Spring Training

By Motley, Apryl | Independent Banker, April 2011 | Go to article overview

Spring Training


Motley, Apryl, Independent Banker


How to prepare your mortgage lenders for what promises to be a busy homebuying and selling season

Forecasts for the U.S. housing market are improving every day. There is no better time to reassemble your team and hone your game plan for growing your residential mortgage business.

According to Ron Haynie, president and CEO of service provider ICBA Mortgage, community banks have a real opportunity to expand and leverage their networks if they communicate well with borrowers and set the appropriate tone for their mortgage transactions. "The biggest problems occur when you don't set expectations for borrowers," he says. "Good communication with borrowers is essential in the current housing market."

Haynie acknowledges that everyone involved in the mortgage underwriting process- lenders, builders, buyers, sellers and real estate agents-wants to close deals quickly, but he cautions that the process must be managed even more carefully now to make borrowers feel comfortable and to maintain their confidence.

Internal fundamentals

Effective internal promotion helps ensure that community banks present the best possible image to borrowers. "Many borrowers have probably heard horror stories around people trying to get loans," Haynie says. "Community banks need to stress to them, 'That's not how things get done here. We operate differently.' " In-house, start with these basics:

* Make sure your lenders "really understand the approval process and what's required to get a loan underwritten," Haynie says. You need to make sure that they understand the guidelines and requirements of borrowers as well."

* Establish clear communication from the start to minimize the need for going back and forth with customers. "Repeated requests for information create a bad image of the bank by making it seem like you don't know what you're doing, which leads to borrower frustration," he says. "Loan officers need to be well trained so that borrowers feel confident that their loans will go through."

* Educate staff in all areas of the institution about your mortgage products. "Spend time in your branches making sure managers know what the bank is offering," Haynie recommends. "Let them know you are closing loans in 30 days. Tellers and others on the front line should be cultivated to deliver leads."

* Have different departments work together to increase their mortgage business, Haynie adds: For example, "your bank's commercial clients have employees. Be sure they are aware that you're making mortgage loans."

* Externally, advertise in local home guides. "It's usually a good investment," Haynie says. "Show your loan officers' photos and contact information so people get to know who they are."

External communication

Likely there would be fewer consumer horror stories if the different professionals involved in the mortgage process communicated more frequently and coordinated resources. Bankers, real estate agents and builders all have key roles to play in the housing market's recovery.

According to the most recent consumer survey conducted by the National Association of Realtors (NAR), 21 percent of homebuyers rely on real estate agents for information about mortgage lenders.

"Even though homebuyers get much of their information about loans online, including prequalification, many still ask real estate agents for their advice about lenders," says Walter Molony, NAR senior public affairs specialist. One of the best tools that community banks have is face-to-face contact with agents, he notes, so "community banks need to talk with local Realtors about the lending options available in their communities." How?

* "Most local Realtor boards have quarterly or monthly meetings. Ask to attend," Molony suggests.

* Have each loan officer develop a targeted list of agents to call on to discuss your mortgage products and services, Haynie adds. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Spring Training
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.