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Working for a large lender or bank, is not in your best interest.

Working for a large lender or bank, is not in your best interest.

In a changing market, larger lenders are facing financial pressures due to prolonged high interest rates and their strategies for recouping funds haven’t panned out as expected.

Let’s say the rates continue at 7% through 2024. Larger lenders and banks attempted to control the bleeding by offering large sign-on bonuses as they were relying on recouping the funds in the spring market…then the summer market…now fall is here and the market remains stagnant. Ultimately, they will continue to bleed for another 12-18 months. Mid-sized lenders did not make the same level of financial commitments. This, in turn, makes them the more prudent choice for those seeking stability and growth in the mortgage lending industry.

What are the main benefits of working for a mid-sized lender?

    1.     Market Capitalization: Mid-sized lenders have the advantage in a market that’s not oversaturated with loan originators from the same company. This can provide more opportunities for loan officers to secure business.

    2.     Direct Access: Mid-sized lenders offer direct access to decision-makers without added layers of bureaucracy, which can lead to quicker and more personalized decision-making and a better experience for you, your borrowers, and even your realtors.

    3.     3. Flexibility: Mid-sized lenders can be more flexible in adapting to market changes. We are better equipped to adjust our lending strategies to suit the changing market conditions, in turn, offering more attractive loan terms and rates.

    4.     Growth Potential: At Semper, we provide tools and support to help loan officers, even those doing 1-3 loans per month, grow their brand and income potential.

    5.     Marketing Support: We offer direct marketing support to help loan officers reach potential clients, past clients, and realtors more effectively.

    6.     Pricing: We offer pricing similar-to brokers while still offering all of the benefits of a lender.

The prolonged period of high interest rates and the challenges faced by larger lenders in recouping funds could indeed lead to a significant shift in the mortgage lending market. Mid-sized lenders, with their financial stability, adaptability, and competitive advantages, are better positioned to weather these challenges and provide a more secure and attractive option for both loan officers and borrowers.

Categories: helpful tips, Semper Updates