Start sending emails.
“It would be a good idea to send a note to all your clients and let them know that rates are going up,” Deery said. “Explain to them what happened today. It’s a good time to let people know who’re on the fence – from here on out, mortgages are going to get more expensive.”
Be the go-to expert.
“I’m even going to get in contact with a couple local newspapers and try to write a piece (about the taper),” Deery said. “Try to be that voice that explains in plain English what it all means. Ask yourself: ‘If (my readers) are 18, 19 years old, can they understand what I’m writing?’ You can write something and send it to agents that might not make any sense to people on the street, because they don’t know the lingo. Present this in a way that people can say, ‘I get that. Now I can make a decision to buy a home.’
Focus on purchase business.
“This was the least-kept secret in our industry – that the taper was coming in December or January or February,” Deery said. “You’re living under a rock if you didn’t know this was coming. People should have already made the shift to purchases. You should be hitting every single referral partner. Everybody should at least get a couple of phone calls asking, ‘What does this mean?’ That’s the goal, right? To get the phone ringing. I think it creates opportunity, and those who know how to capitalize on that opportunity are going to do well.”
With the recent taper of the Fed’s bond-buying program will come rising interest rates. That may be inevitable – but it can also be an opportunity, according to one of the country’s top originators. Here are Citywide Financial President Michael Deery’s tips on how to make the taper work for you: