Master The Market: 6 Steps To Lending Success Today

At one point a prospective client asked WHY they should consider the consulting engagement I recommended. The answer was not complicated. I explained, when a company limits its own thinking, it becomes hostage to the notion they do not have options for new growth, whereby restricting themselves to any kind of near or long-term growth.

Now, it’s understandable lenders can still feel hostage to this high-rate environment with either no or slim margins. Continuing to battle through and endure the lender recession of these last three years. When in fact new and proven growth strategies currently implemented in other lenders are helping drive growth. This paralysis by analysis of most lenders today continues to hinder lenders from being the “servant leader” they signed up for to help provide homeownership opportunities to their customers.

While I didn’t anticipate the lender would hire me, they did. My message was heard that lending growth strategies abound today. Having options for your homeowners is mission critical and they realized having an internal change agent consultant would be both good and refreshing for an exhausted lending team. Since that time the client has completely modified its lending model and is now more effective, successful, and sustainable with a renewed sense of why and energy within the team.

I use this scenario to help you propel a renewed thought process within your lending team. Whether you are an executive at an IMB, Community Bank, Housing and Finance Agency, or Credit Union – the theme of needing to make changes is consistent in each to provide renewed financing strategies that will deliver homeownership. Yes, the home lending business has not been as fruitful as it was three years ago, however, it still provides doors a ‘plenty for those interested.

The days of sitting back and being able to generate high-volume production flows are over, plain and simple. Volume will no longer cure all. Today’s successful organizations realize they must modify the method in which they serve the new consumer lending market. Below are the six key areas Executive Leadership needs to start re-evaluating today.

1. Effectiveness of Capital Markets execution – Optimization of loan sales!
2. Evaluating if your firm is a “good fit” to apply for GSE Seller/Servicer approval
3. Use of technology to benefit Capital Markets execution, and mitigate risk
4. Cost / Income analysis of loan programs
5. Process improvement strategy
6. Employee training and retention strategy

I recently attended a conference attended by individuals from all walks of the lending industry. The message and energy in the room was very clear – to be competitive in today’s market an individual and an organization must be an innovator, innovation is no longer limited to just technology anymore.

The market, and consumer expectations have changed, ease of access, ease of the loan process, effective and timely communication are key to playing the interest rate game. If a client is not on your firms “A List”, they will pick up on this very quickly. Immediate, effective, customer service is at a much higher level than before. So, where is your team at in their execution of these six critical areas?

Without sounding too self-serving, the above consulting assessments can help your firm move to the next level faster. An outsider’s voice will immediately challenge you and open your eyes to things unseen or that remain in your firm’s blind spots. An outsider’s voice will provide a clear, quick, and critical path for orchestrating the internal change needed for how an organization thinks, acts, and then executes. As a result, allowing your team to now drive both near and long-term success in today’s new lending environment while ensuring the “customer’s voice” is not only heard but served.

I look forward to hearing how I can be of service to you. Established and proven consultants will always offer a better perspective and recommended strategies that help move your company out of the shadows and into the profitability light. I challenge you to use the voice of a consultant to move your organization forward – it does work! Our proof is a track record of success at BlackFin. Don’t let today’s market hold you back.