Let me begin by saying that the lead generation/list sellers of leads (to mortgage loan officers) will probably never speak to me again, but I want to tell you my experience of "getting placed on one of those so-called HOT LISTS."

It all started when I received a fax advertising a 3.35%, 15-year fixed rate (there was no APR disclosure either). The fax provided no loan officer name, no mortgage company name—just a phone number.

As the true guerrilla marketing person that I am, I called the number to find out more about the mortgage deal of a lifetime, and gave them some information over the phone (name, address, phone number, mortgage balance—and that was about it!). The person at the other end of the phone told me that they were NOT a mortgage company, but that they collected information for mortgage companies and would pass my name on to those companies who would be able to help me (like they even asked enough questions to help me in the first place).

A few days later, I received my first (of many) telephone calls from a loan officer employed by one of the largest lenders in the US. The loan officer had the basic information that I had initially provided (that was my first clue that my lead had been sold), asked me a few more questions, but when I asked about the 3.35% rate, he went "silent" and really did not know what to say. I asked about closing costs, points, how long it would take to refinance (you know, the usual stuff) and asked for a good faith estimate to be faxed to me.

Within the next 2 weeks, I received no fewer than 8 telephone calls from loan officers who purchased the same lead from the list company. A handful of these loan officers were brand new to the business and really did not have a clue that they were about the 5^th person to call me.

What I found interesting is that the very FIRST loan officer to call me was from one of the largest mortgage companies. Now, it may be a coincidence, but my thought is that someone is paying top dollar to be the FIRST person to buy that lead. Are the larger mortgage companies getting first dibs? Is there a preferred list of loan officers? Just thinking out loud!

So, my advice, for what it’s worth, is that if your business plan depends on purchasing leads, you insist that you are the FIRST loan officer to purchase it. Even though you may be paying MORE money up front for the lead, it’s worth it to be the FIRST loan officer to make the call. Buying "mortgage leads" is an "art" and it seems like you should ask a few questions before plunking down a wad of cash.

The same story also applies for the mortgage refinance offers sent by email. The e-mail solicitation lists NO mortgage company name and tracing the source of the email in next to impossible.

Quite a bit of this SPAM is generated by list companies and I believe they make mortgage companies and loan officers look like used-car salesmen—only it’s over the internet and not jumping up and down in the auto dealer parking lot on TV.

My belief is that the list companies are lowering the perceived integrity of the mortgage industry by generating leads via SPAM over the Internet - all in the pursuit of generating lists!

By the way, I’m still waiting for the faxed good faith estimate.

Read More