“The average loan officer in the United States, 65% of the time that borrower, when they go do another loan, they’re going somewhere else,” he said. “And so I think originators need to embrace these products so they can retain their past clients.”
By being able to help these customers now with equity products, the broker now moves back to the front of the line for these past clients, Davis said.
“If I had a restaurant and 65% of my customers that came to my restaurant the second time didn’t come back to my store, they went to another restaurant down the street, the servicer who I sold the loan to,” he said. “The goal should be: how do I keep them coming back to my store and how do I have them become a customer for life.”
When a loan is sold, Davis said, the servicer immediately begins soliciting the borrower, while the broker who originated the loan is often completely absent from that conversation.
“When that loan gets sold, the servicer immediately starts to solicit them,” he said. “They have all the data, they have AI, and they are aggressively marketing to them. And those borrowers, if the loan officer doesn’t stay engaged, they’re going somewhere else.”
