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[i]Originally posted by Managing Prime[/i]
[br]The Mortgage Brokers New Clothes
Published by
The XBroker
March 23, 2007 in Mortgage 2.X.


The well is drying up. The Good Leads are scarce.
Sales techniques are becoming more dubious by the week.
Business is way down, over 50%, and the average cost to acquire a closed loan has doubled.

While the title says brokers, bankers are not immune anymore. In fact bankers stand to lose more credibility and business than anyone.

You’ve tried to pitch service and efficiency to combat the cloak and dagger banker monopoly. Unfortunately, in desperation to stay afloat in a swiftly draining pool, the broker community finds new ways to earn the distrust and contempt of consumers everywhere while the big mortgage bankers spend hundreds of millions on deceptive advertising and plunder with perceived impunity.

Now youre engaged in the fight of your life over the same diminishing pool of increasingly jaded prospects, relying on woefully ineffective marketing:

VOICE BROADCASTING
Three years ago, it cost $35 per live transfer with a $400–$600 Cost Per Acquisition (CPA) and a 10% - 12% close ratio. Today, a live transfer costs over $75, carries a $1,400-$2,000 CPA, and has a sub-5% conversion ratio.

WEBCASTING & INTERNET LEADS
Nothing more than the Internet equivalent of voice broadcasting. Lead aggregators provide a nice interface to scrape data from. Think the above VB numbers above are depressing? Good luck converting an Internet Shopper.

DIRECT MAIL
Hear that? It’s the sound of your piece (of you know what) hitting the trash can. If your’re lucky, they’ll open it first. Bottom line: Too expensive and ineffective with traditional methods and messages.

TELEVISION & RADIO
Come on—if you could afford it, you wouldn’t be here.
While you’re gasping for air trying to squeeze 4 points or $10,000 out of every deal and consumers are drowning in debt, the wholesale giants are saturating the market with their filthy no cost, no fee propaganda.

Until RESPA discrepancies are addressed, more and more brokerages will fold and consumers will continue to be quietly robbed of their financial futures./p>
What are you doing to differentiate yourself from what has become viewed as the Industry Norm.

As the mortgage service industries are put in brighter and brighter lights, the relative lack of transparency in many current broker/bankers business process models will justify them as predatory and deceptive. In an unregulated industry what’s cool today can be crucified tomorrow.

Consider:

Black letter RESPA law is currently being enforced in multiple legal arenas, with no consideration to loan officer type. The ways of non-disclosure are being punished with greater and greater frequency.

Material misrepresentation is the legal jargon of the year. Take that into the courtroom, and chances are what may now be common practice, may be construed as Fraud. Are you guilty? Survey says:

YES.

7 out of your last 10 loans are out of Truth In Lending Act (TILA) compliance. Unintentional does not equal exoneration.

Do you really understand the TILA the way it may be interpreted in a court of law?
Brokers (and Bankers) the time to change is now. You have a unique opportunity to seize unprecedented control over the mortgage service industries by operating from the unique platform of 100% Transparency.

The Writings On The Wall: Evolve or Die.

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