Sales Lead Generation Guide » FHA program

Is It Worth Holding Out For The Free Leads?

Jes — Sun, 15 Nov 2009 06:46:52 +0000

A common approach to purchasing mortgage leads is to hold out and wait for the ones that are free, or are extremely cheap. There was a time when this was not just a good strategy, it was the best one. Times change, however, and this is simply no longer the case.

Free sales leads used to have their place, and in some instances, they still perform. For instance, free mlm leads are still worth getting. But, free mortgage leads just aren’t’ a viable way to spend your time like they once were.

It used to be that there was a loan program available for every borrower out there. Whomever you spoke with, it was almost certain that you would be able to get them approved for some sort of mortgage. Because of this, it made sense to talk to the largest bulk of prospective clients that you could. The best way to do this was through leads, and the best way to get many leads was to get the free mortgage leads that were aged leads.

Not only were there programs available for everyone, but there were also more brokers and loan officers than there had ever been before. It was almost certain that any client you talked to would also be talking to another broker. Therefore, it was important to burn through as many leads as possible so that you could minimize the loss to competition.

But, in today’s market, the correct attitude towards leads needs to change. Unlike the past, there are not many different loan programs available. In fact, there is only the FHA program left to get approvals on a mass level. This means that the majority of the clients that you talk to through the free lead generation are going to be people that you cannot help.

Your sales lead generation needs to now be of the highest caliber. You need to make sure that the clients you are talking to are clients that you can be approved. You do not need to worry about the competition from other brokers that you once had to worry about, because they simply are not there. It does not need to be a numbers game anymore, if you are buying the right leads.

The way to make money with leads in today’s market is simple. Find a good lead generation company and tell them what you are looking for. They will tailor a campaign that will end up feeding you with a steady pipeline of the exact clients that you are looking for. It will definitely not be free, but it will pan out for you in the end.

Exclusive Mortgage Leads Are Your Best Bet To Increase Your Business In The Upcoming Year

Jes — Sun, 15 Nov 2009 06:15:26 +0000

Let’s face it. Sales lead generation is not as easy as it once was for mortgage professionals. The problem is not the same as it used to be, though. The mortgage market used to be flooded with brokers, bankers, and loan officers. It was almost guaranteed that every potential client that you talked to, even referrals, were going to be talking to another loan officer as well.

In order to find success in the boom market, lead generation had to be tailored to this kind of high-level competition. In those times, it became a simple numbers game. A good loan officer would buy the largest batches he could of mortgage leads and refinance leads and blow through them as fast as possible. The idea was that the more people you talked to, the higher the likelihood that they would choose your prospective loan over some of the others that they were shopping.

This was a good approach, and it found a lot of people success. In a time where hundreds of thousands of homeowners had higher rates than what were available, there were hundreds of thousands of refinance leads available.

These borrowers are still here. As of Friday, mortgage rates for a thirty year fixed rate on the FHA program were down to 4.5%. This is the lowest they have ever been. Despite the foreclosure crisis and the lending crisis, there are still many homeowners looking to refinance.

The difference now, however, is that there are not nearly as many loan officers or mortgage bankers left to compete with. If you have made it through the down times, you know that it just is not the same as it once was. This is a good thing for you. It now becomes a situation where you can go into ever conversation with a new lead feeling confident that the broker up the street is not calling them as well.

The problem is that, unlike before, most of these clients are going to be people that you cannot help. Between the tightening of lending guidelines and the serious recession we are currently in, there just are not nearly as many qualified borrowers left. So what do you do?

There really is only one answer. In this type of mortgage economy, you are going to make your best money from an exclusive mortgage lead. These borrowers have already been screened, so you know that you can help them. More importantly, however, is the fact that they are not going to be talking to anyone but you. These are the leads that will cost you less work to convert, and will allow you to have a much higher average fee as well.

There Is Still Life Left In Debt Consolidation Leads

Jes — Mon, 09 Nov 2009 15:42:54 +0000

A few years ago, there was absolutely no way you could get a better return on your investment than by buying a debt consolidation lead. These mortgage leads were worth their weight in gold. These were people with sizable amounts of consumer debt, and they typically had higher interest rates on their mortgage. And, just to sweeten the pot, it wasn’t very hard to get a debt consolidation loan lead that also had great credit.

But, the real reason that these leads were so strong was that there were so many different programs available to send these borrowers through. If they did not qualify for Conventional financing, you could look to the FHA program. If they did not qualify for the FHA program, there were literally hundreds of different Non-Conforming lenders out there. Each one had their own unique niche, and if you looked hard enough, it was very rare that you ever had to turn a client down.

Now, granted, the interest rates on these sub-prime loans were not great, and to make matters worse, they were, for the most part, two-year adjustable rate mortgages. But, the good thing about debt consolidation loans was that when you offered a refinance at 9%, it was still considerably lower than the interest rates on their credit cards, and as a result, you could save your borrowers considerable amounts of money on a monthly basis.

Well, as the lending market has tightened up, it has become very difficult to obtain a debt consolidation refinance. Consolidation debt lead mortgage loans are simply not able to be handled the same way they were in the past. It just does not happen anymore that you can do a cash-out refinance and consolidate all of your borrowers’ credit cards. Home prices are falling and LTVs have been cut. So, most brokers have decided that debt consolidation leads no play a role in a good marketing strategy.

But, the important thing to remember here is that these leads still have a lot of great use. It is certainly true that these borrowers are looking to consolidate all of their debt. And, it’s also true that you probably won’t be able to do that. But, the real underlying need of these borrowers is simply to lower their total monthly payment. With the rates as low as they currently are, this is not very hard to do, even without consolidating any debt.

When used in this manner, you’ll see that most debt consolidation leads will actually just become straight refinance leads. When you are able to save them 200 dollars on their monthly housing payment, they will be just as excited as if you had been able to pay off all of their credit cards.

Internet Mortgage Leads Are Your Ticket To a Stronger Pipeline

Jes — Mon, 09 Nov 2009 15:26:20 +0000

We all have our own tried and true means for lead generation. We have spent a lot of time honing our skills and perfecting our craft. We all have systems in place that work. But, unless we plan on going out of business, we cannot fear change.

It is so very easy to get into the habit of thinking that you are doing everything right and that your systems cannot be improved on. But, it simply is not true. No matter how well crafted your lead generation and contact management are, there is always room for improvement.

Sometimes, it makes sense to stop and rethink your strategies. Other times, it is imperative that you do. This is one of those times. It is certain that you have either found that within the last year your pipeline has shrunk or that you have had to work considerably harder to keep it filled to a similar level as what you are used to. This isn’t caused boy fault of your own, but rather, is caused by both the changes in the economy and the changes in mortgage guidelines.

If you are still originating loans, then you are a strong originator and have made it through one of the worst twelve-month periods that our industry has ever seen. But, you aren’t out of the woods yet. The big changes coming to the FHA program in January are going to make it even harder to close loans. So, you’ve got to do something to supplement your current lead source.

Buying internet mortgage leads is that something. In order to stay afloat, you are going to need to talk to more clients than you ever have before. And, the best method to do that is to look into buying mortgage leads.

An internet mortgage lead, unlike others like insurance leads and life insurance leads are very easy leads to work with. You are not the only one feeling the burn of the recession; homeowners are as well. When you are talking to a mortgage lead, you are talking to someone that needs and very much wants your help.

There will be a lot of mortgage leads that you cannot help. But, that’s not the point. At some point, you will be able to help them, so they are all good additions to your contact book. But, most importantly, these will be leads that do not take any more effort or time than your current lead sources.

If you look to the future and start making good decisions now, like buying internet mortgage leads, you’ll find that you can thrive in this down market just as well as you were when the economy was booming.

Is There Still a Need For a Debt Consolidation Lead?

Jes — Fri, 06 Nov 2009 20:27:01 +0000

Mortgage Loan Officers don’t have nearly the options they once did to do cash out refinances and debt consolidation loans for their borrowers. Sub-prime lending is completely gone. Conventional financing through Fannie Mae and Freddie Mac may as well be gone because of the HVCC guidelines. So are homeowners’ only options consumer credit counseling and debt management?

Well, the answer is no. There is still plenty of opportunity to take advantage of debt consolidation leads. There are still refinance options available, and even more important to remember, a debt consolidation loan lead is a client that is trying anything to lower their overall monthly payment. So, even if cash out isn’t an option, they may still be potential clients if you can at least show them a substantial monthly savings on their mortgage.

But, keep in mind that even though everyone is decrying the death of the FHA program, it is actually still a very powerful refinance program and a great option for servicing debt consolidation leads. And, while most people only complain about the fact that cash out FHA refinances had the LTV limit cut by 10 percent, they forget that 85 percent LTV cash out refinance with a fixed rate in the 5 percent range is still a very powerful program. When you throw in the fact that can utilize this program to pay off a chapter 13 bankruptcies or even consumer credit counseling, it suddenly becomes a very powerful program indeed.

Another misconception is that a lot of loan officers will assume that a debt consolidation lead is no good if the borrower is requesting $20,000 but there is only $5,000 available for cash out. In a lot of these scenarios, that $5,000 is still a huge help to the borrower. That, coupled with a fixed rate at, say 5%, will almost always be enough to sway a borrower into the refinance. And, it’s very likely that you’re going to be putting them into a stronger financial position in the long run.

To make these leads even stronger, consider the fact that you are not alone. Most other loan officers are shying away from them as well. This means less competition for every qualified borrower that you sift out of the leads.

Overall, despite the lack of available programs, a debt consolidation refinance lead is still the best bang for your buck. They are cheap, readily available, less prone to competition, and are people who really do need your help.

Reverse Mortgage Leads Are Your Entry to the Next Level of Origination

Jes — Thu, 05 Nov 2009 20:20:45 +0000

It is not news that it’s become more difficult to get a borrower approved. The programs that used to be there for you don’t just have tighter underwriting guidelines. They don’t even exist anymore.

With the death of Sub-Prime lending, a gap was filled by the FHA program. The FHA program had high LTVs, no credit score requirements, and most importantly, had amazing interest rates. But, this has all changed. A cash out mortgage refinance is now limited to 85 percent LTV. Almost all of the FHA banks have implemented at least a 620 score minimum. But, most frightening is the new adoption of the HVCC guidelines. Come January, FHA loans are going to be just as hard as any other loan out there to get approved.

But, this isn’t the end. There is still a great customer that has almost certainly been overlooked by you up until now: the reverse mortgage lead. The problem in the industry right now is not the mortgage leads. There are still as many available customers as there have ever been, there just aren’t the programs to get them approved. But, the guidelines for reverse mortgages haven’t changed at all.

These mortgages are not only a great service to homeowners, but they are incredibly easy to close. For the most part, the processing will be handled almost entirely by the bank itself. You are able to make strong fees on them with minimal work. But, the problem with them is lead generation.

This is not an easy market to tap into. A borrower must be at least 62 years old in order to qualify for a reverse mortgage. By this phase of someone’s life, typically, they have already found all the professionals that they rely on. If you aren’t already that professional, it is going to be very hard to become him.

But, fear not! It’s almost certain that the same companies you have been buying your refinance leads from also sell reverse mortgage leads. And, rest assured, these are good leads. Typically, these are not internet shoppers. These clients have expressed an interest because they actually have one, and they will be happy to hear from you.

So, call your account executive and ask them if they can walk you through the process of originating reverse mortgages. It will be one of the best decisions you will make in your originating career.