The Fed announcement that it expected as many as three rate cuts in 2024 sent a jolt of optimism through the real estate industry at the start of the year, especially in mortgage lending circles.
As we approach the spring housing market, Wintrust Mortgage Senior Vice President, Regional Manager Tricia Brouwers shared her view on what loan officers should expect through the end of the year.
Her advice? Don’t be the loan officer sitting and waiting for rates to drop and business to walk in the door.
“Those who are going to have the most success in 2024 are not waiting for the market to meet them. They are pivoting to meet the market,” Brouwers said. “If we don’t meet the market, we’re going to look back at 2024 with regret.”
That means diversifying efforts and not limiting yourself to one lending niche, Brouwers said. Get involved in the first-time buyers’ market. Expand into or beyond the luxury market. Be strategic in your outreach to connect with a broader range of potential clients.
Those who did that already excelled in 2023, despite the inherent market challenges, she said.
“If you’re relying on the Fed to change rates to help your business, you will be out of business,” Brouwers said.
“The good news is the market is always shifting. That’s a beautiful thing. There’s opportunities in every market if you choose to find them.”
For example, if inventory is tight, get involved in creating more. Brouwers said some loan officers have built up their new-construction expertise and partnered with developers to be out in front of new inventory hitting the market.
Ultimately, though, the key to a robust year is your attitude, Brouwers said.
“The most powerful tool that a loan officer can have in this market is their mindset,” she said. “I believe your thoughts become your beliefs, and your beliefs become your actions. You can tell yourself the market is to blame, but you can have reasons or results — you can’t have both.
“Whatever you think about this current market, will be. Someone will always find a way to turn around and pivot if they want to. And there will be others who don’t.”
Creative loan assistance programs can help, and the best loan officers won’t say no to a potential borrower, even in a market full of no’s. They will say, “not yet,” Brouwers said.
“Not all products are created equal and not all loan officers are, either,” she said. “A loan officer who is well-versed in creative solutions has a competitive edge in this market. They are finding ways to say yes.”
It would be easy to be pessimistic while lending companies are right-sizing their staffing and rates continue to hover near 8%. Loan officers, though, should take a lesson from the book “The Little Engine That Could,” Brouwers said.
“It’s a great childhood story of I think I can, I think I can, I think I can. If you tell yourself you won’t, you won’t. If you tell yourself you can, you will.”