What is your number one job as a mortgage broker or debt settlement counselor?

Build confidence in the customer.

Sales is Creating Confident Buyers

Does that sound weird to you? It shouldn’t because it is the most critical skill a sales person must possess.

You are not there to sell them something. You are not there to spill out a bunch of numbers and options. Your only job is to give customers the information and education they need to be confident buyers.

Confidence Start with You

Creating confidence in your prospective clients has to start with you. You need to have confidence in your opening, your knowledge of the product options, and your recommendations.

That confidence needs to show up in your voice and your face-to-face meetings. You need to be professional and even in your delivery. You need to be attentive to questions. You need to be direct and authoritative in you answers.

Ask Questions to Build Confidence

Most importantly ask questions of your prospects to make sure you are communicating. This process is much like a teacher in a classroom. You need to occasionally pause from the pitch to get feedback. This feedback can come from asking if there are any questions or giving a little quiz.

The purpose is to see if they are still paying attention, they are grasping what you are telling them, and most importantly proving to themselves that they understand. This understanding will give them the confidence to make the decision to move forward or discuss it with their spouse.

In either case moving the discussion to a closing.

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I am continually amazed by the innovation of customers. Some of the most creative are those that buy aged mortgage data. These buyers are a diverse bunch. I thought it might be interesting to you to see who some of these buyers are and why they buy aged mortgage leads, versus a more specific lead type.

Mortgage Refinance

This is certainly the most obvious of the aged mortgage data buyers. These are folks that are looking for two scenarios:

• Borrowers who might qualify under new loan programs
• Borrowers who might be enticed by a changing mortgage rate environment

In addition to these very specific scenarios there are many aged mortgage leads that are simply not contacted. Really efficient mortgage loan officers and businesses are aggressively scooping up these bargains and turning them into bigger margins.

Loan Modification Leads

This is another big use of aged mortgage data. These leads are being used to identify potential candidates for loan modifications. Many times declined mortgage refinance borrowers are prime candidates for the variety of loan modification programs on the market. Unfortunately, instead of being referred to a qualified or licensed loan modification specialist they are simple turned down. Even worse many of they abandoned mortgage leads or borrowers don’t even know about loan modifications. Making it unlikely that they would apply as a loan modification web lead.

Real Estate Leads

More than one real estate agent or broker has jumped in front of mortgage brokers by grabbing and building a database of aged mortgage leads. Often real estate shoppers with start their buying process by doing some mortgage rate and qualification shopping. Often this results in mortgage brokers dropping these leads on the floor until they are closer to a home buying decision. What better lead could a real estate broker get?

Debt Leads

Like the mortgage refinance and the loan modification lead buyers, debt businesses find gold in the mountain of discarded or uncontacted aged mortgage leads. Often these mortgage refinance leads were made in hopes of doing a cash-out refinance to relieve some debt burden. For so many years homeowners have been taught to use their home equity to solve this problem. However, with the new conservative market there is little opportunity to do it that way anymore. Big opportunities for debt settlement companies in these leads.

Database Marketing

Finally and probably one of the most effective uses I have seen for aged mortgage data is to populate database marketing campaigns. Many times these leads will return value over the long-haul, especially if you consistently market to them.

Adding them into your traditional email marketing and direct mail marketing lists can give you the extra scale you need to be successful.

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“Sorry, I am already working with someone.”

The dreaded brush-off. You lost another one to the competition…or, did you? How can you turn this into opportunity? Treat them like a customer.

Don’t Lose Hope When You Lose

Treating prospects that you lose to the competitor like customers can be a very valuable sales strategy. Chances are these prospects made decisions based on factors other than service or knowledge. By putting a small amount of effort into these two areas, even though you lost the deal, you can probably squeeze out a deal or two.

Follow-up on Losses Like Customers

In a world full of self-service and do it yourself many are forgetting the profitability of service. It creates trust, reciprocity, and loyalty in a relationship-powerful allies in sales.

Service should be the first thing you offer to a prospect that turns you down.

“Yes, Ma’am I understand and I hope that Joe’s Mortgage Shack takes care of all your mortgage financing needs.” Leave it at that, but…

Go immediately to your calendar and set-up an appointment to call that customer back in 3-5 days. This is about the time a loan will enter into processing. Often mortgage brokers and lenders run into challenges with underwriting, getting stips satisfied, or hounding for docs. This friction often creates opportunity.

Call back with something like this: “Ms. Jones, this is Troy from Superduper Mortgage…We talked a couple of days ago. I just wanted to check in and make sure that Joe was taking good care of you. Do you have any questions? Is everything approved and good to go?”

Every so often that simple opening will have a frustrated customer tossing themselves into your capable hands.

Create a Loss Pipeline that Converts

In addition to that simple callback I also suggest getting them into your marketing database. Chances are they will be more than happy to get good value-based mortgage and homeowner tips/news. It will also keep you top of mind as things move forward with this mortgage, future financing, or referral opportunities.

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Nothing is more critical to your client in this volatile mortgage market than knowing what is really going on and why. This makes it really important to develop a strategy for tuning into and analyzing the mortgage market.

Actually, the mortgage market can be very difficult to watch in action because unlike the stock market, which is directly affected by buying and selling of companies’ securities the mortgage market is only indirectly effected by securities trading.

I will avoid a long dissertation on how mortgage rates are set and go straight to what is most important-monitoring the trends in the mortgage market.

1.    Start with a macro view. In a second I will give you some resources to go down in the weeds, but for now lets rely on the many experts that are already talking about what is going on in the mortgage market. Get a subscription to the Wall Street Journal and the Economist.
2.    Now dig in a little with blogs and websites that are specifically covering the mortgage market for you, the mortgage broker and other mortgage industry insiders, like: Lenderama.com, Housingwire.com, and MortgageNewsDaily.com.
3.    Chances are this will be as deep as you need to go to give most of your clients a good idea of where the market is headed as well as a good idea of what your rate lock strategy should be on a daily basis. However, an exceptional mortgage broker may want to understand the “why.” That is when I go to sources like: Calculated Risk, Naked Capitalism, and Mish’s Global Economic Trend Analysis.
4.    Finally, if you really want to watch the bond market and see the trend line in live motion I recommend TBWS RateAlert.

Keeping on top of the mortgage market is your job. How are you doing that? Are there other resources you can recommend to mortgage brokers and lenders?

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Mortgage Brokers have one of the most ideal marketing environments in history. Are you taking advantage of these unique conditions to grow you mortgage business?

I know what you’re thinking…”Troy, what are you thinking?” But, really it is true. Here is my simple case:

• The mortgage market is more volatile than any time in history
• Volatile markets create questions, concerns, and fear
• These emotions drive homeowners and homebuyers to seek information
• Consumers looking for answers are very responsive to marketing
• Marketing is cheaper than ever, some marketing is even free

So, what should you be doing to get in on this mortgage marketing high?

• Use the news – they are marketing for you. Send clips to your database
• Alert your clients when rates change – start a daily or weekly email
• Give them a place to read more – start a blog or website with mortgage info
• Market in multiple places – try direct mail again
• Don’t have a lead database of prospects – buy inexpensive aged leads

Most importantly take action today! This mortgage marketing ideal world will only last so long.

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Even though the current mortgage and debt markets are like riding a roller coaster there is no reason for your business to suffer. Whether you are a mortgage broker, or a loan modification business, aged mortgage leads are an incredibly productive way of reach new customers.

Here are just a few of the advantages of using aged mortgage leads in this market:

1.    Homebuyers are struggling to find financing. New homebuyers want to take advantage of historically low housing prices, and this is an ideal time to buy a new home, but most banks are simply unwilling to lend at this time. This has led to a supply and demand imbalance and buyers are desperate to find someone who to help them-naturally making them interested in a good mortgage broker. Aged mortgage leads that focus on purchase mortgage leads can be a goldmine for brokers right now.

2.    Homeowners are in trouble. The mortgage meltdown, followed by the current credit crunch is hitting everyone. But, it’s hitting homeowners even harder. Any borrower that financed a home in the last 3-5 years needs mortgage help more than ever, right now. Loan modification companies can use this market turn to their advantage–offering homeowners the hand up that they so desperately need-guiding them to the multitude of loan modification programs available.

3.    Quality, targeted leads are always helpful. Regardless of age, there is no substitute for targeted Internet leads, particularly in the mortgage market. Even if the lead (homeowner) managed to find a mortgage a few years ago, the chances in the market are such that they are now likely to be struggling with that loan and need new assistance. Once again, there are big opportunities for loan modification companies.

The mortgage market will always go through credit cycles and business transitions, and this current cycle to will pass. As bleak as it may appear, there is always hope for a positive turn and it does appear that many areas of the country are withstanding the crisis better than others. Aged mortgage and debt leads always have a place in the financial services market, but they are particularly useful right now.

If you are not taking advantage of aged mortgage leads, you could be missing out on a great opportunity to grow your business when others are struggling. It’s always hard work to find new clients, but right now the bad economy is working in your favor. The economy is handing you millions of opportunities to those savvy enough to find and offer much needed assistance to consumers.

Already have aged leads? Take the time to review them–start going through them and revisiting potential clients to see if their needs have changed since you last spoke. For companies that are looking at purchasing new leads, this is an ideal time to consider the economics and opportunities of aged leads.
With the right approach, you can make these leads work to your benefit and your company can fight this housing market downturn effectively.

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Lets face it, even after the recession shake out there are a lot of people selling mortgages and debt solutions. What makes you different? That is likely to be the first thing out of your prospective client’s mouth. Do you have an answer? If you are ready with the answer you are likely to get the sale.

Clients are Looking for Something Unique

Most consumers come into the mortgage or debt market very infrequently. This immediately sets them up for a defensive posture. They generally know that they are ignorant of the process and this makes them fearful. Then they talk to their first mortgage broker or debt counselor–now they are really overwhelmed.

This is where your opportunity is to make a difference. Your sales pitch needs to go straight to what is different. I am not talking about telling them how you care, that you are trustworthy, or that you are going to get them the best deal. They will hear all of those.

What really makes you unique?

Clients Want Safety and Security

Customers looking for financial advice, mortgage financing, or a debt work-out want safety and security. They are going to react to the person that gives them that comfort. Make your uniques selling proposition spin around that concept. Here are some ideas:

Point them to a mortgage or debt blog that is filled with information on mortgages and debt
Email them your latest mortgage market update
Show them how you monitor each of your clients’ to make sure they are in the right mortgage
Get them to sign-up for your Twitter (market) updates

Showing them immediate information and helping them research all the questions they are too embarrassed to ask will make you an immediate front-runner. This information and the freedom with which you give it to them will pay big dividends in bringing them to the closing table.

Don’t Make them Search for It

Most importantly, don’t make them search for your unique value proposition. Have it immediately available in your email or telephone scripting process. Have sending them these clear and valuable items a part of your sales process. You will immediately make it easier to breakdown the barriers to a sale.

The multitude of government programs and stimulus packages has sparked another refinance boom. How are you managing this opportunity? Are you getting the job done? Are you positioning your client database for the future?

The last mortgage implosion should teach us a little about smartly managing opportunity.

Managing Opportunity

Many mortgage brokers are breathing a little sigh of relief as government stimulus has kicked up another refi boom. The question is are you thinking about how you are you are managing this for long-term opportunity?

Stop simply slinging loans and start building a business–this is the perfect time. Get a strategy to turn this into a seed strategy for long-term success.

Customers First

It all starts with the customer. Put them at the center of your refinance boom strategy. WOrk hard to give them a great experience. This will not only increase your closings and satisfaction, it will fill your sales queue with referrals.

Most homeowners are experiencing frustrating long waits for underwriting, processing, and closings. Minimize this frustrateion with frequent (pro-active) updates to clients in process.

Design long-term marketing campaigns that gives clients recurring value and make it easy for them to give you referrals.

Thinking About the Future

Step-back and give yourself time to think about the future.

What are you going to do to help these clients? Is there a way to more efficiently manage their contact information, follow-up, and special circumstances? How can I build a long-term value proposition?

I guarantee many will miss this opportunity–don’t let it be you.

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One of the biggest fallacies in the mortgage CRM business is that you are creating a customer database for repeat business. The fact is that 70% of mortgage customers couldn’t tell you the name of their mortgage broker on their last transaction days later.

That simply means that every customer starts from scratch every 5-7 years when they go to get their next mortgage. What you are playing for is a referral from that past client, based on your lead nurturing strategy.

Repeat Customers

The statistics are what they are: homeowners purchase or refinance a home once every 5-7 years. The average mortgage broker is in business about three years. That means that by the time the average customer goes to get a new mortgage the mortgage broker is out of business. So, most homeowners simply skip that step and go on the hunt for someone to help them online or by asking friends.

Loyal Customers

In a good mortgage CRM you should be creating loyal customers as much or more after the closing than before the transaction. You want them to give you permission to engage them from time to time about mortgage news and information. This permission will not only motivate them to pay attention to their own needs, but they will increasingly be tuned into conversations that are opportunities for you to get a referral.

Referral Customers

Your CRM should be segmented and tracking your top referral customers. These are the people that you should be sending thank-yous and incentive to. Don’t ask them for their mortgage refinance business–ask them to tell-a-friend.

Referral Partners

The same thing applies to local businesses and professional pillar business. You should be creating “channel” partners of your community leaders, doctors, attorneys, and accountants.

Stop thinking of your CRM as a sales system and start managing it like a referral system.

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Mortgage fraud is back on the rampage and most of it is popping up in the loan modification market. It is unfortunate, but many people take advantage of new opportunities to feed on the less knowledgable.

As I was surveying the headlines and trying to learn more about these fraud scams I came across–MFI-Mod Squad. This is a privately held investigation firm that specializes in loan modification fraud (sad there is enough business to have a specialty).

The site has some great consumer advice on loan modification questions to ask companies helping to modify your loan.

 However, some of the most interesting reading was the “true crime” type detail on what a real loan modification scam looks like, giving you specific insight on what to avoid.

In the world of Bernie Madoffs and Stanford Financial, it is not only important as a consumer to know what these scams look like, but also as a loan officer, debt counselor, or mortgage broker to make sure you don’t get innocently tangled up in working for one of these fraudsters.

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