Archive for Lead Planet News

Originate More Loans Buying Purchase and Refinance Leads

I noticed that we have been getting a lot of inquiries for mortgage refinance leads lately.  That is not unusual, because traditional mortgage shops who have been buying internet mortgage leads for years like refinance leads.  That is what they have been originating when rates were higher and that is what they originate today as the interest rates have fallen to record low levels.  No one will argue that low rates are a good time, but refinance guidelines have been tightened more in the last three years than ever before.  A few years ago, millions of borrowers bought their home with a stated income loan, but today lenders are not offering stated income loans so most of these loan applicants are turned down when trying to refinance their mortgage.  Clearly the pool of qualified refinance applicants has shrunk so in most cases loan companies will have to buy more refinance leads to get a qualified borrower. This means higher credit report bills and an increased investment for mortgage marketing. 

Direct mail costs have risen and the return rates have been lower as well.  Many loan companies are surviving with internet mortgage leads, but the companies that seem to be funding the most loans every month are the shops that are buying both purchase and refinance leads.  Many loan officers say they don’t like home purchase leads as much because the prospects are not always ready to buy a home.  That may be true, but the purchase market is much hotter than the refinance market right now, so mortgage companies should be more opened minded to work purchase leads in addition to their beloved refinance leads.  The fact exists that there are more qualified purchase mortgage applicants than refinance applicants.  Most qualified homeowners have already refinanced to a mortgage with a fixed rate in the 5% range.  Most of the refinance applicants do not qualify for home refinancing because they have no equity or their credit scores are too low.  The Lead Planet recommends buying mortgage leads with filters of a blended mix of both purchase and refinance.  Take a minute and call the Lead Planet at 619-600-5720 and we will show you how to maximize mortgage lead buying opportunities with no obligation.

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Online Mortgage Lead Committment

The importance of buying quality mortgage leads that convert cannot be understated.  The days of throwing money at any lead broker online and succeeding are gone.  In fact if you do waste your mortgage marketing dollars like that you will not be in business for long.  If you are a loan officer or mortgage broker there is no getting around that these are tough times for the mortgage industry.  The reality is that the home loan products available carry much tighter guidelines than we have seen in the last twenty years. That means if you are serious about being competitive, you need to buy mortgage leads from a lead generation company that can perform day in and day out.

Shopping online for the best mortgage lender to meet your borrower’s needs is indeed a challenge and that is why the Lead Planet has partnered with experienced mortgage companies that know how to close loans in this market.  If you have purchased 1000′s of leads two in ten will likely convert.  One in twenty is pretty standard these days with most lead companies. The Lead Planet has made a commitment to helping loan companies get better conversion ratios from their online mortgage leads. 

Mortgage lead buying is all about commitment and buying large quantities to get a return.  Buying 100 quality mortgage refinance leads could cost $2,500.00 (100 x 25.00 per lead). If you only get applications on 20% of the leads and close half of those loan prospects you are getting a worthy return on your investment. The key is to set your monthly budget for two to three months at a time. Stick to it and buy all the loan leads you can afford if you have a talented staff and lenders that are ready to fund your loan submissions. One of the most common mistakes companies do is to not buy enough leads or stop the online mortgage lead campaign too quickly.  We are proud of the fact that our clients tell us that our live transfer leads convert better than their other lead companies.

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Maximizing Mortgage Lead Opportunities Online

Every time the banks tighten loan guidelines, it makes buying qualified mortgage leads more critical.  Mortgage marketing continues to unravel for many top mortgage companies, because the cost of business is rising yet in most cases the revenues are decreasing. 

How does a mortgage company spend their marketing dollar more wisely with mortgage leads?  The first step is to align your company with a mortgage lead generation company that offers leads that are not sold too many times.  Another important step is to partner with a lead company that is generating mortgage leads from applicants who really want a loan.  Buying leads from consumers that want to win an iPad rather than lock an interest rate will not help your cost to funding ratio.  Consider buying real-time mortgage leads or live transfer mortgage leads.  Even though they tend to cost more, the contact rates will be much higher and usually your cost to funding ratio will be much lower. 

Another important step to maximizing your mortgage marketing dollars is lead management.  Make sure your loan officers are calling the leads in a timely manner and verify that they are handling the calls the way you would like them too.  In many cases a loan officer will get bogged down with a few loans in process and then they will pretend to call new leads.  It is not uncommon for loan officers to fake following up on new leads.  Mortgage lead buyers need to evaluate the time a loan officer received the lead and the time they actually called the lead.  How many times are your loan officers calling on the leads?  Are they also following up with these applicants by email?  Remember that with internet mortgage leads, quite often the applicants prefer to communicate by email, so if your loan officers are only calling on the leads, then they are not managing the leads right.  And then of course there are the loan officers that only email the loan applicants because they don’t want to pick up the phone.  You need loan professionals calling and emailing the mortgage lead prospects to maximize online mortgage marketing.

The Lead Planet will create a custom lead generation program for you and your loan company. Take advantage of search engine optimization and consider our mortgage websites to help bolster your image and presence online.  Call the Lead Planet at 619-600-5720 and ask about our Free Mortgage Lead Incentives for new accounts.

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Mortgage Lead Technology

The Lead Planet believes that lenders and brokers can benefit by incorporating the latest technology with their mortgage marketing efforts.  The mortgage lead generation industry saw the latest technology at the LeadsCon conference in Las Vegas.  With the mortgage qualifying efforts more challenging than ever, it is imperative that loan companies learn to buy qualified mortgage leads and then track the communication between the applicant and loan officer to maximize loan origination.

3 Ways to Maximize Internet Mortgage Leads

  • Tips from lead generation experts and how their successful clients are leveraging new technology?
  • Improve lead management with better lead tracking systems integrated with intelligence, and live transfer mortgage leads
  • Increase lead conversion rates for purchase and refinance leads

Watch this free webinar sponsored by Leads360 led by trusted lead technology companies. Now is the time to improve your lead tracking system and take advantage of new break-through technology.   Call the Lead Planet today and find out how integrating a lead management system like leads360 can improve your conversion rates for online mortgage leads.

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Mortgage Lead Buying Secrets

Believe it or not there is an art to buying internet mortgage leads.  Loan companies need to play the lead buying game some skill if they want to maximize their opportunities on the mortgage leads they invested in.  Sure it is important to hire a talented staff of loan officers with a competent sales manager that will make sure the leads get called in a timely manner.  Yes it is a good idea to integrate a lead management system like Leads 360 or Lead Mailbox.  But if you do all of that, are there any guarantees that you will get a good return on the home loan leads you bought with such good intentions.  Sadly no; in today’s mortgage market, loan originators have their hands full finding a borrower who qualifies because the lending guidelines have tightened to the point of being ridiculous. 

A recent Lead Planet survey found that less than 2 out of 10 loan applicants qualified for the home loan in which they applied for online.  A few years ago, a similar survey was taken and found that nearly 7 out of 10 applicants qualified.  Unfortunately the housing sector crashed, so millions of Americans lost their home equity and stated income loans were allowed and even encouraged. 

My advice for lead buyers is to find a lead company that doesn’t sell your leads too many times.  The Lead Planet sells their leads 1-3 times.  You want to find a mortgage lead source that has a contact rate.  With nearly a 90% companywide contact rate, the Lead Planet provides mortgage marketing that loan companies can work with.  Your loan team deserves to speak with loan applicants that eager to get a loan, rather than win a contest that offers them a free ipad.   Buying exclusive mortgage leads is nice, but can you afford not to buy non-exclusive leads that are half the price. 

Last week the Wall street Journal reported that refinance loan applications rose dramatically in April and this week Freddie Mac issued their report that home purchase loan applications had reached a 13-year low. Is this a true indication of the demand for home financing or the reality of the lending guidelines and underwriting for mortgage loans has tightened to the point that most borrowers already know they do not qualify. 

With interest rates at all-time lows and millions of borrowers needing to refinance out of their adjustable rate mortgage, you would think the lead volumes would be sky-rocketing.  The good news for loan companies out there that have not quit and can still afford to keep the lights on, is that the tide will turn.  Private money will come back into the market place and new loan programs will arise that create new opportunities for loan officers to close more loans.  Until then, get some good lending niches, FHA, VA, 203k, etc. Stay lean and mean and it wouldn’t hurt to find a lead company that you can trust. 

Our lead team can help with with lead generation, mortgage marketing and even search engine optimization. Call the Lead Planet at 619-600-5720 for a no cost lead buying consultation.

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Lead Planet Reports Big Jump in Mortgage Refinance Lead Volumes

For most of 2010, thousands of loan officers have been scrounging for hot refinance leads. Amid the mortgage turmoil, many homeowners have been reluctant to re-apply for a refinance loan after being turned down by a bank or lender.  Finally, we got some good news related to the mortgage industry.  After 6 consecutive weeks of declining refinance application volumes, RTT reported a surge in home refinancing activity.  U.S mortgage demand increased again last week, led by a bounce-back in refinance applications and interest rates hitting their lowest levels since mid-March. 

According to Bryan Dornan, the Lead Planet founder, “Mortgage marketing has been difficult in 2010 for loan companies that focus solely on refinancing, because lending guidelines have tightened to a very uncomfortable level.”  Dornan continue, “Stated income loans are gone—- home equity programs have disappeared —–  and subprime loans are on trial waiting for the Obama administration to figure out how best to politicize the mortgage reform.”  Buying qualified mortgage leads can be challenging.  The reality is that not that many borrowers qualify to refinance their home under the tightened guidelines. 

Rumors of private money entering the mortgage market soon would be welcomed and could create additional opportunities for mortgage lenders, brokers and aspiring loan officers.  The Lead Planet reported that refinance lead volumes rose nearly 20% last week and their clients have been reaping the benefits with a flood of new loan submissions.  Purchase lead volumes increased 5.75% even though home buying applications have slowed significantly nationwide. 

The Mortgage Bankers Association reported Wednesday that its refinance index jumped 14.8% from the previous week, hitting its highest level in six weeks. The surge in home refinancing applications, however, was nullified by a decline in the MBA’s home purchase index, which dropped 9.5% on a seasonally adjusted basis. Unadjusted, the index decreased 8.9% from the previous week, and 0.6% from the same week last year.  The decline in home purchase applications was likely due to the expiration of the $8,000 home-buyer tax credit on April 30th.  

For custom mortgage lead generation programs and more information on buying mortgage leads, please call the sales department at the Lead Planet 619-600-5720.

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