You’ve probably noticed, interest rates are rising. Mortgage Interest rates have been trending upwards since september of 2017 when they averaged 3.81%. Generally, this happens when the economy is doing well and is projected to continue to do so. While it’s great the economy is strong, this situation creates a few downsides to the mortgage industry. And yes, the loan officer is caught in the middle of it all
Higher Interest Rates + Margin Compression = Bad Environment for Lenders
With all the talk of margin compression, everyone seems to be pointing at LO compensation. Which by the way, who started the rumor that Amazon was going to jump into mortgage origination? Regardless of whether or not they join the game, none of the aforementioned things will solve the root of the problem.
The question should be: Why isn’t there more discussion about trimming the fatfrom bloated retail shops who employ too many layers of middle management at corporate?
There are already too many people involved in the loan process, not to mention outdated tech layered on top of slow LOS’s like Encompass. A TON of Layoffs won’t solve the root of the problem, there needs to be fundamental business processes and technological changes.
It’s no secret that the most crucial component of the Mortgage process is the Loan Originator. According to WillRobotsTakeMyJob.com – The job Loan Officers has Automation Risk Level of: You are doomed. (or 98% probability of automation)
Check out this 5 minute video to see how Canopy Mortgage is “trimming the fat” from retail, keeping LO comp intact, and creating unheard of efficiencies with proprietary tech. This is the tech that enabled a loan officer to close 128 loans in one month! There’s never a better time than now to make an investment in your future (unless of-course if you were to have invested early in Netflix, or Bitcoin). Ultimately, you’re going to determine your success or failure.
“The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and controversy.” –Dr. Martin Luther King Jr.
While market compressoin may be pushing you into the growing pool of unemployment and the possibly the verge of extinction via digital automation… You can take your future full throttle into the opportunity of a lifetime.