ICE Shares Methods To Improve Mortgage Lead Generation

It’s not an understatement to say that mortgage lead generation is a top priority for loan originators. Whether coming from brand new prospects or repeat business and referrals from happy clients, quality leads are the lifeblood of an LO’s pipeline. This blog explores some primary methods for mortgage lead generation and optimization.

Starting close to home – retarget existing clients

As your business grows, remembering every deal becomes more difficult, if not impossible. However, with the help of mortgage customer relationship management (CRM) technology, you can continually monitor your database to identify leads and retarget existing contacts. With the right CRM solution, you can take advantage of three valuable, time-sensitive retargeting opportunities:

• Rate changes – automatically compare current rates with your clients’ contract rates, and receive alerts when rates drop below the thresholds you’ve set.
• Just listed – monitor properties in your database against online real estate listings, and receive alerts if your clients are selling properties they financed with you.
• Credit pull – get notifications if a client in your database has their credit pulled for a mortgage transaction.

These alerts enable you to quickly reach out to clients as their circumstances evolve and offer tailored services such as refinancing, new mortgages, or home equity lines of credit (HELOC), all of which allow you to capitalize on repeat business opportunities.

Tried and true – print marketing still works

While good, old fashioned direct mail may feel outdated, studies show it’s still an effective method of mortgage marketing and lead generation. Recipients of direct mail open about 90% of the pieces they receive, versus only 20-30% of emails received. They remember direct mail too. Only 44% of recipients remember which company sent a digital ad, while 75% recall which companies visited their physical mailboxes. Direct mail also garners a 5-9% response rate, versus 1% for emails.

Numerous options exist for generating mortgage leads through print marketing. With the help of a mortgage CRM, you can segment your database to send targeted messages. For example, past clients can be sent information on refinance or HELOC opportunities, while prospective buyers can receive quick reminders of low downpayment options. When deploying direct marketing campaigns, be sure to give your targets a way to get more information and be contacted. Include a QR code that links to an informative landing page and collects recipient contact information. And, be sure to reach out as soon as you receive a response. Studies show that LO responsiveness is a key driver in lead conversion.

Generating leads through professional referrals

The most common referral partners for loan originators and mortgage bankers are real estate agents. In fact, many loan officers can boost their pipelines with the help of just a few good agents. The best way to build a referral relationship with a real estate agent is to deliver information to them on time, every time, and to communicate clearly throughout the process. Other sources of referrals can include financial planners, CPAs, insurance agents and attorneys. Take the time to learn their specialties and areas of interest. That way, you can return the favor when your prospects need the services your referral partners offer. In addition to providing direct referrals, these partners may also be willing to share their address lists for your direct marketing efforts.

Buying mortgage leads – is it effective?

While it’s tempting to identify potential customers by purchasing third-party lists, proceed with caution. Be especially wary of large or free lists, as many CRM platforms either do not allow or strongly discourage the upload of these types of lists. Marketing to large or free lists can also result in unwanted spam reports and, in some cases, being blacklisted by email services. And, even if you do capture leads from this type of list, they are usually of low quality and may require months of nurturing before they move to prospect or borrower status.

Not all purchased leads are bad, however. “Exclusive” leads are often more likely to transition successfully into borrowers, since lead information is typically shared with only a few LOs. Exclusive leads generally come with details that enable better marketing, such as financing type, timeframe for making a move and credit worthiness. While exclusive leads can be expensive – $100 or more per lead – they also are more likely to make it to a closing. Plus, CRMs are more welcoming of exclusive leads and can integrate them into the platform, allowing for easy tracking, management and marketing.