According to the Sacramento Bee, the 3^rd Quarter 2011 Mortgage Fraud Index from MortgageDaily.com came in at 1170. The index represents activity on civil and criminal cases. Victim lenders were deceived by fraudulent documentation or inflated appraisals. Cases were tracked from the mortgage fraud blog FraudBlogger.com. According to Mortgage Daily founder Sam Garcia, “The Mortgage Fraud Index reflects current efforts by law enforcement officials to prosecute defendants who typically committed mortgage fraud three to five years ago.”

The number of cases with activity in Florida climbed, giving it the worst state fraud index. California had the second-highest index, followed by Minnesota.

Top States by Index

Based solely on the dollar amount of cases with 3^rd quarter activity, California’s $204 million was highest. MLV reported an increase in New York mortgage leads in 3^rd quarter as well.

Top States by Total Amount

What does this mean for lenders? If mortgage fraud decreases then likely banks will losen their home loan guidelines which could help increase loan origination. It also means that lenders and brokers should be investing in mortgage leads from a trusted source.  Read more: Mortgage Reform Article Published by the Sacramento Bee

There are several criteria that must be met to qualify for the updated Home Affordable Refinance Program, though. For instance, your current loan-to-value ratio must be greater than 80%. The new HARP program has no loan to value restrictions so more underwater homeowners have a new opportunity to refinance their mortgage.

The Lead Planet announced they were generating HARP leads and this is a good indication that the lenders are seeking underwater mortgage leads. We will be working with several lead generators in addition to the Lead Planet in an effort to improve mortgage marketing leads for lending sources across the country.

The changes to HARP mortgage program are intended to help homeowners who are current on their loans but have been unable to take advantage of historically low interest rates by refinancing because they are “underwater” on their mortgages.

Many underwriting factors have changed for mortgage lenders in the last few years, but the importance of a credit score could not be overestimated today. Since аll studies appear tо shоw thаt thе credit score systems accurately predict whеthеr а borrower shоuld bе approved fоr а mortgage loan, bоth Fannie Mae аnd Freddie Mac (thе twо institutions thаt purchase mоst mortgage loans nationwide) hаvе аdорtеd credit scoring guidelines fоr mortgage lenders whо sell loans tо thеsе agencies. Whіlе 620 usеd tо bе considered аn acceptable credit score fоr Fannie Mae аnd Freddie Mac, 680 іs nоw considered thе minimum score tо hаvе acceptable credit fоr thеіr programs. Тhоsе bеtwееn 620 аnd 680 іn thе current market will hаvе tо lооk tо thе FHA program fоr а mortgage unlеss thеу аrе making а dоwn payment оf аt lеаst 20%. The minimum credit score with FHA home loans is 500, but most FHA lenders require borrowers to have scores between 580 and 640.

In the past, Fannie Mae аnd Freddie Mac offerd home mortgage loans tо borrowers wіth credit scores bеlоw 620 but mоst оf thоsе programs аrе gone. With credit score considerations impacting home loan applications sо strоnglу, making surе one’s credit report іs accurate bесоmеs mоrе critical thаn еvеr. Іn thе раst, а borrower соuld simply оbtаіn documentation tо shоw thаt аn account wаs nоt late оr dіd nоt belong tо thе borrower аnd include іt іn thе application tо оbtаіn approval. Today, іf thаt іnfоrmаtіоn brings а borrower’s credit score bеlоw 620, еvеn іf іt іs nоt correct, thе borrower іs stuck untіl thе іnfоrmаtіоn саn bе removed frоm thеіr credit reports аnd thе report саn bе scored аgаіn. Тhе good news іs thаt mаnу credit reporting agencies usеd bу mortgage lenders саn nоw offer error corrections wіthіn а fеw days іnstеаd оf thе weeks аnd months thаt іt usеd tо take.

If аll incorrect іnfоrmаtіоn hаs bееn removed frоm а report аnd thе credit score іs stіll bеlоw 620, thе borrower will nееd tо work оn improving thеіr credit history оvеr аn extended period оf time (Ѕее article оn Strategies fоr Boosting Υоur Credit Score). Тhіs process соuld tаkе аnуwhеrе frоm оnе month tо three years depending оn thе severity оf thе problem. Тhе good news іs thаt оnсе borrowers reach 620 оr higher, thеу will іmmеdіаtеlу bесоmе eligible tо bе approved fоr аlmоst аll mortgage loan programs.

Borrowers whо nееd tо buy а hоmе іmmеdіаtеlу аnd саn nоt wait fоr thеіr credit scores tо improve аrе left wіth оnlу twо options. Оnе options іs tо search fоr оnе оf thе dwindling number оf mortgage lenders whо аrе nоt usіng credit scoring tо evaluate borrowers. Portfolio lenders will bе mоst lіkеlу tо bе thе longest holdouts іn adopting scoring systems. Тhе оthеr option іs tо move tо whаt іs called thе “Sub-prime” mortgage markets, whеrе borrowers wіth poor credit histories саn оbtаіn mortgage loans аt higher interest rates.

Finally, thеrе іs sоmе good news fоr borrowers wіth thе best credit scores. Маnу mortgage lenders аrе nоw offering borrowers thе chance tо save 1/8 оr 1/4 оf а point оff thе points fоr а fixed rate loan. Fоr а $200,000 loan, thіs savings саn translate іntо $250 tо $500 аt closing. Borrowers shоuld inquire іf thеіr lender hаs started а sіmіlаr program whеn submitting аn application.

• FHA Leads
• Mortgage Refinance Leads
• Purchase Leads

One reason to look into buying internet mortgage leads instead of obtaining them through other means is that they are more cost-effective.  While some online mortgage leads still cost more than others, you should be careful to understand how old the leads are that you are buying.  After all, the hottest leads—the ones that have not been contacted yet and still have a high probably of interest—are the best leads that will end up being the most lucrative.  Also, mortgage leads obtained online are more accessible than direct mail, radio, or television.  Everyone relies on the internet today, and you can bank on that when you buy your mortgage leads.

Cost-Effective and Accessible Online Mortgage Leads

One popular source to turn to is called Lending Tree.  This company was launched in 1998 and has provided 25 million brokers and borrowers with the chance to work together.  High-quality, cost-effective online mortgage leads can be acquired here.  Lead Planet is another direct lead company where you look into buying internet mortgage leads.  It is easy to request online mortgage leads here that are more accessible than direct mail, radio, or television.  With both of these options, you can choose filters, states, loan type, loan amount, and more.  Your final decision of whether to choose Lending Tree, Lead Planet, or another source altogether will be based on the cost-effective leads you are able to obtain based on the criteria you are searching for.

Online mortgage leads differ greatly in quality based on how old the leads are, whether or not they are recycled, if live transfer is available, and if the leads are provided in real-time.  If you can get your hands the best kinds of leads from Lead Planet or Lending Tree, your efforts will be most cost-effective.  It is clear that buying internet mortgage leads is in your best interest, but remember that the kinds of leads you obtain will be just as important as the method you choose for obtaining them.

I noticed that Loan Bright was sending out emails with the subject line, “Internet Leads Suck”. I had to give them credit because; I found it interesting that a lead generation company would send bulk-emails saying this. That’s like the Lakers doing a press conference leading with, Kobe Bryant is no good.”  As I continued to read more, they quickly turned it into a pitch to buy there leads but it got me thinking — They were right, internet mortgage leads can difficult to convert if you do not have the right approach. This type of mortgage marketing needs to have a pragmatic approach for successful loan origination.

Higher Conversions with Internet Mortgage Leads

The Mortgage Lead Vault provides a wide variety of home loan leads in all 50 states in an effort to help loan companies maximize the lending niches. Online mortgage leads can be tricky if you find yourself buying marketing from lead brokers rather than lead generators.

Find out why thousands of lenders, brokers and banks continue to purchase internet mortgage leads from MLV every year. Our internet mortgage marketing team generates thousands of mortgage leads every day.

  • Save money with a blended mix of refinance and purchase leads

  • Choose Filters like, rate and term refinance, cash out, home improvement, home purchase, etc.

  • Conventional, FHA leads, VA leads, USDA leads, Debt leads, Loan Modification Leads, etc.

  • No set up fees charged

  • Flexible policy for lead returns

  • Choose from Live, Real Time and Aged mortgage leads

Are you ready for internet mortgage marketing solutions that work? Let’s get started, call us now at 619-600-5720. 

The Mortgage Lead Vault has been arming loan originators since 2000. We had record year for mortgage lead generation in 2010, connecting nearly a million mortgage leads to over 5,000 lending companies nationally.

Tips for Mortgage Lead Generation

1. Align your company with a company that specializes in mortgage marketing.
2. Publish original content on your website that offers a benefit to the user.
3. If you are buying mortgage leads, make sure you are dealing with a direct source
4. Invest your marketing dollar with several lead companies.
5. Measure lead quality and track conversion rates from all mortgage lead companies

Section 129B further directs the Board to write lending regulations to prohibit:

• loan originators from steering a consumer to obtain a home loan that the consumer lacks a reasonable ability to repay;
• originators from steering a consumer to obtain a loan that has predatory characteristics (such as equity stripping, excessive fees, or abusive terms);
• loan originators from steering a consumer from a “qualified home loan” for which the consumer is qualified to a home mortgage loan that is not a qualified home loan;
• abusive or unfair lending practices that promote “disparities” among equally creditworthy borrowers based on race, ethnicity, gender, or age;
• home loan originators from mischaracterizing a consumer’s credit history or the available loans or mischaracterizing or suborning the mischaracterizing of the appraised value of the property securing the loan; and
• if a loan originator is unable to advise or recommend a loan that is not more expensive than the loan for which a consumer qualifies, discouraging a borrower from seeking a mortgage from another loan professional.

Read the entire article, > How the Dodd-Frank Bill Will Impact YSP and Broker Compensation

In 2011 there could be a shift in internet mortgage leads requested.  Here are what we forecast as the most sought after leads this year.

1. FHA Leads - This government program continues to support most brokers and lenders because the FHA mortgage programs have more flexible credit guidelines than conventional and jumbo loan products.

2. VA Leads - Once again, the VA loan product is the most aggressive loan for refinancing or buying. The only issue is that only military personnel, family or veterans qualify.

3.  Purchase Leads – The home buying market is coming back.  Rates remain very affordable and home prices have fallen to an appealing level for first time homebuyers and homeowners that plan to move in 2011.

4. Mortgage Refinance Leads – Let’s face it brokers and lenders are addicted to refinance leads but the volume will be down significantly from 2010 levels because rates are higher.

5. Reverse Mortgage Leads - There are still a lot of homeowners out there that will benefit from a reverse home loan.

Unfortunately there are many unscrupulous lead brokers out there that are will to sell you fake or over-sold leads with a lot of promises that are rarely kept.  We thought it would help you to provide you tips to buy online mortgage leads for higher conversions and better results.  Internet mortgage leads can be cost-effective marketing tools that can make your loan company very profitable, so consider the following tips below.  Buidling a relationship with a genuine online mortgage marketer can be very difficult.  When the mortgage market crashed a few years ago, most online lead companie went under because the attrition of mortgage lead buyers was so great.  Finding one that survived the market shake-down will be a challenging but crucial task for those in charge of a marketing busget for a loan company.

1. Find a Lead Company that Generates their own Mortgage Leads Online.  These types of marketing companies have control over their leads inventory and specifically how many times the leads are sold.  We recommend working with a mortgage lead company that has daily inventory and owns multiple websites.

2. Compare the Terms of Lead Companies – You need to know the return policy of the company you are buying leads from.  Any good mortgage lead generation company will not accept a return if applicants don’t like your rates, but most will offer you credit if the information is bogus or the person doesn’t own a home or the applied for a cash out refinance. Another good reason for returning the lead would be if the home was a mobile home and the applicant had completed the application as if they had a SFR home on a permanent foundation.

3. How Many Times the Leads Are Sold – You want to buy leads from a company that is not selling the same lead more than 4 times.  Companies like the Lead Planet are selling their leads 1 to 3 times and the Lending Tree continues to sell their leads 4 times.  Some lead companies are selling the same lead 10 times.  Stay away from this, because you can imagine how irked the applicant would be if 10 different loan companies were hounding them.

4. Buy Leads from Multiple Sources – Even if you have a lead source that produces good mortgage leads, make sure you are buying leads from a few different sources.  Internet marketing results fluctuate, so even the good lead generators have down days, weeks or months.  Do not put all your marketing eggs in one basket.

At a time when foreclosure rates are sky-rocketing and the process for funding a loan has become ridiculous — Is this what we need to escape the housing crisis? I think not, but nonetheless, the article puts forth the home loan programs they see playing a role in financing and home mortgage refinancing in 2011.  When buying mortgage leads consider these trends and adjust your marketing accordingly.

• FHA Loans – These government home loans will continue to help new home buyers because of the small down-payments needed to buy a home. Forget about the rising insurance costs and FHA rates, FHA is the only program the average consumer has available to buy a home.
• VA Loans – This program remains accessible to vets and active military personnel with flexible guidelines that can’t be beat.
• Conventional Mortgages – If the rates continue with their current trend, most mortgage lenders will be bored in 2011 for the lack of business.

Loan professionals may have some challenges ahead of them, so buying mortgage leads that perform is more important than ever.  Make sure that you are evaluating marketing and mortgage lead performance more than ever. Read the complete article from the Home Loan Wholesale Blog > 2011 Home Loan Programs