Why strong communication is the backbone of good broker/lender relationships
Building strong relationships with lenders is critical to an independent mortgage broker's business. It is literally a make-or-break component of the wholesale channel.
One of the major advantages of the wholesale channel is the freedom to work with dozens, if not hundreds, of lenders. It allows brokers to shop around to find both the best product and rate for the customer.
For the most part, those relationships go pretty smoothly, as it is in the lenders’ best interest to make the process as easy on the mortgage broker as possible in order to drive repeat business from the same broker and customer.
However, not everything goes smoothly all the time. Because there are hundreds of lenders to choose from and new ones popping up all the time, sometimes brokers run into walls when dealing with those lenders.
One loan originator offered a few suggestions for lenders in order to make that relationship even stronger.
Nguyen Mai (pictured top), a loan officer with Edge Home Finance, said one of the biggest things lenders can do to better help mortgage brokers is communicate well. She believes there can’t be too much communication from the lender to the broker.
“Better communication or even overcommunication would be helpful,” Mai told Mortgage Professional America. “Updates on overlays, whether they’re good or bad, should be communicated more clearly. Also, they should listen to our feedback for improvements, as any other business that wants to succeed would.”
Characteristics of a good lender
What Mai said was echoed in a recent column by Andrew Russell, founder of RCG Mortgage, on Mortgage Professional America. He said that communication was the great differentiator between good and bad lender relationships.
“What separates a strong lender relationship from a weak one often comes down to communication,” Russell said. “Outbound calls from underwriters are invaluable. It’s one thing to get emails; it’s another to talk through the nuances of a transaction for a client who’s relying on you.
“The same goes for the account executive. Honesty and transparency are key. Under promise and overdeliver. Too many lenders offer lip service, promise the moon to get a loan in the door, and then fall short. That can damage your relationship with the client or the referral partner, sometimes both.”
In addition to communication, every mortgage broker wants the process with their lender to go as quickly as possible. Obviously, there will be snags that come up at times, which will slow the process. However, if the process is as smooth and fast as it can be, it helps foster a strong relationship with both the broker and the end customer.
“Besides good rates and fees, a streamlined process and common-sense underwriting are most important to me,” Mai said. “Streamlined process means speed. That helps our buyers win in a competitive market 9 out of 10 times.”
Building a true partnership
Russell pointed out that part of building a true partnership with a lender is handling conflict without burning bridges.
“Conflicts happen, it’s part of this business,” Russell said. “The key is communication, specifically nonviolent communication. Instead of ‘your’ statements that put people on the defensive, focus on solutions and explain how a problem affects you or the process. Mortgage is stressful. Sometimes one or two loans can represent the majority of your monthly income. But losing your temper or blaming a lender doesn’t help anyone.”
Mai said that part of handling issues is having an underwriter actually reach out to discuss challenging files rather than making a decision without talking to her.
“What I love even more is when an underwriter would pick up their phone to call me to discuss a more complicated file before making any decisions,” Mai said. “That collaboration reminds me that we work as a team to make things happen. It's a true partnership.”
She said one of the most important things she’s learned along the way is to be as transparent throughout the process with the lender. In turn, if the lender is also transparent, it helps build a trust that gets deals done.
“Transparency instead of overpromises,” Mai said. “We have over 100 lenders on the list. Everything could sound beautiful at the beginning, but delivery is what matters. As mortgage brokers, we need to answer to our clients, both listing and buyer agents, and title companies. We would appreciate the transparency and the right expectations to organize the workflow more efficiently.”
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This article is part of our Monthly Spotlight series, which in March focuses on broker/lender relationships. Full coverage can be found here.
