Archive for the ‘Uncategorized’ Category

Current Marketing Options and Expectations!!!

Tuesday, August 23rd, 2011

When doing any type of marketing the first thing you have to understand is the consumers point of view. You must understand your audience to have success. In our industry our audience sees for sale signs up everywhere, they hear of for-closed properties, etc… The point is that with all the consumers hearing negative publicity on TV, radio, on-line, word of mouth etc… it builds fear into any financial move on their home. It builds this ‘exterior’ you have to break through when trying to reach these people. WITH THAT SAID, you have to now look at the different forms of direct marketing….

Direct Mail- whether your using post cards or envelopes, color or no color, or the type of advertisement that’s on it its still just that..”advertisement.” Any form of advertisement will get lower response in the target market when consumer confidence is down in that particular market. For us its the fear of entering any change in their finances when its “scary” Tough to get to someone like this when they get so many others and its easy to through them all away. There is not one mail provider (that can say that responses are not down in the last 8 months and are not getting better. That is exactly what has happened. NOW MAIL CAN WORK IN A GOOD MARKET but ours unfortunately isn’t good right now and mail is expensive! very risky with little control.

Voice Broadcasting- again a simple form of advertisement which requires little maintenance but since it is an advertisement in this market is going to get low response. I know in a lot of states its illegal as well so definitely consult a lawyer if you ever do decide to try it in your state. I just know that its easy for people to hang up on a recorded message and then even easier to hang up after the button is pressed. Cheap form of marketing but low returns as well. A lot of this depends on the type of list and the script and recording. Almost way to many factors involved for the max return you COULD GET. I tell my clients to shy away from it unless they already know what their doing with VB. If your new to it its not the right time to learn.

TV- this one varies nationwide. Other forms of marketing do as well but TV just depends on social activity of that market. For example if its big city your targeting TV wont work as well because people are more active socially and professionally that they watch about 35% less tv per person than smaller rural cities where most things shut down much earlier. Not to mention that it can be very expensive. If it was me in a city like Kingman AZ with 50k people i would do some local adds and if the add is catchy it will work because a decent number of that community will see it. How ever if I’m at home an hour away in Las Vegas marketing there then TV is not going to work because most people don’t watch TV here more than 1 -2 hrs per day.

Email Marketing-I flat out think this can work if you get a good list of Internet leads from a trusted supplier. Problem is that i don’t know of one unfortunately. They all will seem good maybe the first campaign or two but then they start weeding you out for new clients that will pay more. But if you can find a guy you can trust then this can work for you just make sure the emails are all text to make sure that at least some of them get through

Faxing businesses- don do this!! You might hear your industry peers making money doing it but trust me, you don’t want o get caught doing it. risk is definitely not worth the reward.

Social Networking-very big way to gain business. obviously we are all here but i mean social networking within your community. You would be surprised how many loan officers don’t even have business cards. get your butts out their and meet people. go to church, go to city league softball games, go to HOA meetings, go to neighborhood watch meetings. Oh and here is one that has gotten me more loans than anything lately….mlm social networking. don’t get me wrong i don’t do the mlm to make long term money with the mlm. I do it to meet other people who have visions of making BIG money. Those types own home, think about finances, and understand savings and benefit if you can show it to them. Its easy to get through that ‘exterior’ if your already discussing way to make money. I signed up for helloworld (which i do not do anymore) which was a videoemail service mlm. the third meetings went to had about 50 people in it. I did a loan for 8 of the 50 their that night with in the next 45 days. I didn’t care about he mm at all, the networking was the key for me.

Internet Leads-dead market. the problem lies in the fact that the consumer is the shopper. They enter their info into numerous web sites to get quotes not knowing that one site may be and probably is selling their information over and over again. so even IF you can find an honest sales rep somewhere the lead it self may be being sold by other companies and resellers which saturates your quality leads actual quality.

Live Transfers- Hot Transfers- this is the biggest con in mortgage marketing if you didn’t already know that. First of all its far to expensive to do live transfers from the united states to the united states. Did you know that the labor is so much cheaper anywhere out of the US that it make no business sense to do it form the states. The cost is almost double here per transfer so no smart business man would even do it from the states and secondly the quality of the transfer after it got a recorded message, then spoke to some person they could barely understand, and then get transferred again to answer the questions all over again. The only person that will go through that will be a desperate loan prospect that is desperate because they cant get financed. Pretty expensive turn downs most of the time in my opinion. you can generate your own live transfers and skip that process of the over seas call center however it is illegal in some states so please advise your lawyer. Also if you do ever try the live transfers make sure the company’s call center is in the US.  Its a BIG difference.

Telemarketer Generated Leads- usually from a predictive dialer with live agent pitching a script or a manually dialing agent. In my opinion it the most effective and “guaranteed” form of generating business every day. Its more of a personal way of doing it. Now i know a lot of you are probably thinking “telemarketing sucks” and your right it does suck, BUT IT WORK. From where I’m from what works makes money and money is why we work, so even if it does suck i still have most of my client generating their own leads doing this method for 2-3 hrs per night. It cheap, mostly costs you your time. Now if Telemarketing is not your thing personally hire a “telemarketer” to do it for you. There are tele marketers in every city that are in the same week to week check and would be eager to try a new industry with more possible potential. You know that if you make x amount of dials in the same hrs every night you will get at least x amount of deals per month. Pretty hard to stop doing once you realize you are getting 3-4 apps per night which is very obtainable for an average cold caller. Of course the right scripts and list helps as well just like in direct mail but here its harder for them to hang up on a live person then to throw away a piece of mail.

In the end no matter what you do try to do as much of it in house and try to be very specific about who you are targeting. The shotgun approach is definitely not working. You have to target your market, reach them the best way you can to get through the ‘exterior’ and then do it routinely. if you do these basics you should at least do 2-3 more loans.

I’m sure a lot of you will agree with me on some of the stuff i mentioned here. I do apologize for rambling but its i love this stuff, plus its late and I’m tired….lol

Telemarketing for Mortgage Business!

Tuesday, August 23rd, 2011

The first thing we must all do when looking to tele-market for more business is compliance. You must stay compliant with the national and state DNC (do not call) laws. To do this you must get a SAN (subscription account number) from the do not call registry. This SAN registers you so you can call into certain area codes. They give you 5 area codes for free for one year. If you want to call into more area codes then you can buy them. The registry sells them per area code and last time I checked they ran $65 each. Stick to the 5 free that you can start with and when you make money. Then buy some other area codes if you need to venture outside your call zone.

List- Now once you have your San number you want to start looking for a list. The main thing to think about is no matter what list vendor or Title Company you use, no matter what database they pull from, always make sure you ask them if they are scrubbing for DNC. You would be suprised what some people are doing out there. Oh wait this is a mortgage forum what am I saying, nothing can suprise you guys. Just make sure your lists are scrubbed for DNC by your SAN #. There are many types of databases that you can pull from which is another post for another day soon….

Phone line- you want to make sure that your caller ID states the name of your company and has a call back number that is reachable with an opt out message. There are some fine lines that people cross all the time but I would not suggest doing it. It’s easy to set up with what ever provider you use. They will all let you put what ever you want to show on their caller id, etc. No matter if you go VOIP or not that is a discussion for another day.

Scripts-think of a niche you want to call on and develop yourself a good script. You can find them all over the place on line. In a lot of places for free. Find some of those and get some ideas for your own. Think about if what market you want to target, sub-prime, arms, reverse, etc… Then write your script to target that market. This also becomes important when compiling your list. The main thing I always tell everyone is to keep the initial part of the script short and grab their attention. There are many ways to do this. Ill help with this later on in this thread as well.

Dialers-when starting out don’t worry about dialing systems. Get a real analog phone line or a VOIP one if you have to. Then start pounding away using your pre written script. Once you have your pitch down and you feel comfortable then we can start worrying about dialers. For those of you that are experienced in this and are ready for or have used dialers, I will talk about that soon so stay tuned. There are so many systems out there that you want to have all the knowledge about each type. I’ll share this with you in the next post or two.

Review, get set up for SAN, make sure phone line is right, get a list provider, and hang on for the ride. For those of you who are already dialing definatly stay tuned, I can teach you guys a few really great tricks as well to increase your production. Trust me I have 24 Tele marketers myself.   I’ll be teaching you all that I have learned over the years in the next few posts.

Telemarketing Mortgage Lists!

Tuesday, August 23rd, 2011

How to choose the right call list?

First of all after you’re compliant with a SAN ( you need to figure out what your target marketing will be.  Constructing a proper call list is very important to your success.  It is an absolute must to figure out the target audience and then mold your list around that.  For example… if you target reverse mortgages you want to filter by homeowners that are over the age of 62 and have 60% or lower LTV, scrubbed against DNC of course.  Another one might be to target renters that make a good income to try and convert them to buyers.  Not only is it a great time to buy in most markets with the values so low, but you can also network with realtors this way.

Now you can get these lists from various different vendors as well as some online sites.  There are numerous databases to pull from as well.  You have the Consumer database which is the most common.  Most every data supplier uses this as their main database because you can pull so many different lists out of it for many different industries.  For mortgage this one isn’t the best though, reason being that every mortgage filter is modeled.  It is derived off of averages in that geography.  The pros of this database are that you can get it a lot cheaper than some of the other mortgage databases.  The cons are that it only runs 65-70% accurate after filtering.  This data usually ranging from 6-12 cents per record depending on the vendor and the amount of filters you use.  This is the database you should use for a small call center to a large one.  Or if you doing a mass mailing to blanket an area.  I use a lot of this database in my call center.   The Filterable columns normally include…

- Loan Type (Variable & Fixed)
- Credit Score Range
- Credit Card User / Debt
- Loan Amount
- Home Value
- Loan Origination
- Length of Residence
- Lender Type

The second data bank that is most common is the Prescreened data directly from the credit bureau.  This requires an approval with each buyer as well as third party agreement not to resell the data or misuse it.  The bureau’s data is filterable by credit selects obviously and runs very very accurate.  About 90% is the average accuracy.  This stuff runs between 28-38 cents per record depending on the vendor and filtering.  If you go directly to the bureau and skip the vendors you can get the data cheaper per name but they make you commit to $10,000 per month.  This database is best used by a single dialing LO of a small shop with a bigger marketing budget.  The filters that are mortgage related to this data are…

-Revolving Credit Balance
-Credit Score
-Monthly Payment
-Mortgage Origination
-Mortgage Balance
-Length of Residency
-Phone Number
-Installment Loan Balance

The third type of list is a specialty list.  This is where you go and find a niche database.  One example of this would be arm recast, or an FHA database.  These are very niche and expensive but if you manually dialing sometime the investment are worth it.  There are compiling agencies that gather this targeted stuff and sell it as a premium.  The compilers include title agencies, certain lenders, etc..

The main thing to think about when paying for a list is to deal with a sales rep that knows their stuff.  Not just some order taker that knows nothing of your industry.  Make sure that they are scrubbing for DNC and also make sure you do your due diligence on picking a legit vendor.  There are a ton of resellers out there and you need to be careful!  Do your research on the company and its track record before diving in with your check books!

Commercial Closings: HOW TO “CLOSE”.

Tuesday, August 23rd, 2011

I often hear a broker complain that they have had a deal on their desk for months, and need to close them. Many reasons this happens is the Broker is not educated on commercial in where to go, how to structure, and even what info to ask for from the borrower. These Brokers work in bits and pieces and waste their time, and the clients time if this deal is not even a closeable deal. If you can look at this deal and get the borrower back answers fast it reduces the pressure on you as the broker. If the deal is not doable, you have saved yourself time. You even created value in your services if you educate the borrower on why the deal will not work, and then offer structure changes that will make the deal close.

Another key that I will touch on in another message is speed. Not just for the above reasons but because you are being shopped.  If this deal is a good deal you want to bang out a term sheet as fast as possible to keep this deal in your hands. If you are asked about rate without docs a Broker or Lender will not be able to give a real rate. Usually just a range and say “it depends”. Get loan summary filled out and ask questions so that you look like the consultant and create value.

There are many docs needed to review in a deal. A borrower and seller are always slow at getting what is needed. The key to getting these docs is confidence and firmness. You need to start the urgency with the borrower to get docs to you in a reasonable amount of time. More than likely there is a contract already in place which means that you are in a time crunch from Day 1. These borrowers have contracts that they will lose their hefty deposit on a deal if the financing is not in place. Without the needed docs to review the files strengths and weaknesses you can’t help yourself or the borrower. Explain the importance and demand the docs fast. You know how borrowers are at getting items needed, at being lazy, and slow. As you create value in yourself they will trust you, and know you are asking for this because it is needed. They should want you to evaluate their deal as a consultant on their side. Reviewing key evidence that points towards the Return on investment opportunity or whatever the borrowers goal may be.

You need to acquire these docs and crunch numbers to see if it’s a doable deal. The Key is to be firm and confident that “This is what I NEED.” Set a date they need to have these docs to you. If they need to call CPA ask if you can call the CPA. If they complain about forms, ask “Well you want 7 Million dollars don’t you?” You must be quick, because there is a hiccup somewhere and/or they do not like their rate and terms and you have to negotiate. Get the needed docs together, send in a complete package for this deal type to the bank. Get the letter of interest from bank put together a term sheet from letter of interest ( LOI ) and have your client sign it.

Its best to use a PQ form based on each deal type to help explain the deal to you and your UW. When rate comes in to play DON’T sell rate.  Sell payments, solutions, features of the loan and amortizations. Explain the payment to the borrower. A 30yr Am will have a lower the payment than what they may of been quoted by someone else. Go over Return on investment this is the best way to show your deal is better. Look at the deal as a whole. Your deal vs the competition and dissect each part from out of pocket due diligence, down payment, monthly payment, PPP, fixed term, and ROI with monthly and yearly. If you have done the best possible and are educated on where to go and structure you should already have the upper hand. Give the borrower 1 weeks time to accept the term sheet. If they do not come back in a week they are going to go to slow and shop more and more, and they are not interested. Move on. Note 9 out of 10 Commercial deals will not work, with you or anyone.

Step 1 in getting deals is marketing. Begin to let past clients, current borrowers in pipeline, and friends know you are doing Commercial loans. Let all your marketing materials and answering machine messages show you are doing commercial. Your secretary can mention not to forget to run any Commercial scenario’s by you.

Step 2 is PQ and ScreenFigure DSCR and look for any weaknesses in the deal.Tweak these issues or structure the deal to take to a Lender that allows these type of problems.*Think in time frames. Create urgency, with Lender and borrower. This will help get docs needed fast and info needed from Lender fast because they were already under contract. Remember you must think in speed, and urgency.You must also go fast because the borrower will have less time to shop, and a *contract is in place if a it’s Purchase. Have a NCND form signed to protect you from the borrower going around you.

Step 3 get a Term sheet kicked out to the client:Lock in your borrower with an agreement for financial services or term sheet. A Term sheet is better. A Term sheet should have 7 day expiration. This agreement says we are done shopping and you have a 90 days exclusivity. When you issue the term sheet them through the terms. Put the payment on the loan and walk them through the strengths and benefits. Call every 2 days till day before term sheet is expired being signed.

Broker Fee Agreement?

Tuesday, August 23rd, 2011

Q: At what time in the transaction do I use it, and Why?

Over the last 2 weeks this has been an ongoing question from other brokers, or I have heard the horror stories of the fee agreement not being put in place. As the market in Commercial continues to grow and Brokers looking to expand their financing repertoire. They find themselves dealing more and more with savvy clients, and other brokers. Which a lot of times is a far cry from the residential world. With the Respa laws not in effect, and the Commercial learning curve so great Brokers are getting burnt on deals left and right. You must learn to protect yourself. But how, and at which Point?

One Common mistake of the Fee Agreement is discussing this to early in a transaction. If you have not given a borrower a Term Sheet/LOI then you are doing this step prematurely, especially if you have not collected all needed docs to run a true analysis of the deal. You will typically shoot yourself in the foot and take the borrower or brokers mind off of the loan and more on the fees of the loan. At the end of the day your competition now has leverage because you have the client focused on fees not the true #1 issue the actual loan. As the borrower talks to potential brokers/Lenders their first question is “what fee do you charge?” AVOID THIS MISTAKE and give the fee sheet at the opportune time.

TIMING IS EVERY THING: When a Lender gets you back a term sheet you need to copy down the important data. Rates, terms, features, address, loan amount and monthly payment to name a few. In this sort of list or table you will also have Lender Fees if any and your fees. Just like a GFE your fees are not singled out or become the object of the loan. Commercial Borrowers know they have to pay for service. You just have to approach them at the right time for this part of the transaction. You should have a blank Fee Agreement ready where you just fill in specifics of the loan. Once your Fee Agreement/Term Sheet is signed you immediately give them the Lenders copy and have that executed as well. You present the Lender back their form and many times they will ask for yours as well upon acceptance of the LOI/Term Sheet.

If you do not use a Fee Agreement or work with a broker that is, you have no insurance or contract for service to protect you. The borrower can continue their loan with the Lender at the Lender can be promising to pay you this or that. But once that loan closes the call backs may stop from your borrower. Or because you did not hammer out your worth when presenting the loan, the borrower pays you what can be negotiated after the fact, the moment, and climax of the loan. The newness, and your hard work has worn off in their minds.

Once this fee agreement is signed you are protected along with your NCND and should feel quite confident in scrutinizing your fee and the loan.

How credit repair works

Tuesday, August 23rd, 2011

Credit bureaus insist that individuals cannot repair their credit without waiting years for negatives items to be removed. Don’t believe them. Credit Report errors are at an all time high and these inaccuracies are most likely affecting your score in a big way. Here are the four essential steps that make up the process of cleaning up your credit reports. These steps are repeated until you are satisfied with the results or cancel our services.

We examine your credit reports
You begin by forwarding copies of your credit reports to us from all three of the major credit bureaus. If you do not have copies of your credit reports, you can get copies at Simply supply us with your username and password and we can login and download them without hassle.

You tell us which items to dispute
By either letting us know over the phone, writing on your credit report, or filling out the online interviewer, you inform us of what needs to be disputed.

HTDI Financial works your case
HTDI Financial begins to dispute your items by using its arsenal of credit report repair strategies and experienced staff to challenge negative items directly with the credit bureaus. This process will continue, with each new round to the bureaus having to address a smaller number of inaccurate, unverifiable and incomplete negative information each time.

Sit back and wait for results
The credit bureaus have a reasonable amount of time (roughly 30-50 days) to investigate your dispute. Of course with mail time, we figure 45-60 days from the time we draft letters to when you will have most or all the responses in the mail and forwarded to us. Within that time they must provide proof of the discrepancies on your report or be forced to delete those negative items. They will send you an updated credit report and you will then send it to us to move your case forward. The cycle begins again, and we remove more negative items from your reports…

“What’s your Rate?”

Tuesday, August 23rd, 2011

This question is even more ridiculous than in Residential.There are so many factors in figuring a rate in Commercial: Property TYPE, LTV, the credit grade, DSCR, location, Term and Amortization to name a few. A Rate is not what closes a deal anyway. You may have a super low rate, but what is the term and Amortization? A lower rate with a 25yr Am vs a 30yr Am is not a lower payment. So quoting a rate is actually doing a dis-service to the borrower and yourself. Until you have a majority of docs or experience in Commercial loans you can’t really quote anything. At the most you always quote a range. The borrower is asking you so they can shop you in your mind anyway. So give them some comfort and honesty and in the same breath take their mind off of rate. I was taught this by a friend. You control the conversation with questions. Therefore you take the borrower out of the “Rate thinking” by asking questions. “Is rate your most important item with this loan?” Wait and Listen. The borrower will now start to talk about other concerns. 9 out 0f 10 times these “other concerns” or needs are the keys to closing the deal… not rate. I am positive that the RATE is not the most important thing for a client. You must dig deeper into the clients needs. I had a office refi that the borrower was shopping me on. He had a good rate with another Broker/Lender, and it was actually better than what I offered him. Except that my deal had a longer fixed period and thats what the Owner really needed. Even though my rate was a bit higher I had found his true need and closed the deal. You must do the same with your borrower. Ask qualifying questions, they will give you the answer you need.

The Inception of the Federal Housing Administration Part 1

Tuesday, August 23rd, 2011

The Federal Housing Administration was developed back in 1934 and did not become part of the housing of urban development until 1965 and at the time the housing market was flat as could be. Hundreds of thousands of people were without work and having to take jobs for less money which made home ownership seemingly impossible before FHA that is. For you folks that feel like it is hard to get approved for a loan today check this out. Most of these loans were balloon payments after a short 3-5 years and max of about 50% loan to value. Before this folks were mainly renters as a matter of fact only 4 out of every 10 households owned their homes.In the year of 1940 FHA had a main focus and that was to help returning veterans coming home from the war get into homes. In the 1950s, 1960s and 1970s, the FHA helped to spark the production of millions of units of privately-owned apartments for elderly, handicapped and lower income Americans. When soaring inflation and energy costs threatened the survival of thousands of private apartment buildings in the 1970s, FHA’s emergency financing kept cash-strapped properties afloat. The main reason I want to start with this was to give all you folks an idea that FHA is here now just as it was 75 years ago!! The main reason why I wanted take a few minutes and give you some history to FHA is for your to truly appreciate what I do for people you should understand that this loan has weathered many housing market storms over the past 75 years and it will continue to do so but at times underwriting guidelines get strict and sometimes loosen up like right now. So for you folks that feel like you can’t be helped you may want to call or email me instead of taking upon yourself and guessing.

The Inception of the Federal Housing Administration Part 2

Tuesday, August 23rd, 2011

I wanted to finish up with a little history on the Federal Housing Administration. Last week I was telling you when FHA started and gave you some insight into how they began and a few of their major achievements. The Federal Housing Administration has closed millions and millions of loans both residential and multi-family and the only thing that has really changed over the past 70 years is the ease of underwriting. There are several different types of FHA programs for us to use to help people with their financing needs. There are programs for borrowers if they are looking to purchase, refinance or even buy a home that needs improvement. There are a lot of myths about FHA loans and how they are hard to work with and get folks approved. I have several case studies where I have personally done the loans and they would blow you away.As many of you may or may not know, FHA was there for the American people when over 2 million construction workers lost their jobs in the 1930’s and 1940’s. Now, FHA is doing the same thing, helping the struggling house market. Weird if you think about it several years later we, the American people, need a shot to the arm and a little break to get us by for now.

I have several different topics I want to go over and explore. Some of the upcoming posts will include case studies of my FHA deals, current myths of working FHA loans, and that is just to get us started!! Thanks again for reading and let me know what topics you wish to hear about in the future. :)

P.S. Make sure you are reading Raymond Denton’s articles too. Reverse mortgages are big and I only see them getting bigger and bigger over the next several years!!

Credit Repair Myth – Checking Your Credit Score

Tuesday, August 23rd, 2011

What can affect your score negatively is applying for new credit, considered a “hard hit.” By ordering a copy of your own credit report or inquiries from lenders wanting to offer you credit is considered a “soft hit” and will not affect your score.

When you search for a loan do so within a short period of time to minimize the damage from multiplecredit inquiries.

The credit score algorithym considers multiple inquiries in a 45-day period as just a single inquiry and won’t pay attention to the inquiries made 30 days prior the score being computed