With thousands of jobs lost, a downward trend in new applications, rising rates, and a pruning of niche products, it seems to me that any sector of the mortgage industry that has grown deserves some attention.
According to Mortgage Technology Magazine, the top 20 online lenders grew their Internet originations by a combined 72% in the second quarter of 2007 (over Q2 2006). Citimortgage, the top online originator, grew it’s own web pipeline by 159%
Meanwhile, Google, Apple, Intel and Yahoo! are not only posting gains, but are beating out Wall Street forecasts.
Do you see the trend? Mortgages are down. Online mortgages are up. The stock market is wavering. Internet stocks are doing just dandy. Are you still wondering if Middle-America, everyday people are using the net? Ask the Colorado Rockies.
I’ve often argued the the Internet will never replace a real live loan originator. But I tell you what, a real live loan originator who’s fully leveraging the Internet IS going to replace those who the LO who doesn’t. The Information age is upon us. Don’t think for a minute that your existing web strategy will be adequate in the future. It you don’t even have a web strategy, stop reading this blog and get to work.
Yes, Todd, I totally agree. Unfortunately when you work for a big company you can be stuck with its online strategy and it might be good. Or not. My old company started out with neat stuff–each LO had a personalized page, you could include your qualifications, education, etc., testimonials from clients and Realtors, a list of promises / performance guarantees, etc. Then, prospects could click-to-call or start an app. or ask a question.
One day without warning the company made everyone’s page an indentical generic thing with just a picture, phone number and office location.
Internet business directed to specific LOs dried up. The company substituted a main number / page where lower-paid processors or LOs acted as a data entry clerks and just took orders. So regular LOs avoided directing anyone to the web site (duh).
If I ran the zoo I’d have templates for LOs in which they could somewhat customize their sites to reflect the market they work in, adding links to their Realtor / title partners, a web address that includes their name and the company name, useful calculators and descriptions of loan products, and an interface that looks less like a 1003 and more like a friendly interview. I’m currently working on a refinance decision tool that would help prospects find a product / products best for them, then they could discuss with a live LO and close the deal.
Bottom line, a company’s online presence should support its employees, not undermine their efforts or compete with them.
Todd & Gina, you have hit it exactly right.
One more thing I’ll add… the name of the game is keeping your expenses low. When compared to other advertising venues, marketing strategies that involve the World Wide Web can be far more cost effective.
>>>>>>Do you see the trend? Mortgages are down. Online mortgages are up.>>>>>
I suspect the same will follow with internet based real estate companies.
The current market will encourage change and companies will be forced to cut cost by reconsidering business processes.
The slow market becomes the invisible hand that demands change.
Gina,
You make a good point. The issue with mortgage companies is that they have fractionated marketing efforts. It’s left up to the LO and when there is no vision set forth everyone does their own thing. Every mortgage company need a solid, well thought out internet marketing strategy that encourages the independance of the LO but is NOT held hostage to them.
Todd & Gina, you have hit it exactly right.
One more thing I'll add… the name of the game is keeping your expenses low. When compared to other advertising venues, marketing strategies that involve the World Wide Web can be far more cost effective.
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