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Apr 13, 2018

The future of the mortgage industry is no different than the future of any industry, artificial intelligence and advances in technology are definitely going to factor into the way people in the industry do their work. But just like most industries, we don't clearly know what is going to happen. There are certain things that can't be avoided: technology will continue to improve, systems will be refined, regulations will be streamlined over time. Do those things necessarily mean that robots will take our jobs? This conversation between Andrew and his guest, Chad Geyer is a fairly deep dive into what teo experienced loan officers believe about the future of the mortgage industry. Some of it is speculation (because neither of them knows the future) but a lot of it makes perfect sense.

Is the future of the loan industry going to take away LO jobs?

With the advent of many services that weren't even thought of 10 years ago, we have seen the question of whether automation will take away human jobs come to the forefront. Uber and Lyft are prime examples of new, disruptive companies that have taken a bite out of the job market in the transportation industry. Will the same thing happen in the future of the mortgage industry? While Chad and Andrew both believe that automation is going to change the way LOs do their work, both of them believe there will always be the need for a human touch when it comes to such an important, life-changing decision as buying a home. This is an intriguing conversation that you won't want to miss.

Will the day come when you have to position yourself as a boutique loan officer?

What will the loan officer's job look like in the future days of the lending industry? Will robots be doing everything or will there still be a need for human interaction? Chad says that he can see a very necessary transition on the horizon where loan officers position themselves as boutique services for those who want specialized care and step by step guidance. The home loan process is complicated and those specialized situations that are not so straightforward will require someone to give a bit more explanation than machines will be able to do. It's curious: What could we be doing now to position ourselves in more of a boutique light than we are currently doing? Maybe that would prepare us for what is coming in the future of the mortgage industry.

Can you differentiate yourself by means that are non-rate-related?

A closely related issue to this discussion about the future of the mortgage industry is the introduction of digital means of applying for and closing loans, such as Quicken Loans or Rocketloans. from a certain perspective, those services seem unbeatable because they offer things like low rates, ease-of-use, and speedy replies to inquiries - combined with the low-pressure sales approach people seem to like these days. But both Andrew and Chad believe there are ways to position yourself as a Loan Officer where your expertise and knowledge are valued much more than the speed or low rate offered by those companies. In this conversation, Chad shares how he goes about using his expertise as a selling point with consumers and real estate agents. You won't want to miss the nuances of what he has to share, so be sure you listen.

Is targeting the top real estate agents for referrals still the best strategy?

Most MLOs have learned that referral sources are an incredibly powerful way to keep the pipeline full. A common strategy is to seek out relationships with top real estate agents who have the potential to provide numerous referrals every month. But is that still the best strategy? Chad says he has begun building referral relationships with mid-level agents instead of the top producers simply because everyone else is targeting the top producers. He may receive fewer referrals over the course of time but he is able to establish lasting relationships that are a consistent source of referrals. It's great to receive advice from someone with such experience and insight, so you are invited to listen and learn from what Chad has to share.

Topics From This Episode

  • [0:42] What to expect on this episode with Chad Geyer
  • [1:42] How Chad was introduced to the loan and mortgage industry
  • [4:47] The approach Chad takes to sell himself and his company to clients
  • [14:04] How can lenders combat the “RocketLoans” options in the industry?
  • [21:01] What will it mean for loan officers when technology and regulation improves?
  • [31:34] The reason LOs are not overpaid for the work they do
  • [40:40] Is it still a good strategy to approach top agents for cooperative relationships?
  • [46:08] Chad’s daily workflow and the hangup he has about letting go of things

Resources & People Mentioned

Connect with Chad Geyer