Exclusive Mortgage Leads on the Internet
Posted at 1:48 am | Filed Under mortgage-financing-tips.info-part2-20
For loan officers and mortgage brokers looking for exclusive mortgage leads, receiving them over the internet is the way to go these days.
By buying exclusive internet mortgage leads over the internet you will be receiving them on-line and in real time, or fresh.
This means you will be receiving your leads hot off the press. And, because they are exclusive, you will be eliminating your competition.
But before you go and make a move with a mortgage lead company, be sure to do your homework.
You want to be absolutely sure that you are getting your money’s worth, so check out your potential prospect’s web site thoroughly, than call the lead company and speak with someone in customer service.
If they don’t give a number for you to call, than move onto the next lead company. Think of it this way, who are you going to call when you need a refund for a questionable lead?
Ask the person in customer service how they obtain their leads.
This is what you will want to hear.
You will want to hear that they obtain their leads through web sites they own and operate on their own. This pretty much guarantees the real time quality that you are looking for.
This is what you don’t want to hear.
If they tell you that they obtain their leads through third part vendors, than they are recycling leads. Or pretty much selling what is know in the industry as junk.
Keep in mind, you work hard for your money, so take the time to make sure that you will be getting what you pay for.
Jay Conners has more than fifteen years of experience in the banking and Mortgage Industry, He is the owner of http://www.jconners.com a mortgage resource site. You can also check out his blog at http://wwwmortgagespot.blogspot.com for more articles
Tags: blog, int, leads, loan officer, marketing, mortgage, Sales, selling, skills, telemarketing, trainingMortgage Broker Or Direct Lender
Posted at 1:44 am | Filed Under mortgage-financing-tips.info-part2-20
Which is preferable - the mortgage broker or the direct lender? The answer will vary depending on whom you ask. The broker touts a variety of sources and claims that this yields the most favorable loan terms. The lender says that the mortgage broker is just a middleman and if you go directly to the lender then you’ll avoid paying broker fees. If you walk into a store that sells blue shoes, then I’m sure you’ll hear that blue shoes are your color and if you walk into a red shoe store then, conversely, red shoes are more becoming. And as this author is typing, he is wondering whether you think he works at the red shoe store or blue. I’ll tell you that I’ve worked at both and I’m not impartial; but, rather than giving you my opinion, I’ll present some facts. Pay attention, ’cause the red shoe store charges too much.
Wholesale Access (wholesaleaccess.com) reports that mortgage brokers originated 68% of all mortgage loans in 2004. While this is certainly an impressive statistic - bigger does not always equate better. The real question is whether or not borrowers pay lower rates and fees on mortgages originated through brokers or on mortgages originated by direct lenders. The answer can be found in a study of data from (Q3) 1995 through (Q1) 2002. This data set was supplied by American Financial Services Association and is so encompassing that it accounted for approximately 40% of all subprime originations in 1998. The results are published in a 2004 paper titled Mortgage Brokers And The Subprime Market (ftc.gov/be/seminardocs/0405elliehausen.pdf). Please refer to the top of the first page, which effectually states that this paper can’t be quoted. In compliance with this directive, I shall direct you to the conclusion on page ten of the document. The first sentence can be translated as (and I don’t quote) - loans originated by mortgage brokers cost less than loans originated by the creditors. That difference was quantified (page 9) as 1.132% cost savings for those who used mortgage brokers on a first mortgage and 1.973% cost savings for those who utilized mortgage brokers on a second mortgage. There you have it! On average, it is cheaper to work with a mortgage broker than going directly to the lender; but there’s still more to tell. Let’s talk about these broker fees.
A broker by definition introduces buyers and sellers - by all intents and purposes, yes a middleman. The misnomer in this equation is the fundamental difference between wholesale and retail. Take for example, a lender that is in one geographical area of the country and seeks diversification of its portfolio of mortgages through the origination of loans in another state. The lender has two choices. The first is to open a retail office in that state, hire staff, buy equipment, advertise and absorb all of the associated overhead as an expense to originate retail mortgage loans that he can ultimately service. The second option is for that lender to contract with a mortgage brokerage that incurs the expense of finding the client and also originates, processes and packages the loan for submission to that lender’s wholesale department. With the second option, the lender forgoes the expenses listed above and is willing to offer the mortgage broker a wholesale price in return. The broker has this same type of wholesale relationship with numerous lenders and competition among the lenders drives prices down for the broker. Yes, the broker charges a rate or fee that is higher than its wholesale cost but (as the 2004 study reveals) that rate and fee combination is still considerably lower than the retail cost charged by direct lenders.
In conclusion, I hope this article has shed some light on the difference between wholesale/retail, brokers/lenders, and blue and red shoes. Just to recap: wholesale is better than retail, brokers are better than lenders, and there is compelling evidence to explain why 68% of us prefer blue shoes.
Copyright 2006 Paul Jerome
Paul Jerome is a mortgage expert and frequent contributor to the Broken Credit Blog. The BCB is a free website created to assist the general public with information regarding credit repair and responsible mortgage lending.
www.brokencredit.com
Freddie Mac Loan Investments Decrease Again
Posted at 1:46 am | Filed Under mortgage-financing-tips.info-part2-20
Freddie Mac’s loan investment dropped for the second straight month in June. It fell to $722.2 billion for the month.
Freddie’s total mortgage portfolio increased at an annualized rate of 8.9% year to date, increasing 10.3% for the month. The retained portfolio increased at an annualized rate of 3.4% year to date, but dropped at a rate of 1.4% for June.
The decline was due to loan paydowns, offsetting purchases and increased portfolio sales, which were at the highest levels in 3 years at $13.8 billion.
The debt-fund portfolio provides over 75% of Freddie’s profit. It has become a hot debate topic in recent months.
Freddie Mac is the second-largest purchaser of residential mortgages. Both Freddie Mac and its rival, Fannie Mae, are under inquiry after making $15.8 billion in accounting errors since 2000.
The Office of Federal Housing Enterprise Oversight is considering limiting Freddie Mac’s growth, much like Fannie Mae has had limits placed on its growth. The Bush administration contends that the high level of assets pose a systematic risk to the U.S. financial markets.
In anticipation of the limits, Freddie has sustained their debt in the $2.6 trillion agency debt market, which includes the Federal Home Loan Bank system and Farmer Mac.
Freddie Mac has announced that it plans to cut it’s the outstanding reference debt, the largest and most frequently traded bonds.
“Even if Freddie Mac does not reach an agreement with OFHEO on portfolio growth limits this summer, we do not anticipate more than another $30 billion of portfolio growth the balance of this year,” said Jim Vogel, head of agency research.
Up from the $15.7 billion purchased in May, Freddie has announced plans to purchase $19.1 billion in mortgage loans and securities for future settlement in June.
Martin Lukac represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate and mortgage rates. We specialize in daily updates, mortgage news, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!
Tags: federal mortgage lending, freddie mac, home finance, mortgage financing, mortgage trends keep looking »