Kottenbrock explains why the top-performing brokers he works with share one trait above all others
Mortgage brokers working in the wholesale channel have been working through tougher market conditions over the last few years.
The predicted refi wave still hasn’t arrived as macroeconomic pressures have kept mortgage rates elevated. The rate environment is also hurting the purchase market, as noted in the Mortgage Bankers Association’s report on Thursday that mortgage applications for newly built homes fell 5.7% year-over-year in July.
While the work to keep pipelines full continues, brokers are also using this time to keep skills sharp in preparation for better market conditions in the future.
One mortgage executive is sharing his advice with both new and veteran loan originators on what can make them stand out above the rest in a challenging market.
Tony Kottenbrock (pictured top), SVP and head of wholesale at Newrez, said the LOs who build strong books of business in wholesale tend to share a specific set of traits, starting with strong communication skills.
"They're effective communicators with the borrower," Kottenbrock told Mortgage Professional America. "More than anything, they don't run and hide from a problem. They're able to effectively communicate what it's going to take to get that loan to the closing table. It's a commitment to communicate on that loan throughout the process with the borrower. That's first and foremost."
A shift in the industry
Kottenbrock has noticed a shift at recent training events, as he has seen a lot of new faces. Many of those new faces are retail LOs moving into the wholesale space for the first time.
"It wasn't too long ago I'm sure we all felt the same — that we were one of the youngest in the room," he said. "And now I find myself one of the older ones. A lot of new blood coming in, and then more than anything, a lot of retail LOs moving over to the wholesale side. And I think that is what's making the industry, from a lender perspective, even more challenging."
He said the retail-to-wholesale transition is harder than most LOs anticipate, not because the products are unfamiliar but because the operational model is completely different, with retail LOs accustomed to having processing and underwriting support surrounding them, while wholesale requires navigating that process independently.
He said one LO he spoke with recently described the processing gap as the single biggest challenge in making the switch, and responded by contracting with an outsourced processing company to handle loans exclusively for their shop.
But the operational challenges are just one hurdle affecting originators right now. He shared one factor that can hold originators back, while another can help elevate business even during a slow period.
He said LOs who avoid difficult conversations with borrowers when something goes wrong rarely become high producers, regardless of how good they are at originating in normal conditions. Self-reliance is another characteristic of high-performing brokers.
"It's always easier for someone else to solve your problem," he said. "But if you go that extra step of understanding why you're having that problem and what it's going to take to solve it yourself, I think that's always a winning attitude."
Finding the right mentor
Kottenbrock said the most important resource for a newer LO is finding the right mentor. Whether they are a manager, a peer, or a lender's account executive, the right person guiding you can make all the difference.
"I haven't seen somebody that wants to be successful very often not make it in the industry," he said. "But you have to find that right mentor for you as a young LO. Seek out coaching. Even from our standpoint, our account executives still come into play. It's a world where conversation quickly goes to AI integration, but it still comes back to that personal bond of finding somebody that's a good mentor and willing to put in time to help you."
More than 50% of Newrez's account executives have been with the company for over eight years, Kottenbrock said. That tenure translates into deep product and guideline knowledge, but it also means a lot of those AEs have seen newer LOs come through and are experienced at bringing them up to speed.
Technological advances can also help in the process. However, Kottenbrock believes that having that human connection with the mentor is still a critical component in an originator’s success.
"Yes, technology is extremely important, and it's going to play a vital role," he said. "But still that human touch, that human teaching along the way. Sometimes they just need that extra positivity and motivation, especially in an environment like this, to help them recover from those disappointments. And that's where our AEs can really jump in and provide that human interaction."
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This article is part of our Monthly Spotlight series, which in August focuses on broker training and education. Full coverage can be found here.
