How regional brokers stay competitive with transparency and speed

Margins are thin, rates are volatile, and borrowers expect quick answers. For regional mortgage brokers, staying competitive means more than quoting the lowest rate, it requires clarity, responsiveness, and an advisor’s mindset.  

Jeff Muth (pictured), broker-in-charge at Mecklenburg Mortgage in Charlotte, North Carolina, has spent his entire 20-year career in the broker channel. "I've never been outside the broker channel, so I've never done correspondent or retail," he said.  

From refis to purchases: Adapting to market shifts  

Muth described the past few years as a period of significant adjustment. "The mortgage business was pretty booming from 2009 till 2022," he said. "2023 was one of the slower years we have had since 2008, but since 2023 we are continuing to gain back local market share."  

The firm had focused heavily on refinances during the previous decade. But as market conditions changed, so did Mecklenburg's strategy. "Mid-2022 through to now we’ve worked at getting back into the purchase side of things," Muth said.  

Competing on rate without compromising clarity  

With thin margins in many regional markets, Muth believes brokers must lead with clarity. "The first thing would be to try to position yourself more as an advisor and not just throwing out the lowest rate available," he said. "A lot of other companies... don't bring up fees when quoting rates.  They just quote the rates they know consumers like to hear without bringing up the cost of the rate."  

He encourages clients to consider broader factors, especially if rates may fall in the near future. "Maybe be more cost-sensitive, not so much rate-sensitive. Maybe take a higher rate, let us pay a good portion of your closing costs if you're going to be refinancing in 16/18/20 months from now."  

That transparency also helps build borrower confidence, especially when larger lenders fall short. “We got a loan the other day that was turned down by another large company after 45 days... Within 24 hours I had the loan approved and we closed eight days later,” Muth said.  

Responsiveness as a market differentiator  

In competitive purchase markets, being able to move quickly often matters more than rate. “Essentially, just having pre-approvals ready to roll,” said Muth. “Having direct access to me after hours, being able to produce the letter immediately.”  

That speed is most effective when paired with localized knowledge. "If you're working with an online lender up in New York City and you're down here in Charlotte, NC, they don't necessarily know what buyers pay and what sellers pay."  

Tech-enhanced, client-driven experience  

Muth described how he integrates user-friendly tools with personal service. "Using tools allowing borrowers to view and do requests through their mobile devices, accessing portals  to upload documents directly to the underwriter, and getting real-time updates on the status of the loan.  An example is sending out personalized video emails letting them know their loan is cleared to close."  

Muth said small gestures can reinforce a positive client experience post-closing. "Once a client's loan funds, they automatically get sent cookies and a thank you note to their house."  

He also uses software to help clients understand loan options more clearly. "Using technology to build side-by-side comparisons allowing the client to understand their different options."  

Staying nimble amid fluctuations  

Muth remains closely attuned to rate shifts. "We obviously know where all our clients’ rates are. So once those rates hit certain thresholds, you reach out to them as quick as possible," he said. "If you drop 5/8 or 3/4 of a point and it’s not costing you anything, why would you not do it?"  

In slower seasons, he refocuses on relationships. "That’s kind of the time where you... get out there and make appearances in the community with realtors, doing maybe lunch-and-learns, grabbing coffee."  

Inventory shortages prompt similar actions. "Just try to get to know as many people as you can. That’s really what it boils down to."  

Referrals over flash  

Mecklenburg’s business is largely driven by word-of-mouth and repeat clients. "Realtors [recommend us], and we do have a pretty good online presence," Muth said. "We’ve done a pretty good job of making sure we ask for Google reviews and try to get those because those are actually pretty huge."  

He noted though that social media isn't a top priority. "We just kind of do it a little more old school."  

In today’s broker market, brokers are leaning on familiarity, transparency, and quick execution to stay relevant, regardless of interest rate cycles.