Seizing the Refinance Opportunity with a Comprehensive Enterprise Strategy
By Emily Farley Gardner, Chief Lending Officer at Atlantic Bay Mortgage Group
For the first time since early 2023, the market conditions are starting to shift in favor of buyers and homeowners looking to refinance. Mortgage rates have fallen for six consecutive weeks and the first week of September yielded the lowest rate environment in 15 months. According to the Mortgage Bankers Association’s Weekly Applications Survey, refinancing applications are slowly ticking up, and when compared to September 2023, have jumped 106%. At Atlantic Bay, we have seen our refinancing pipeline increase by 14% month-over-month, a clear sign that the time to act is now.
As competition intensifies, Mortgage Bankers must stay ahead of the curve. We are seeing loans being paid off every day with rates below 4%, far lower than the national average of 6.43% on a 30-year conventional loan. To capture these refinancing opportunities, we revamped our refinancing enterprise strategy.
Be Proactive and Prepared
Equipping your teams and partners with an effective enterprise strategy is the key to reaching refinancing customers, many of whom are at a pivotal moment in their finance journey. Today, the news is oversaturated with mortgage-related information, so being proactive in reconnecting with previous customers to position yourself as a trusted source is essential. Each borrower has a unique scenario, so be prepared to address a variety of topics.
Customers are not the only ones in need of refinancing education materials: Mortgage Bankers must also have the right knowledge and support so they can have meaningful conversations. There is a heavy focus on the method and frequency of communication between the two parties and many overlook the importance of messaging.
Total Expert and Customer Intelligence
That’s why it’s important to equip Mortgage Bankers with tools like a robust customer relationship management platform. We leverage Total Expert at Atlantic Bay to help our team identify refinancing opportunities, facilitate drip campaigns, create Customer Intelligence alerts, and maintain proactive engagement. Another important tactic for many of our Mortgage Bankers is the Total Expert automation of customer journeys, which involves the creation, deployment and tracking of emails and texts to previous borrowers. Our journey emails have a 70% open rate and many have resulted in replies from borrowers to set up conversations. Total Expert enables our Mortgage Bankers stay ahead of customer needs, track key data and take prompt action when the time is right.
Since 2023, we have also invested heavily in “Refi Ready” tools and training initiatives. These include ongoing training for sales and operations teams on refinancing strategies, leveraging customer intelligence platforms like Total Expert, scripting classes, roundtable discussions, and the creation of priority lists to monitor interest rate drops. Offering support systems like these build trust between Mortgage Bankers and IMBs, ensuring all parties are prepared to seize the opportunity.
Building a Long-Term Enterprise Strategy
With so many moving parts in the refinancing space, a comprehensive enterprise strategy is essential in keeping a competitive edge. The key elements include:
Proactive Preparedness: Be ready for rate changes to quickly meet evolving customer needs.
Customer Engagement: Now is the time to connect with past customers to explore refinancing options.
Strategic Retention: Use technology and strong relationships to navigate challenges and retain customers.
Ongoing Improvement: Continuous training and strategic communication to ensure we're ready to capture opportunities and stay competitive.
By identifying opportunities, educating customers and maintaining proactive engagement, your enterprise strategy can foster long-term success. Creating a lasting strategy that is evaluated regularly certainly takes some work, but setting aside the time every quarter for planning will ensure it stays up-to-date and effective.
It’s All About Balance
Creating a comprehensive plan, using the right tools and attending training sessions are only part of the equation. The mortgage industry is, at its heart, focused on people. Success isn’t just about executing a strategy, it’s about building trust and lasting relationships with customers and industry partners. Mortgage Bankers who can balance a strong enterprise strategy with genuine connections will be the ones who turn those refinancing opportunities into victories.