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LO during recession

Prospering as a Loan Officer in a Recession

Aug 08, 2022

Loan officers have had it good for a number of years. Rates in 2021 hit record lows, and it seemed that everyone who could refinance their loan did – often, more than once. But what about now? How will loan officers survive as refinance opportunities trend down and purchase transactions drop off?

How to be an effective loan officer


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A successful loan officer knows to balance their business and marketing activities even while rates are historically low, and refi opportunities are everywhere. They have seen rate increases in the past and know they can’t depend on refi business alone to survive. A successful loan officer also consistently dedicates time to build and maintain a database full of clients, prospects and referral partners who can be provided interesting, helpful content regularly.

Are there any disadvantages of being a loan officer?

Many will say yes, but others know there’s really not a lot to complain about except for disappointing underwriting decisions and rules that hurt (rather than help) their borrowers. Other than that, loan officers can work as hard as they like, and those that truly work smart have time and the relative freedom to pursue other interests. Successful loan officers and mortgage brokers can earn a fantastic income, and if diligent, their income in the good times will readily carry them through the leaner times.

Should I train to become a loan officer now?
Naysayers might call it crazy to enter a rising rate environment with dwindling purchase activity. The reality is that interest rates moving higher typically means home prices are too, as the same inflation that causes rates to rise brings up home prices as well. And homeowners with a higher rate now could be refinance prospects later if rates return to lower levels. Besides, entering the market when others are leaving is a great time to train and learn the business. If you can survive now, you are likely to thrive in better times. For a look at exactly the type of income a loan officer can earn, check out this data from the U.S. Bureau of Labor Statistics.

How to be a successful loan officer, even in a recession

Successful loan officers are disciplined. They establish and maintain a comprehensive database of contacts. They split their time between taking calls, managing applications, marketing, analyzing, counseling, recruiting, entertaining, canvassing, and of course, selling. But in the end, if you are truly successful, it’s not so much selling as it is servicing the many prospects that come your way because of warm referrals from past clients and your real estate agent partners.

What tools do you need to succeed?

The single best tool you can possess is a great CRM tool like the one from Surefire. Database management, tons of award-winning educational marketing content, and “set it and forget it” campaigns will keep a loan officer concentrating on originating new business and managing loans in process while still marketing appropriately to past clients, prospects, and referral partners all at the same time. Want to see exactly what a great CRM can do for your business? Click here for a Surefire demo today.

Renita Davis
Renita Davis
Content Manager

As content manager at Top of Mind Networks, Renita develops award-winning marketing materials and strategies for mortgage companies. Throughout her career, Renita has managed public relations and produced both printed and online content for clients in the home building, affordable housing, real estate, mortgage lending, financial planning, and

environmental industries. As a ghostwriter, she has contributed to two books on social media marketing. Her work has also been published in numerous print and online trade publications for industries she supports.

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