As market conditions shift, mortgage leaders must evolve their communication, operations, and pricing strategies
Sixteen years ago, a casual conversation and a co-signed refinance led Austin Smith into a lifelong career. "I started on a Wednesday and finished my last college final on Tuesday," Smith said. "A family friend owned a brokerage and offered to teach me how to be a loan officer. He said, 'I don't have a personality, and I know that you do and that you're smarter than me. So I think you'll be fine.' That was literally it."
What began as a stopgap became a vocation. Today, Smith is with Fairway Mortgage Corporation, part of a branch that handles both purchase and refinance pipelines, including high-balance jumbo loans. He sees the work as a high-stakes responsibility. "Everything that we do has broad reach," Smith said. "We owe it to every single party involved to be the most excellent in our lane."
Tuning into the emotional cycle of lending
In a volatile environment, the emotional weight of home buying is as present as ever. Smith pointed to record fallout rates in April 2025, second only to the chaos of April 2020.
"Consumer confidence is fragile. You're managing the emotions of your client, your referral partners, your team," Smith said. "Operationally, it's about having high emotional intelligence and the humility to ask, 'What do you think would make this better?'"
Communication is critical, but so is acknowledgment. "You can't communicate with everyone at once, especially in high volume," Smith said. "But you can let them know they’re in line and haven’t been forgotten."
Reframing pricing and process for jumbo borrowers
As jumbo rates diverge from conforming pricing, borrower conversations require nuance. "A jumbo borrower can adapt their lifestyle if the rate moves a point," Smith said. "But that same shift for a sub-$250,000 borrower with one income and seven dependents can be devastating."
"We’re not just qualifying someone. We’re solving a problem. What are they looking for, and can we provide it?" Smith said.
"You can’t apply the same communication cadence to a $400,000 borrower and a $1.5 million borrower," Smith said. "Operational staff needs a game plan. Expectations are different."
"Investors tell us what we can and can't do. It’s our job to relay that early and mitigate surprises, whether that’s multiple appraisals or reserve requirements," Smith said.
AI as a necessary evolution
Looking ahead, Smith believes artificial intelligence will play a defining role in shaping mortgage branch operations. "It’s the same impact that computers had in the '80s," Smith said. "You can ignore it, but you'll be left behind."
His team is already experimenting, using AI to craft underwriting responses, tailor communications to jumbo borrowers, and determine refinance strategies even when rates dip only marginally.
"Your feelings on AI are irrelevant. It’s here," Smith said. "Those who explore it and help their teams adapt will have the best shot at long-term success."
Whether navigating compliance, volatile rates, or client anxieties, Smith’s advice to branch leaders remains grounded: listen carefully, communicate clearly, and evolve continuously.
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