Reflecting On 2023

Ask yourself these questions to prosper in 2024

Insider

Contributing Writer

We’ve made it to the end of another year! December is a time to celebrate, but before you pop that champagne on New Year’s, take the time to reflect. Reflection is more than looking back on your year and moving on, however. It’s about learning from the past year and putting what you’ve learned to use. The Cambridge Dictionary defines the verb “reflect” as “to think carefully, especially about possibilities and opinions.”

As we bring a year to a close, it’s important to think carefully about where we’ve come from, with a special focus on the opportunities that lie ahead. There are concrete steps loan officers can and should be taking that can help them assess the previous year — helping guide their direction for the year to come. Let’s walk through three questions to ask about your business as you reflect this season.

Where did my business come from?

Reflecting on your business for the year will start with finding out where it came from. How many loans came from real estate partners? What about from builders, customer referrals, social media, or a company lead? For everyone, there will likely be one or two that are stronger than the others.

Knowing your breakdown is critical and if you’ve not been paying attention to it already, now is the time to start. You may find you’ve been pouring a lot of time into a relationship with a real estate agent, but they’ve only given you one loan this year. This analysis can help you either focus your time on a more profitable area, or it can trigger a deeper dive into why you have not seen much return from that relationship.

Maybe you have a growing number of borrowers finding you from social media. This could prompt you to being more active on social and explore ways to expand your reach there. The bottom line is, knowing where the business comes from will inform you where your time is best spent and where you could grow.

What kind of loans were they?

Once you know where the loans have come from, take some time to look into what kinds of loans they were. Look at your total number of loans, the dollar amount, the number of purchases versus refinances, how many were first-time homebuyers, what their credit scores were, what the loans were for, etc.

If you find you’re doing more of a certain type of loan, take the opportunity to make yourself a subject matter expert on it. Even if you’ve already had a lot of experience with a certain loan product, there is always room for growth.

If there is a certain loan type you’ve not been doing, ask yourself why. If it’s because you’re not comfortable with it, do your homework so you can be more confident. If it’s something that’s not as popular currently, think about how or why it could be more popular in the coming year.

Knowing where the business comes from will inform you where your time is best spent.

There are tools out there, some paid and some free, that can help you do this. MMI, CoreLogic, Black Knight and the MBA all keep track of market data to help lenders stay on top of trends, anticipate market changes and fine-tune their business strategy. If you are not already taking advantage of these resources, the new year will be a great time to start.

How many rejections did I get and why?

Finally, ask yourself how many loans got rejected — and more importantly, why they got rejected. Did you not know the guidelines? Was your application incomplete? Was there a surprise during the loan that you should have asked more questions about?

There are many reasons why a loan can get rejected. Learning from your mistakes is critical, but not enough people take the time to do it. While focusing on rejections can feel like a downer, it’s the best way to make sure you see less of them in 2024.

Reflect To Prepare For 2024

Don’t let this month go by without taking the time to reflect on your business. Asking yourself these three simple questions can reveal where to spend your time to see the best returns and make 2024 a year worth celebrating.