Record-high

home
prices
and
elevated

interest
rates
have
weighed
down

mortgage
markets.
The

Federal
Reserve
signaled
its
intention
to
maintain
higher-for-longer
rates,
confirming
that
a
reprieve
is
not
on
the
horizon
for
borrowers
and

originators
alike.
Recent
stagnation
in
refinancing
loans,
coupled
with
supply
and
demand
discrepancies
in
housing,
means
originators
still
find
themselves
in
an
increasingly
competitive
landscape
despite
having
expectations
of
the
worst
being
over.
These
market
developments
underscore
the
reality
we
must
face:
Playing
the
interest
rate
waiting
game
is
not
a
viable
strategy.
Instead,
originators
must
aggressively
seek
out
innovative
ways
to
serve
borrowers
and
generate
business
in
this
challenging
market.

Meet
your
clients
where
they
are

Because
originators’
loan
activity
has
decreased
significantly,
it’s
imperative
that
you
incorporate
new
products
and
services
in
order
to
grow
your
business
and
meet
borrowers’
needs
in
the
current
market.

Housing
sales
have
slowed
due
to
waning
supply
and
record-high
prices. 
However,
a
record
$17
trillion
of
home
equity
is
still
available
in
the
market.
The
bottom
line:
People
are
staying
put.
So
how
can
you
leverage
this
massive
amount
of
equity?
Explore
HELOCs,
which
come
in
all
shapes
and
sizes,
meaning
you
can
tailor
them
to
your
client
base.
For
example,
bank
statement
HELOCs
serve
self-employed
borrowers,
who
might
not
qualify
for
traditional
products.
Bank
statement
HELOCs
offer
borrowers
the
flexibility
to
fund
the
endeavors
that
matter
most
to
them,
such
as
business
ventures,
home
renovations,
and
other
expenses.  

Furthermore,
elevated
interest
rates
have
made
it
more
difficult
for
borrowers
to
obtain
personal
loans.
That’s
where
HELOCs
come
in:
By
offering
bank
statement
HELOCs,
originators
can
provide
a
valuable
service
that
meets
borrowers’
current
needs
while
expanding
originators’
own
businesses
through
broadened
product
offerings.

In
addition
to
HELOCs,
flexible
non-agency
loans,
such
as
non-QM
loans,
can
help
originators
serve
a
greater
range
of
borrowers.
These
loans
are
particularly
beneficial
for
the
growing
number
of
self-employed
borrowers
who
might
not
meet
traditional
criteria
for
mortgage
qualification. 

By
growing
your
experience
with
and
expertise
in
niche
products
such
as
HELOCs
and
non-agency
loans,
you
will
hold
a
competitive
advantage
over
your
peers
that
stick
to
offering
only
conventional
loan
products.

Be
proactive
to
stay
ahead

Offering
innovative
products
to
your
clients
isn’t
only
for
their
benefit;
it’s
an
investment
in
your
own
growth
too.
The
time
that
originators
spend
becoming
an
expert
in
niche
products
enables
them
to
offer
tailored
solutions
to
more
diverse
borrowers,
expanding
the
potential
reach
of
their
practices
and
opening
the
door
to
long-term
business
growth.
Keeping
a
finger
on
the
pulse
of
borrower
behaviors
and
motivations
allows
originators
to
anticipate
their
clients’
needs
and
stay
ahead
of
market
challenges. 

Continuous
education
on
products
is
crucial
for
originators,
and
those
that
don’t
make
a
proactive
effort
to
increase
and
improve
their
knowledge
are
at
a
disadvantage
when
it
comes
to
delivering
on
their
clients’
needs
and
standing
out
among
industry
peers.
Originators
must
seek
out
webinars,
workshops,
and
training
that
enhance
their
understanding
of
new
and
developing
product
offerings,
ongoing
market
trends,
and
industry
best
practices.
Looking
beyond
their
own
education,
originators
must
also
be
prepared
to
educate
clients
on
the
benefits
of
different
loan
products
and
how
certain
mortgage
innovations
could
be
applied
to
help
them
achieve
their
goals.
Educated
borrowers
are
likely
to
be
confident
in
their
financial
choices,
offer
business
referrals,
and
establish
trusting
relationships
with
their
originators. 

By
remaining
flexible
and
innovative,
originators
can
thrive
even
in
a
challenging
interest
rate
environment.
Remember
to
focus
on
delivering
value
to
borrowers
and
to
proactively
seek
out
new
opportunities.
No
matter
what
the
market
is
like,
you
can
turn
industry
innovation
into
a
growth
opportunity
for
your
business.

This
column
does
not
necessarily
reflect
the
opinion
of
HousingWire’s
editorial
department
and
its
owners.

To
contact
the
editor
responsible
for
this
piece:



[email protected]

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