The task of the loan officer has disappeared, but the task of the mortgage adviser is to stay here

That whole philosophy has disappeared.

The problem is that the majority of our industry has not yet realized it.

The end of the loss officer’s era

The role of the “loan officer” was built on a reactive model. We waited until the client had already made the decision to buy or refinanced and then positioned ourselves as the guide to get them from contract to conclusion.

But in the current market it is not enough to be a reactive processor of transactions. Technology, fintech platforms and consumer expectations have permanently reformed what customers need. Many of the traditional tasks of a loan officer … Performing numbers, processing paperwork, ensuring that the transaction closes on time, are now being treated faster and in many cases more efficiently by software.

If everything we offer is transactional support, we are already outdated.

The rise of the mortgage adviser

The role that will survive and thrive … is the mortgage adviser.

Mortgage advisers do not wait until the customer has already made a decision. We make contact with customers as early as possible, sometimes years before they are ready to buy, sell or refinance. Our role is not only to ‘help with a loan’, but to help customers make better decisions of life in the light of fear, uncertainty and complexity.

Advisors are educators, analysts, motivators and coaches. We come in to help families see what is possible, to challenge them when they hesitate and encourage them to take steps that can feel uncomfortable, but will benefit their financial health and generation advantage in the long term.

Before the transaction: where real value starts

For a mortgage adviser, the most critical work is done long before an offer is written or a request is submitted. We help customers:

• Strategy how they can accept their offer. In competing markets, the financing strategy can be the difference between winning a house and losing them.
• Save money on the purchase. Advisors can show customers how they can structure terms, effectively negotiate and position themselves as the most attractive buyers.
• Navigate through the emotional roller coaster. Buying or selling a house is one of the most emotionally charged experiences in the lives of a person. Advisors not only declare figures, they help people to help fear, excitement, disappointment and hope to manage.

Here we start to separate ourselves from the outdated role of ‘loan officer’. We are not waiting for paperwork; We influence the results.

During the transaction: more than implementation

Of course, implementation is still important. Advisors must provide flawless communication, inspire trust and ensure that the process runs seamlessly. But excellence here is only the baseline.

The real test is whether the customer not only regards us as a competent during the 30 days of the transaction, but also as indispensable for the 30 years thereafter.

After the transaction: where we prove our value

This is where the mortgage advisers model really seems.

If we create a transformational experience before and during the transaction, customers will invite us long after closing their lives. And that is where we can have the most impact.

Advisors do not disappear after financing. Instead, we continue to guide customers proactively by:

• Life changes and evolutions. Marriage, children, divorce, relocation, pension, all make financial decisions that are linked to housing and loans.
• Future planning of real estate. Do they have to buy investment properties? Upgrade or reduced? Go all over the country?
• Liability management. Mortgages, credit cards, student loans, car loans, all require a coordinated strategy.
• Decisions for building wealth. We help customers to set up real estate goals with tax strategy, estate planning and we ensure that they are correctly insured for what life has in store.

The mortgage adviser is not just a voice for a transaction; We become a trusted part of the customer’s financial life, just next to their real estate professional, financial planner and CPA.

The next 30 years

The truth is that customers do not want a loan officer. They want someone who will help them lead a better life. They want a consultant who will help them buy houses with confidence, manage the debt wisely and to create a way into generation richness in a world where access to that wealth has traditionally been limited.

Technology will continue to improve and automate the transaction. But no software can inspire a young couple to get through their fear and make an offer that changes their family’s process. No algorithm can help a widow in navigating the decision to reduce after the loss of her husband. No platform can motivate a family to think after the next 30 days and to plan for the next 30 years.

That is the task of the mortgage adviser.

A call to our industry

If we stick to the mentality of the old loan officer, we will fade in irrelevance. But if we embrace the consultant model, we will not only survive, we will become one of the most valuable professionals in the lives of our customers.

The task of the loan officer has disappeared. The task of the mortgage adviser is to stay here. And for those who are willing to make the shift, the future has never been so clearer.

Ryan Grant is the president of Neo Home Loans.

This column does not necessarily reflect the opinion of the editorial department of Housingwire and the owners.

To contact the editor who is responsible for this piece: [email protected].