MILLENNIALS AND MORTGAGE BROKERS
MILLENNIALS
AN INSIDE LOOK WITH ANTHONY CASA, AIME CHAIRMAN
MILLENNIALS - the largest demographic
group in America — accounted for more
than 33 percent of all home sales in the
last twelve months, according to data
from the National Association of Realtors
(NAR). And increasingly, they’re turning to
mortgage brokers for their home loans.
Millennials are the first generation
of digital natives. They research nearly
all purchases online before contacting
a live person. A recent study published
by BrightLocal found 85 percent of
consumers trust online reviews as much
as personal recommendations. More
and more consumers are going to sites
like Yelp, Facebook, and Google to check
a business’s reviews before making a
purchase decision.
Smart mortgage brokers advertise
online and ask their satisfied customers
to review them on the web, increasing
their online presence and building their
brand reputation. Many midsized and
larger lending institutions have been much
slower to capitalize on this trend.
Millennials prefer digital communication
over face-to-face or even telephone
contact. Mortgage brokers are smaller
and nimbler than most banks and
quicker to adjust to these new forms of
communication, too.
In 2017, two-thirds of millennial
homebuyers
were
also
first-time
homebuyers, according to the NAR. This is
where mortgage brokers really shine since
so many first-time buyers are especially
cash-strapped, though every consumer
appreciates saving money.
According to data from the Thomson
Reuters secondary mortgage platform,
mortgage brokers save their clients, on
average, 0.25 percent on their mortgage
interest rate over bankers. That’s more
than $10,000 in interest savings over the
life of a typical $250,000 loan. Brokers
have relationships with dozens of lenders
who all compete against each other for
your client’s business. Lenders only have
access to those programs their institution
offers. It makes sense: competition drives
prices down.
Brokers also have access to a greater
selection of low-down-payment, low-
fee, and other flexible programs. They
have vast product lines and build strong
relationships with quality lenders to
ensure on-time performance. Millennials
— nearly half of whom have considerable
student loan debt, according to the NAR
— find the flexible programs they need
through mortgage brokers.
Take lender-paid mortgage insurance
programs, for instance. The fee is built into
the rate. It lowers down payments, which
Millennials appreciate since they know
they’ll probably sell the house in 7–10 years
or less. Many banks don’t offer programs
like that, but brokers seek them out.
Knowing what products are out there
and knowing which one is right for a
borrower is a big part of what mortgage
brokers do. When you hear of an innovative
new program, it’s much more likely you’ll
hear about it from a broker than your
neighborhood banker.
The Millennial generation has come to
expect white-glove service, and that’s
what mortgage brokers do best. They’re
local, available, and eager to answer
questions by phone, text, or email —
almost around the clock.
Mortgage brokers are local. They
understand your market and are
accountable if something goes wrong.
They understand that everyone has a
stake in a deal closing on time, and you can
be sure they’ll do what they can to make it
happen. They know their reputations are
on the line, and in this business, reputation
is everything. You can trust your clients
will be taken care of by a local mortgage
broker—who either flourishes or fails on
their reputation, just like you.
Millennials expect service. Agents
demand performance. Mortgage brokers
deliver both.
Anthony Casa is the Founder and Chairman of the Association of Independent Mortgage Experts (AIME). Anthony is also President
of Garden State Home Loans, Inc., a mortgage broker based out of New Jersey that he founded in 2011 and has developed into
one of the top mortgage brokerages in the country based on annual closed loan volume. Prior to founding Garden State Home
Loans in 2011, Anthony served in various sales and sales leadership roles in the mortgage industry dating back to 2003.
In 2017, Anthony founded BRAWL, which stands for Brokers Rallying Against Whole-tail Lending. The BRAWL movement
brought widespread awareness of unethical lending practices to the mortgage broker community and consumer advocacy
groups, which resulted in major changes by lenders throughout the mortgage industry and enforcement action by some
of the largest regulatory agencies. Over 10,000 mortgage brokers and independent mortgage professionals have joined
in support of the BRAWL movement and to stop the whole-tail lending practices BRAWL is advocating against.
Anthony’s vision for AIME is that it is an organization that champions independent mortgage professionals in
a biased and proactive manner. With that in mind, the association is operating with a growth-focused strategy,
providing tools and resources to propel the wholesale channel beyond 20% share of the mortgage market by
2020. Anthony is focused on developing a national and state leadership group that is committed to developing a
new pipeline of fresh talent coming into the mortgage industry as independent mortgage professionals.
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