Getting It Right When the Stakes Are High

BY CHRISTINE BECKWITH

The industry is poised & ready for a rebound, but will that happen this year? That is the million-dollar question.

As I sit on top of the mortgage mountain with a vast view of all channels & levels of business, I can tell that the long, drawn-out drought of inventory & higher rate atmosphere has cost our industry plenty (not discounting the impact on all of us personally at every level). So, the stakes could not be higher. Every month that has passed has poured on the pressure for a return to a better flow

The good news is that many are getting it right. I see companies like my own teaching vital sales tactics at a time when it could not count more, tactics that are evading whole organizations, tactics that I will share a peek at here in this short article, such as:

Heavy Cash Out Marketing that o ers:

• Cash in hand to restore depleted liquid positions,

• Cash out for higher interest rate revolving & recurring debt,

• Overall monthly total debt savings.

Here are the consumer barriers we’ve seen which are now fading:

• They do not want to raise their low mortgage interest rate, holding on to it for dear life despite it now hurting their cash position or ability to cure debt.

• They do not want to sell now because they would have to “buy high” & assume value may be lost since we are in a housing bubble, value-wise, when in fact homes have ascended in value for 3 years straight. The “bubble” overpaying objection has a ected less than 15% of homes & has had isolated e ects on specific homes over pricing, not whole markets.

The reason these objections are fading:

• For three years the news has reported “housing issues” & “bad market” conditions, which has proven to be poor advice for American homeowners. Sure, hanging on to a low rate is great for a period but, statistically for the past 40 years, 80% of Americans have home loans for 32-36 months & then either refinance or buy/sell. That means during that time they are accumulating debt & dwindling cash position.

• Refinancing or selling your home is the #1 cash infusing transaction/event in every American household.

• Holding onto low rates & not doing traditional cash-out now that homeowners are currently in range threshold is hurting them. They’re compounding debt. They’re making strained financial decisions like using credit cards to buy & accumulate debt, and spending vital cash due to credit limits.

Now an LO can open discussion points about these objections. That consumer can receive & take action on a better mortgage that helps them cure their financial woes.

We here at 2020 Vision knew this three years ago. Economically experienced & wise, we were sharing the likeliness of a sustained rate market since November 2021 when rates first rose. Our LOs have benefited from this advice, acting immediately & pivoting far sooner than their counterparts.

Today we see companies & people stuck, like deer in headlights, heading for a total crash due to inaction. We are screaming from the proverbial mountaintops right now! We’ll continue to teach the vital marketing tactics to connect these dots & we’ll be there to help them take those first wobbly steps. Our virtual classrooms are filled with known, experienced LOs & companies who are rocking already with more traction into the future.

The final word: LOs who service clients in this way, during the hard times, will stand to do more in the future because they earn trust & warmth by seeking out potential financial benefits. When the rates do drop, those clients will return to the LOs who took action.

Who will lose? The LOs & companies saying, “Hang on! Don’t do anything! It’s not smart to refinance right now. I will call you when rates come down.”

One more last word: Sit at tables where truthful, helpful & real solutions exist. THAT is where the business will be won.

Christine Beckwith is a 35-plus year veteran of the mortgage industry, with positions from originations to Senior VP of sales. In 2018, she made the move to serving mortgage professionals in her “legacy years” by founding 20/20 Vision for Success Coaching, now the largest consulting firm in the American banking & brokering industry. The award-winning, 5-time best-selling author will release tactical expert sales book “High!” in November 2024.