On the news of the US Treasury rescuing Fannie Mae and Freddie Mac, the mortgage lead generation should get a boost. It is certainly not going to immediately end the pain in the mortgage lead generation space, but it will certainly bring in more leads.
US Treasury Wants More Borrowers
One of the primary goals, according to Treasure Secretary Paulson, is to get more mortgage borrowers back into the market by lowering mortgage rates and opening up qualifications–that means more inquires.
Expectations that this takeover will also include the abandonment of risk-based pricing and acquisition fees are also expected to make it attractive for purchase and refinance.
Mortgage Lead Market is a Buyers Market
This could be good and bad. The current lead buyers are already enjoying an unprecedented non-competitive lead market. In fact, many purchase lead buyers are reporting next to zero competition and even mainstream refinance lead buyers are only getting mild competition.
Looks like that situation may only get better for lead buyers as volumes increase.
Reshape Sales for Rates and Answers
The lack of competition on these leads is certainly making it an opportune time to increase lead spend or try Internet lead generation again. However, make sure you are tuning your sales for the current market. Here are a few scenarios you should have in your scripts:
- Current rates-they are dropping like a rock
- Avoiding foreclosure-be versed in loan modifications
- Buying foreclosures-are their incentives for borrowers
- FHA loans-understand the new housing bill
- Fannie, Freddie bailout-answers to, “What does this mean for me?”
- IndyMac bailout-answers to, “Can I get that loan mod-type deal?”
- Application rejections, credit repair
- Reverse mortgages-What are they?
Selling answers is what is going to get you the deal in this market.
