Another thought for Loan Agents

For many years loan agents have enjoyed prosperity due to lower interest rates and vast amounts of borrowers who wanted to drop the interest rates on their homes. "Refi Mania" we called it. Now, as the interest rates climb gradually, the loan industry is beginning to get tougher and tougher for loan agents. New business is difficult to find but there are a few options to keep in mind and possibly pursue.

Marketing Real Estate Agents
Some loan agents are marketing real estate agents to assist in producing loans for new buyers. This is not easy. Real estate agents are constantly wooed by everyone looking for business; title companies, insurance companies and extremely competative loan agents with big company backing.

There was a time when loan agents would pick up a realtor's child from day care and then swing by to pick up the realtor's clothing at the cleaners on their return trip to deliver the child. Pretty demeaning, but it was cheap marketing and the loan agent was frequently remembered and referred when a borrower wanted to buy a home.

Today, real estate agents are not allowed to take gifts from vendors, leaving only the most expensive ideas for marketing their business. Some realtors ask loan agents to co-market buy splitting advertising, holding new buyer seminars, buying advertising in movie houses on the big screen, developing and producing flyers or buying space on shopping carts and billboards. This develops a relationship only ONE real estate agent and is not at all cost effective for the loan agent. Many times loan agents don't get any business at all for the expense they put forth. A marketing like this will enhance the relationship with only one agent. In order to survive a tough market a loan agent must find a way to develop a relationship with many real estate agents easily and quickly.

Niche Marketing with Reverse Mortgages
Learning about and developing a niche market might be a better idea. This is why we suggest reverse mortgages. 95% of the loan agents in today's market still have not discovered this great niche market and know nothing about it. You still have time to get in on the ground floor.

There are a number of companies offering reverse mortgage training such as; Wells Fargo, Financial Freedom, American Reverse Mortgage in Florida, Liberty Street in San Diego and Seattle Mortgage. In the reverse mortgage arena your market is all about the "Baby Boomers" which opens up a vast array of clients. Your money is well spent on marketing you instead of begging for business from realtors.

When you think about your own client database, how many of them are seniors? Look at your 1003's and see how many are 62 or older and still live in their home. Even if one is older and one is younger there is a strategy. (Review our blog on Reverse Mortgages & Trust Documents) These are people who already know and trust you. Review their loans and ask them, contact them and simply ask, "Would prefer to receive a check every month from the bank rather than write a check?" I wonder how many would say yes. Perhaps their situation has changed and they are having difficult making their payments. Maybe they've retired or lost a spouse.

'D' Paper Loan Agents
The last idea is not much fun but it does pay well. Most loan agents want only to work with 'A' or 'B' paper borrowers. Few want to work with 'D' paper. So, this would be another niche. There are a vast amount of borrowers with 'D' paper. These are the ones with tons of debt and bad credit. Beware that you could put in many hours and lots of credit counciling and still not fund the deal. No funding means no income for your pocketbook.

The odds are in the numbers. The more you turn the more money you make. Many loan agents who work these deals carry paper and charge high interest rates for 'hard money'. The best part is that suddenly real estate agents call you and you don't need to chase them.

Out of the 3 suggestions the Reverse Mortgage niche might be the best route. The Baby Boomers are savy, you already know their background, they already know you and all you have to do is develop a plan and learn to work it. Good Luck!