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Why a Branch Manager Needs a Diverse Product Mix

Diverse product mix for mortgage branch managers

“Same old, same old” doesn’t work in this competitive business environment. It’s the companies that innovate with new, exciting products that see success. Tesla, Apple, Netflix, Amazon—these standouts didn’t just focus on one thing. They diversified, exploring a wide variety of products and services to meet the ever-changing needs of their consumers. 

For a branch manager, your approach to curating a product mix for your borrowers should be no different. The more solutions you can offer, the more deals you can close (and the mortgage branch manager salary you pull in grows, too)

Niche Lenders and Their Limitations

Mortgage companies that don’t offer a diverse product mix typically focus on a narrower range of loan options, catering to specific market segments or specializing in particular types of mortgage products. This specialization can be due to various reasons, including company size, regulatory constraints, risk management strategies, or a strategic focus on a niche market.

Single-Product Lenders: Some mortgage companies focus exclusively on one type of mortgage product, such as fixed-rate mortgages. By specializing in just one product, these lenders can streamline their processes and marketing efforts but at the expense of failing to meet the diverse needs of all potential borrowers. MortgageRight sidesteps the trap of tunnel vision when it comes to product offerings.

Government-Insured Mortgages: Certain lenders might specialize in government-insured loans, such as those backed by the Federal Housing Administration (FHA), Veterans Affairs (VA), or the United States Department of Agriculture (USDA). These loans have specific eligibility requirements and benefits, like lower down payments or no down payment, which can attract first-time homebuyers or particular groups like veterans. However, focusing solely on government-insured mortgages can limit your appeal to borrowers who might not qualify for or need these loans. MortgageRight offers government-insured loans as an option, but there are others!

Jumbo Mortgage Lenders: On the other end of the spectrum, some mortgage companies might specialize in jumbo loans, which are mortgages that exceed the conforming loan limits set by Fannie Mae and Freddie Mac. These loans are often used to purchase high-value properties. Lenders focusing on jumbo mortgages might cater to a more affluent clientele, potentially missing out on the broader market. But when you offer jumbo loans and a host of others, you can cover any corner of that market.

Refinance or Home Equity Lenders: Certain lenders might concentrate on refinancing options or home equity loans and lines of credit (HELOCs). While these products can be valuable for homeowners looking to refinance their mortgage at a lower interest rate or borrow against the equity in their home, focusing on these products alone might not attract first-time homebuyers or those looking for new mortgages. (Again, MortgageRight offers these loans along with many other products. Are you seeing the trend here?)

Hard Money Lenders: These are private individuals or companies that offer short-term, high-interest loans primarily to real estate investors to purchase and renovate properties. Hard money loans are typically used for projects that won’t qualify for more traditional financing, focusing on the property’s value rather than the borrower’s creditworthiness. By concentrating on this niche, such lenders may cater to something other than the typical homebuyer.

Specializing in a narrower product range limits a branch manager in terms of market reach. So don’t sell yourself (or your clients) short. Work with a partner like MortgageRight to meet the broader needs of a more diverse clientele.

The Advantages of a Better-Blended Product Mix

Why limit yourself when it comes to what you can offer your clients? Your product mix is your business. It helps increase resiliency during downtime, providing a buffer against market volatility by spreading the risk across different markets or customer segments (similar to personal investment strategies). If one product line underperforms due to market conditions, others might remain stable or thrive, offsetting losses and maintaining overall stability. 

Markets and consumer preferences can change rapidly. You’re better positioned to pivot and adapt to varying demand cycles and profitability margins by offering a wide range of products. And, you’re more likely to experience stable revenue streams, as a decline in one area might be compensated by growth in another. 

Mix It Up for Your Borrowers’ Benefit

By putting your borrowers’ needs first, you’ll earn a mortgage branch manager salary and then some. Of course, a diverse product mix will benefit your business, too, in the long run, but operating with a customer-centric mindset will quickly show you how that pays off.

A Diverse Product Mix Meets Diverse Needs: No two borrowers are the same. They’ve got different financial situations, goals, and needs. A wide variety of products ensures that more borrowers can find loan options that suit their specific circumstances, even the weird ones.

A Diverse Product Mix Provides Personalization: Me-culture is a thing. We like products and services that put our preferences front and center. By offering many mortgage products, borrowers can choose products with repayment schedules, interest rates, and loan amounts that best match their income and repayment capacity.

A Diverse Product Mix Offers More Competitive Rates: With more products, you can provide more competitive rates to attract different segments of borrowers. This competition can lead to better interest rates and terms for your clients.

A Diverse Product Mix Brings Innovation and Flexibility to the Table: Reassure your clients that you’ve been to this rodeo before with creative financing solutions that traditional products might not cover. 

The Right Partner Gives You More Access

Most branch manager positions don’t include the overlay to underwrite every loan—but MortgageRight does! With more options, you can find the best deal for your clients. Partnering with an underwriter like MortgageRight means you have access to the most aggressive pricing on all the products your clients need, so you can capture market share and grow your business. With MortgageRight, you should never have to refer a deal out. Mike Russo, Branch Manager at MortgageRight, often notes that the partnership enables you to “fund every loan that comes across your desk.” Now, that’s a powerful product mix.

Offering a diverse range of products significantly enhances your competitiveness in the financial market, attracting a broader audience beyond what might be possible with a more limited selection. This variety not only meets the diverse needs of borrowers, with the halo effect of improving customer satisfaction and loyalty but also ensures that satisfied customers are more inclined to return for their future financial needs and recommend you to others. Bonus points: diversity in product offerings allows you to extend your reach across various market segments, from those needing high-risk subprime loans to high-net-worth individuals seeking premium financing solutions, potentially increasing your market share and profitability.

A varied loan portfolio also aids in effective risk management by distributing the inherent risks across different types of loans and borrower demographics. Adaptability is enhanced since you can swiftly respond to market or regulatory changes, shifting focus as necessary to more viable options. Ultimately, having a wide variety of products is a strategic approach that benefits everyone involved—borrowers by catering to their specific needs and lenders by enhancing their competitiveness, market reach, and ability to manage risks.

Are You Ready to Mix It Up with MortgageRight?

Dial up that mortgage branch manager salary and close more deals with a more robust product offering. Let MortgageRight make “yes” a regular part of your vocabulary with customers, as you have greater access to the solutions that make a difference to your bottom line. As a branch manager with MortgageRight, you can tap into any of these products:

  • FHA, VA & USDA loans
  • Conforming
  • 3% Down Affordable
  • Jumbo
  • High Balance
  • Construction to Perm
  • HECM Reverse
  • Non-QM
  • DSCR & Asset Depletion
  • Renovation
  • Down Payment Assistance
  • Rate Buy Down

Take a look at your product mix—how does it compare? Schedule a demo with MortgageRight today to see how a branch manager like you could benefit from a partner like us.

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