When deals are scarce, brokers encourage colleagues to focus on relationship building
Elevated interest rates, affordability challenges, and inventory shortages have made this a challenging market for mortgage brokers. In the face of the current market headwinds, two North Carolina-based mortgage brokers encourage other brokers to get back to the basics.
Mike Alberico (pictured top left) and Alec Conrad (pictured top right) are loan officers with Carolina Mortgage Advisors. They told Mortgage Professional America that the first step when working with clients in a tough market is to be an advisor to their needs.
“What a lot of loan officers aren't understanding right now is that we're not certified financial planners, but you have to be an advisor,” Alberico said. “All people see in the mainstream media is ‘Rates are up. We're going to have a housing question.’ No, we're not. There's not enough inventory. People still have the most equity ever.
“Less than 3% of people are close to upside down, if that. So, they're not going to be the foreclosures. They will sell if they have to get out.”
Alberico said advising is especially needed when getting borrowers to consider refinancing to pay off high-interest debt. Some borrowers are leery of doing so because they know it could reset their mortgage to 30 years again.
“Loan officers need to coach their clients if their payments on the mortgage are going up,” Alberico said. “But overall, payments are going down by $900, and they’re worried? Okay, split the difference. You were obviously making those payments, because if you had a bunch of late payments, we can't finance you. If you're saving $900, put an extra $450 a month towards your principal. And then you don't have a 30-year loan, you've got a 15-year loan. Then if rates come down, refi again.”
Keeping up with the mega-lender
Conrad noted that many large lenders and realtors have pivoted into a more advisory role to stay in mind with future customers when market conditions improve.
“The mega lender, the mega realtor, that pivoted, that adjusted, and that's now spending more time coaching and giving true advice, versus just being an order taker,” Conrad said. “I believe that we're adjusting our conversations, our time spent with a client is through the roof, but we're also closing a lot of loans. We're helping a lot of people. We're giving them great deals.
“We're making deals because we have to be adaptive to this market. But I feel like the people who are just floating along and hoping things get better are gone. It's already too late. It's already moved. The rugs are pulled up from under their feet.”
Alberico said he hears some people in the industry bemoan the current market conditions. He encourages them to find a way to differentiate themselves from their competitors.
“From a professional standpoint, you have to pivot as well,” Alberico said. “Because there's, ‘Oh, I'm never going to close another loan again. The sky is falling.’ You say, “My agents don't have any deals.’ All right? What are you doing? I know every other loan officer is calling every agent under the sun, but what are you doing differently? Are you just trying to take them out for coffee or lunch? Because there are still people closing loans. The industry is not dead by any means.”
Adapt or die
Most experts believe interest rates will remain elevated for the rest of 2025. The Federal Reserve is expected to hold rates this week. Home prices are moderating but still high, so the market isn’t likely to get dramatically better for brokers or homebuyers anytime soon.
Lawrence Yun, chief economist at National Association of Realtors (NAR), believes the Federal Reserve is too focused on tariffs and not enough on other disinflationary factors. He urges the Fed to widen its view for earlier rate cuts. https://t.co/IcIyoRhjqA
— Mortgage Professional America Magazine (@MPAMagazineUS) June 17, 2025
Alberico believes brokers must get back to the basics to find deals. That might mean using new techniques or revisiting old game plans from early in their careers.
“I'm seeing seasoned realtors that haven't posted an open house in five years, do an open house,” Alberico said. “You can ask them, ‘Why are you doing that?’ That's how I got to the level I'm at today. Yeah, I'm not going to completely go back to what we did, but we're going to take some of the successful items in the past and maybe integrate them with something new.
“That's one thing that we notice. For the professionals in the industry, it's adapt or die.”
Conrad agreed that something as simple as contacting past clients can help brokers when loans become more difficult to obtain.
“It's calling your past clients and keeping in touch with them,” Conrad said. “It's sending closing presents. It's taking your realtors out. It's calling them and appreciating them. (Alberico) sent out 800 Christmas cards.”
The market has changed considerably from the post-COVID environment. Because of that, Alberico believes you have to work hard to build relationships so you can close loans, even in a challenging market.
“We're seeing a lot of successes, and it's not easy,” Alberico said. “It's not back in 2021 when it was, ‘Here's your rate. Take it.’ It's hour-long Zoom conversations of how to approach these people's finances, where they even bring in their financial advisor, too.”
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