How to be an origination leader in 2021
This week, the founder and CEO of HW Media, Clayton Collins, interviews Gino Fronti and Don Goettling, who are both area managers at Finance of America Mortgage. In this episode, the founders of DG Media and the Don & Gino show discuss how to best coach originators in today’s market, as well as how to be an origination leader in 2021.
Here is a small preview of the interview, which has been lightly edited for length and clarity:
Clayton Collins: As we look forward and we see where institutional money managers are putting money, and we try to anticipate what’s going to happen in the rate market, how do you coach your teams on working through a volatile or long-term rising rate environment?
Gino Fronti: I think back to maybe like eight or nine years ago, when I heard from Jeremy Forcier, and he said, “if they like it, lock it.” It’s that simple. I mean, I know it doesn’t seem like it’s that simple, but if it helps the borrower achieve the goals that they’re trying to achieve, then it really isn’t all that critical, whether it’s three and a quarter, or three and a half.
I’ve had maybe 10 mortgages on my homes before in the last 15-20 years. And while you’re hypersensitive to rates at the moment of time when you’re purchasing a mortgage, after that, it’s just a payment. So, it doesn’t matter. The thing is, does it help them achieve their goals? If they’re buying a home, and they purchase today, good news; if it goes down, you can refinance. If you wait, and it goes up, there’s nothing you can do as homeownership just became more expensive for you. So, take action today is the advice that we’re telling people that are in the market to purchase. They shouldn’t wait because it could get very expensive.
Don Goettling: On the refinance side, what’s kind of nice is rates are still, as you know, at historical lows. While not the lowest ever, with historical lows, there are still opportunities, believe it or not. You’d be surprised when we look at our charts and see how many people still have interest rates above 4%. For one, and two, maybe they need to do improvements. The good news is they’ve gained a ton of equity. Anybody who’s owned a home recently has gained a ton of equity, on average, almost 7% to 10%.
So, now they have equity positions, one, maybe pull cash out to improve their home, or two, a lot of people have debt. It’s just a fact, but what if we eliminated that debt? Even if you had to raise your interest rate on your current home mortgage but paid off all that debt, which’s a ton more expensive, it still would be a better position for them. So, now’s the time for all of you out there to be true advisors. This is where the real professionals come out, not the order takers.
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The Housing News podcast explores the most important topics happening in mortgage, real estate, and fintech. Each week a new mortgage or real estate executive joins the show to add perspective to the top stories crossing HousingWire’s news desk. Hosted by Sarah Wheeler and produced by Alcynna Lloyd.