NMP - December 2016 - 96


People, Process, Product and Price
Drive Growth in a Changing Market
By Jim Clapp

his year, successful
mortgage lenders
have adapted to
compliance
regulation changes,
online applications
and appraisal delays. In 2017
and the coming years, the
changing environment will
require mortgage lenders to
focus on purchase mortgage
originations, a significant drop
in refinances, as well as
changes in technology and
customer's expectations.
If we look at the landscape of
the industry, the Mortgage
Bankers Association (MBA) is
forecasting an 11 percent
increase in purchase mortgage
originations and a 46 percent
drop in refinances due to rising
interest rates in 2017, according
to the Nov. 17, 2016's MBA
Economic and Mortgage
Finance Commentary. Although
higher interest rates will
decrease refinance activity, it
should not negatively impact the
demand for purchase loans. The
projected purchase growth is
based on the projections of a
stronger domestic economy,
increased household formation,
continued job growth, rising
wages, strong retail sales and
further home price appreciation.
Additionally, the Joint Center
for Housing Studies of Harvard
University is projecting that
housing construction should
significantly increase with an
average of at least 1.6 million
units a year over the next
decade. Residential fixed
investment (including
homeowner improvements) has
accounted for just 2.8 percent
of the annual GDP in this
decade compared to the 4.3
percent share averaged in the
1980s and 1990s. This leaves
plenty of room for growth over
the next decade.
In 2017, Starkey Mortgage is
continuing on a growth initiative
with the goal of being a top 30
residential lender in the country.

T

DECEMBER 2016 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

96

Our business is 90 percent
purchase lending and like other
purchase mortgage lenders, we
depend on the relationships that
we cultivate for the business
referral. Our referral
relationships, some of which
have been cultivated over the
course of a decade, are with
real estate agents, builders,
financial advisors and satisfied
customers who continue to refer
us to their friends and relatives.
To thrive in this changing
market, lenders must focus on
the Four P's: People, Process,
Products and Pricing. Our firm
started this new chapter of
growth with a focus on People
and Process. As compliance
demands, customer
expectations, and technology
innovation have changed in the
industry we made a major
investment in our Loan
Origination Software (LOS) and
in the last six months, have
hired new team members with a
wealth of experience to improve
our mortgage processes and
marketing campaigns.
People
l Training: As the market
changes, team members
need continuous training and
coaching to help a company
meet their growth goals. A
strong training department is
a necessity and if a company
needs help in this area,
training companies such as
Xinnix Academy can help fill
the void. We have
successfully created Starkey
University for training our
team members, onboarding
new team members and
developing the next
generation of loan officers.
The median age of a loan
officer in the mortgage
industry today is in the 50s
and Starkey has a boot camp
program to identify, cultivate,
and mentor young talent and
develop the next generation
of successful mortgage loan

officers. For new loan
officers, we have developed a
60-90 day plan to help them
acclimate to the new systems
and meet the people they
need to know to get their job
done with the least amount of
frustration. For example,
assigning a dedicated
operations team to a new
loan officer as well as
someone to oversee their
pipeline helps a loan officer
transition to a new company
in the shortest amount of
time.
l Community involvement: To
make an impact on a
community, companies need
to invest in the community
with volunteer hours and
financial donations. Starkey's
Community Connection
program provides a way for
the company to contribute to
charitable organizations in
the communities it serves
throughout the year. Our
team members also volunteer
in their communities as part
of the Starkey Charity
Challenge program, logging
more than 3,000 hours with
175 community organizations
this year.
Process
l Loan Origination Software
(LOS): Changes in
customer's expectations and
compliance regulations
require a sophisticated LOS
system. While it is a
significant investment for any
lender along with its people,
the LOS is the bedrock on
which a company is built and
the upfront investment is
small compared to the
reputation and financial cost
of a compliance infraction or
platform inefficiencies. We
invested in Black Knight
Financial Services' Empower
LOS to provide additional
value to our sales and
operations staff through a
single source automated

system from origination to
post-closing. Additionally, the
system provides the most
effective compliance,
improves the connection and
efficiency between
departments, streamlines data
and document input, improves
data tracking and pipeline
management. This investment
brings a better customer
experience, meets compliance
regulations, allows the sales
force to focus on growing
their business and helps build
a deeper trust with referral
partners.
l Marketing: A strong
marketing department drives
business to the sales team
generating marketing qualified
leads (MQL) and supports
them with the tools they need
to grow their business
relationships. In today's fastpaced technology-driven
world, a strong marketing
team is not a "nice to have"
but a "must have" for
success.
A vital part of marketing is
understanding how the
demographic trends continue
to evolve in the United States.
According to Joint Center for
Housing Studies of Harvard
University, The State of the
Nation's Housing 2016 report,
Millennials are finally entering
the housing market in earnest.
As Millennials enter their 30s,
they are expected to form well
over two million new
households each year on
average, raising their numbers
from 16 million in 2015 to a
projected 40 million in 2025.
Additionally, the Harvard
study shows that Hispanic
immigrant Millennials will
increase the need for housing
as they age, adding to the
strong demand expected from
what is already the largest,
most diverse generation in
history. When you combine
these demographic trends
with our growing reliance on
technology, the marketing mix
must include social media.
According to Pew Research
Center, 72 percent of
Americans use Facebook
followed by Pinterest (31
percent), Instagram (28
percent), LinkedIn (25 percent)


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Table of Contents for the Digital Edition of NMP - December 2016

Contents
NMP - December 2016 - Cover1
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NMP - December 2016 - 1
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