Residential Home Funding Corp., a correspondent mortgage banker based out of New Jersey, will deploy the Total Expert Marketing Operating System, with the objective of enabling loan officers to personalize the customer experience.

Residential Home producers will have access to a suite of fully customizable content and campaigns to increase engagement and deepen relationships with customers, prospects and partners.

“The Total Expert MOS provides our loan officers with the functionality they need to deploy relevant, consistent messaging to their contacts and expand their co-marketing efforts from one centralized platform,” said Georganne Benvenuti, marketing director at Residential Home Funding Corp. “We were looking for an updated solution to meet the evolving needs of consumers and offer them a simplified and personalized customer experience.”

The loan officers at Residential Home Funding Corp. will access consumer data and intelligent automation within the Total Expert MOS to stay in front of borrowers and co-marketing partners. Producers can leverage pre-built content or create their own to meet the unique needs of their audiences.

“At Total Expert, we strive to enhance the customer journey and combine tech and personal touch to humanize complex financial transactions again,” said Sue Woodard, chief customer officer at Total Expert. “We are proud to partner with Residential Home Funding Corp. to empower their loan officers to deliver the best lending experience possible and grow with them as consumer expectations continue to evolve.“

By Pat Sherlock 

Last week, Macy's and J.C. Penney announced plans to turn around poor performance for their respective businesses. This is not a new issue for either firm. Both former retail giants have been in a downward spiral for many years. Executive management changes and different strategic directions - from everyday low prices to mobile checkout stations - have failed to move the needle on financial results for these retailers.

Stock analysts have commented that both firms have lost their way and have not answered the two key questions for any business: Who they are and how to tell their stories to their customers. Many analysts are even asking whether these firms can be saved after a legacy of bad decisions.

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The same question applies to mortgage bankers. Can they turn around their businesses? When mortgage bankers are in the boom cycle, it is the best business to be in; but now, in a difficult marketplace, the stark reality of an unprofitable business is impossible to ignore.

The boom and bust nature of mortgage banking has existed for a long time. When interest rates decline, everything is wonderful. But when interest rates rise, high expenses have a tremendous negative impact. The industry is now in its bust cycle where expenses are high ($8,000 per loan to originate), margins are narrow and production is weak. On top of that, the customer's home-buying journey has undergone dramatic changes.

To capture business, originators must engage with consumers much earlier in the buying process than before. This is a big problem. Many of the industry's originators do not have the selling skills needed to match with how consumers communicate and make purchasing decisions today. Frankly, these producers are stuck in the past and tend to blame lenders for their poor production.

Similar to Macy's and J.C. Penney, poor management decisions are prevalent in mortgage banking. Instead of viewing the current environment as an opportunity to address problems and restructure their business, many executives believe that incremental changes will be enough to shift sales results. Unfortunately, releasing a new app or Day One certainly isn't enough to correct the root causes of lackluster production.

I am often asked what the next five years will look like for mortgage bankers. I respond that if you think these times are difficult, wait till 2025! The reality is that the industry has done a poor job of hiring younger sales professionals; isn't training their sales force for today's selling world; and more importantly, has weak front-line managers who don't hold originators accountable. It doesn't help that first-line managers are frequently top producers who are managers in name only. One of the biggest misconceptions in our industry is that having commission salespeople doesn't cost you anything. This is simply not true considering the monetary value of lost sales opportunities and what a manager's time is worth. A 100 % commission sales staff can also mean no consistent sales message and no company ownership of the customer experience and future referrals.

In my opinion, this combination of bad decisions could be fatal for the industry in the years ahead. Creating loan demand in the future will require creative solutions. One large national warehouse lender had only a handful of companies that were profitable every month in 2018. What does this indicate for mortgage lending in 2019 - a more difficult year ahead?

Yes. It is true that all retail businesses are experiencing a seismic change that started years ago but mortgage bankers have mostly ignored it when they were making money. The thinking then was that change could be addressed down the road. Everyone was happy and the investment needed to lead change wasn't made. Now, the reality of failing to update selling processes and improve their human interface has come to the forefront. Lenders that refuse to adopt their sales models to what today's consumers need will not create the loan demand required to survive.

Note: On March 12, 2019, Pat will be speaking in Washington DC for the CUREN Conference. The topic is "Recruiting in Today's Competitive Marketplace."

By Dave Hershman 

Question: It has become increasing difficult to fill LO positions with experienced hires who easily acclimate themselves into the office. I am thinking about bringing new people into the industry and going after those who are not as experienced as well, but I don’t know how to assess them. Do you have any advice for me?  Ann from Virginia

[caption id="attachment_9654" align="alignleft" width="254"] Dave Hershman[/caption]

Hershman: Last time we talked about improving our chances of hiring a quality employee by following a simplified set of rules. This week we will look at how we assess those candidates. Whether recruiting experienced or in-experienced candidates, we must do a better job of assessing whether the candidate is the right fit for the organization and the industry. The cost of a wrong hire in terms of resources and reputation is too steep to ignore.

Effective assessment includes testing, interviewing and reference checking.  If possible, give an assessment test before hiring to see if their abilities match their stated knowledge. Many companies offer assessment materials.

During the interview, be sure to ask open ended questions, such as “What do you like about being a loan officer?” Or “Why are you interested in working in the mortgage industry?” Build your questions around your objectives.  Allow enough time and schedule at least one other meeting before an offer is made.

Check references beforehand.  If you interview them and get a poor reference afterwards, you’ve just wasted your most precious resource—time.  If you get to know that candidate through targeted checks ahead of time, the interview can be very productive.

About the Author: Dave Hershman is a VP of Sales for Weichert Financial Services and founder of OriginationPro (www.OriginationPro.com), providing marketing content and training programs for the industry. Email him with “Ask the Mortgage Management Expert” questions or comments at This email address is being protected from spambots. You need JavaScript enabled to view it.

Pending home sales rebounded strongly in January, according to the National Association of Realtors. All four major regions saw growth last month, with the largest increase occurring in the South.

The Pending Home Sales Index, a forward-looking indicator based on contract signings, increased 4.6 percent to 103.2 in January, up from 98.7 in December. Year-over-year contract signings, however, declined 2.3 percent, making this the 13^th consecutive month of annual decreases.

[caption id="attachment_9286" align="alignleft" width="214"] NAR Chief Economist, Lawrence Yun[/caption]

"A change in Federal Reserve policy and the reopening of the government were very beneficial to the market," said Lawrence Yun, NAR chief economist, who had expected an increase in January home sales..

Of the four major regions, three areas experienced a decline compared to one year ago, while the Northeast enjoyed a slight growth spurt. Also, Yun said higher rates discouraged many would-be buyers in 2018. "Homebuyers are now returning and taking advantage of lower interest rates, while a boost in inventory is also providing more choices for consumers."

Among the areas with the largest inventory boosts are: Denver-Aurora-Lakewood, Colo., Seattle-Tacoma-Bellevue, Wash., San Diego-Carlsbad, Calif., Los Angeles-Long Beach-Anaheim, and Nashville-Davidson-Murfreesboro-Franklin, Tenn., saw the largest increase in active listings in January compared to a year ago.

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Yun says positive pending home sales figures in January will likely continue. "Income is rising faster than home prices in many areas and mortgage rates look to remain steady. Furthermore, job creation will help lift home buying."

In 2019, Yun forecasts for existing-home sales to be around 5.28 million, down 1.1 percent from 2018, 5.34 million. The national median existing-home price this year is expected to increase around 2.2 percent. In 2018, existing sales declined 3.1 percent and prices rose 4.9 percent.

The PHSI in the Northeast rose 1.6 percent to 94.0 in January and is now 7.6 percent above a year ago. In the Midwest, the index rose 2.8 percent to 100.2 in January, 0.3 percent lower than January 2018.

Pending home sales in the South jumped 8.9 percent to an index of 119.8 in January, which is 3.1 percent lower than this time last year. The index in the West increased 0.3 percent in January to 87.3 and fell 10.1 percent below a year ago.