Archive for Marketing Tips for Mortgage Companies

Higher Contact Rates with Online Mortgage Leads Generated from a Direct Source

By · February 21, 2012 · Filed in Lead Generation Technology, Marketing Tips for Mortgage Companies · Comments Off

Have you been searching mortgage leads online that have not been sold too many times? Many loan professionals get frustrated with internet mortgage leads because they often get an angry response from an applicant that has been contacted too many times.  Many lead companies get greedy and sell their leads ten to twenty times.  So many lenders are advertising a “no cost mortgage”, how do you separate yourself from other loan companies and earn the prospect’s business? We suggest getting a hold of the loan applicant first and making a good impression.

At the lead Planet we never sell our home loan or refinance leads more than three times.  Our policy is to sell our online mortgage leads one to three times. Of course if we are selling a client an exclusive mortgage lead, then it is only sold once.

We generate leads ourselves with our proprietary websites and they perform significantly better leads that were purchased from a broker. When you buy leads from a broker you never really know how many times the leads have been sold. We offer both semi and exclusive mortgage lead programs that have been helping loan shops fund mortgages since 1999. Our unique system connects potential borrowers who are searching online for loan programs and lending professionals.

Why is the contact rate so important?  The bottom line is that high contact rates will increase your cost to funding ratio and raise the morale of your loan officers as well. The contact rate on our leads averages above 80%.  Our mortgage lead generation team can create a marketing strategy that works with your budget and production goals.

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Tips for Buying Internet Mortgage Leads

By · October 6, 2010 · Filed in Lead Generation News, Marketing Tips for Mortgage Companies · Comments Off

It is no secret that the mortgage industry has been battered in recent years, so buying mortgage leads has become more important than ever for loan companies across the nation. Banks and lenders have tightened their loan guidelines significantly recently, so you need to consider that choosing your filters for internet mortgage leads

Great Tips for Online Mortgage Leads

1.  Make sure that your LTV filters are in line with the loan programs you offer

2.  Consider buying “Fair credit” leads if they are discounted. (Credit is subjective and some fair credit leads will turn out to be good credit)

3.  Buy mortgage leads in as many states as you are licensed in

4.  Negotiate a Volume Discount

5.  Manage the leads you distribute to your team and hold each person accountable

  The Lead Planet offers a variety of online mortgage leads. Choose from the following:

  • FHA Leads
  • Refinance Leads
  • Home Loan Leads
  • Streamline Leads
  • Loan Modification Leads
  • VA Leads
  • Home Equity Leads
  • Debt Leads
  • Live Transfer Leads
  •  

    Savvy loan shops like online mortgage leads because they are cost-effective and perform well when buying leads from a direct lead provider, like the Lead Planet.   Companies get in trouble when they start dabbling in buying cheap mortgage leads from brokers who resell old leads.  In some cases, lead brokers have sold each mortgage lead 15 times.  You can imagine how irrated these consumers would be getting calls from 15 loan officers.  Needless to say, buying mortgage marketing from company that generates their own leads is worth the investment.

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    Social Media Marketing for Mortgage Companies

    Good mortgage companies are always looking for new weapons to add to their mortgage marketing arsenals.  Social media marketing has increased in popularity amongst mortgage lenders and brokers.  If done properly it can help them generate local mortgage leads and referrals.  Social media marketing is also a great way to maximize online reputation management.  The buzz for social media marketing has been increasing over the past few years. Unfortunately, most lenders, brokers and loan officers have been slow to get up to speed with online marketing.  Brand awareness is essential in today’s competitive mortgage market, so take advantage of the marketing tools that Twitter, Facebook and YouTube provide.

    Maximize Your Image Online with Social Media Marketing

    • Twitter – great social media site for posting articles and news.  (Think new hires, new loan programs etc.)
    • Facebook – very popular social marketing site that can help with reputation management and mortgage lead generation
    • Stumble Upon – This social bookmarking website is a great way to promote your articles and webpages within the blogging community

    As an added value service, the Lead Planet offers online marketing services like social media marketing for mortgage companies.  Our internet marketing team offers mortgage SEO, custom websites and social media marketing to help bolster the image and reputation of your mortgage company image online.  Our clients enjoy improved visibility online and many report generating solid mortgage leads from Facebook on a regular basis.

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    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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    Comparing Internet Mortgage Leads to Trigger Credit Leads

    I get some interesting questions from mortgage marketing executives from time to time.  Today a representative from one of the larger banks asked me to compare internet mortgage leads to trigger leads.  This person was told that trigger leads have a better conversion ratio and so they wanted to know why they wouldn’t want to shift their mortgage marketing dollars.  I decided it would be a good idea to discuss the benefits and risks of both internet loan leads and trigger leads.

    Online Mortgage Leads Versus Trigger Leads

    I decided it would be a good idea to discuss the benefits and risks of both internet loan leads and trigger leads.  First of all for those that do not know, a trigger lead is a lead that is generated when a loan applicant has their credit pulled.  The credit report company sells the lead to a mortgage company that meets those credit filters.  The big problem for the mortgage company buying the trigger lead is that the loan applicant does not know who they are and usually they are not happy with some random company calling them without their consent.  Any way you cut it, loan applicants are blind-sided by the mortgage company who bought the trigger lead.  It is pretty shocking that trigger leads are legal.  I don’t see how it is any different than buying a spam email lead.  Both trigger and spam leads are generated in some part without the loan applicant’s authorization. 

    On the other hand, internet mortgage leads are initiated by the loan applicant. Think about it — the borrower goes online and searches for mortgage companies to help them with a refinance or purchase mortgage.  Once the loan applicant submits their request to be connected to multiple lenders the internet mortgage lead is created.  The loan applicant is now expecting a phone call and email from the loan company who purchased the mortgage lead online. 

    Trigger leads can be effective, but they require a very clever loan officer to get good results.  Most loan officers are not able to overcome the typical objections that come with the trigger leads.  It is much more likely to get better conversions with internet mortgage leads because the borrower is expecting your call.  Lead Planet is a direct mortgage lead company offers quality internet and live transfer mortgage leads.  We do not offer trigger leads.

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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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    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 Offers Mortgage Marketing with Organic SEO and PPC Management Solutions

    Can you compete in this mortgage marketing arena or should you outsource the internet marketing to a lead generation expert?  Outsourcing the pay-per-click management makes sense financially for mortgage companies that do not have the ability to bring an expert in-house.  Nationwide Marketing offers pay per click advertising for mortgage lenders, banks and brokers. 

    The Lead Planet has over a decade of experience with online mortgage lead generation.  We provide the following mortgage marketing services:

    • PPC Management – We research, create and manage Google Ads to generate mortgage leads cost effectively.
    • Organic Search Engine Marketing –Custom SEO campaigns to increase organic mortgage leads.
    • Local Search Optimization – This unique lead generation campaign is created to capture mortgage leads by region. (ie. “Los Angeles home loans”, “California mortgage lender”)
    • Mortgage Web Development -  Our web-design team will create a website with content, landing pages and online loan application.  Then our SEO team will optimize the site to maximize search engine rankings.

    The Lead Planet has been doing mortgage lead generation successfully for over a decade and they have a proven track record generating quality mortgage leads organically.  For a free search engine marketing consultation, Call 888-271-9581 ext- 103

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    Mortgage Marketing Tips

    Partnering with a direct source for lead generation that can provide you with quality mortgage leads daily is imperative to compete in today’s challenging mortgage industry. As a mortgage lead generation company with headquarters in San Diego, we are in the mortgage marketing trenches of this California housing crisis.  In addition to selling exclusive mortgage leads in all 50 states, the Lead Planet provides custom web-design and SEO marketing services to promote your website online.

    California mortgage lenders and brokers have been on the up and up over the last year as down-sizing and streamlining have been a few keys to mortgage companies staying in business.  Record low California mortgage rates have helped revive the mortgage industry a bit, but mortgage guidelines have tightened to a point of pain.

    A recent mortgage marketing study indicated that less than 2 out of 10 loan applicants is getting approved for a home mortgage today.  Subprime and stated income loan programs have vanished.   That means that good credit borrowers who have a mortgage that is greater than their home value will likely have no refinance options. Borrowers who have late payments and bad credit scores should focus on a loan modification, because refinancing is out of the question.  It also means that 90% of self-employed borrowers are scrambling to qualify to meet today’s underwriting requirements.

    The Lead Planet understands the challenges of mortgage marketing and we know it is difficult to get good mortgage leads from borrowers who are not only interested but who also have the qualifications to get approved with the current lending standards.  The Lead Planet recommends the following initiatives to maximize mortgage marketing strategies in today’s economic climate.

    1. Partner with a mortgage lead company that generates their own leads.  Avoid buying leads from a lead broker, because you will never know how many times they have been sold and when you actually get an applicant on the phone they will likely been angry because they have bombarded by a 20 mortgage brokers hounding them for their loan business
    2. Try and extend your licensing to multiple states.  Being licensed only in your home state will limit your ability to buy a quantity of good leads.  Mortgage companies that are licensed in 10 or more states have a much greater chance of succeeding because they have a bigger pool of leads to call on.
    3. Expand your loan origination niches.  Even though you love refinances, you need to start selling purchase loans now too because we are in a purchase market.  Refinancing has tight guidelines and 40% of the country has their mortgage underwater.
    4. Add government mortgages to your bag of tricks.  FHA and VA loan programs will provide your loan team more opportunities to fund more loans.

    To get a free mortgage marketing consultation, call 888-271-9581.

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    Qualifying Mortgage Leads

    Mortgage lead generation is a challenging trade because so many interested prospects don’t qualify for home financing.  The recent credit crunch and subprime mortgage meltdown devastated the mortgage industry.  Thousands of lenders, banks and brokers went out of business.  The few lending companies left tightened their guidelines so significantly that caused very few applicants to qualify for mortgage financing.  This lending shift created many obstacles for mortgage lead generation because so many people online were unable to get approved for refinancing or home buying.  Internet mortgage lead quality will vary significantly between lead companies.

    When buying mortgage leads, there are a few important things to consider.  First, you need to know how many other people are calling your prospect.  Even if you are buying exclusive mortgage leads, there is a good chance that your lead may be shopping around online with other mortgage companies.  We recommend asking the prospect about the other offers they are receiving from other lenders.  Is your competition sending the prospect disclosures or are they just quoting them mortgage rates arbitrarily without even considering their credit scores or calculating their debt to income ratio.  Anyone can quote low rates, so it is important to make sure that your prospect is comparing apples to apples.  After you run the borrower’s credit, check the inquiry section of the credit report and you will see who else has run their credit recently.

    Lead Planet has an experienced staff that can help you launch a successful mortgage lead campaign.  Call 619-600-5720 for a Free Mortgage Lead Analysis.

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