One question I get asked a lot is "How do I approach Internet mortgage leads?" As you may already know, I generate 90% of my business directly from these types of leads and have found them a great resource for several reasons:* When you call people, they are ready to buy.* People will take your calls and even return your messages, because they actually inputted the lead and it is not a cold call.* You can begin pricing the loan out before you...more
In the past few issues, we've been discussing net branches, and the advantages and disadvantages of this type of loan origination. I covered the reasons why loan officers decide to go out on their own, and what makes one net branch better than another. There are a myriad of choices and literally thousands to choose from! Ultimately, the most important factor in any decision is deciding which company will best serve YOUR needs so you can...more
One of my goals is to offer you valuable information that will immediately impact the bottom-line of your mortgage business. What I find lacking in many of the "professional" trade publications out there, is real-life ACTIONABLE information you can take-away today and begin generating actual business from tomorrow.Many of you have emailed me asking about new sources of business. And, besides beating down realtors door's (which every other monkey loan officer is doing), there are huge segments of the market you may have overlooked. With interest rates rising fast, personal bankruptcies and foreclosures are increasing steadily. And this is a market segment you CAN NOT IGNORE.Properties in foreclosure can be a boondoggle for you whether you are an investor looking to pick-up a bargain property, or a loan officer ready to swoop-in and save someone's property from the Repo Man.For mortgage people, foreclosures can generate business 3 ways:1. You can try and fund the property, pay off the note and save it from the bank. (Be aware that not all lenders, especially A-paper will do a property in foreclosure).2. You can secure the new loan from the new buyer of the property and provide...more
One question I get over and over again from loan officers is "Are internet leads a good source for new business?" My answer always is "Well, yes and no. Proceed with caution and please be careful." What I about to share with you today, is the REAL truth about internet leads, and something no one else in the industry is talking about. You won't...more
Times are tough, there is no doubt about that. Interest rates are inching up and much of the hub-bub of the refinance boom is over. It's the difficult loans that remain, amongst them mostly purchases. It's time to face facts. The A-paper good credit refinance loans are over. There is little chance that you'll be able to convince anyone to...more
I get a lot of emails from loan officers who are currently working for a mortgage company, but are looking to advance their career and go out on their own. When they see the kind of money that can be made in this business, it's no wonder they aren't satisfied with their 50% commission spread (or even less!). When I first started in the industry, my commission spread was 20% of the yield spread premium or YSP. And, if that wasn't bad enough, we worked on teams of three peopletwo loan officers and a processor. This meant that any commissions I and my team earned, had to be split three-ways amongst us all. I'm not kidding! My commission after all was said and done was a measly 6.5-7.0% of the YSP. So, on a $3,000 loan, I would make about $200 at most. You don't want to see what it looked like after they took taxes-out. Absolutely pitiful. Being ignorant (of the mortgage industry), didn't make me stupid.That was many years ago. You can see why I was eager to get out of there ASAP. Of course, not having any mortgage experience at all, at the time, I didn't know any better. I had no idea what the "reasonable" commission structure was. I figured this was how the industry...more
First there was the refinance boom--historic super low rates where every loan was a vanilla slam dunk. Quick and easy cash and the loans sailed through unscathed.Then came the regular ARMs--because rates were rising and people still wanted those low...more
Words are fun. But how you use them can be extremely powerful. They can immediately change your image from a rookie loan officer into a top producer instantly. Here's how; the words you use when dealing with a mortgage prospect affect the...more
Owners of mortgage companies, please forgive me. I'm about to let your employees in on a little secretthey have to option to leave you at any moment. And, many of them will. New career opportunities are abundant in the mortgage industry. And...more
One of the most profitable low-cost investments you can make in your business is to have a mortgage website that not only creates your company's online presence, but also up-sells the customer on your products and services. But finding a website...more
With the present downturn in the market and home prices dropping faster than a lead balloon, I thought it best to share with you what I've learned regarding property appraisals.Here is the cold, hard truth on valuations and what appraisers will NEVER...more
The news isn't good. Over 30 subprime lenders closed their doors this year so far, with many more to come in the next few months. And, one of the biggest subprime lenders, New Century is ready to bite the dust. With all this and more, I would...more