“This article expresses my personal analysis based on publicly available financial data and market reports.”

How a Mortgage Broker Can Avoid the Shiny Ball Trap in Tech and Lending

In today’s competitive financial world, the role of a mortgage brokers is not just that of a middleman, but also that of a trusted advisor. New tools, AI-based solutions, and non-QM lending products are entering the market every day. However, this rapidly changing environment poses a problem – the “shiny ball” trap. This is a phase where brokers feel they will be left behind without every new technology or product. But the truth is that it’s not necessary to chase every new tool or lender.

Mortgage Broker and Tech Overload

Mortgage brokers face pressure from all sides these days. New AI technology promises to streamline the process and attract new lenders with its unique loan programs. Laura Brandao, CEO of Lighthouse Advisors, says she doesn’t think all new products or services are needed or useful to all mortgage brokers.

The greatest challenge is keeping brokers from feeling outdated or behind the times, and leaping headlong into tools or long-term commitments that aren’t really necessary to their business. If a mortgage broker adopts a new tool without proper evaluation, their work can become even more complicated rather than simpler.

What is the Shiny Ball Trap?

The shiny ball trap is a psychological challenge where brokers feel that if they don’t work with new AI tools or the latest lenders, their business will lag. Brandao warns that falling into this trap can lead to unnecessary expenses and contracts. Mortgage brokers should manage their resources in a lean and structured way, adopting only tools that genuinely streamline their workflow.

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The Value of Industry Knowledge Sharing

Laura Brandao actively participates in events like AIME Fuse. She says knowledge sharing within the industry is crucial. It’s important for mortgage brokers to learn not only from their own experiences but also from the practices of other brokers. Sharing has become less common these days, but she strongly encourages brokers to try to understand others’ strategies and solutions. This helps cover their blind spots and uncover new opportunities.

Non-QM Lending Growth and the Role of the Mortgage Broker

Not only technology, but the lending space is also rapidly evolving. Non-QM lending is projected to grow significantly in 2025, as many borrowers do not have traditional W-2 income due to the rise of the gig economy. This is a golden opportunity for mortgage brokers to connect their clients with the right non-QM lenders.

But a shiny ball trap exists here too. Every lender touts its non-QM product as the best, but brokers must take the time to understand each program. Each borrower’s financial conditions and requirements are distinct, and each lender’s loan program is distinct in nature. Hence, the key for a mortgage broker is to know the demand of the market and select the appropriate lender for his clients.

Real Market Example: Surge in Alabama

Brandao cited a client’s example, explaining that investor loans have grown significantly in Alabama over the past two years. Previously, only 11% of loans were from out-of-state investors, but now this number has risen to 27%. This clearly shows how important it is for a mortgage broker to understand the pulse of their market. If a broker knows which types of borrowers are dominating the market, they will be able to better serve their clients.

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Evolution is the Key for Every Mortgage Broker

Whether it’s AI technology or non-QM lenders, the biggest mantra for a mortgage broker is to keep evolving. But evolving doesn’t mean chasing every new trend. Evolve means understanding your market’s demands, choosing genuine tools and lenders, and providing clients with a reliable and transparent service.

Today’s borrowers are different – ​​some are in the gig economy, some earn from multiple income streams. They require customized lending programs rather than standard solutions. If a mortgage broker carefully analyzes their market trends and tools, they will not only grow their business but also become a trusted advisor to their clients.

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Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, not US News Weeks. We advise investors to check with certified experts before making any investment decisions.

Source : Mapmag - Mortgage Broker