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Special Reports
Lead Generation: Bringing
in Business
Devine: Brokers Need to Be Savvy on Lead Spending
By Jennifer Harmon
BOCA RATON, FL -- Contrary to what a lot of forecasters in the industry have predicted,
2004 doesn't appear to be the year for increasing interest rates, according to Gene Devine, senior vice president
of Data Warehouse Corp. here, which provides comprehensive customer acquisition management solutions.
However, that doesn't mean mortgage brokers aren't going to face some serious
challenges such as finding new customers during upcoming months.
Originations have been affected not by interest rates, but by a heavily saturated
refinance market so far this year. "This is a somewhat daunting time, because so many people have refinanced
so much over the last 36 months," Mr. Devine said.
"Trying to maintain levels of funding is almost impossible with what we've
seen in previous years. It's a lot more difficult right now. Some people are at a point where they just can't refinance
anymore. After origination and closing costs, they're done, they've hit rock bottom," he said.
Because of this, there is a certain level of sophistication brokers will have
to employ in order to be successful this year. "Certain tactics will come into play. Brokers need to be more
savvy with how they spend their money on prospect data and lead generation services," said Mr. Devine.
"The question now is what specific strategies will brokers be able to employ
to find those homeowners?"
For example, direct-to-consumer marketing is a good way to target business. Purchase
money is something brokers are always able to rely on, according to Mr. Devine, and brokers should have contacts
in place to originate business. Refinance loans, cash-out, debt consolidation, and second lien position lending
make up a large part of origination for brokers.
Those who have refinanced are still good clients, along with new homeowner prospects,
who are strong candidates for home equity lending and new home purchases. This is an opportunity for smart, strategy-minded
brokers to get their hands on lower rate sources of money, to come through with being able to finance second lien
mortgages, lines of credit and home equity loans.
Prospect data are associated with identifying different types of homeowners. The
key consideration is to identify homeowners who reside in single-family dwelling units. It is critical to accurately
identify the homeowner prospect, he said.
"Having lendable equity is key, and cash consolidation is used for that,"
Mr. Devine said. "There are pre-approved offers of credit, being able to offer products by using credit-screened
data - identifying homeowners with needs. By looking at things like consumer debt, revolving debt, the broker can
make a compelling offer and go about deploying it."
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