Lykken’s experience in the industry runs deep. He has served as an owner/operator of three mortgage banking companies, a software company and several consulting companies. He specializes in sales, business and communications strategies, and is a regular guest on Fox Business News and CNBC. He currently hosts his own weekly radio podcast, "Lykken on Lending."
As the era of COVID-19 has brought with it much confusion to the mortgage industry, Lykken feels that a record housing boom lies just around the corner, and that mortgage professionals should take advantage of this time to prepare.
“I believe we are about to come into the biggest housing boom of all time in American history,” said Lykken. “The reason for that is the demographics … the millennials who have been slow to enter the housing market, they have been in apartments, and have been living in places they have not owned. You lock them up in a place like that for 45 to 60 days, and they come out of that wanting to buy a home as fast and furious as they possibly can.”
And it’s not just millennials who will be chomping at the bit to lock in record-low rates, but Generation Z as well. It is primed and ready to achieve homeownership. The tie that binds these two demographics is their reliance on technology. Lykken feels that now is the time to embrace it or be left in the dust.
“Talking in terms of how to prep for this boom, you better be taking advantage of the technology out there right now if you are going to succeed,” said Lykken. “Otherwise, you are going to look like a dinosaur and you are not going to reach these two generations that are entering the market.”
Other highlights of Lykken’s appearance on the Mortgage Outlook series included:
►While many have experienced the coronavirus from a distance, Lykken watched as the ailment hit close to home as his wife contracted the sickness. “We took a quick business trip to England and we met up with some business partners over there. It was just before COVID-19 took off. My wife came back and was not feeling well. She got worse and worse and it knocked her down. She tested negative twice, but her doctor confirmed it.”
►In discussing making the transition from broker to banker, Lykken commented that “the waters are parting. You see some going back to the broker side, but keeping their mortgage banking license, but many are going back to the broker level.”
►In terms of marketing, Lykken feels that embracing technology, yet keeping the human element of the mortgage process in place, is the route to success. Lykken said: “I am a big fan of texting. It has a 97% response rate within five seconds. You learn to communicate in a very quick manner. You make the connection and draw them into a relationship. If you have the right words, you can use artificial intelligence by different means. AI helps you get to know the person and see how they respond. You hook them, and then you got them on the line and that’s where the loan officer starts to engage with them. AI will never replace the human that gives you the validation that you are getting the right loan at the right rate with the right terms. Clients want to talk to humans.”
►On the difference between brokers and bankers, Lykken said: “If your core competence and number one passion is to originate loans, and you are not as good on the operational side of the business which mortgage banking really requires you to have, you are probably better off moving back and sticking with your core competency. It’s not that you failed. These are times where you can grow beyond your own competency and it’s getting back to what you are good at and identifying that.”
You can watch the complete interview between Lykken and Berman below.
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