Tom Davis (pictured top), chief sales officer at Deephaven Mortgage, was shocked to see a recent bank survey showing how many homeowners were completely unaware of home equity products.
“It was one of the top 10 banks in the United States, and in their survey, it said like 35% of their mortgage borrowers did not know home equity products existed,” Davis told Mortgage Professional America.
Differentiating yourself from the competition
Davis said another benefit of pitching second-lien products is that it sets you above your competition. If your customers are shopping around, you can call out those who are only trying to offer them a refinance.
“As an advisor or a loan officer, you should present both,” Davis said. “You can say, ‘You could do a refi cash out on your first, but you’re going to lose this 2.5%, 3% mortgage rate that you will never see in your lifetime again, more than likely. Or you could keep that, protect that right. That’s an important asset: cheap money. And then you could do a second lien for the amount that you need at this rate.’
“And if that borrower is talking to someone else about a first lien, and they’re only giving them one option, and you go as an advisor and you say, ‘Hey, I know you’re probably talking to someone else, but here’s another option.’ I think it’s a great opportunity for loan officers to really differentiate themselves and bring value over loan officers just pushing that first.”