As I sit here trying to sort out the thoughts ping-ponging around in my head, I have to wonder, what is it all for? What is “it,” you ask? To me, “it” is anything you are focused on right now. For me, it’s building a business to try and help other businesses stay alive and even thrive, regardless of what the market is doing.

That said, trying to stay informed on current events in the mortgage and lending world while avoiding, what now feels like, the bottomless pit of negativity and anxiety is extremely difficult. In the last week alone, I have been ghosted by someone I know well with what feels like a lost opportunity, ghosted by someone who wanted to host me on their podcast as an interviewee but just never showed up to our meeting, read multiple articles about continuing layoffs (throughout a number of major industries) while also reading about how the job market appears “healthy”, seen evidence that suggests folks will start to go upside down on their home valuations (which is honestly to be expected when everyone was willing to pay $50K – $100K over value just to get the home), heard how foreclosures will likely increase in the next year due to people throwing their hands up and walking away because they cannot afford to simply live, all while our government seeks to simply stamp out inflation by working with flawed data that is creating an economy that cannot be sustained and been told that operations in lending are not the priority right now so why bother.

So, all of that being equal, it’s difficult to stay motivated, but I’m going to try because frankly, it’s time for some brutal honesty (those with weak constitutions may want to exit stage left now). And here it is…

If you are a mortgage team or company with holes in your operational systems, be prepared for things to get far worse for you than for others who have handled this side of the business with greater care. This downturn in sales may seem like the time to simply turn away from procedural enhancements, increased training, and improved credit risk evaluations, but you could not be more wrong. When is the time for these things, if not now, when you have the TIME? Think of this as an investment call – when things are low, invest MORE, not less. The gains you will realize in the end will make it all worth it.

There is a cost to ignoring boring old operations – we’ve already seen it. It showed itself with understaffed companies that could not handle the huge volume increases when rates dropped, which likely equated to lost monetary gains because those borrowers went elsewhere. It showed itself in inefficient process flows, lack of teamwork, and frustration between sales and ops that resulted in the loss of quality producers. It showed itself in huge post-closing remediation issues due to insufficient training in Processing, Underwriting, and Closing. It showed itself in unprecedented volume that kept folks tied to their desks (yes, even the ones at home) for 12-14 hours a day, nonstop for two years, leading to the burnout of fantastic employees. It showed itself in the number of checks cut from corporations having to fix errors that were a result of not meeting compliance requirements, or even understanding enough about the programs they offered and subsequently closed.

Sure, Operations is not “sexy” to many, but it is a necessary function of any lending institution or team. Admitting this fact and preparing for the future is important. Yes, it means acknowledging you may need help with certain functions, that GASP – you as an owner or senior level manager may not know everything (not sure if the memo reached your desk yet or not, but it’s OK to need help). Yes, it means evaluating what is going to be most beneficial for your organization in the long run, if you indeed wish to have a long run. Yes, it means admitting that there are improvements that can be made for the betterment of everyone, inside and outside your organization (remember we’re all a part of a larger economic system). Lastly, it most definitely means accepting the fact that while getting more sales is insanely important right now, knowing what to do with those sales is just as important for those you employ and serve.

Ignore these things at your own peril.