Greg's original post hits on the several of the core premises of mortgage marketing. Multiple channels of marketing are key. New purchase, cash out, debt consolidation all can be found, even in today's market. The key is staying in front of the target market.
The post holiday period is a ripe one for obvious reasons ( credit card bills, over spending, New Year's resolution to actually "do something" this year).
This coupled with a changed in federal regulations that now allow credit card companies to double the minimum monthly payment requirements from 2% to 4% will be huge in getting some fence sitters in to play. The big "WHAMMY" of this legislation is the Universal Default clause. In a nutshell, if you go past 30 on any reporting creditor, the others without warning may accelerate your risk and charge you the most unfavorable terms they can offer by law.
Subprime borrowers have never been interest rate sensitive. They are need based borrowers that are concerned with " how much is monthly payment and how quickly can I get my check". 530 - 640 scores, $12k in revolving debt, LTV's below 80% (70% in TX). That's the demographic you should be targeting. No refi's in the last year too.
The "average" American household right now is carrying over $12k in credit card debt. Many of these folks are just making minimum payments - AND THEY JUST DOUBLED!!!
Direct Mail - while traditionally offering the lowest response rates can yield a lot of fruit. You must be smart about it though. After a 5 year boom in the mortgage market and re-fi's and cash out predominating, your target audience - the homeowner with debt and equity has seen a ton of direct mail, most of it bad, sad, and a waste of money.
If direct mail is going to work is has to be opened. Printing "IMPORTANT INFO REGARDING YOUR MORTGAGE" or other such teaser language on the envelope isn't fooling anyone. We've all seen these a hundred times over. We "pre-judge" this mail and it goes straight into the trash unopened.
The windowed envelope with the RE: Your "Insert their lender name here" - often called the Mirabella letter after the originator of this ploy, has been outlawed in some states because it falsely conveys an association with their lender.
Also for Greg - having your name on the return address is fine, listing your company's name on the envelope allows them to intelligently guess it's another mortgage offer, thus predisposing them to throw it away before they open it. You market consistenly and as a result your name has "brand" appeal. It's called institutional advertising. Greg is well recognized on these forums and I'm sure he brings the same attention to detail and focus to his marketing efforts - BRAVO! My guess is you get the desired benefit you want - they see your name - and a higher number of these folks will actually open it, thus getting you a better result.
This post will be continued. We are in the best business in the world. I wouldn't trade places or jobs with anyone.
Remember that effective marketing is continual. It isn't a one-shot deal. Most "Hail Mary" passes fall incomplete.
Make a plan, consult with smart mortgage marketers, get the best price you can - your ROI (and yes it is YOUR business) depends on getting the most benefit from the least amount spent. That doesn't mean go cheap, it means go smart.
Want to know who's got the best prices on leads, lists, internet leads,telemarketing and direct mail? Try leadsbid.com - it's free and has all the info you need in one place.
This board is a great resource, lets share ideas, best practices, and experience. We'll all benefit from it! Have a question, post it here or email me, I'll be happy to help.
The Bid Chief
bidchief@leadsbid.com
