
Strengthening Homeownership Through Community-Driven Lending
Leveraging Community Roots
When the Great Recession hit in 2008, America’s largest banks left a void in mortgage lending – one that could only be filled by independent mortgage banks (IMBs). Today, the United States is home to more than 5,000 mortgage lenders, roughly 900 of which are IMBs. With so much competition in the market, it is more important than ever to find a way to standout in the industry. That is why IMBs must focus their efforts towards strengthening their roots and leveraging their relationships in the local markets they serve.
Establishing a strong foothold in the industry can be challenging, if not impossible, without a direct and intentional presence in a community. With so many lender options available, clients still depend on word-of-mouth and customer experience to pick an originator. Thus, it takes a loyal client base and a reliable reputation, to grow and market your business.
The Localized Difference
IMBs remain the backbone of the mortgage industry. Small, localized lenders originated nearly 20 million loans between 2018 and 2022, more than banks and credit unions combined. Moreover, IMBs serve as the primary source of mortgages for low- and moderate-income borrowers, as well as first-time homebuyers. IMBs strive to deliver programs and support to prospective homebuyers that help them overcome financial barriers to homeownership. For example, Atlantic Bay Mortgage Group recently rolled out its Homebound Grant Program, assisting first-time homebuyers through non-repayable grants to be used for a down payment, closing costs, or prepaid expenses.
While IMBs may lack the reach and resources of bigger financial institutions, they have an exclusive opportunity to get up-close and personal with the markets and communities they operate in. Unlike larger companies, smaller businesses can build deeper relationships by tailoring their services to meet the unique needs of individuals and markets. Investing in more personalized customer service allows IMBs to provide unique, outstanding customer service that keeps customers coming back.
Localized IMBs benefit from the numerous contacts and relationships they have in a community, because their employees and Los live, work and raise their families in the same area. This affords these IMBs to build long-standing, trusted relationships with their borrowers.
But supporting customers through community roots goes beyond excellent customer care – it’s also having specialized knowledge of markets that other lenders can’t compete with. They say an expert of one is greater than a jack of all trades, and that couldn’t be truer in the housing market. In times of economic downturn or uncertainty, specialized lenders can customize and adapt their strategies to support homeowners. When lenders can help borrowers stay in their homes, everyone wins.
This local expertise is tantamount to success. Knowing the in-and-outs of a market enables IMBs to have unique knowledge and perspectives on market conditions, regulations, and other intricacies that exist in the home buying process. Rather than learning laws and features on a case-by-case basis for areas around the country, each lender and originator within an organization can have unmatched understandings of what makes a community unique.
Make it a Win-Win
At Atlantic Bay Mortgage Group, we know that we win when our borrowers do. Whether it’s getting them into their first home or helping them renovate their current one, our success is intertwined with our borrowers’ – that’s why we reinvest into our community. IMBs don’t only put more prospective homeowners in homes, they strengthen entire economies. By sharing educational resources, creating jobs, and bolstering local real estate markets, our borrowers experience firsthand how we care.
Being a trusted, reliable lender is more than good for business. When originators and lenders better serve their communities and build recognition in specialized markets, everyone wins.