NOVA has grown to 65+ customers YTD. We primarily have been blessed by referral business, and that growth remains strong. To manage the influx of new business, we hired Michael Larssen, a 25+ year lending industry veteran to be our SVP of sales. Please feel free to contact Michael to inquire about our system or schedule a demo. He can be reached at 727-478-3201, or by email at firstname.lastname@example.org. As always, you can visit our website to request demo as well www.liquidlogics.com.
Mortgage originators today face challenges in the marketplace from a variety of competitors. Because of this competitiveness, lenders’ risk management and profitability strategies are focusing more on mortgage pipeline management. A robust pipeline management process is crucial to converting leads to loans, meeting customer expectations, saving time and reducing costs.
A mortgage pipeline consists of mortgage commitments, and if managed properly it offers lenders an opportunity to capture more business efficiently, and in turn, become more profitable. However, managing a large pipeline can become burdensome if originators do not utilize the tools within their LOS to more effectively manage their loans.
Following Up on Leads
Since borrowers have many choices for their loan needs, they need help in making the right decision. Salespeople must follow up on individual leads to determine their engagement and see if there is a deal on the table. Loan Management System (LMS) search tools are the best way to accomplish this task quickly and easily.
Quick Searches – Using daily quick searches can help salespeople keep tabs on their leads by searching criteria to quickly follow up with borrowers in their pipeline or create a needed loan task. Grouping searches by tasks can help reduce process times and better organize the parts of your pipeline that need the most attention.
Saved Searches – Saved searches allow lenders to customize a search based on specific borrower criteria and then use this search tool to find only the information you need throughout the loan lifecycle. For instance, saved searches can help lenders quickly find only leads, or new originations, open loans with needs, or loans ready to close. These saved searches allow lenders to quickly address a group of borrowers with the same criteria.
Advanced Filters - Advanced filters can bring out more of the minute details of your pipeline than an advanced search, allowing you to sort originations by the loan amount, important dates, loan type, and much more. In utilizing the advanced filter tool of your LMS weekly, you can prioritize your pipeline data and address immediate tasks more effectively.
Search tools are great when you have to find files quickly, but to gain better understanding and management of your pipeline, you will need to run a pipeline report. Pipeline reports generally allow users to export to an Excel spreadsheet, providing another tool to sort and closely review your loan files, share data with your team members, and follow up with borrowers. Moreover, you can utilize pipeline notes, and configurable columns within your LMS to build and refine the details of your pipeline report.
The best mortgage sales operations make a concerted effort to regularly review their pipeline and finely tune it to determine where they need to concentrate their efforts. These reports can identify bottlenecks in the pipeline and help you in deciding how and when to clear them. By performing this function regularly, you improve your pipeline process, and over time, it will become a robust, essential tool for your organization.
The Devil is in the Details
Managing your pipeline is all about the details. Your LMS provides all of the tools you need to process your loans efficiently, but without including the little details about each file, you will find yourself continually performing pipeline management duties that will soon become redundant and tiresome.
If the entire team buys into a real-time pipeline management solution, however, you will be more organized and efficient than ever, allowing you to process more loan in less time. When your pipeline is full of files, from leads to funded loans, it’s nearly impossible to manage manually. However, by taking advantage of the tools available in your LMS, you can more effectively manage your files, stay on top of important details, and build your organization into a more efficient, well-oiled operation.
With the China-U.S. trade war rhetoric escalating and the FED rate cut last week, mortgage rates continue their slide to a 3-year low. Mortgage rates for the week ending August 8, fell 15 basis points to 3.6% from the week prior 3.75%. Freddie Mac is reporting that this drop brings the 30-year conforming interest rate to its lowest level since the end of 2016.
Mortgage rates have dropped nearly 135 basis points since the most recent peak on November 2018, and down 100 basis points since this time last year.
The 15-year fixed rate fell to 3.05%, down from 4.05% a year ago, and the 30-year jumbo rate fell from 4.04% to 3.96%, with 0.26 points.
According to Freddie Mac, the robust consumer market sentiment and active labor market, coupled with low rates, will continue to support the housing market at least through the fall.
Weekly figures from the Mortgage Bankers Association (“MBA”) indicate that the Market Composite Index (a measure of mortgage loan volume) increased by 5.3% in the week ending August 2. The increase reverses a trend where the index fell 2% for the week ending July 26.
Even as the FED rate cut helped mortgage rates fall to their lowest levels in three years, according to the MBA, negative sentiment towards the trade war between the U.S. and China had a more significant impact on rates, with falling Treasury yields affecting mortgage rates.
While mortgage rates continue to drop across the spectrum, the MBA indicated that refinance originations will likely continue to rise in the weeks ahead, noting that the refinance index hit its highest level over the same period, rising to a 53.9% share of all mortgage originations, a 12% gain week over week.
In a statement, Mike Fratantoni, MBA senior vice-president and chief economist said, “The Federal Reserve cut rates as expected last week, but the bigger influence on the financial markets was the beginning of a trade war with China. The result was a sharp drop in mortgage rates, which will likely draw many refinance borrowers into the market in the coming weeks. The 30-year fixed-rate mortgage fell to its lowest level since November 2016, and … [w]e fully expect that refinance volume will jump even higher this week given the further drop in rates.”
The week ahead looks relatively quiet from an economic perspective. Although July inflation numbers are coming out on Tuesday, and most analysts predict another FED cut sooner rather than later, driven by an escalating trade war, and which will ultimately affect Treasury yields and mortgage and consumer loan rates.
On Wednesday, Chinese production figures are expected to be released, and depending on the data, could affect the markets somewhat. Heated geopolitical rhetoric and weak global economic numbers may overshadow any positive U.S. numbers, but steady consumer sentiment and the end of summer house shopping season should keep the mortgage industry churning along for the near term.