As the mortgage industry becomes more efficient, some are concerned that the loan originator position…
Hey, guys. Anthony with Vonk Digital here. I’m just looking at an article on Seeking Alpha about Rocket companies, Rocket Mortgage that had their IPO earlier in August of 2020. And I just wanted to bring up a couple of things, because this is one of the analyst’s summary of the company. Based on the current market we’re in, this topic is something that I wanted to bring to everybody’s attention.
The article outlined an analysis on RKT and one line that jumps out at me is: it looks like the profitability of RKT rises and falls with the refinance market. So my only point today is that when you’re looking at your business, I know you’re busy, but eventually this market is not going to have as much refinance business. And if you’re proportionally out of whack, which I imagine most of you are right now, where most of your pipeline is refinance, now’s the time to start doing some things that will prepare you to make sure you’re getting purchase business when this slows down.
Later in the article they mention that Rocket’s predicting the rest of 2020 to be very busy and then 2021 and ’22 to slow down the market share. Now, they are predominantly refi, based on this article. So again, just like when I was a lender, there was times, years eve where we were 90% refinance business. We were young guys at the time and were faced with a similar dilemma. Do we stay laser focusing on the business in front of us? Or do we make the time to prepare for an eventual pivot. We was in my mid 20’s and my business is 90% refinance because the rates are low, what’s going to happen when this dries up. I need this business to last for years and years and years and a whole career. We had spouses and families to support and bills to pay. I can’t just have my career end just because rates go up.
So that being said, I know you’re busy, but marketing online and preparing yourself to be more known in your local market online can be huge. And it doesn’t have to be a lot of heavy lifting on your part right now while you’re busy focusing on the refinances.
If you haven’t looked at our platform, it’s a turnkey website platform. We have a thing called Content stream, too, as well, where you can get weekly blog articles and a bunch of educational articles around home buying to help you focus more on purchase market in the future when this market dries up.
There’s that Chinese proverb, “Dig the well before you’re thirsty,” or something to that affect. Right now is the time to dig the well so when the market shifts you’re already known in your marketplace. Get, Found, build trust, and educate. Become undeniable in your market.
Thanks. Talk to you later.
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