Maximizing Mortgage Marketing in the New Year

By · January 6, 2012 · Filed in Lead Generation News, Mortgage Marketing

There may be some hints that the mortgage industry is turning the corner as mortgage marketing companies reported an increase in advertising for loan companies in the fourth quarter of 2011. In addition, several MBA surveys pointed to more good news as loan professionals confirmed their belief that outlook for home financing is improving. Sure lending guidelines are still tight and the housing market continues to struggle with foreclosures and significantly deflated home values, but maybe we are at the low point for this crisis and thing actually will get better. Sure property values on the East and West coasts are still in the tank, but eventually people will start buying homes again and home loan guidelines will loosen. Loan companies that are serious about increasing conversions and originations are more committed to mortgage marketing than ever before.

Reduced Expenses as the Cost Per Lead is Lower

According to Lead Planet founder, Bryan Dornan, “If positive thinking can play a role in the recovery than 2012 and 2013 will be great years for loan origination nationally.” Dornan believes that so there has been such a significant correction in the mortgage industry that is will be easier for the lenders who are left to succeed. Although, Dornan cautioned that tighter guidelines have hindered reducing the mortgage marketing costs, because not as many loan applicants will qualify. The bottom line is that is takes more internet mortgage leads to qualify a borrower. Fortunately for loan companies the costs of mortgage leads has dipped slightly over the last few years.

Targeting Refinance Niches Will Be Critical for 2012

Don’t forget the Obama administration announced a revived HARP refinance program that actually lifts loan to value requirements for struggling borrowers looking to refinance their underwater liens. Of course you must have a mortgage owned by Fannie or Freddie and you must meet the credit requirements but no loan to value limitations could be a genuine opportunity for homeowners to lower their monthly payments from home refinancing. The question is though — how many of these upside-down borrowers already have a low interest rate? Since we have had home loan rates below 5% for almost 3 years, many of these “struggling homeowners’ already have a home loan with very good interest rates. Nonetheless, the new HARP mortgage will enhance loan origination in 2012 just how much remains to be seen. We have seen a significant spike in interest for HARP leads in the fourth quarter. We have seen a dramatic rise for internet mortgage leads that stemmed from homeowners seeking help from a HARP lender.

Mortgage Marketing Areas of Opportunity

Since we have been blessed with record breaking mortgage rates the last few years, most loan officers have continued to succeed with refinance leads.  That will continue if fixed 30-year mortgage rates remain in the 4% range and banks actually ease refinance requirements. The pool of qualified borrowers seemed to be shrinking last year, because so many homeowners had refinanced in the last few years. However, the mortgage refinancing mania will eventually lose its luster if there aren’t enough new home buyers getting loans. With that in mind, we strongly recommend buying purchase leads in 2012 because bargain home buying and low rates are the perfect cock-tail for successful new home loan origination. For smaller shops, we suggest assigning a few loan officers to develop your purchase business this year. Yes the loan origination takes more time, but the mortgage marketing costs are less than refinance leads and the referral rate is phenomenal when closing home purchase loans.

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Comments

Good tips for the mortgage broker industry. It is tough to help consumers who have bad credit and lenders need all the information about advertising they can get. Do you know any loan companies that will fund loans for people with low credit scores?

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