Short form, long form, real-time, non-incentive generated, scrubbing, distributions, filters, analytics, contact rates, lead management systems, are some of the most important monikers of the mortgage lead industry. Each term relates to a buyer's probable end result.
The mortgage lead industry is comprised of several different strata of companies, each generating, buying and or reselling data entered by people who need (or don't need) loans. From the unscrupulous company who sells data taken from the White Pages, to those firms who legitimately spend millions of dollars marketing to borrowers with real needs, the mortgage lead buyer can sink sink or swim. Conversely, mortgage lead buyers fall into several classes. Experienced, inexperienced, those with infrastructure, lead management systems, usable analytics, ample budget and talented associates are examples of the variance that may cause some lead buyers to experience success and others failure.
Could mortgage leads create a thriving mortgage business in spite of market conditions? Absolutely. Even in trying economic times some companies prosper. At heart are leaders who recognize the stark differences in the mortgage lead industry and capitalize on their company's strengths aligned with the compelling differences from lead company to lead company.
Mortgage Lead Company Difference Examples:
Lead Company One
Offers leads at lower than market prices by attracting people to its form with advertisements offering teaser rates and payments. Many unsuspecting borrowers complete the related mortgage form - whose data is delivered relatively unchecked by the lead company - and are then contacted by banks, lenders and brokers. The loan officers may have to speak with hundreds of unqualified people to find one qualified borrower. Ultimately, the loan officer may find someone willing to proceed with financing but who may demand the commission killing unavailable and artificially low teaser rate that contains no profit margin. The lead buyer's company expended all of its frustrated loan officers in chasing leads with little chance of closing and chiseled revenues per loans on the few deals that actually made it through funding. As a result, this lead buying mortgage company expended advertising/lead budget and payroll to its staff to chase low probability/low margin deals. Their turnover rate is high. That mortgage company is experiencing severe financial hardship and is at risk to be included on the mortgage implode website.
Lead Company Two
Engages in best marketing practices centered on their lead buyer's closing deals by attracting more likely borrowers with the right motivation and qualifications. With no teaser rate advertising inducements, more money is spent on their marketing to attract these fewer people. After the borrower completes the online mortgage form it is checked through an array of quality control measures including address and telephone verification, IP checking, overall legitimacy ratings, etc. These scrubbing methods can cause 50% or more of the leads to be discarded before being transmitted to the lead buyers, greatly enhancing their contact rates and greatly increasing the revenue potential per loan officer (and reducing the lead buyer's overall HR footprint). The leads are delivered in real-time to a lead management system and the loan officer is effortlessly in contact with more of the right borrowers, happy and making lofty commissions from helping those borrowers. The company is healthy and profitable.
