5 Steps to Prepare for the Coming Mortgage Surge

The Fed recently announced a reduction in interest rates by half a percentage point, effective September 2024.

When rates are reduced in any capacity, we see an increased demand in today’s real estate market and the needle begin to move.

The initial tide will likely lift all boats, dropping new inquiries into mortgage companies large and small. The firms that ultimately win that new business will be prepared to move forward quickly and strategically.

Get Ready…Get Set…

Because this downturn has gone on for almost three years at this point, many lenders have stuck with outdated technologies and pushed off the investment in updated tools. When the new business hits, many will rush back to market in an effort to tune up their tech stacks.

Only the first movers will get the attention of most technology providers, as the downturn has forced many of these firms to also cut staff.

Here are five things the lender can do in advance to be ready to move when the time comes:

Implement Robust Lead Management Systems

With the potential for a surge in inquiries, having an efficient lead management system is crucial. Ensure your tech can effectively capture, categorize, and route leads to the appropriate team members without delays. Ensure good management reports to see which team members are winning, and which are costing you business.

Develop a Quick Response Strategy

In the digital age, speed is crucial. In the first phase of mortgage origination, it’s everything. Develop a strategy for responding to online inquiries within minutes, not hours. This might involve chatbots for initial engagement, followed by prompt human follow-up. Larger lenders will likely staff up their call centers. Smaller lenders will have to out innovate them.

Optimize for Mobile

Many borrowers prefer to start their mortgage journey on mobile devices. That’s where they’re primarily searching for homes. Ensure your website, online loan calculators, application forms, and customer portals are fully optimized for mobile use to capture this significant market segment.

Streamline Your Customer Engagement Process

Borrowers expect quick, seamless interactions. They will abandon your process if you fail to provide it. Your technology should facilitate a "relationship on-ramp" that's smooth and easy to navigate. Aim for a process that requires minimal clicks and provides maximum value to the customer. During the process, keep your borrowers updated at every milestone.

Assess (and Re-Assess) Your Current Tech Stack

As you add new tools to your tech stack, be sure to check on the legacy tools you’ve been using. Are they holding up or slowing you down? Identify gaps, outdated systems, and areas where efficiency could be improved. This assessment will help you prioritize your tech adoption strategy and avoid redundant investments.

Lenders can position themselves to quickly adopt and effectively utilize new technologies, even if they wait until the last moment to act. It’s risky, but it’s possible.

Remember, in the current mortgage landscape, you often only get one chance to engage and keep a potential borrower. That’s why smart lenders are acting now by reaching out to get help evaluating their current tools and preparing to close every deal they touch when the business floods back in.

To find out how we can help, give us a call today.

By George Morales, National Sales Director at Mortgage Cadence 

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