In the ever-evolving landscape of mortgage banking, executives face the critical challenge of leading their teams through turbulent times. The current market, characterized by the “higher for longer” scenario, presents unique obstacles: originators grapple with lower production, low housing inventory, and high rates, while operations professionals endure layoffs and relentless pressure to achieve more with less. This environment necessitates not just leadership but strategic storytelling—a narrative that inspires and drives positive action.

The narrative gap

Mortgage banking executives are tasked with bridging a significant narrative gap. Their role is not merely to oversee operations but to craft and communicate a compelling vision that motivates and aligns their teams. This narrative must acknowledge the challenges while highlighting opportunities, fostering a culture of resilience and optimism.

Strategic messaging: The CEO’s role

1. Crafting the Vision: CEOs must articulate a clear and compelling vision that resonates with all levels of the organization. This vision should be grounded in reality but framed in a way that inspires hope and confidence. It’s about setting a direction that everyone can believe in and strive towards.

2. Consistent Communication: Regular, transparent communication is crucial. This means not only sharing the company’s successes but also addressing setbacks candidly. Consistency builds trust and keeps everyone aligned, reducing uncertainty and speculation.

3. Highlighting Opportunities: In a market characterized by high rates and low inventory, it’s essential to focus on opportunities. This could mean exploring new market segments, leveraging technology to improve efficiency, or emphasizing customer service to differentiate in a competitive landscape.

4. Empowering Teams: CEOs should empower their teams by recognizing and celebrating their efforts and successes. This boosts morale and reinforces a positive narrative. Highlight stories of resilience and innovation within the company to create a culture of continuous improvement.

5. Building Resilience: Acknowledge the difficulties but emphasize the company’s ability to overcome them. Use past examples of overcoming adversity to instill a sense of confidence and perseverance in your team.

Three P’s: Predict, preempt, prevent

In addition to strategic messaging, executives must adopt the Three P’s framework—Predict, Preempt, Prevent—to manage the narrative effectively and maintain team morale and productivity.

Predict: Foreseeing challenges

Effective leaders must have their fingers on the pulse of the industry and their organization, recognizing signs of potential stressors before they escalate. By staying informed about market trends, regulatory changes, and internal team dynamics, CEOs can anticipate negative responses or stressors that may impact their teams.

Preempt: Proactive communication

Once potential challenges are identified, the next step is to preemptively address them through strategic communication. This involves crafting messages that not only acknowledge the difficulties but also shift the focus to opportunities and solutions. By communicating transparently and frequently, executives can mitigate anxiety and foster a sense of control and direction within their teams.

Proactive communication should include:

• Acknowledgment: Recognize the challenges openly. This builds trust and shows empathy.

• Reframing: Shift the narrative to highlight opportunities. For example, high rates can be framed as a chance to explore new market segments or improve service quality.

• Involvement: Engage team members in the conversation, encouraging them to share their insights and ideas. This inclusion helps to build a sense of ownership and commitment to the company’s vision.

Prevent: Maintaining focus and morale

By predicting challenges and preemptively communicating, leaders can prevent their teams from being derailed by stress and negativity. This involves creating a supportive environment where team members feel valued and understood, and where the focus remains on opportunities and growth.

Preventive strategies include:

• Regular check-ins: Maintain open lines of communication through regular team meetings and one-on-one check-ins to gauge morale and address concerns promptly.

• Celebrating wins: Recognize and celebrate both big and small successes to keep the team motivated and focused on positive outcomes.

• Continuous improvement: Encourage a culture of learning and adaptability, where challenges are seen as opportunities for growth and innovation.

Leading with inspiration

Leading the narrative means more than just managing it. It involves inspiring your team with a vision of what’s possible despite the challenges. CEOs must be the torchbearers of this narrative, exemplifying the attitudes and behaviors they wish to see in their teams.

To further enhance your strategic messaging skills and network with other leaders in the industry, we invite you to register for AMPCON. This event is designed to equip you with the tools and insights needed to lead with vision and inspire your teams effectively. Don’t miss this opportunity to transform your narrative and drive your organization to new heights.

Register now for AMPCON and be part of the conversation that’s shaping the future of mortgage banking.

Rene Rodriguez is a best-selling author, keynote speaker, and the CEO of Volentum.