mortgage

“A key tip would be ... to just provide great service and to be an expert. Give them [consumers] solutions and find ways to fix problems. You need to help them find ways to better their situation”

Andy Price, Price Mortgage

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Boosting broker business as rates rise

Looking for ways to increase mortgage volume in a higher-rate lending environment

Read on

Christian Griffin

Maverick Mortgage

Lisa Lund

Lund Mortgage Team

Andy Price

Price Mortgage

Christopher Lee

MFAA head credit adviser, Finsure Finance and Insurance

Industry experts

IT MAY HAVE been a lightning-speed mortgage environment for loan officers and mortgage brokers over the last two years, but this jaw-dropping momentum is starting to slow down as rates rise. Measures taken by the Federal Reserve at the height of the COVID pandemic, such as buying mortgage-backed securities and rushing to print money to keep the economic wheels turning, ensured overnight lending rates remained at historically low levels. However, as the economy slowly returns to normal, the mortgage space can no longer look to such government measures – they are yesterday’s news. With Federal Reserve rate hikes in play and more anticipated increases to follow, the days of a robust rate and term refinance market are now behind us. Mortgage brokers and loan officers are now forced to think of creative, out-of-the-box solutions to garner loyalty referral partners and leverage the power of their networks.

As such, it is wise no longer to think of mortgages in terms of the best rate, but rather in terms of what brokers and lenders can offer consumers and referrals in a highly competitive purchase market. The topic of how best to attract business was addressed head-on by an expert panel gathered for the latest edition of MPA TV’s Executive Roundtable series, organized by Pennymac TPO, a top-six wholesale lender providing focused support and consistency alongside competitive rates and programs to its TPO partners. A changing approach to a changing market “The Feds were buying about $40 billion a month [in mortgage-backed securities]. That was helping the interest rate stay low and helping people make it through this pandemic,” said Lisa Lund, panel guest and owner/broker with Lund Mortgage Team. “Now we are moving back into a normal market, and we are seeing interest rates rise.” “We are seeing a much different market. Back then we had rates going down [and experienced] historically low rates that we had not seen. Now we are going into a high-rate market and house prices haven’t really come down, making it less affordable to buy,” Andy Price, panel guest and owner/broker with Price Mortgage, highlighted.

Lund pointed out that even with recent rate increases, which are expected to continue as we progress through 2022, rates are still not considered very high. “We have to understand that interest rates in the fours and fives are still not bad interest rates. It is [simply] a different time now than what we have been used to for the past two years,” Lund said. “We’ve seen them go up and down over the years and people are still going to want to buy homes and people are still going to have the need to pull cash out or refinance. We need to stay positive about it,” she added.

For Christian Griffin, panel guest and senior loan officer with Maverick Mortgage, the changing mortgage game is top of his radar. “It’s going to be a survival-of-the-fittest environment for a while. We need to cinch up the belt buckle here a little bit,” Griffin stated. “We need to keep the pedal down on the floorboard and continue holding business from different directions,” he added. For all the panel experts, thinking outside the box and finding creative ways to keep and attract mortgage business while boosting mortgage volume have now become crucial. Being able to demonstrate expert knowledge in the mortgage space will also form a major part of the battle plan in a slowing market. “Not just sticking to what we were used to in the last two years” will be required, Lund explained. Ways through a slowing market Griffin drew attention to another key aspect that could best prepare brokers for the road ahead. “Pick up on those referrals,” Griffin emphasized. “Hopefully you’ve been spreading the wealth other than just to refinance. It’s going to be, I think, a heavy purchase volume-driven market, and it would be nice to kind of keep that steady,” he said.

“You have to have some tricks up your sleeve to differentiate yourself from the average Joe out there.” Price agreed with Griffin on the need to be fully versed in new product areas and open to new mortgage avenues to build mortgage volume. “Number one is being an expert. This means being educated and knowing the products that are available [such as] asset depletion products. The VRBO market is also a big one. There are a lot of people out there looking to get VRBO products and having products such as debt service coverage ratio loans,” Price said. Our panel experts also felt that brokers and lenders spreading the word and letting consumers know that they are up to date

with different loan options, as well as possessing the knowledge to back this type of alternative financing, would go a long way in a slowing market. Flexibility is the key when mortgage volume is not falling conveniently across a broker’s desk. “More experienced loan officers are going to come to the forefront, being creative, offering more opportunities for the easiest path,” Griffin noted. “Creativity is going to be key, just as being on point all the time [will be]. You’ve got to eat, sleep, and drink loans. You have to answer your phone and you have to offer the consumer options,” he said. “This is the time to really hone-in on and start to understand different types of loans and become an expert in your space, whether it’s manufactured homes, really starting to learn your guidelines, or working your database,” Lund said. “We just came off of the best two years we have seen in the mortgage market. Everyone has built up their database … so this is the time to really work that database,” Lund continued.

Tips for lenders When asked what tips would be beneficial for both lenders and mortgage brokers, the panel agreed on several key elements. “A key tip would be, again, to just provide great service and to be an expert. Give them [consumers] solutions and find ways to fix problems. You need to help them find ways to better their situation,” Price said. Griffin offered his perspective, which fell in line with what the other panel guests had highlighted. “The key, at least in my business, is going to be learning to climb the tree. There is not going to be as much low-hanging fruit as there used to be when you could just wake up in the morning and you had six loans in your lap,” Griffin said. Lund also agreed with her panel colleagues. “We need to get out of our minds that we’re selling rates. With interest rates rising, it’s not the end. There is always going to be a need for a loan for one thing or another,” Lund said.

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Christian Griffin is a top originator nationwide, with 400 closed units and $225 million in funded loans in '21 and 69 units and $47 million funded so far in '22. He has been in the mortgage business for over 11 years and has consistently been recognized for his high level of production and superior customer service. With an impressive career volume, Christian prides himself on being one of the best in the business. Christian has found success in the mortgage business for many reasons, but most notably because he always puts the customer first. An impressive 98 percent of his clients would use him again.

Maverick Mortgage

Christian Griffin

Lisa Lund started working for her dad's mortgage company as a receptionist in the summer of 1998 at 17 years old. This was the beginning of her career in the mortgage industry. After a couple of years of training, Lisa moved up to processor and was eventually promoted to processing manager and then loan officer manager. On June 1, 2009, Lisa opened Lund Mortgage Team, Inc. She has a team of 13, including two loan officers who fund an average of 100 loans per month. Lisa has received the Broker of the Year award from United Wholesale Mortgage.

Lund Mortgage Team

Lisa Lund

Andy Price has been helping his customers get the home financing they need for over 15 years. He began his career as a real estate agent and then decided to become a loan officer a few years later, as he was very interested in the financing side of the real estate transaction and didn’t like being dependent on lenders who didn’t seem to know what they were doing. He prides himself on being a lender you can trust and will make sure to get your loan done. He especially enjoys helping those who have been turned down by other lenders.

Price Mortgage

Andy Price

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MFAA head credit adviser, Finsure Finance and Insurance

Mark HarChristopher Leeon

Number of Lifetime customers

over 4 million

Lender ranking in US

Correspondent aggregator ranking

Wholesale lender ranking

Value of loans serviced

over $510 billion

Source: Mortgage Bankers Association

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