Of course, for our sales teams, we want to emphasize that differentiation is possible. Setting ourselves apart, though, isn't about the product we're selling so much as it is about the way we sell it. It's about the relationships built with people, the interactions we have with them, and the way we communicate throughout the process. A solid relationship can go a long way. Yet at the end of the day, we're selling the same thing as competitors. So, from a managerial perspective, how do we remain competitive?
From Joe's perspective, profitability in the mortgage industry comes down to efficiency. If we can't get extra revenue on the front end, we can reduce costs on the backend. Especially in a regulatory market that standardizes even more the offerings we can make to consumers, we are going to get our profits through saving money. Now more than ever, efficiency isn't just about making our businesses better; it's about survivor. Profitability might just boil down to how careful we are with our resources.
On the May 16 episode of my Lykken on Lending podcast, cohost Joe Farr brought up a very interesting point about profitability in the mortgage industry. Although I'm sure many loan originators would challenge me on this point, ours is an industry that sells a commodity. Differentiation is hard. Consumers see the same product offered by every single company. A loan is a loan.