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Special Reports
FHA Lending
Intellidyn Exec: Few Know Options
'There is light at the end of the tunnel.'
By Brad Finkelstein
There is a need to educate consumers about the benefits of the Federal Housing
Administration's FHA Secure program, said the chief executive of Intellidyn Corp. here.
It is amazing, said Peter Harvey, that consumers in dire straights are not aware
of their options. "To most homeowners, this appears to be very complex. So what is critical in the offer is
that you have to really make it simple for people to understand. You have got to show them there is light at the
end of the tunnel. To them the sky is falling and the house is going to go into foreclosure and they can't do anything
about it."
But for the African-American or Hispanic first-time homebuyer, who was put into
a subprime loan during 2004, 2005 or 2006 and is facing a reset, FHA Secure is a lifeline for them. "The key
is that these individuals were first-time homebuyers, they just wanted a home. So they were easily put into a subprime
loan that they never should have been put into," he said.
Intellidyn has created marketing programs that help lenders target borrowers who
are eligible for the FHA Secure program.
There are FHA loans being closed in what has been the main subprime territory,
where the borrower has a credit score in the high 500-low 600 range, he said, adding, "A few months ago, that
was just considered a subprime loan that nobody would touch. But if it is an FHA loan, it is being done."
Originators who put FHA loans aside for the more lucrative, less bureaucratic
world of subprime are now finding their way back to the program.
There is no question that in the next few months, mortgage originators should
place emphasis on participating in the FHA Secure program. "In a period where the overall lending market is
significantly down, within the next few months when things are never good for a lender - during the middle of the
winter production always slows - this could be the difference of whether a lender stays afloat or not," Mr.
Harvey said.
It is not only the borrower that is being helped by FHA Secure, it is the business
interests of the mortgage originator as well that benefit from the program. "It could be the lifeline for
many lenders, especially over the winter months."
One lender, which says it is pleased with the results it gets from Intellidyn's
FHA and Veterans Administration prospecting programs, is iFreedom Direct, Salt Lake City.
Its marketing director, Rich Warner, said Intellidyn's "out-of-the-box thinking
gives us a quantifiable advantage in this market. Intellidyn works as a strategic partner, achieving better results
from their innovative approaches and cooperative information analysis. Intellidyn has made a study of our prospecting
needs, making direct marketing our No. 1 channel, and we're looking at partnering in other arenas to continue to
stay ahead." In response, Mr. Harvey said, "iFreedom Direct is our ideal client. They are always asking,
'What will you do for me next?' Our clients keep us thinking beyond the norm and creating new tactics for this
volatile market. Through the next 12 months, there will still be nearly $1 trillion generated in refinance loans.
Our job is to help our clients reach this market, enabling them to profitably scale business through this challenging
period."
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