In the past, loan officers have relied primarily on referrals from Realtors for new business. Now, top producers like Cindy Laffey are using simple methods to get their names directly in front of potential clients. She explains, “We post pictures of every closing and tag our real estate agent, referral source, the buyers and their business pages. It goes on and on. That’s really getting a lot of activity and getting me a lot of exposure.”
Our industry is at a pivotal point as today’s average loan officer reaches their 50s. In the next decade, approximately 200,000 of these professionals will enter retirement, leaving a massive hole in the market if the next generation does not start stepping into their shoes. As mortgage professionals, we must collectively prioritize finding brand new originators if we want our industry to prosper over the years to come.
The number of satisfied customers begin to drop dramatically as loan officers become less communicative. When a customer has to call a lender for a status update, the customer satisfaction rating drops to 65%. And when the customer doesn’t receive a checklist for completing the loan at the beginning of the process, their satisfaction rating sinks down to 57%.
Build to rent allows investors to buy newly built homes and rent them out instead of selling them. Because the homes are new, investors are able to charge higher rent prices and tenants often stay in the home for longer periods of time. But the question remains: Why would builders move into the rental market during a time when homes are selling quickly and at higher prices than any time in the past decade?
Today the average student debt resulting from a four-year degree stands at $30,000. According to a report released by American Student Assistance in 2015, 71% of non-homeowners surveyed who carry student debt say the burden of monthly payments has kept them from purchasing a home. More than half of those say their student debt loads will likely prevent home ownership for another five years.
Currently, institutional investors control approximately 170,000 properties (a relatively small portion of the overall SFR space, which is dominated by smaller investors, and estimated to include 11 to 13 million properties). KBRA reports that 105,000 properties have been included in the 26 single-borrower deals done to date, which suggests there are somewhere north of 60,000 properties that could still be securitized.