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...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 hear this information anywhere else! It's one of the most hidden aspects of mortgage marketing.Yes, internet leads are a great source for new business. They put you in touch with people whom you may have never been in contact with otherwise, and they enable you to sell loans beyond your local marketplace. There are only so many networking groups, realtor offices, and industry events you can handle. So, in terms of an efficient use of time, internet leads are a great way to have a pile of ready-interested consumers looking to buy now. Internet leads, are people who have eagerly searched for information, filled-out a lead form, and raised their hand, saying "I want the lowest rate I can find, show me what you've got, please call or email me!". In theory, these leads should be pretty easy to close. Yes, in theorybut not in reality. ...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,...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 "bragging rights" rates. They simply had to have a rate below 5% so they could one-up the Joneses at the next BBQ and prove how smart they were.Next were the 4-payment plan loans and option ARMs--because people wanted flexibility and needed to keep their monthly payments low but still wanted the big house. Who cares if these were possibly indexed to a foreign exchange (The LIBOR) and extremely volatile?! With a choice of four payments every month what could go wrong?Then there were the interest-only loans which became very popular--heck the rich and famous have known about these for years. They only pay interest and invest the extra equity in the stock market instead of paying the principal money to the bank. It's the ultimate leverage. But the interest-only loans came with a dark side--negative amortization. People didn't exactly know what they were getting themselves into. They wanted to play fund manager and, of course, they...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
In my last article, I covered some of the reasons why loan officers join net branches and what their motivations are. I also covered some of the personal questions one should ask themselves before they decide to make the jump and join a net branch. ...more