Meanwhile, the smaller challenger banks and lenders are moving in to seize a share of the market. Mortgage fintech has reported a boom year so far, setting records in the first quarter, with 57 companies raising $100 million or more and accounting for 69% of total funding, according to CB Insights data – all of which will add pressure on lenders from late 2021 onwards.
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Targeting the Big Three: Borrowers, Realtor, and LOs
Experienced mortgage lenders understand that the market is cyclical and that companies with the lion’s share of the sector will benefit when margins normalize.
But to thrive and build towards long-term growth, lenders will need to focus on three realtor/homebuilder tactics to insulate themselves against market pressures.
Tactics related to realtor and home builder relationships, such as owning the referral, retaining pre-approvals, and nurturing strategic partnerships will once again take center stage.