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adamsteinmetz
2 Posts |
 Posted - 02/24/2005 : 6:08:03 PM
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My business partner Paul and I are posting because we would
like to get your input on a service we are developing. Paul has developed a lead generation system for the retail industry and we are now looking to apply this experience to lending. Our service will provide competitive below-market mortgage loans to borrowers. We are looking to power our service with a small network of lenders interested in offering discounted loans to a large
volume of borrowers.
Would either of the following approaches be attractive for your
business?
1) Borrowers input their loan information on our website. We use industry averages to calculate a rate for the borrower's desired loan type. We then reduce the rate by 25 basis points and send the
terms to the next lender in line from our network. If they
accept the terms, we release the borrower's information. If the loan
is denied (or the lender does not respond), we send the loan terms to the next lender in line. Process repeats until a lender accepts the terms.
2) Borrower inputs the terms of the loan they would like to receive or the best terms they have received so far. We allow all lenders on our network to view these terms. The borrower's information is released to the first lender that accepts the loan terms.
Why would one of these approaches be more attractive for you? What concerns would you have? Do you work with any similar service providers, and if so, what would improve your experience? Thank you in advance for your feedback. |
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midas
4409 Posts |
Posted - 02/24/2005 : 6:29:55 PM
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| isnt that called lending tree? |
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adamsteinmetz
2 Posts |
Posted - 02/24/2005 : 7:23:11 PM
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quote:
Originally posted by midas
isnt that called lending tree?
A good question, let me try to answer it.
We believe we could provide borrowers with a better experience than Lending Tree for the following reasons.
1). Lending Tree is not helping borrowers save as much money as they could for the following reasons:
A). You only get quotes from four lenders (max) and still don't know if they are the best quotes out there or even a good rate. Lending Tree doesn't refer borrowers to the lenders with the lowest rates. They get paid a fee at the closing no matter what, and are not particularly concerned with whether it is the best rate. It is either random or based on customer service scores who the loan gets referred to - not rate/terms based.
B). Many of the lenders do not send or call you with true quotes, but rather requests for more information. So, you perhaps end up with one or two quotes from the process. As a borrower you are not getting quotes and it is not saving you time.
2). The borrower will have more control over their personal information. With Lending Tree, your personal information gets sent to the four lenders and they contact you - you are not in control of the process and don't have control over where your information gets sent.
From a lender's perspective, we are trying to give you higher quality leads than Lending Tree that are closer to closing. We also plan to deliver more accurate information so that you don't waste time with bad leads. This could be an alternative to Lending Tree - if Lending Tree is meeting all your needs, we'd love to know that.
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jeffg
1031 Posts |
Posted - 02/24/2005 : 8:42:02 PM
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The last thing this industry needs is "another lead provider." It's amazing how many of you are wanting to sell us products. Have you ever originated a loan? If so, then why aren't you staying "in the retail side?"
The only people who made any money during the "gold rush," were the people selling the picks and shovels!
If you must, forget the "mortgage application," route. People could care less about filling out a 1003! There's only 2 customers in this business. I wish more would lend towards a third, that is, the investor who wants more rentals.
People are either purchasing a house or considering refinancing debt to lower their monthly outgo.
If you MUST be another lead source, focusing on rate reductions and "beating the other guys' rate," proves to me, that I'd NEVER buy one of your leads! Why? Because you don't understand the customer, if you want to be another Di-Tech! Rate is only one side of the finance coin. What about total cash on cash return? What about ROI?
Throw these terms at the average mortgage borrower and they usually get confused!
I'd rather see leads that have a "generality" about them. Being another M-Leads, or other Internet leads, is NOT needed! No one is getting good closing numbers on these out here in CA, as the lead is sold 20 times for the "pick and shovel" provider, but the LO is left with, "Hey, man, I'm not interested" on the phone line. How would you feel about spending your own $25 for this lack of respect? Or how do you get rid of the unscrupulous mortgage broker (like I've had recently) who logs onto these sites just for the privilege of letting Loan Officers send him emails-----"good market research," huh? Not when it's your $25 spent!
How about YOU developing a real marketing campaign, that "educates" customers. Provides graphs, REAL info, on when and why they should refinance. How about investment advice?
PLEASE, no more "pick and shovel" providers! There's no more "gold in them thar hills."
Jeff Gruhler
Broker
American Fidelity Mortgage |
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dbortolussi@sbcg
63 Posts |
Posted - 02/24/2005 : 9:24:45 PM
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Jeff and I had another conference call on Tuesday night. This lead had tons of collateral, better than average credit, and plenty of capacity. We "defused" the bomb...."what is your rate today" right off the bat. We dove into his personals goals, short-term and long-term with his property. By the end of the conversation, we're going to be doing his refinance, and all of purchase loans. Instead of finding rentals for him, his first goal, we dug deeper and found out he is good with his hands and enjoys building and remodeling. We now have him on a plan of turning and flipping properties---buying at less than market value, putting some elbow grease into the house, and selling in with a profit.
He will be a customer for life. Instead of originating off leads that 20 other "rate sellers" will be calling all day long, we now will work off referrals because we provided a solution to his wants and needs. Sounds like beating a dead horse, but it's true.
Jeff did my parents refinance last year, and our purchase loan as well. We've done nothing but refer people to him for loans along with job offers too. He paid attention to our wants and needs and followed through with his word---knowing his programs and products!
Thanks again Jeff! |
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rbortolussi
12 Posts |
Posted - 02/24/2005 : 9:37:08 PM
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| i just spoke to a customer last night from chino hills that is also a real estate agent. instead of just going throught the 1003 we actually "talked" and i found out about his family, loyalty to his employeers and his drive to work hard now while his children are very young so that he can spend quality time providing for them and watching them grow up. he must have told me 4 or 5 times "ryan, i like the way you talk to me like a person." he wants to have a confrence call with jeff and i, but his entire family is sick right now. instead of pushing a 1003 i told him i'd give him some time to feel better and i'd get back to him later in the week. he needed time and i gave it to him. i didn't push the "deal" right away to secure a pay check right now. jeff has always said, "people are not in a rush to do loans." this allows me to speak to them and earn a relationship with the customer. because of this conversation, which i had at 9 pm at home after work, he said he would have plenty of referrals when he has a purchase loan to do. treat the customer right and they will treat you right. |
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rbortolussi
12 Posts |
Posted - 02/24/2005 : 9:40:30 PM
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| i'll let you know when he is ready jeff, he would like a few days to feel better. he is a bit of rate bully, but i used your "working for free scenario" and he began to understand. |
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lenderama
887 Posts |
Posted - 02/24/2005 : 10:20:52 PM
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quote:
Originally posted by adamsteinmetz
quote:
Originally posted by midas
isnt that called lending tree?
We believe we could provide borrowers with a better experience than Lending Tree for the following reasons.
I disagree. By you establishing a rate for a consumer who has established what program he want's, the probability that the borrower gets the deal that best suites him is diminished. With Lending Tree/LoanApp.com, etc... The borrower gets four different opinions on how to structure their loan. Rate is not the only factor, especially out of a refi market.
The aspect of your rolling Q is a good idea though. |
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