Lender Retention Programs

If you're a mortgage planner, have you ever heard someone say, "Why would you send the client to that lender? You'll never get them back."

It's a question mortgage brokers are sometimes asked when they recommend lenders who have strong retention programs.  For those who don't know, retention programs are systems lenders have in place to encourage clients to renew with them upon maturity.

Brokers who have been around a while know who these lenders are.  (We won't name them.)  A minority of brokers avoid these lenders because they worry about losing the client once the client's term is up. 

Most mortgage planners don't fret about it, however.  The thinking is:

• If the client is placed in the best possible mortgage today, then the broker has done his or her job.  It doesn't (or shouldn't) enter our minds that we might not get paid again in five years.  (Brokers get referral fees when they renew clients' mortgages with new lenders.) 
• Educated clients are smart enough to see through their lender's song and dance at renewal time and focus on the bottom line.  They know that mortgage planners provide invaluable assistance when presenting renewal options.
• If a client trusts that you will always do the best thing for them, they will remember you at renewal time and reward you with repeat business. 

Today more than ever, if you're a broker, you have to adopt this philosophy and practice it.  Focusing solely on the client's interests is good for our industry, and it's good for your business.