Broker explains why independent brokerages like his are finally receiving the recognition they deserve
While lenders across America are pulling back from their operations, independent brokerages are making up a larger chunk of the mortgage market share, even as rates remain stubbornly high.
For Andrew Russell, owner of RCG Mortgage, the success of independent brokerages like his stems from a growing recognition from consumers of the unique services brokers can provide.
“The word has gotten out that if you're going to buy a house or you're going to refinance, a mortgage broker company will give you access to the best interest rates and also the highest levels of service.”
The Long Island-based professional believes the key differentiators for brokers are service and savings. Homebuyers can save over $10,000 over the life of a loan by using an independent mortgage broker rather than a non-bank lender, according to a 2024 study from Polygon Research.
“Brokers are getting market share because although in theory the amount of pies are going down, they're getting more slices within those pies because finally the consumer is realizing that if they’re going to buy or refinance, they should use a loan officer at a broker company.”
Highly organized and professional outfits like RCG are also redefining the way independent brokers are viewed by potential clients, according to Russell.
“There are movies that show what a broker looks like. It's just some guy working out his parents' garage on a laptop, who probably day trades crypto on the side. That's a horrible mentality about what mortgage brokers are. But now a mortgage broker company owner or loan officer is considered classy, polished, and skilled,” he said.
“Now that that word's out, great companies like UWM are promoting the broker side, I think that's why we're gaining market share regardless of how big the market is.”
Understanding Consumer Psychology
With a master’s degree in psychology, Russell is well-placed to grasp the intricate dynamics of the client-broker relationship. And by putting himself in the consumer’s shoes, he is able to gauge what their goals are, and how his unique skillset can help.
“I'm a big psychology guy. I really empathize with the consumer around the process – what they're going through, and how that affects them purchasing or not,” he explained. “Now with the rate environment that it is, buyers coming to the market understand that the rate is probably going to be around 6%, and that's okay.”
In-person Interactions Still Matter Most
For Russell, meeting a client face-to-face trumps any digital encounter. By interacting in-person, he is able to appreciate their homebuying ambitions while building a long-term rapport.
And while automation, CRMs and AI have become increasingly crucial components of the modern broker’s workflow, Russell continues to prioritize a firm handshake over a Zoom call.
“I'm a big believer that we will not be replaced by the robots for the foreseeable future because when you go to buy a house, it's all fun and games until something goes wrong. Then you want someone there that has done it before and knows how to fix the situation.”
He adds, “We want the client to feel like they're the only client that we're working with. To do that, you really cannot remove the human element.”
Reaching out to Gen Z
Accessing the younger cohort of potential homebuyers has been an elusive task for many brokers, as high costs have dissuaded a large proportion of Gen Zers from purchasing their first home.
To break through with this demographic, Russell stresses the importance of a credible name with strong online reviews, metrics that are crucial for younger clients. He references how a potential client can rapidly ask Chat GPT whether a broker is reliable or not, making his digital reputation of upmost importance.
“Social proof and credibility matters more than ever, because it's so easy to put in someone's name and pretty much see their whole life story,” he noted. “The important piece is that the new consumers want to see proof of concept that you're good at your craft. That's done on the digital side.”
