Mortgage Leads - Internet Mortgage Leads 2.0

Many lending professionals think all Internet mortgage leads are generated the same way: A consumer fills out an online form, and the lead provider forwards the information to a loan officer or mortgage broker. Over the past decade, Internet lead providers have introduced product variations, such as live transfers and vintage leads, to meet market demands. Recently one Internet lead provider has taken the Internet lead in a new direction, revolutionizing the market. Proponents say this new generation of Internet leads is so different from its predecessor that it deserves a new name. Call it Internet leads 2.0. What follows is a overview of Internet mortgage leads today.

The Basic Lead. Internet lead providers do not send mortgage leads to lending professionals "as is." If they did, then the lending professionals would receive leads with names like Homer Simpson and Sponge Bob Square Pants. The lead providers screen out bogus names leads using "scrubbing" techniques, such as matching the area code to the ZIP code. Some lead providers use a more thorough validation process than others, but the real difference in lead quality is in how the consumer comes to fill out the form in the first place. The best leads are the result of an organic search using a search engine such as Google, Yahoo, or MSN. The consumer initiates the search to find a solution to a financial challenge, visits a website, and completes a form, requesting a quote from a lending professional. This consumer is much further along in the sales cycle than one who clicks a banner ad to enter a contest, receive a free gift, or simply out of curiosity. Organic leads are self-qualified.

The Augmented Lead. Traditional Internet leads-organic and otherwise-rely upon the consumer to provide loan and property information. Unfortunately for the loan officer or mortgage broker, consumers are not the best source of information about their loans. A survey conducted by Bankrate.com found that more than 35 percent of homeowners do not know what type of home loan they have. Getting the correct information from the consumer can be a time-consuming task, and many deals fall apart once the facts are known. To remedy the situation, Internet lead provider iLeads.com has created a patented process to augment mortgage leads in real time with accurate data pulled from its partner, First American Financial Corporation, the largest provider of real estate data in the nation, with annual sales in excess of $8 billion. Using is real-time process, iLeads.com generates leads that are much longer and more complete than traditional "short-form" leads. Populated with First American data, these "Mortgage Plus" leads include information about the type of loan the consumer has, the original lender, the appraised value of the property, the consumer's equity position, the size and age of the home, and other pertinent details.

ARM Leads. iLeads.com soon realized that it could apply its patented process to existing adjustable rate mortgages (ARMs) to identify consumers whose loans are scheduled for resets in the coming months. With the capability of filtering the ARMs for the largest resets, the highest adjusted interest rates, and the largest loan amounts, iLeads.com is able to target the ARMs in greatest need of refinancing. The refinance leads come complete with property and loan information, just like the Mortgage Plus leads. Lending professionals can receive these refinance mortgage leads 30, 60, 90, or even 120 days before the reset is scheduled to occur. The ARM leads are checked against the national Do-Not-Call list to make sure they are compliant.

Hot Transfers. No one likes telephone tag, especially not busy lending professionals. As a result, Internet mortgage lead providers developed the "hot transfer" lead. The hot transfer or "live transfer" lead is an organically generated Internet mortgage lead called by the lead provider, rather than by the lending professional. Once the consumer is on the phone, the call center further qualifies the lead by asking questions about the need for a loan. Satisfied that the lead is solid, the call center then calls the lending professional and hands off the live call. The involvement of the call center comes at an additional price, of course, but many lending professionals find the added expense is justified because it eliminated the time-consuming calling process and produces a more qualified lead.

Aged or Vintage Leads. The value of a lead decreases each time the consumer is contacted by a lending professional. Contact by multiple lenders is common, unless the lead is sold as "exclusive." Leads that are "shared" or "nonexclusive" can and most likely will be called by several competitors. The initial callers often do not close a deal, however, and the consumer may still want the loan. These leads are sold as "aged" or "vintage" leads at greatly reduced prices. Since they require little upfront investment, aged leads can produce outstanding ROI for mortgage brokers and loan officers skilled at closing these leads.

The evolution of the Internet mortgage lead means the lending professionals have a range of options-from the relatively expensive hot transfer, costing from $80 to $160 each, depending the location of the property, to the more moderate organic lead, costing from $25 to $50 each. Right now, Mortgage Plus leads are being sold at no additional charge. Bargain hunters can choose from ARM leads, available for as little as $6 each, and aged leads, which also cost in the single digits, depending on age and location. The value of the different kinds of leads depends on how busy the lending professional is, what kinds of loans he or she is most competitive in, and what kind of sales skills he or she possesses.