Loan Officer Magazine http://www.LoanOfficerMagazine.com

What You Don't Know Will Hurt You Did you ever wonder about the "outrageous" claims by the mortgage company down the street that they can close a refinance in 5 days and lo and behold -- you find out that they REALLY are closing loans in 5 days -- from application to closing? However, if you had taken the time to investigate their "secret" to quick closings, you would have found out that they require a 10-day right of recession period. Remember, 3 days is the MINIMUM number of days for the recession period -- but who ever said that there was a maximum number or days? Know what they are using those 10 days for? To collect conditions! Written By: Karen Deis

Combating Trigger Leads - Let's Level the Playing Field! Written By: Karen Deis In the April 20th issue, Marty Stroiman shared an idea on how he insures that other mortgage companies don't call his clients (whose loans are in process) and "lie" about the interest rates they have to offer. (Read the related article, "Random Notes - Easy Ways to Combat Trigger Leads".) Denese Weems of MileStone Mortgage implemented another strategy last year where she sends an email (she gets the email address of everyone she talks with) with a link to her "Privacy Warning" page. Her Privacy Warning page is a link to a page on her website and begins with the words... Warning - Your Personal Information is For Sale! Denese shares exactly what it says and has given permission, to subscribers, to copy her website page, word-for-word. She said, "...if loan officers unite and everyone does it, there won't be enough leads to make it profitable for the credit bureaus to continue selling leads." Here's what it says and here's the link to her website page: Written By: Karen Deis

The Real Truth About Sacks & HUD Settlement Written By: Karen Deis Brian Sacks is upset about the January 20, 2005 Editorial (click here to read) where we wrote that he was "fined" $1,500 by HUD for his "Refer a Friend" program. He actually paid a $1,500 "settlement" to HUD - claiming no admission of guilt or liability. If you want to read the entire settlement, click here. My intent was not to single out Sacks. My point in writing the editorial was to provide examples of RESPA violations and that even superstar originators and speakers don't get it right all the time. In fact, the RESPA police are currently investigating some of the marketing programs that have been used by some of the top producers in our industry. No one is immune. One last note - I recently received a call from a new loan originator who asked me how to generate leads. He was told by his broker to call on real estate agents, offer to pay their "desk fees" and then ask them to refer clients to them. The caller wanted to know if there was a "cheaper way" to get leads - other than having to pay $1,000 per month for the Realtors desk fee. Ignorance of the law is not an excuse. Copyright, 2005, LoanOfficerMagazine.com Written By: Karen Deis

What You Don't Know Can Hurt You - Pre-Screened Credit Offers! Written By: Karen Deis In October 2005, we published an article entitled, "Loans Stolen From Right Under Your Nose" and how it's perfectly legal for credit bureaus to notify your competitors that a person applied for a mortgage within 24 hours of YOU ordering a credit report on their behalf. The minute an inquiry for a mortgage is requested, credit bureaus simply let your competitors know (for a fee of course) that this person is looking for a loan. While they may not know the "type" of loan your clients have applied for with you, what they DO know is the dollar amount and mailing address. Last month, my husband applied to refinance our 2nd mortgage. In this article, we are providing copies of the letters (5 of them) he received in the mail within 10 days of applying for the mortgage. Yep, this is what your clients are getting in the mail after applying for a loan with you. We want to give you the "heads up" on the types of letters they are receiving and how you can sell against them. This article also includes the steps you need ot take to make sure YOUR clients aren't receiving the solicitation letters from your competitors by providing you with a script and suggested form for your clients to sign before you order a credit report. Read this article - view the letters sent by your competitors - You simply cannot afford to let this happen to you. Written By: Karen Deis

5 Ways to Spy on the Competition! Written By: Karen Deis OK! So, spying might be too harsh of a word! Before you say to yourself, "I'd never stoop so low as to spy on my competitors?" I would ask you "why not"? Don't think for one minute they have not done that to you! It's easier than ever to find out what other mortgage companies are doing and why you might be losing business to them. The Internet, TV and radio ads, newspaper and real estate magazines all contain "clues" on what the competition is up to. However, you need to go deeper than that! Why? Because knowing what they are doing will help you improve your skills and offer better mortgage products and services to your clients. More importantly - your income and your career depends upon it! True story: I called one of my competitors (on one of those fact-finding missions) and mentioned that I was talking to Karen Deis about getting a mortgage. The loan officer on the other end said, "I'd be careful working with her because she has been in the business only a short period of time - while I've been in the business for 5 years now!" Wow, I had been in the business for over 20 years and here this guy was lying. I wonder how many times he told other prospects the same lie. By the way, I'll tell you what I did about it at the end of this article. Here are 5 ways to examine exactly what your competitors are up to because you can't compete unless you know what you are competing against. So block your phone number so caller ID can't identify you. Hire a mystery shopper. And find out why you are losing deals to your competitors. Written By: Karen Deis

Keep Your Hands Off of My Clients! Written By: Karen Deis, with an interview with Danny Poulos, Elite Lending, Florida who is considered the expert in advertorial marketing. Subscribers can download, free, Danny’s latest advertorial “Mortgage Trolling: Don’t Get Caught”. Purchase 12 Advertorials for $99 Here. Are you sick and tired of your past customers calling you about the letters, emails and ads promising 1% interest rates? Or how about your NEW clients who get phone calls from other lenders right AFTER you have ordered their credit report? It’s happening to everyone and, well, Danny Poulos has had enough! (Have you?) He shares what he has done in telling consumers the REAL story about what it all means. Karen: You have been extremely successful in using “advertorials” both as a way to generate leads—but more importantly, getting the word out about how you are different than your competitors! Danny: As a small mortgage broker, I needed a way to compete against the “big dogs” who have tons of money and can afford to send out millions of mortgage solicitation letters, buy expensive “trigger leads” and combat “false advertising and interest rates”. Karen: Your latest advertorial is fantastic! Why did you write it? Danny: It’s called “Mortgage Trolling: Don’t Get Caught!” and it’s an advertorial that I also use as a flyer, too (which is sent to my past customers and affinity partners), about the mortgage advertising designed to mislead the consumer. The lead sentence says: "In nearly 20 years in the mortgage business, I have never seen so much mortgage advertising specifically designed to mislead the consumer. Lender and lead generation companies have ramped up their trolling by email, snail mail and phone. Dragging bait that all sounds too good to be true, these marketers lure in many unsuspecting homeowners. Even worse, if you’ve taken their rancid bait—just once—you may find countless solicitors all trying to reel you in.” “Here are some of the popular, common trolling techniques and how to identify them so you DON’T find yourself getting caught in their net!” (Subscribers can download the flyer "Mortgage Trolling: Don't Get Caught" free. Add your name and contact information. Purchase 12 advertorials for $99 here.) Karen: A friend of mine received a letter in the mail and it looked like it was from the State of Minnesota—looked like an official notice of some kind. However, it was a mortgage solicitation letter. (Click here to read Is This Marketing Letter Deceptive? Danny: But the point is that people get sucked into these types of letters and lies about interest rates and I want them to know that I’m their ADVOCATE in the mortgage business by telling them the TRUTH about deceptive mortgage advertising practices. Karen: What is covered in your advertorial? Danny: I talk about the 1% option arms, incorrectly quoted Annual Percentage Rates (APR’s) and trigger leads. I can’t tell you the number of phone calls I get from my applicants that accuse me of giving their information to other mortgage companies and THEY ARE UPSET WITH ME. This is a way of educating them ahead of time to disregard the calls from other lenders. TALK ABOUT MISLEADING ADVERTISING? Here's my personal favorite: "This property qualifies for the Economic Advantage Effective Interest Rate Reduction Program." WHAT A CROCK! But people fall for that! Karen: Danny, thanks for providing the copy of the advertorial free to subscribers—you also provide clients with “Privacy Protection” and direct them to your website to obtain a simple way to “Opt-Out” from the credit bureau selling their names. Danny: That’s the whole point of the ad – of course, it’s self-serving – but I’m also telling the truth! Karen: It’s a great flyer to send to your past clients who are being bombarded with letters, emails and phone calls. How else would you suggest that loan officer use it? Danny: I recommend sending to EVERYONE you know, including family, friends, insurance agents and financial planners. Include a copy in anything you mail to new or potential clients. This group will be solicited incessantly because they are new to the process. It explains why they need to ignore other lenders. They need to discuss with you—because you’ll tell them the truth! Karen: Thanks Danny and I have always thought your advertorials are THE BEST! Subscribers can continue this article and read contents of the advertorial. Download and easily add your name and contact info. It’s ready to print. Written By: Karen Deis

Capture Calls from Clients Whose Mortgage Company No Longer Exists. Written By: Karen Deis This is the very first time I’ve done this. I promised not to reveal my source for this interview. The reason is because she is in the process of getting the phone company to call-transfer all of the phone calls from past clients of mortgage companies who have gone out of business—directly to her! Hey, their old mortgage company is no longer in business. The defunct company’s loan officers are scattered with the wind. So, now is a great time to take advantage of the situation because I’m going to reveal to you the steps that she had taken to get those refinance and purchase calls transferred to her. I have shared this info with several loan officers. Some said they would never consider doing what she has done. Other loan officers, who have been in the business for a number of years, secretly revealed that they have been doing this for years (whenever a mortgage company closed their doors) and it’s been quite successful. So, read this interview, and YOU decide! Karen: How did you come up with the idea to get the leads and refis from the companies who are no longer in business? Loan Officer: I was thinking about all the mortgage companies who closed their doors in 2007 and was wondering where their past clients were going. I also wondered what happened to their phone numbers? Were they disconnected, call-forwarded, or did someone else get the phone number? Karen: What did you do next? Written By: Karen Deis

How to Research Your Competition. Written By: Karen Deis “I would never stoop so low as to spy on my competition.” one loan officer said to me recently. “Why not? Don’t think for a minute that they haven’t spied on you!” Yeah, you might hear comments about your competition from the real estate agents you work with. Your clients might reveal a thing or two about their encounter with “the other loan officer down the street”. But how can you ever know what your competition is REALLY doing, unless you do your own research. Many loan officers miss this critical step—especially when launching a new marketing campaign! Some assume they know what’s going on with their competitors. Others just take someone else’s word for it. The first step in launching a successful campaign or improving your selling skills is to find out EXACTLY how you stack up against your competition. Here are 7 ways to do your research so you are never blind-sided again! Ask for something. Call them on the phone. Ask for a good faith estimate. Ask them to explain a loan program. Ask for a copy of their free report to be sent to you. Take note of what they say, how they say it, how long it took you to get what you requested. How they follow up. Compare it to your own process and learn how you can improve your own business. (Be sure to block Caller ID by entering *67 before you dial.) Visit your competition. Written By: Karen Deis