TheMReport — News and strategies for the evolving mortgage marketplace.
Issue link: http://digital.themreport.com/i/1398400
26 | M R EP O RT FEATURE ing. That's why, in my opinion, our industry should reconsider bringing origination and servicing assets back together under one roof. It's my sincere belief that unbundling these services hasn't yielded a good outcome for some consumers. When originators retain servic- ing in-house, that means they should be positioned to offer guidance and assistance to bor- rowers. Whether they want to accelerate their mortgage payoff strategy to build wealth, or they have mortgage questions—about loan modification, forbearance, or how to tap home equity—we can proactively walk them through all those situations when loans stay on our books, and we can peek at what's going on under the hood. Mortgage Debt- Management Education Starts at the Initial Loan Intake W hen the housing market normalizes again (and it will), ask yourself this question: will you be the first person whom past clients call if they decide to move up to their next home, to refinance, or to take out a second mortgage? If your mindset is still stuck in one-and-done transaction- al mode, then probably not. Think of your expert role in the context of the consumer journey. How can you become the go-to resource for mortgage- related decisions at different stops along that journey? What advice can you give to help them maxi- mize what's likely their largest financial asset? And how do you communicate the ongoing value you offer beyond the first loan closing? It all begins with how you establish and build an enduring relationship with your custom- ers. The initial consultation with borrowers is especially important and hitting the basics—explaining how their credit score and credit history, debt-to-income (DTI) ratio, debts, assets, and savings all impact the loan decision—is stan- dard fare. We must go beyond the expected. Take it to the next level. Find out the borrowers' financial goals. Explain how their savings plans for retirement, a child's college tuition, or other goals might be impacted by their mortgage deci- sions (and vice versa). Dig even deeper by educating a borrower about their DTI ratio, so they un- derstand what's available for them to save and spend. This is what I mean about showing borrowers the holistic view of mortgage borrowing and how it relates to their long-term, mortgage-debt management. A trusted mortgage advisor should be prepared to discuss financial goals and provide sound counsel on how to achieve financial well- ness. Not enough mortgage advi- sors are doing this, and borrowers can tend to get caught up in the emotions and urgency of a home purchase. If borrowers look at only the home price, interest rates, and fees, they're focusing on the wrong things. The question they should ask themselves is this: "Who can I trust to help me understand the process and offer me suggestions to manage and maximize my real estate investment." Guiding Mortgage Borrowers on the Path to Financial Wellness A s mortgage advisors, we provide an important pro- fessional service because we're educating and advising borrowers about their biggest financial asset: their home. It's easy to be laser-focused on closing transactions and moving to the next deal when the pace is brisk, and we have more volume than hands on deck. But as homebuyers take a pause from the chaos—as they're doing now— that's when we must get back to the basics of our profession. It comes down to relationships. It comes down to cultivating trust. We're mortgage educators. Let's be proactive, rather than reac- tive, in showing borrowers the awesome power of how their real estate investment can be another arrow in their quiver toward financial wellness. To rise above the competition, become the go-to mortgage expert in your market who's looking out for your clients' financial health and their long- term needs. Editor's note: The views and opinions expressed by Bill Dallas are his own and do not necessar- ily reflect the views of Finance of America Companies or Finance of America Mortgage LLC. . BILL DALLAS is President of Finance of America Mortgage LLC. Dallas is known for building two mortgage companies from the ground up, First Franklin and Ownit Mortgage Solutions. In 2009, he purchased Skyline Home Loans with Upfront Ventures and a talented team to modernize the traditional mortgage business. In 2018, assets of Skyline were purchased by Finance of America Mortgage as another stepping stone toward realizing their mission and vision to bring the promise of the digital mortgage to their customers and advisors. Today, Dallas leads the combined business at Finance of America Mortgage LLC. Dallas holds a Bachelor of Arts degree, magna cum laude, from Bowling Green State University and a Juris Doctor degree from the University of Santa Clara School of Law. By drawing parallels between their home-financing decisions and their long-term financial goals, borrowers can better understand how and why a home mortgage should not be considered in a vacuum.