The Irreplaceable Value of a Loan Officer

SPONSORED EDITORIAL

The Irreplaceable Value of a Loan Officer

BY PATRICK WELBERG

When it comes to predicting the future of mortgage banking, we have to face the elephant in the room: Will technology eventually replace the Loan Officer?

The answer is no—with a caveat. Loan Officers must continue to add value to the home financing experience and embrace, not dismiss, the latest advancements in mortgage technology and use them to their advantage.

Value Add #1: Trusted Advisor

A Loan Officer’s intrinsic value lies in people’s need for human interaction. Homebuyers rely on a Loan Officer for their knowledge, expertise, and compassion—all human elements that cannot be replicated with artificial intelligence.

Contrary to online mortgage programs which place homebuyers into pre-defined categories, the vast majority of borrowers don’t fit into a particular mold. Each person has their own unique financial circumstances, needs, and goals.

For these reasons, Loan Officers need to keep their people skills sharp! Building and maintaining relationships is critically important to succeeding in this business. With the abundance of technology at our fingertips, it can be easy to miss an opportunity to connect by texting or emailing a lead or client versus making a phone call.

Direct communication, whether talking on the phone or meeting face-to-face (Zoom and Facetime count, too!), goes a long way in establishing a Loan Officer as a trusted advisor. When a Loan Officer interacts with and gets to know their clients and referral partners on a personal level, trust is built, confidence grows, and lasting relationships are made.

Value Add #2: Problem Solver

No matter how you look at it, the mortgage process is complex. Working with a Loan Officer who can explain and guide homebuyers from application to approval with little to no stress is the most important factor in the overall mortgage process.

Despite a loan team’s best efforts, a problem(s) inevitably comes up that requires the knowledge, flexibility, and creativity of an experienced Loan Officer to solve.

No two mortgages are the same. There is not a one-size-fits-all loan solution that can be calculated by a computer algorithm. Loan Officers must rely on their experience and expertise to look at a loan from multiple angles and then advise on next steps; for example, locking in a low interest rate, counseling on how to lower a debt-to-income ratio, choosing an optimal loan program, etc.

A technology-based lender is limited to a homebuyer’s stats, using credit scores, DTI ratios, down payment amounts, etc., to match a client with a loan that seems like the best fit on paper but may not be so in reality. If they have questions, a homebuyer may be able to reach someone in an online lender’s call center; however, the experience level of this person is an unknown.

Homebuyers have the advantage of choosing a Loan Officer and lender to partner with for funding their home investment. In our competitive business, it’s important for Loan Officers to keep up with their training and education to stand out as a reliable expert on ever-changing mortgage regulations, a wide variety of loan programs, and how and when to use technology to streamline the process. There is never a substitute for a human expert in the field.

Value Add #3: Technology Expert

There’s no question that consumers— homebuyers included—love the convenience of online shopping. But when it comes to a home purchase—the largest purchase they may ever make in their lives—it’s unlikely that a homebuyer would be looking for a purely digital experience. An advertised low rate on a website may draw a homebuyer in, but it’s the Loan Officer that creates a memorable experience.

Make no mistake, technology plays a huge role in enhancing today’s home financing experience. Lenders and Loan Officers should harness the power of digital lending tools to improve their performance and increase their productivity.

At Academy Mortgage, innovative mobile apps and AI bot technology are enabling Loan Officers to focus on what they do best: delivering the dream of homeownership. These technology solutions automate tasks and processes that have historically bogged down Loan Officers and slowed the loan approval process, ultimately freeing up time for Loan Officers to deliver meaningful experiences.

Another reason why consumers turn to online shopping is speed. The latest advancements in mortgage technology are producing this desired result for our business: instant pre-approvals, automated disclosures, digital closings, etc. But only the Loan Officer can provide the crucial human element homebuyers seek.

Value Add #4: Advocate

Homebuyers will always need a person who they can consult on their homebuying journey. They will always need a person to look out for their best interest and long-term financial security. They will always need a person who shares in their excitement and pride in achieving this major life milestone. Who fills these roles? The Loan Officer—our industry’s most important asset and the future of mortgage banking.

Patrick Welberg is the executive vice president of production at Academy Mortgage, a leading independent lender that offers originators career growth, unique benefits, and access to leadership. Patrick leads the company’s sales leadership team, which oversees all sales, recruiting, market expansion, and business development. He is an industry veteran, with more than 23 years of experience in the mortgage business. Patrick may be reached at patrick. welberg@academymortgage.com. Visit join. academymortgage.com for more information.