This is really a compilation of what has been asked by many in the industry. First point—has the world changed? The answer is yes, the world has changed.

• Certainly, the increase in rates and decrease in production has caused an unbelievable amount of competition. That competition is also desperate, which means they are calling everyone. That is an undisputable fact.
• That competition is happening at a time when rates are up. If you preapproved someone at 3.5% and they purchase a house three months later when rates are 5.5%, the purchaser is more likely to shop around. Even if you let them know all along that interest rates have risen.
• Shopping is easier today because of the online world. Twenty years ago, they had to call lenders—today they can get quotes in seconds–whether they are accurate or not.

Have you lost your touch? Well, that is an interesting question. I don’t know your skills, situation or more—but I can say what is needed in this new “world” is not what was needed 20 years ago. Some of these changes are temporary, such as the direction of interest rates. Others are permanent, such as shopping online. While loan officers may not have lost their touch, this new environment does call for different skill sets because of these changes. In short, production has gotten way more difficult. Refinances will return some time in the future, but for now we must adapt. And no, I don’t know when refinances will return and how strong the next refinance market will be.

What do we have to do in order to cope?

Part of this issue concerns marketing. We need to make sure we are getting to consumers earlier in the process. This will give us time to develop relationships and add value. That is the only way to head off online competition because we will never have the absolute lowest rates. And regardless of our relationships, some of our clients will still shop. But the stronger the relationship, the better chance we will have to outflank the competition. We will move to value in a future segment. 

Dave Hershman is Senior VP of Sales of Weichert Financial and the top author in the mortgage industry. Dave has published seven books, as well as hundreds of articles and is the founder of the OriginationPro Marketing System and Mortgage School – the online choice for expert mortgage learning and marketing content. His site is www.OriginationPro.com and he can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it..