l. When it comes to signing your loan documents it looks like something totally different than expected. However, is going through the loan process again worth the wait? Many times consumers say no and just close the deal because it is very similar to what other Brokers/Lenders were telling them.

Why This Is Bad For Mortgage Brokers/Lenders

Mortgage Brokers/Lenders are paying a premium for Internet Mortgage Leads as the demand for new business is growing quite rapidly due to the current market conditions. The Refinance and Purchase market has dried up for many and the Bottom Feeders are licking their chops as Mortgage Brokers/Lenders turn to Internet Leads for future business. Unfortunately, many are being taken to the cleaners while they compete with 10 or more companies. Often times mortgage brokers will pay for leads up front at amounts in the thousands for leads with no quality. Ultimately providing a no win situation for either the client or brokers/lenders.

A Remedy?

If you are the consumer applying on line do your due diligence

Who Are You Filling Out An On-line Application With?

What can happen to your phone if you fill out an on-line application to refinance your current mortgage or to purchase a new home? Odds are you will be getting a million phone calls and two million e-mails over the next several months. I have heard horror stories where consumers actually had to change their telephone number. This is bad for the consumer and mortgage brokers who are actually incurring an expense to make a profit.

The Basics of an Internet Mortgage Lead

An Internet Mortgage Lead is developed when a consumer fills out an on-line application to either refinance an existing property or purchase a new property. Mortgage leads differ in price as the criteria changes. For example: a refinance lead is more expensive than a purchase lead and the reasons are simple. A loan officer can close a refinance lead in 30 days or less. Furthermore, they also know the odds are good that the consumer will qualify for the loan. On the other hand a purchase lead takes a while to develop. The consumer not only needs to be pre-qualified they need to find a property that they like. We all know this may take a while as buying a home is a huge investment and is not something to be impulsive about. Loan officers want to close and close NOW! Depending on the company, Internet leads are sold as many as 5 times to lenders/brokers.

How Internet Lead Companies are Taking Advantage of the Consumer

First, you have companies such as Lending Tree and Lower my bills that have captured a large portion of the market when it comes to Lenders/Brokers competing for the consumer’s business. These companies have developed a name for themselves and have the resources to advertise pretty much anywhere they choose developing thousands of on-line applications per day throughout the United States.

Secondly, you have Bottom Feeders that do not have the capability to generate their own Internet Mortgage Leads. There are several ways that the Bottom Feeders make their money and these are the reasons why the consumer may receive a million phone calls and two million e-mails from the time they fill out the on-line application moving forward. The #1 way these companies make their money is by reselling leads. They simply purchase leads from other companies and resell them. For example: The Bottom Feeders buy a refinance mortgage lead for $20 acting as a lender/broker and resell that information, as a Mortgage Internet Lead company, to as many as 5 different lenders/brokers maybe even more. The multiplier effect is in use. If you have just two companies do this on one lead you are going to be receiving up to 15 phone calls from different lenders/brokers.

Why Is This Bad For Consumers

If the consumer is receiving more phone calls and e-mails than imaginable they are more often turned completely off from pursuing their original intention which was to purchase or refinance property. This is a quote I received form a loan originator’s prospective client.

“I was na?ve to believe that when I completed the preliminary information I was expecting a call from one lender or broker mortgage institution. To my dismay I have lost count from the many prospective loan mortgage brokers. I can safely say it is more than twelve. I am still getting calls from mortgage brokers at my office, my residence and my cell phone. At this point I have four messages from # I simply do not recognize of which I can safely say, these are mort brokers following up on the preliminary information.

This was an honest mistake and I would refrain from ever doing such an act- not realizing this approach is so counter productive, consumption of time and inordinate amount of time for so many mortgage brokers. This approach can be effective, moreover some restriction must be implemented to avoid flooding the consumer with so many calls.”

Furthermore, as a lot of us know from experience there are a lot of unqualified Loan Officers out there who over promise and under deliver. Some of you may have heard the phrase “bait and switch”. The more Brokers/lenders who call you the better odds you have of running into someone who is starving for business and will do what it takes to close the deal. When it comes to signing your loan documents it looks like something totally different than expected. However, is going through the loan process again worth the wait? Many times consumers say no and just close the deal because it is very similar to what other Brokers/Lenders were telling them.

Why This Is Bad For Mortgage Brokers/Lenders

Mortgage Brokers/Lenders are paying a premium for Internet Mortgage Leads as the demand for new business is growing quite rapidly due to the current market conditions. The Refinance and Purchase market has dried up for many and the Bottom Feeders are licking their chops as Mortgage Brokers/Lenders turn to Internet Leads for future business. Unfortunately, many are being taken to the cleaners while they compete with 10 or more companies. Often times mortgage brokers will pay for leads up front at amounts in the thousands for leads with no quality. Ultimately providing a no win situation for either the client or brokers/lenders.

A Remedy?

If you are the consumer applying on line do your due diligence

consumer not only needs to be pre-qualified they need to find a property that they like. We all know this may take a while as buying a home is a huge investment and is not something to be impulsive about. Loan officers want to close and close NOW! Depending on the company, Internet leads are sold as many as 5 times to lenders/brokers.

How Internet Lead Companies are Taking Advantage of the Consumer

First, you have companies such as Lending Tree and Lower my bills that have captured a large portion of the market when it comes to Lenders/Brokers competing for the consumer’s business. These companies have developed a name for themselves and have the resources to advertise pretty much anywhere they choose developing thousands of on-line applications per day throughout the United States.

Secondly, you have Bottom Feeders that do not have the capability to generate their own Internet Mortgage Leads. There are several ways that the Bottom Feeders make their money and these are the reasons why the consumer may receive a million phone calls and two million e-mails from the time they fill out the on-line application moving forward. The #1 way these companies make their money is by reselling leads. They simply purchase leads from other companies and resell them. For example: The Bottom Feeders buy a refinance mortgage lead for $20 acting as a lender/broker and resell that information, as a Mortgage Internet Lead company, to as many as 5 different lenders/brokers maybe even more. The multiplier effect is in use. If you have just two companies do this on one lead you are going to be receiving up to 15 phone calls from different lenders/brokers.

Why Is This Bad For Consumers

If the consumer is receiving more phone calls and e-mails than imaginable they are more often turned completely off from pursuing their original intention which was to purchase or refinance property. This is a quote I received form a loan originator’s prospective client.

“I was na?ve to believe that when I completed the preliminary information I was expecting a call from one lender or broker mortgage institution. To my dismay I have lost count from the many prospective loan mortgage brokers. I can safely say it is more than twelve. I am still getting calls from mortgage brokers at my office, my residence and my cell phone. At this point I have four messages from # I simply do not recognize of which I can safely say, these are mort brokers following up on the preliminary information.

This was an honest mistake and I would refrain from ever doing such an act- not realizing this approach is so counter productive, consumption of time and inordinate amount of time for so many mortgage brokers. This approach can be effective, moreover some restriction must be implemented to avoid flooding the consumer with so many calls.”

Furthermore, as a lot of us know from experience there are a lot of unqualified Loan Officers out there who over promise and under deliver. Some of you may have heard the phrase “bait and switch”. The more Brokers/lenders who call you the better odds you have of running into someone who is starving for business and will do what it takes to close the deal. When it comes to signing your loan documents it looks like something totally different than expected. However, is going through the loan process again worth the wait? Many times consumers say no and just close the deal because it is very similar to what other Brokers/Lenders were telling them.

Why This Is Bad For Mortgage Brokers/Lenders

Mortgage Brokers/Lenders are paying a premium for Internet Mortgage Leads as the demand for new business is growing quite rapidly due to the current market conditions. The Refinance and Purchase market has dried up for many and the Bottom Feeders are licking their chops as Mortgage Brokers/Lenders turn to Internet Leads for future business. Unfortunately, many are being taken to the cleaners while they compete with 10 or more companies. Often times mortgage brokers will pay for leads up front at amounts in the thousands for leads with no quality. Ultimately providing a no win situation for either the client or brokers/lenders.

A Remedy?

If you are the consumer applying on line do your due diligence

lion e-mails from the time they fill out the on-line application moving forward. The #1 way these companies make their money is by reselling leads. They simply purchase leads from other companies and resell them. For example: The Bottom Feeders buy a refinance mortgage lead for $20 acting as a lender/broker and resell that information, as a Mortgage Internet Lead company, to as many as 5 different lenders/brokers maybe even more. The multiplier effect is in use. If you have just two companies do this on one lead you are going to be receiving up to 15 phone calls from different lenders/brokers.

Why Is This Bad For Consumers

If the consumer is receiving more phone calls and e-mails than imaginable they are more often turned completely off from pursuing their original intention which was to purchase or refinance property. This is a quote I received form a loan originator’s prospective client.

“I was na?ve to believe that when I completed the preliminary information I was expecting a call from one lender or broker mortgage institution. To my dismay I have lost count from the many prospective loan mortgage brokers. I can safely say it is more than twelve. I am still getting calls from mortgage brokers at my office, my residence and my cell phone. At this point I have four messages from # I simply do not recognize of which I can safely say, these are mort brokers following up on the preliminary information.

This was an honest mistake and I would refrain from ever doing such an act- not realizing this approach is so counter productive, consumption of time and inordinate amount of time for so many mortgage brokers. This approach can be effective, moreover some restriction must be implemented to avoid flooding the consumer with so many calls.”

Furthermore, as a lot of us know from experience there are a lot of unqualified Loan Officers out there who over promise and under deliver. Some of you may have heard the phrase “bait and switch”. The more Brokers/lenders who call you the better odds you have of running into someone who is starving for business and will do what it takes to close the deal. When it comes to signing your loan documents it looks like something totally different than expected. However, is going through the loan process again worth the wait? Many times consumers say no and just close the deal because it is very similar to what other Brokers/Lenders were telling them.

Why This Is Bad For Mortgage Brokers/Lenders

Mortgage Brokers/Lenders are paying a premium for Internet Mortgage Leads as the demand for new business is growing quite rapidly due to the current market conditions. The Refinance and Purchase market has dried up for many and the Bottom Feeders are licking their chops as Mortgage Brokers/Lenders turn to Internet Leads for future business. Unfortunately, many are being taken to the cleaners while they compete with 10 or more companies. Often times mortgage brokers will pay for leads up front at amounts in the thousands for leads with no quality. Ultimately providing a no win situation for either the client or brokers/lenders.

A Remedy?

If you are the consumer applying on line do your due diligence

ismay I have lost count from the many prospective loan mortgage brokers. I can safely say it is more than twelve. I am still getting calls from mortgage brokers at my office, my residence and my cell phone. At this point I have four messages from # I simply do not recognize of which I can safely say, these are mort brokers following up on the preliminary information.

This was an honest mistake and I would refrain from ever doing such an act- not realizing this approach is so counter productive, consumption of time and inordinate amount of time for so many mortgage brokers. This approach can be effective, moreover some restriction must be implemented to avoid flooding the consumer with so many calls.”

Furthermore, as a lot of us know from experience there are a lot of unqualified Loan Officers out there who over promise and under deliver. Some of you may have heard the phrase “bait and switch”. The more Brokers/lenders who call you the better odds you have of running into someone who is starving for business and will do what it takes to close the deal. When it comes to signing your loan documents it looks like something totally different than expected. However, is going through the loan process again worth the wait? Many times consumers say no and just close the deal because it is very similar to what other Brokers/Lenders were telling them.

Why This Is Bad For Mortgage Brokers/Lenders

Mortgage Brokers/Lenders are paying a premium for Internet Mortgage Leads as the demand for new business is growing quite rapidly due to the current market conditions. The Refinance and Purchase market has dried up for many and the Bottom Feeders are licking their chops as Mortgage Brokers/Lenders turn to Internet Leads for future business. Unfortunately, many are being taken to the cleaners while they compete with 10 or more companies. Often times mortgage brokers will pay for leads up front at amounts in the thousands for leads with no quality. Ultimately providing a no win situation for either the client or brokers/lenders.

A Remedy?

If you are the consumer applying on line do your due diligence

l. When it comes to signing your loan documents it looks like something totally different than expected. However, is going through the loan process again worth the wait? Many times consumers say no and just close the deal because it is very similar to what other Brokers/Lenders were telling them.

Why This Is Bad For Mortgage Brokers/Lenders

Mortgage Brokers/Lenders are paying a premium for Internet Mortgage Leads as the demand for new business is growing quite rapidly due to the current market conditions. The Refinance and Purchase market has dried up for many and the Bottom Feeders are licking their chops as Mortgage Brokers/Lenders turn to Internet Leads for future business. Unfortunately, many are being taken to the cleaners while they compete with 10 or more companies. Often times mortgage brokers will pay for leads up front at amounts in the thousands for leads with no quality. Ultimately providing a no win situation for either the client or brokers/lenders.

A Remedy?

If you are the consumer applying on line do your due diligence and investigate the firm which you are applying with. Furthermore, combat this form of negligence by searching for actual brokers/lenders and contact as many as you wish directly so your phone is not ringing off the hook.