The Mortgage Banking Industry: Then, Now, & in 50 Years

Twenty years ago, I was blessed with the opportunity to start my career in mortgage banking industry.  When first hired as a Licensed Loan Advisor, I was given the opportunity to spend all day, every day, talking to customers about their short and long-term financial objectives and I was responsible for recommending customized loan options that changed lives.  Helping people live better with less financial stress and making sure they had a better overall financial education was something I took great pride in.  While it may seem overly optimistic to some, to me, it was my way of giving back. I will always look at the time and experience I spent as a Licensed Loan Advisor as one of the most exciting and fulfilling positions I have served in during my career.

Then:  When I started in this industry, we found our customers by referral, searching courthouse mortgage recording dates, and cold calling out of the phone book. The primary means to communicate with clients was over the telephone and via fax machines. To obtain a loan there was less paperwork, less documentation, significantly less regulation, and it took about six to eight weeks to help a client purchase a new home or refinance their existing home.

Now:  Today, customers typically seek out refinance, home equity, and purchase home loans by applying on-line.  The world of referrals is done primarily through social media. Searching court house record is terribly inefficient, and cold calling no longer exists (if you play by the rules, which you should)!  The primary form of communication today is still the telephone with email at a very close second.  To obtain a new loan, the amount of disclosures required to be signed has tripled; the silver lining is that roughly half of the disclosures are electronically signed.  Federal and State regulatory requirements on Lenders, Loan Advisors, and customers are much more stringent and the best part about refinancing today is that only under extreme circumstances should it take more than two weeks to refinance, take out a home equity loan, or purchase a new home.

Future:  Technology enhancements in our society have and will continue to change the game.  So, what will refinancing, taking out a home equity loan or a purchase loan look like in 50 years? …I believe it will be determined by the customer. Lenders who care will adapt and ensure that means to service customers are simplified based on the client’s needs.

A few things we know for certain; smart clients will always demand and expect comprehensive advice from a Licensed Loan Advisor.  The internet is not going away.  Social Media, Email, and communication technology will only grow and improve.