Mortgage Lead Generation - A Mortgage Broker's Dilemma

As the real estate market cools off, mortgage brokers are increasingly challenged to make their volume goals. Mortgage brokers and loan officers who are looking for new customers won't go far before being inundated with offers to buy mortgage leads.

The offers vary widely. It's possible to pay as little as $3.50 and just as easily spend over a $100. So what's the difference?

The answer is "lead quality." And yet there isn't a lead provider out there who doesn't insist that their leads are of the highest quality. At the end of the day, quality is best measured by your cost to close a sale.

Here's how to shop for a mortgage lead:

How are the leads generated? There are three common techniques: snail mail, internet and telemarketing. Typically snail mail and internet generated leads produce less qualified prospects, which aren't as far down the sales funnel, and thus produce lower close rates. Telemarketing generated leads, on the other hand, tend to be more qualified. Telemarketing techniques can create a better informed prospect that is closer to purchase decision. Telemarketing leads typically have a higher close rate and command a higher price.

Exclusive or Shared? Most mortgage leads are resold multiple times. While this can dramatically reduce the price it also increases the competitive environment. Exclusive leads, on the other hand, allow the client to target the customer profile and dramatically change the dynamics of the call. Ask about your ability to specify your target customer's profile and ask how many times a lead is sold.

What's your guarantee? This is the question that separates the wheat from the chaff. It's unlikely that any company can guarantee a specific close ratio since so much of that relies on the sales skills of the broker. On the other hand, it's reasonable to expect that any company selling leads will guarantee that their leads meet the criteria they promise. At the end of the day, the company should be prepared to guarantee that every prospect is interested in learning more about a refinance or mortgage loan.

Are the leads live versus electronic? Live leads are also known as warm transfers which eliminate the need to reconnect with the customer. Live leads always have higher close rates.

About Services-On-Tap™

Services-On-Tap, based in Santa Clara, CA, provides a range of on-demand services for the mortgage industry including exclusive [live and electronic mortgage leads, loan processing, and employment and income verification services]. Services-On-Tap has helped generate more than $1 billion in loans and is committed to helping mortgage brokers and loan officers profitably grow their customer base while reducing their back office costs. For more information visit www.ServicesOnTap.com

For More Information, Contact
Greg Harris
www.ServicesOnTap.com
Tel: 408-764-5111