Is your brokerage in its infancy? Are you wondering how to take it to the next level, especially when banks and lenders are making you jump through hoops to assemble a lending panel?
It isn’t easy in the early stages – but there are ways and means to scale your finance brokerage business in 2022 using some tried and true shortcuts. In this article, we discuss how you can use lender aggregation to gain access to a virtual lending panel overnight, as well as other tips to ensure you can keep cash flowing even when times are lean.
What is a Mortgage Aggregator?
An entity known as an “aggregator” is a firm that buys mortgages from financial institutions and then securitizes or pools them into securities backed by mortgages (MBSs). Aggregators might be divisions inside the parent financial institutions or the banks that issue the mortgages. Additionally, they could be brokers, dealers, correspondents, or representatives of another financial organization. By buying individual mortgages at a loss and selling the pooled MBS at a profit, aggregators make money. They are essentially service providers that take the effort out at the point of issue for a mortgage-backed security.
How Do I Partner with An Aggregator?
First, you should do your research and use a reputable finance aggregator. Aggregators may have many years of broking or lending experience under their belt – or be subsidiaries of banks. Make sure they have good reviews online and are licensed to provide credit by the relevant authorities. The Mortgage & Finance Association of Australia has also endorsed the Consumer Data Rights rules amendments to facilitate open data sharing and banking, which ensures even greater competition in the space.
Using an aggregator, you can better help clients with taking out their first mortgage if they’re new to home buying.
Offer a Value Add
Offering mortgage services is great – but making your firm a one-stop shop for everything to do with moving into a home can add to your bottom line and help you scale the business.
As part of your mortgage lending suite, give comprehensive mortgage solutions including comparing energy suppliers and movers. With power, gas, and internet ready for them when they move in – and the fact that they’ve got a bargain price on movers, your clients can rest assured their moving day is taken care of.
Take Care of Digital Marketing
If you aren’t on social media promoting your business – why not? Setting up social media is free (although getting reach and promotion may cost money.) Online design apps like Canva or Pixlr make it simple to create graphics and short videos to attract attention – even if you don’t have any experience in design. It does take a bit of time and effort, but investing in writing SEO articles, building your mailing list, and cross-selling value-added services can reap huge rewards in the long-term and help you keep scaling your business. Remember small ripples now can turn into huge waves later!