Editor’s note: Guest post provided by mortgage leader Gibran Nicholas of CMPS Institute

Loan officers and financial advisors can be great referral partners for one another. In order to understand how loan officers can successfully work with financial advisors we reached out to Gibran Nicholas, founder, Chairman and CEO of the CMPS Institute. Gibran has successfully trained thousands of loan officers on how to work with financial advisors and real estate agents since 2005. A complimentary guide for loan officers is available at the end of this post.

Financial advisors are perhaps the most overlooked referral source for loan officers in today’s mortgage market. Collaboration with key referral partners is an excellent way to build business growth with trusted individuals. I’m a believer in the idea that consumers want to do business with people they know and trust. Exploring all your options with valued referral partners can help expand your reach and customer base.

1. They’re a HUGE Source of Purchase Business

According to the latest statistics from the National Association of Realtors, people in the USA move every 9 years or so. Assume that the average financial planner/CPA/insurance agent has about 300 clients that he/she works with on a regular basis. This means that in any given year, one financial advisor can refer you up to 33 purchase transactions! If you have 3 financial advisor relationships (one CPA, one investment advisor, one insurance agent), you could be generating up to 99 purchase transactions from these referral sources. That’s a whopping 8.25 purchase transactions per month!

Loan Officers Work with Financial Advisors

Think about it: These people are going to be buying a house whether you have a relationship with their financial advisor or not. This means that you may end up buying the lead off the internet and competing with dozens of other lenders for that client. Why do all that when you can get the lead ahead of time directly from the financial advisor?

2. You Could do MUCH LESS Rate Shopping

In our example above, if you wait to buy the lead off the internet, you’re buying yourself a low-quality “rate-shopper.” Your conversion on those leads may be 5- 10% if you’re lucky. This means that you’ll need to spend time with at least 10 people just to close one deal.

On the other hand, if you get the referral ahead of time from the client’s financial advisor, your lead conversion rate will go through the roof. In my experience, you’re likely to hit a 70% or higher lead conversion rate on financial advisor referrals. That’s because:

a) The client is paying the financial advisor for his/her advice, so the client is more likely to follow it.

b) If you handle the client consultation properly, and bring more of a financially savvy approach to the conversation, your service to the client becomes an extension of the financial advisor’s value proposition to that client. The trust they’ve built with their advisor will flow through to you.

3. You Could Get HIGHER Quality Leads

Clients who use financial advisors tend to be financially savvy. They usually have documented assets, documented income and a higher-than-average credit score. As far as you’re concerned, this means higher loan sizes and less underwriting hassle.

Taking a little bit of time to cultivate relationships with referral partners can have a high return on the time investment made. Consider some of the reasons above as to why connecting with a trusted financial advisor makes sense for expanding your business growth in the immediate future.

If you are seeking more insights on the value of loan officers working with financial advisors, then download my complete guide to working with financial advisors.

Download: The Loan Officer’s Guide to Working with Financial Advisors

Download Now


The opinions and insights expressed in Three Reasons Why Loan Officers Should Work with Financial Advisors are solely those of its author, Gibran Nicholas, and do not necessarily represent the views of either Mortgage Guaranty Insurance Corporation or any of its parent, affiliates, or subsidiaries (collectively, “MGIC”).  Neither MGIC nor any of its officers, directors, employees or agents makes any representations or warranties of any kind regarding the soundness, reliability, accuracy or completeness of any opinion, insight, recommendation, data, or other information contained in Three Reasons Why Loan Officers Should Work with Financial Advisors or its suitable for any intended purpose.

Gibran Nicholas

Gibran Nicholas - Mortgage Leader

Gibran Nicholas is the founder, Chairman and CEO of the CMPS Institute, a national organization that has trained, coached and certified over 8,000 of the nation's top financial and housing professionals since 2005. CMPS-certified professionals are approved to teach Continuing Educations classes to CPAs, financial advisors and real estate agents.

Tags: , ,