One broker believes so…
Even in a slow market – with mortgage rates high and stagnant inflation – there are always positive trends afoot.
For Michelle Chretien (pictured), of Empire Mortgage Corp., it’s a sense of empowerment she sees building among her customers that she views as a positive development. Mortgage Professional America caught up with the broker at the recent FUSE conference staged by the Association of Independent Mortgage Experts (AIME) in Las Vegas.
“I think the best part has been that most of my consumers are coming to me way ahead of time to get educated and get a game plan they never had before,” she said. “During COVID in 2020 and 2021, everyone was jumping quick and, like, ‘how do we hurry up and get a mortgage?’ And they were putting offers in to get approved because it was just a rat race. This change has slowed down the market some so consumers have more of an opportunity to purchase.”
A more methodical approach to mortgages
What a difference between then and now. To spur homeownership during the dark days of the pandemic, mortgage rates dropped to historic lows – in the 2% to 3% range – which sparked a buying frenzy. Now, with inflation stubbornly lingering, mortgage rates have surged to the 8% range – the highest in more than 20 years.
From Chretien’s standpoint, this new reality has yielded a more methodical approach among those seeking to buy a home – including undergoing thorough assessments of their debt loads.
“I’ve been talking a lot to my consumers about getting rid of their debt and paying it down,” she said. “For instance if they want to do a $3,000 mortgage but they’re living with mom and dad and they’re not paying anything, I encourage them to pay themselves $3,000 a month that goes into their savings account and then that way they have more down payment or they use that to pay off their debt so they have more affordability.”
By some estimates, the number of loan originators will be roughly half of what they were in 2022 – another sign of the times in a more challenging market. Chretien views this as an opportunity for brokers to gain market share.
“The broker channel has so many training opportunities and things that the retail side does not have,” she said. “You have so many different layers of management in retail. And those who were in retail are going to come over to wholesale.”
Making the leap from retail to wholesale
When Chretien speaks of migration from retail to wholesale, she knows of what she speaks having worked in the former for many years. She imparted advice to others seeking a similar trajectory.
“Learn some guidelines, learn some products you may not know,” she said. “Spend time with a mentor to help you get through this and to realize it’s just a season. And also, just be willing to learn and be humble. It’s just a season – it will change.”
As far as her switch to retail: “I came from decades of retail,” she said. “It’s drilled into you that you can’t talk to an underwriter. You don’t have the resources, you don’t have the groups, you don’t have whatnot. In four years being a broker, I’ve spoken to more underwriters with a positive outlook and to help you structure and let you know, ‘yes, this will work if you had whatnot’ rather than being in a retail shop where, if I had a challenge, an underwriter would shut me down. If you went to work for ABC Bank, they may not have all the products, so you’re stuck – I can’t help the client. In the broker world, you can find someone who can help that client.”
They’re not competitors – they’re family
Key to her leap into the broker channel has been her membership in the Association of Independent Mortgage Experts, she said. The resources to which she has availed herself and the friendships she has forged have helped make the transition easier, she explained. She joined during the spread of COVID-19 but was able to video conference with her counterparts during that time.
“I joined AIME right away which was great – being here with like-minded people who are going to help us grow,” she said. “For instance, last year I was at the women’s mortgage network meeting and met a woman, Amy, who is amazing. Then I had an issue with a VA loan and I couldn’t figure out a solution. I picked up the phone – she’s in Chicago, I’m in New Hampshire – and she fixed my loan. She said, ‘did you do this, did you do that, did you try that.’ It’s the friends you can tap into. They’re not competitors; they’re family.”
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