Mortgage Lending Solutions
Residential Mortgage
Mortgage lending plays a vital role in most clients financial condition. According to recent statistics, among U.S. homeowners overall, home equity accounted for 45% of their total net worth.
Mortgage Lending Solutions
Residential Mortgage
Mortgage lending plays a vital role in most clients financial condition. According to recent statistics, among U.S. homeowners overall, home equity accounted for 45% of their total net worth.
For clients, securing a competitive mortgage is one of the most important financial decisions they will make as their primary residence is often the largest asset they own and the most debt they will take on. As a financial advisor, you are uniquely positioned to help deliver advice to clients who often do not know how to compare their lending options. The mortgage lender they choose can also have a significant impact on your client’s relationship with you. The large bank mortgage lenders train their loan officers (MLO’s) to scrub the clients’ financial statements looking for other opportunities. It is very common for the MLO to make referrals to the bank’s wealth management divisions when they recognize the opportunity. This is essentially allowing another competitor into your wealth management practice. By working with us and our partners (who do not do any wealth management) you are building a financial moat around your client.
For clients, securing a competitive mortgage is one of the most important financial decisions they will make as their primary residence is often the largest asset they own and the most debt they will take on. As a financial advisor, you are uniquely positioned to help deliver advice to clients who often do not know how to compare their lending options. The mortgage lender they choose can also have a significant impact on your client’s relationship with you. The large bank mortgage lenders train their loan officers (MLO’s) to scrub the clients’ financial statements looking for other opportunities. It is very common for the MLO to make referrals to the bank’s wealth management divisions when they recognize the opportunity. This is essentially allowing another competitor into your wealth management practice. By working with us and our partners (who do not do any wealth management) you are building a financial moat around your client.
How the Loan is Serviced is Another Point of Differentiation.
How the Loan is Serviced is Another Point of Differentiation.
Some of the key benefits of having a good servicer are:
1. Customer Support and Assistance:
Mortgage servicers act as the primary point of contact for borrowers throughout the life of the loan. They provide assistance with inquiries, offer guidance on payment options, and help navigate any financial difficulties the borrower may encounter.
2. Payment Processing and Record Keeping:
Mortgage servicers handle the processing of monthly mortgage payments, ensuring that payments are accurately recorded and applied to the borrower’s account.
3. Escrow Management:
Many mortgages include escrow accounts to cover property taxes, homeowners insurance, and other expenses. Mortgage servicers manage these accounts, ensuring that funds are properly collected and disbursed on behalf of the borrower. This relieves clients of the burden of managing multiple payments and ensures that their property-related expenses are paid on time.
4. Loan Modifications and Assistance Programs:
In times of financial hardship, borrowers may require assistance in modifying their loan terms or accessing assistance programs. Mortgage servicers facilitate this process, working with clients to explore options such as loan modifications, forbearance, or repayment plans. This support helps clients navigate challenging circumstances and stay on track with their mortgage obligations.
5. Regulatory Compliance:
Mortgage servicers are responsible for ensuring compliance with applicable laws and regulations governing mortgage lending and servicing. By adhering to these standards, servicers protect clients’ rights and interests, safeguarding them against unfair or abusive practices.
By having a lender who also services their loans, you are further ensuring that the client will have a great experience and further protect your client from other competitors.
Conversation starters:
- Are you planning on any large expenditures in the next 1-2 years?
- Do you have any other debt? If so, what are the interest rates?
- Do you plan on taking any equity out of your home?
- How much liquidity do you maintain outside of the brokerage account assets?
- If a financial emergency hit, do you have 6-12 months of expenses on reserve?
- What is the current interest rate on your mortgage?
- How long are you planning to stay in your current home?
- If you are thinking about buying another home, would you be up-sizing or downsizing?
Conversation starters:
- Are you planning on any large expenditures in the next 1-2 years?
- Do you have any other debt? If so, what are the interest rates?
- Do you plan on taking any equity out of your home?
- How much liquidity do you maintain outside of the brokerage account assets?
- If a financial emergency hit, do you have 6-12 months of expenses on reserve?
- What is the current interest rate on your mortgage?
- How long are you planning to stay in your current home?
- If you are thinking about buying another home, would you be up-sizing or downsizing?